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HomeMy WebLinkAbout899797#30416(02) Return To: F[lEMONT INVESTMENT & LOAN P.O. BOX 34078 F ,,E[ITO,. 28 4-3407 9 9 7 9 7 Prepared By: BARBARA LICON RECEIVED LIHOOLF, f COIJNTY CLERK 7000104625 [Space Above This Line For Recording Data] MORTGAGE ..... MIN 1001944-7000104625-8 DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) '!Security Instrument" means this document, which is dated Ma y together with all Riders to this document. (B) "Borrower" is KAREN Y. Itl[liE, A SINGLE ~OMAN 21, 2004 Borrower is the mortgagor trader this Security Insa'ument. (C) "MERS" is Mortgage ETectronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender mid Lender's successors and assigns. MERS is the mortgagee under tltis Security Instrument. MERS: is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Bo~c 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS ~®-fiA(WY) (000~) VMPMORTGAGEFORMS.(aO0)571.7291 Form 3051' 1101 355 (D) "Lender" is FRENDN' INVESTMENT & LOAN Lender is a CORPORATION organized and existing under the laws of CA L I FORN I A Lender's address is I 175 hi. RIVERVIEW DRIVE, ANAHEI. H CA 92808 (E) "Note" means the promissory note signedby Borrower and dated blay 21, 2004 The Note states that Borrowe.r owes Lender 0ne Ilundrefl Sixty-Four lhousand and hie/100 .... Dollars (U.S. $ l § 4, D O O. CO ) plus interest. Borrower has promised to pay this debt in regular Periodic Paylnents and to pay the deb':: in full not later than dune 1, 2034 (F) "Property" means the property that 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, and all sams due under this Security Instrument, plus interest. (H) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by 'Borrower [check box as applicable]: ~] Adjustable Rate Rider [--] Condominium Rider ~ Second Home Rider ~] Balloon Rider ~] Planned Unit Development Rider ['--] 1-4 Family Rider ~ VA Rider ["-t Biweekly Payment Rider ~ Other(s) [specify] (I) "Applicable Law." means all controlling applicable rede[al, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (21') "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed 9n Borrower or the Property by a condominium association, homeowners association or similar organizahon. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper ~nstrnment, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wke transfers, and automated 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) condemnanon or oth er taking of all or any part of file Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means file regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts ruder Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be mnended from time to time, or any additional or successor legislation or regulation that governs the stone subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related ~nortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~-OA(WY) (0005) Pago 2 of 15 mm als: K/~ Form 3051 1/01 (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borro.wer's obligations und er the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument sec.~res to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the' Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, With power of sale, the following described property located m the County of LINCOLN [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF. Parcel ID Number: 3418052031300 46 LAST CHANCE CR TItAYNE CP roperty Address"): which currendy has the address of lStreetl [Cityl , Wyoming 8 312 7 [Zip Code] TOGETHER WITH all the ~mprovements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall 'also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds ouly legal tide to the interests granted by BorroWer in this Security Ins~ument, 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 Property; and to take any action requked of Lender including, but not limited to, :eleasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the tide to the Property against ~ claims and demands, subject ::o any encumbrances of record. THIS SECURITY IN£:TRUMENT co~nbines uniform covenants for national use and non-uniform covenants with hlnited variations by jurisdiction to constitute a uniform security instrmnent covering real property. Page 3 ol 15 I n ilials :~""~ Form 3051 1/01 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Prindpa!L, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when ~ue the principal of, interest on, t and the debt evidenced by the Note and ,'my prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Pay;nents due under the Note and this Security Instalment 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 made in one or more of the ~ollowing forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check il drawn upon an institution whose deposits are insured by a federal agency, ins [rumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated [o apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower m~es payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such fnnds or return them to Borrower. If not applied earlier, such rinds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower mtght have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Pay~nents or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lepder shall be applied in die following order of priority: (a) interest due under the Note; (b) principal due under.the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in th:e order in which it became due. Any retnaining amounts shall be applied l'kst to late charges, second to any c, ther amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one:Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any! excess exists after the payment is applied to the full payment of one or more Periodic Payments, such e~cess may be applied to any late charges due. Voluntary prepayments shall be applied fkst to any prepay~nl~nt charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or pos,pone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is ~aid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and bther items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and 'all insurance requirt~d by Lender under Section 5; and (d) Mortgage Insurance premimns, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These ite~ns are callexl "Escrow Items." At originatiou or at any time during the term of ~'~e 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 furnish to Lender all notices of an~ounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. ,'~ny such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Initials: (~-6A(WY) (ooos) t Page 4 el lS ' Form 3051 1/01 Funds has been waived by lender and, if Lender requires, shall furnish to Lender. receip ts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "c:)venant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items direcfly, pursuant to a wmver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such mnount and Borrower shall then be obligated under Section 9 to repay to I,ender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice gi~;'en in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and ~in such amounts, that are then required under this Section 3. Lender may, at any time,, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lenfer shall estimate the amount of Funds due on the basis of current data and reasonable estimates of exper ditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, insm~mentality, or en fit), (including Lender, i;Y Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shah ap;2ly the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not c~arge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower ~nterest on the Funds and Applicable Law permits Lent'er to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writtng, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus cf Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shail pay to Lender the amount necessar~ to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there i'~ a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrmnent, Lender shall prompdy refund to Borrower any Funds held by Lender. 4. Charges; Liens. Eorrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property ,vhich can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall prompffy discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to.the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as ][;orrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement ,')f the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the ~ien while: those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of ithe lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which Can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 ~-6A(WY) Iooos) Page 5 el 15 Form 3051 1/01 days of the date on which ~hatlnotice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in thi~; Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against los!~ by fire, hazards included within the term "extended coverage," and any other hazards including, but not ~.imimd to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the mounts (including deductible levels) and for the periods that Lender requires. What Lender requi:es pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's cheice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connec'fion with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or ce~tification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emxgency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's opti6n and Borrower's expense. Lender is under no obligation to purchase any particular type or mnount-of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower:s equity in the Property, or the contents of the Property, against any risk, hazard or liability and might pre, vide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost~iof the insurance coverage so obtaiaed might significantly exceed the cost of insurance that Borrower cor'Id have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Bprrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date cf disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting pay~ent. All insurance policies irequired, by Lender and renewals of such policies shall be subject to Lender's right to disapprove such p31icies, shah include a standard mortgage clause, and shall name Lender as mortgagee and/or as an add,itional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requhies, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obthins any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall nmne Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carder and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender zmd Borrower otherwise agree in writing, any insurance proc~.eds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lesslened. During such repair and restoration period, Lender shall have the right to hold such insurance proceedi~ 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 the work is ccmp2eted. 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 interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or, Lender's security would be lessened, the insurance proceeds shall be applied to I~-~ A(WY) ~ooo~} ! Page 6 of 15 Form 3051 1/01 the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance prc'ceeds shall be applied in the order provided for in Section 2. If Borrower abandons rte Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is gi~',en In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby ~ssigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right lo any refund of unearned premiums paid by Borrower) 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 amonnts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence fi)r at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair thz Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall mmntain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that rep,ur or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further daterioration or damage. If insurance or condemnation proceeds are paid m connection with damage to, ,or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disbi~rse proceeds for the repairs and restorati6n in a single payment or in a series of progress payments as the work is completed. If the insurance !~r condemnation proceeds are not sufficient to repair or restore file Property, Borrower is not relieved of Borrower's obligation tbr the complet/on of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at file time o1' or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false:, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representat~0ns concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection o~' Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform' the coveuants and agreements contained in this Security Instrument, (b) there is a legal proceeding that migh; significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrowe:.' has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's acfiom can include, but are not limited to: (a) paying'any sums secured by a lien which has priority over this Se:urity Instrument; (b) appearing in court; and (c) paying reasonable (~)~-6A(WY) (0005) Page 7 of 15 Initials :XT,//~ Form 3051 1/01 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 Property to make repairs, clange locks, replace or board up doors and windows, drain water from pipes, eliminate building or other~Code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take qtction under this Section 9, Lender does not have to do so and is not under any duty or obligauon to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Sectior, 9. Any mnounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument ~s on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee ti~'e to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insnrar~ce. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the prenfiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance cov,'erage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to fl.~e .IV.~ortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the:: Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the mnount of the separately designated payments that were due when file insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage ~nsurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ulti~nately paid i'a full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and L~inder requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making file Loan and Borrower was required to make separately: designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums requked to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower trod Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 'affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it ~nay incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers eva!uate their total risk on all such insurance in force from time to time, and may enter into agreements with o. her parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions thai are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agree~nents may require the mortgage insurer to make payments using any source of funds that the mortgage insurer mgy have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these ag:::eements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share, of the insurer's risk in exchange for a share of file premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or a~y other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mor'tgage Insurance, and they will not entitle Borrower to any refund. (~}~-tA(WY) (OddS) ! Pag~ a o~ zs Form 3051 1/01 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act ol' 1998 or any other law. These rights may include the right to receiv{, certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscell~eous ~oceeds ~e hereby ~sign~ to ~d sh~l be paid IO Lender. If ~e Property is dmag ed~ such Miscell~eous Proceeds shall be applied to restoration or rep~ of ~e ~operty, if ~e restoration or rep~ is economically legible ~d Lender's security is not lessened. D~ng such repMr ~d restoration F. eriod, Lender shM1 have ~e right to hold such Miscellaneous ~oceeds until Lender has had ~ opportuni:y to inspect such Property to ensure ~e work has been completed to Lender's satisfaction, provided fl~at such inspection shill be under~en promptly. Lender may pay for ~e rep,s m~d restoration in a single disbursement or in a series of progress paymenm ~ ~e work is completed. Unless agreement is made in writing or Applicable Law requires interest to be p~d on such Miscell~eous Proceeds, Lender shall not be requked to pay Bo~ower ~y interest or e~nings on such Miscell~eous Proceeds. If ~e restoration or rep~ is not economicMly feasible or Lender's security would be lessened, ~e ~scell~eous ~oceeds shM1 be apphed to ire sums secured by ~is Security Ins~ument, whe~er or not ~en due, wi~ fl~e excess, if any, pMd to Bo~ower. Such ~scellaneous Proceeds shM1 be applied io ~e order provided for in Section 2. In ~e event of a to~ ~ing, des~ucfion, or loss in value of fl~e Property, fl~e Miscell~eous Proceeds shill be applied to ~e sums secured by tiffs Security Ins~mnent, whe~er or not then due, wifli ~e excess, if ~y, p~d to Bo~ower. In ~e event of a pmfi~ ~ing, des~ucfion, or loss in vMue of fl~e Property in which fl~e fak m~ket value of ~e Property immediately before fl~e pmfiM ~ng, des~uction, or loss in v~ue is equM to or greater · ~ ~e mnount of fl~e sums secured by ~is Securi~ Ins~ument immediately belbre ~e pmfiM ~ing, des~uction, or loss in vMue, unldss Borrower ~d Lender o~erwise agree in writing, ~e sums secured by ~is Security Ios~ument shall be reduced by ~e mount of ~e Miscellaneous Proceeds multiplied by fl~e following fraction: (a) ~e to~ ~noant of ~e sums secured immediately before &e pmfial ~ing, deseucfion, or loss in vMue divided by (b) file fair m~ket value of fl~e Property immediately before ~e pmfial ~ing, des~ucfion, or loss in v~ue. Any ~bal~ce sh~ be p~fid to BO~ower. In ~e event of a pmfi~. ~ing, des~uction, or loss in value of file Property in which ~e f~ mmket vMue of ~e ~operty immediately before ~e pmfiM ~ing, des~ucfion, or loss in valae is less fl~ ~e amount of ~e sums secure& immediately before ~e pmfiM raking, des~ucfion, or loss in value, unless Borrower and Lender o~erw'ise agree in writing, file Miscellm~eous Proceeds shM1 be applied to ~e sums secured by tiffs Security Instalment whe~er or not ~e sums ~e ~en due. If file ~operty is ab~d, sned by Bo~ower, or if, alter notice by Lender to Bo~ower ~at file Opposing Pmty (~ defined in ~e next :;entence) offers to m~e ~ awed to settle a claim for dmages, Borrower fails to respond to Lender wi~in ~30 days dter ~e date ~e notice is given, Lender is authorized to collect and apply ~e Miscell~eous ~oceeds eider to restoration or rep~ of ~e Property or to ~e sums secured by Security Ins~ument, whe~er or not ~en due. "Opposing P~tty" means ~e ~kd p~ty ~at owes Bo~ower Miscellaneous ~oceeds or ~.~ p~ty against whom Borrower has a right of action in regmd to Miscellaneous Proceeds. Bo~ower shall be in d~;fault if ~y action or proceeding, whefl~er civil or criminM, is begun flint, in Lender's judgment, could result in forfeiture of ~e Property or o~er materiM impakment of Lender's interest in ~e ~operty or righ~ under tiffs Security Ins~ument. Bo~ower c~ cure such a default ~d, if acceleration h~ occu~ed, reinstate as provided in Section 19, by causing tim action or proceeding to be dismissed wi~ a ruliug ~at, in Lender's judgmeut, precludes forfeiture of ~e Property or o~er material' imp~ment of Lender's interest in fl~e Property or figh~ under tiffs Sec~ity Ins~ument. The proc~ds of ~y awmd or claim for dmages ~at me at~ibuw.ble ~o ~e i~np~ment of Lender's interest in file ~operty me hereby assigned ~d shall be paid to Lender. All ~scell~eous ~oce.eds fllat ~e not applied to restoration or repair of ~e Proper~ shall be applied in ~e order provided for in S¢~cfion 2. (~)~-6A(WY) (0005) Paga 9 ot 15 Initials:, Form 3051 1/01 ': ;= Li 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest O~ Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Bon?ower or to refuse to extend time for payment or otherwise modify amortization of file sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors m Interest of Borrower or in amounts less than file amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's 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) ~s co-sigmng 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 n3t personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without file co-signer's consent. Subject to the provisions ot Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in wriung, and is approved by Lender, shall obtain all of Borrower's rights and benefits under fids Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed m connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation lees. In regard to any other fees, 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. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that file interest or other loan charges collected or to be collected in connection w~th the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by file amount necessary to reduce file charge to the permitted limit; and (lb) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepaynltent without any prepayment charge (whether or not a prepayment charge is provided for under the Note)~. Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of ax~y right of action Borrower might have arising out of such overcharge. 15; Notices. All noticei; given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice toI Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other me,ms. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly i:equires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's chan&: of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated mlother address by notice to Borrower. Any notice in connection with this Security Instrmnent sh~l not be deemed to have 'been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. tI~)~-6A(WY) (ooos) Pago ~oot ~5 Form 3051 1/01 16. Governing Law; S~ver.ability; 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 obliganons contained in this Security In!strument are subject to any requirements and limitations of Applicable Law. Applicable Law 'might explicitly or implicitly 'allow the parties to agree by contract or it might be silent, but such silence shall not be cons~ued as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions o~~ this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to h~ke any action. ~ 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" ~nezns any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of whicl~ is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the ]?roperty 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 till sums secured by this Security Instrument. However, this option shall nol be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this op~on, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less ~han 30 days from the date the notice is given in accordance with Section 15 within which Borrower must 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 Security Instrument without further noilce or demand on Borrower. 19. Borrower's Right, to' Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right, to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry ora judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, bnt not limited to, reasonable attorneys' fees, property inspection and. valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and r.:ghts under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation totpay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as 'selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any ~such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrumen0 can be sold one or more times without prior notice to Borrower. A sale ~night 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 other mortgage loan servicing obligations tinder the Note, this Security .Instrument, and Applicable Law. There 'also might be one or more changes of the Loan Servicer unrelated tdl a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments sl;ould be made and any other information RESPA requires in connection with a (~6A(WY) Initlals:~ Page 11 of 15 Form 3051 1/01 notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the N'~)te, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transfe:red to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant [o 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, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the olher party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragral;h. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. ttazardous Subslances. As used in this Section 21' (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in Lhe 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 alt L~nvironmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of [lie Property (including, but not limited to, hazardous substances in consumer products). Borrower shall prompt.[y give Lender written notice of (a) any invesngation, clztim, 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 (~,ubsmnce, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environment~al Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. (~-6A(WY) (0005) Page 12ol 15 I nllial~: KX~ Form 3051 1/01 NON-UNIFORM COV ~NANTS. Borrower and Lender further covenant anti agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of an) covenant or agreement in this Secority Instrument (hut not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to core the default on or before the date specified in the notice may result in acceleration of tile sums secnred by this Security Instrument and sale of tile Property. The notice shall fl~rther inform Borrower of tile right to reinstate after acce eration and the right to bring a court action to assert the non-existence of a default or any other defen~e of Borrower to acceleration and sale. If the defaolt is not cored on or before the date specified in the notice, Lender at its option may reqnire immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes tile power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, it' different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in tile manuer provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed 'by Applicable Law. Lender or its designee may Purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums Secured by this Security Instrument; aud (c) any excess to the person or persons legally entitled to itel ~ 23. Release. Upon pay~nent of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instru:nenl, but only if the tee is paid to a third party for services rendered and the Charging of the fee is permitli.',d urider Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming, ~¥6A(WY) (0005) Page 13of 15 Form 3051 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms as~d covenants contained in this Security Instrument and in m~y Rider executed 'by Borrower and recorded with it. Wimesses: (Seal) KAREN Y. ItlltlE -Borrower (Seal) (Seal) (Seal) -Borrower -Borrowe~ (Seal) (Seal) -Borrower -Bortowe[ (Seal) (Seal) -Borrower -Borrower (~)~6A(WY) (00051 : Page ~4 al tS Form 3051 1/01 STATE OF WYOMING, TETON The foregoing instrument was acknowledged before me this 21 s t d ay o f byKaren Y. Ririe County ss: Hay, 2004 My Commission Expires: 9-15-07 Notary Public I~-6A(WY) ooos) Page 15 of 15 Initials:. Form 3051 1/01 ADJUSTABLE RATE RIDER THIS ADJUSTABLE RATE RIDER is made this 21 s t day of bi a ¥ 2 0 0 4, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed ([lie "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustabl:~ Rate Note (the "Note") to FREMONT INVESTMENT & LOAN (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 46 LAST CHANCE CIRCLE THAYNE, WY 83127 [Property Address] THIS NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN MY INTEREST RATE AND MY MONTHLY PAYMENT. INCREASES IN THE INTEREST RAT8 WILL RESULT IN HIGHER PAYMENTS. DECREASES IN THE INTEREST RATE WILL RESULT IN LOWER PAYMENTS. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for tm initial interest rate of §. 2 5 0 changes tn the interest rate and the monthly payments, as follows: %. The Note provides for 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the f i rst day of June 200fi and on that day every sixth month thereafter. Each date on which my interest rate could change is called a "Change Date." MULTISTATE ADJUSTABLE RATE RIDER - Single Family (~)r~899 R (0009) 1/01 Page 1 of 5 Initials VMP MOFIIGAGE FORMS - (800)52'1-7291 ' 70 (B) The Index Beginning wi[h the fir:;t Change Date, my interest rate will be based on ,'m Index. The "Index" is: tile average of interbank offered rates for six-month U.S. dollar-denominated deposits in the London market ("LIBOR"} as published in the WALL STREET JOURNAL. ' The most recent Index ligure available as of [he date: ~] 45 days ['-~ before each Ch ange Date is c flied file "Cun'ent Index." If the Index is no longer available, the Note Holder will choose a a*ew Index Ihat is based upon comparable information. The Note Holder will give me notice of [his choice. (C) Calcnlation of Changes Before each Change Date, the Note Holder will calculate my ].ew interest rate by adding Six and Ninety-Nine Hundredths percentage points ( fi. 9 9 0 O %r~tO the Corren t Index. The Note Holder will [hen round die result of flits addition to die ~] Nearest I I Next Highest ~ Next Lowest On ~--E i ghth ( 0.1 2 5 %). Subject to file limits stated in Section 4(D) below, fids rounded amount will be my new interest rate until die next Change Date. The Note Holder will dmn determine die amounl of die monthly payment that would be sufficient to repay d~e unpaid principal I m~ expected to owe at the Change Date iu full o:~ fl~e maturity date at my new interest rate in substantially equal payments. Tile result of this calculation x~ill be the new anaount of my monthly payment. [~] Interest-Only Period The "Interest-only Per}cd" is die period fi'om [he date of [his Note dlrougl N/A For die interest-only period, after calculating my new mlerest ]'ate as provide.l above, the Note Holder wili fl~en determine the amount o" die monthly payment that would be sufficient Io pay the interest which accrues on d~e unpaid principal of m.y loan. The result of this calculation will be thc new mnount of my monthly payment. The "Amortization Per/~d" is the period after [he interest-only period. Fo: the amortization period, after calculating my new interest ~ate as provided above, [he Note Holder will [heu determine [he amount of the monLbly payment that would be sufficienl to repay [he unpaid principal that I am expected to owe at file Chmlge Date iu full on [he Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (~)<~899R (0009) Page 2 o[ 5 Initials: (D) Limits on Interest Rate Changes (Please check appropriale boxes; if no box is checked~ there will be no maximum limit on changes.) [--~ (1) There will be ho rr, aximum limit on interest rate changes. [~ (2) The interest rate I mn required to pay at the first Change Date will not be greater than 9.250 % or less than 6.2500 . subsen.nnt%' ~ (3) My interest rate will never be increased or decreased on any lil~l~ Change Date by more than One and One.;-Hal f percentage points ( 1.500 ri %) from the rate of interest I have been paying for the preceding period. [~ (4) My interest rare will never be greater than 13. 2500 %, which is called the "Maximum Rate." ~ (5) My interest rate will never be less than 6. 2500 %, which is called die "Minimum Rate." [~] (6) My interest ra~e will never be less than the initial interest rate. ~] (7) The interest rate I am required to pay at the first Change Date will not be greater than 9.250 % or less than §. 2500 s u u t %. Thereal:ter, [ny interes! rate will never be increased or decreased on any ~ ~l~ange Date by more than One and One-Hal f percentage points ( I, 5000 %) from the rate of interest I have been paying for the preceding period. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes, The Note Holder will deliver 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 information reqnired by law to be given to me and ~;~so the title and telephone number of a person Who will answer any question I may have regarding the notice. (~899R (0009) Page 3 of 5 Initials: ..072 B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 18 of the Security Instrument is amended to read as follows: . Transfer of the P:roperty or a Beneficial Interest in Borro~ver. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of Which is the transfer of title by Borrower at a future date to a purchas(,,r. If all or any part o? the Property or any Interest in the Property is sold or transferred (or if a 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 fidl 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. Lender 'also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate file intended transferee as if a new loan were being made 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 permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's. consent to the loan assumption. Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep · all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligate:d under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from file date the notice ~s gxven ~n accordance with Section 15 within which Borrower must pay all sums secured by this .Security Instrument. If Borrower fifils to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrmnent without further notice or demand on Borrower. (~899R (0009) Page 4 of 5 Initials: BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. ~c~)~/~ ~'-~a (Seal) (Seal) K/~R EN Y. FI I It I E -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~(~899R (0009) Page 5 of 5 EXHIBIT "A" LEGAL DESCRIPTION Lot Eighty-nine (89) in Star Valley Ranch Plat Seventeen (17) as platted and recorded in the official records of Lincoln Cc,unty, Wyoming. File Number: 30416 Laud Title Company Attached Legal Description Page I o/~lw~' ..... ~