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HomeMy WebLinkAbout899818Return To: FIRST INTERSTATE BANK P.O. BOX 40, CASPER. WY 82602-0040 8 9 ,C) 8 I 8 Prepared By: LYNN GREEN BOOK RECEIVED LINCOLN COIJNTY CLERK Oh,t!m-2 P~i 3:23 [Space Above Tiffs Lhie For Recording Data] MORTGAGE DEFINITIONS Words used in nmltiple 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 m'e also provided in Section 16. (A) "Security Instrument" mea:'~s this document, which is dated May 25, 2004 together with all Riders to this document. (B) "Borrower" is DAVID 3. BELCHER, A MARRIED PERSON IN HIS OWN RIGHT Borrower is the mortgagor urlder this Security Instrument. (C) "Lender" is FIRST INTE%TATE BANK Lender is a A CORPORATION organized and existing under ithe laws of STATE OF MONTANA 47BELCHER, DO4 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~}®-fiiWY) (0005) :~:~)/~/..~ Page 1 of 15 MW 05/00.01 Initials -- VMP MORTGAGE FORMS - 800)521¢7291 r Form 3051 1/01 Lender's address is 842 w BROADWAY. JACKSON. WY 83001 Lender is the inorrgagee under tlr is Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated May 25. 2004 The Note states that Borrower owes Lender One Hundred Seventy 5ix Thousand Three Hundred Seventy Five:ahd no/100 Dollars (u.s. $175,375.00 ) plus interest. Borrower has pronfised to pay this debt in regular Periodic Payments and to pay the debt tn ~ull not later than JLlrle 1, 2034 (E) "Property" means the pr~perty that is described below under the heading "Transfer of Rights in the Property. ' (F) "Loan" means the debt ex idenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Eorrower [check box as applicable]: r~ Adjustable Rate Rider [] Condominium Rider [---] Second Home Rider [~ Balloon Rider F~-] Planned Unit Development Rider [~ 1-4 Family Rider F--] VA Rider [-~ Biweekly Payment Rider ['~ Other(s) [specify] (It) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative roles and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dr'es, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other tlian a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or mag:Setic 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, transf~irs initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means th)se items that are described in Section 3. (L) "Miscellaneous Proceeds' means any compensation, settlement, award of damages, or proceeds paid by any third party (other than ins.trance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; '(iii) conveyance in iieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/Or condition of the Property. (M) "Mortgage Insurance" mea~s insurance protecting Lender against tbe nonpayment of, or default on, the Loan. (N) ,'Periodic Payment" memm the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Rea/. Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulat,on X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, %'.ESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage lban" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. 47BELCHER DO4 (~-6(WY) (ooo§) Page 2 of ~5 Form 3051 1/01 ~,j (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successcl,rs and assigns, with power of sale, the following described property located in the COUNTY of L I NCOLN : [Type of Record!rig Jurisdiction] [Name of Recording Jurisdiction] LOT 45 OF NORDIC RANCHES DIVISION NO. 4, LINCOLN COUNTY. WYOMING ACCORDING TO THAT PLAT FILED AUGUST 9. 1994 IN THE OFFICE OF THE LINCOLN COUNTY CLERK AS INSTRUMEN¥ NO. 787903. PLAT 311C. Parcel ID Number: 12-361~d-26-1-00-045.00 which currently has the address of 734 SADDLE DRIVE lS,ree,l ETNA [City] , Wyoming 83118lZip Code] ("Property Address"): TOGETHER WITH al:~ the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant ired convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrow~er warrants m~d will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenanl and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due tl~e principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note Borrower shall also Pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as pay_rn, ent under the Note or this 47BELCHER, DO4 Inidats: (~-6{WY) (ooos) Page 3 o~ ~5 Form 3051 1/01 Security Instrument is returned ro 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 following forms, as selected by Lender: (a) cash; (b) money order: (c) certified check, bank check, treasurer's check or cashier's check, provided an)' such check is drawn upon an institution whose 'deposits are insured by a federal agency, instrumentality, ar entity; or (d) Electronic Funds Transfer. Payments are deemed re,¢e~ved 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 LenLler is not obligated to apply such paymeuts at the time such payments are accepted. If each Periodic Pay~nent 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 makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note irmnediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the 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 Periediz Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due 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 i~ate 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 excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone 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 paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments a~d other 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 required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and 'Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay ttie Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts 47BELCHER. 004 . ~ ~-6(WY) Iooo5) Page 4 of ~5 Form 3051 1/01 '-40-.3 due for any Escrow Items for which payment of 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 "covenant and agreement" is used in Section 9. If Bott*wet is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Bo.t'rower shall then be obligated under Section 9 to repay to Lender any such amount. Lender [nay revoke the waiver as to any or all Escrow Items at any time by a notice given 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 ~n an amount (a) sufficient to permit Lender to apply the Funds at the time specified ruder RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of experditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be h,fld in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank'.. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law perm:.ts Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires ir~terest 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 writing, however, that interest shall be paid on the Funds. r,'~ender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA.i: If there is a surplus oflFunds held in escrow, as defined under RESPA, Lender shall account to BorrOwer for the excess fu'ndi in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Leqder shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary !o make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required b:y RESPA, and Borrower shall pay to Lender the amount necessary to make · up the defimency in accordanc.e with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund 'to Borrower any Funds held. b7 Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property w)dch can attain priority over this Security Instrument, leasehold payments or ground' rents on the Property, .if shy, and Comnmnity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has 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 Borrower is perfornfing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures ['rom the holder of the 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 47BELCHER. DO4 (~-6(WY) (0005) Initial$;~'~ Page 5 of 15 Form 3051 1/01 · . 470 lien Within 10 days of the daie on which that notice is g~ven, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Bo:rower 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 Ir'ss by fire, hazards included within the term "extended coverage," and any other hazards including, but r.ot limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maint~.ined in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires 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 Borrowers choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone deternfination, certification ard tracking services; or (b) a one-time charge tbr flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any tees imposeci by the Federal Emergency 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 option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might [:rovide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost o~ the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could .qave obtained. Any amounts disbursed by Lender under this Section 5 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. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender require, s, Borrower shall promptly give to Lender all receipts of paid premiums attd renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds 'until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse, proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with 47BELCHER. DO4. ~_~ IIlilial$: (~I~-6{WY) 100o51 Page 6 ot ~5 Form 3051 1/01 .-': 4'71 the excess, if any, paid to Bgrrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. IDBorrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the.notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Bbrrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, 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 an~ounts 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 aftra the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for 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, dan~age or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Sect~en, 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Prope~y if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are l?id in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repmring or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburi;e proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent m~y 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 the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Jkpplication. 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 Len~ter with material information) in connection with the Loan. Material representations include, but are not linfited to, representations concerning Borrower's occupancy Of the Property as Borrower's principal residence. 9. Protection of Lendei'~S Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform' the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that m~ght, 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 whic!t)may attain priority over this Security Instrument or to entbrce laws or regulations), or (c) Borrowe: has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate tC 'protect Lender's interest in the Property and rights under this Security Instrument, including protect')ng and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actio~ts can include, but are not limited to: (a) paying any sums secured by a lien which has priority over thi)Security Instrument; (b) appearing in court; and (c) paying reasonable 47BELCHER DO4 '~ Initials (~)~-6(WY) 100051 :, Page 7 of 15 Form 3051 1/01 attorneys' fees to protect its '.nterest 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 ;epairs, change 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 ]nay take action under this Section 9, Lender does not have to do so and is not under any duty or obligation' to do so It is agreed that Lender incurs no liability for. not taking any or all actions authorized under this Section 9. Any amounts disbursec lay Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. .; If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee 'title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger i.n writing. 10. Mortgage Insurance, If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases ~o be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for. Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance Coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, uie and retain these payments as a non-refundalale .loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanc:ing; the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower an'y 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 thai Lender requires) provided by an insurer seleated by Lender again becomes available, is obtained, and Lender requires separately designated paymerls toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of mai:tag the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance,. Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such te:~mination 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 may incur if Borrower does nc4 repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate'their total risk on all such insurance in force from time to time, and may enter-into agreements with other parties that share or inodify their risk, or reduce losses. These agreements are on terms and conditions/hat are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using' any source of funds that the mortgage irisurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lefider takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the".arrangement is often termed "captive reinsurance." Further: (a) Any such agreements ~ will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amonnt Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. 47BELCHER, DO4 (~-6(WYI (ooo5) ' Ini[ials:~ , Page 8 of ~5 Form 3051 1/01 (b) Any such agreeme~.ts will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance uuder ~:he Homeowners Protection Act of 1998 or any other law. These rights may include the right to ~'eceive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to havle the Mortgage Insurance ternfinated automatically, and/or to receive a refund of any Mortgage Inscwance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of MLqcellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid t3 Lender. If the Property is damaged;, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an oppgrtunity 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 pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If thc restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, witl: the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided 2br in Section 2. In the event of a total taking, destruction, or loss in value of the ProPerty, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial ~aking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the mnount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender olherwise agree in writing, the sums secured by this Security Ingtrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following ~¥action: (a) the total amount of the sums secured immediately before the partial taking, destruction, .. or loss in value divided by (b) the fair market value of the Property immediately before the partial!taking, destruction, or loss in value. An3' balance shall be paid to Borrower. In the event of a partial ~aking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction,-or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security ~,Inltrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellar.eous Proceeds or the party against whom Borrower has a right of action in regard to Miscellm~eous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result, in forfeiture of the Property or other material impairment of Lender's interest in the Property or rig.~tS under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, rei~state as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impaim~ent of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proce~ed8 that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 47BELCHER.D04 (~)~-6(WY) Iooo5~ Initials; ~ Page 9 of 15 Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of avc.o~;tization 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 of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwme modify amortization of the sums secur.,~d by this Security Instrument by reason of any demand made by the original Borrower or any Successors ivy: Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without lhnitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrewer or in amounts less than the mnount 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) is co-signing this Security Instrument only to mar3:gage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations wfth regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions 'of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under ~.:his Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The' covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the succe::;sors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the pt:rpose 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 fees. 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 prohibit~ed by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is .finally interpreted so that the ipterest or other loan .zharges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Bo::rower. Lender may choose to make this refund by reducing the principal owed under the Note or by ?aking a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment 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 any right of action Borrower might have arising out of such overcharge. 15..Notices. All notices 'given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to 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 .means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless'Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of'address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one desig'~ated 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 another address by notice to Borrower. Any notice in 'connection with this Security ]/nstrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 47BELCHER. DO4 (~-6(WY) (ooo5) Pag, lo of ~5 ~"-" Form 3051 1/01 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrmnent are subject to any. requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it rnight be silent, but such sileace shall not be construed as a prohibition against agreement by contract. In the event that any provision or:clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security 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 w.~rsa: and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Ptoperty or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" me:~ms any legal or beneficial interest ii1 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 0f Which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Preperty or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a :beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender ~nay invoke any remedies permitted by this Security Instrument without fl.'~rther notice or demand on Borrower. 19. Borrower's Right.to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right 'tO have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b)'suzh other ~ period as Applicable Law nfight specify for the termination of Borrower's right to reinstate; Vr (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if~no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fee~, property inspection and valuation fees, and other fees incurred for the pm-pose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in tbe Property mid rights under this Security Ins'~rnment, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue michanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of ~he following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, [rea~surer's check or cashier's check, provided any such check is' drawn upon an institution whose deposits lare 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 a} if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration Under Section 18. 20. Sale of Note; Change ~of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be givexi written notice of the change which will state the name and address of the new Loan Servicer, the address, to which payments should be made and any other information RESPA 47BELCHER. 004 Inilriais: ~ (~)~-6{WY) Iooo5) Page ~ of ~5 Form 3051 1/01 476 requires in connection with a notice of transfer of servictng. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer ether than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with'the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser: Neither Borrower nor Ler~der may commence, jotn, 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 to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrun~ent, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the 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 paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the nonce 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. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solver ts, 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 def'med in Envirotm~ental Law; and (d) an "Environmental Condition" means a conditicln 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 rele'ase any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, mything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not appl7 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 the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Ev~vironmental Law of which Borrower has actual 'knowledge, (b) any Environmental Condition, including but not linfited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, 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 regulatgry authority, or any private party, that any removal or other remediation of any Hazardous Substance affqcting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Enviromnental Law.. Nothing herein shall create any obligation on Lender for an Environmental ('21~anup. 47BELCHER. DO4 (~-6(WYI Iooo~i} P.~e ~ 2 of ~ s Form 3051 1/01 NON-UNIFORM COVEt,4ANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not Prior to acceleration under Section !81 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 h'om the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date ~pecified in the notice may result in acceleration of the sums secured by this Security Instrument ands sale of the Property. The notice shall further inform Borrower of the right to reinstate after accel'e~'ation and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security InstrUment without further d~emand 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 the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of ithe sale to Borrower in the nmnner provided in Section 15. Lender shall publish the notice of sale, land the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee raay purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitt.:ed' under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming 47BELCHER.D04 (~-6(WY) 1ooo5~ Page 13 of 1 5 initials:ll~d Form 3051 1/01 BY SIGNING BELow, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in a~y Rider executed by Borrower and recorded with it. Witnesses: DAVID J. BE[(3HER (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower 47BELCHER. DO4 (~6(WY) {0005) Page 14 of 15 Form 3051 1/01 479 STATE OF WYOMING, The foregoing instrument was acknowledged before me this byDAVID O. BELCHER My Commission Expires: Notaryt Public County ss: May 25. 2004 47BELCHER. DO4 (~J~-6(wY) (ooo5~ Page 15 of 15 Form 3051 1/01 FIXED/ADJUSTABLE RATE RIDER (One-Year Treasury Index - Rate Caps - Fixed Rate Conversion Option) THIS FIXED/ADJUSTABLE RATE RIDER is made this 25th day of May, 2004 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned ("Borrower") to secure Borrower's Fixed/Adjustable Rate Note (the "Note") to FIRST INTERSTATE BANK. A CORPORATION ("Lender") of the same date mad covering the property described in the Security Instrument and located at: 734 SADDLE DRIVE .ETNA,WY 83118 [Property Address] THE NOTE PROVDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME .AND THE MAXIMUM RATE BORROWER MUST PAY. THE NOTE ALSO CONTAINS THE OPTION TO CONVERT THE ADJUSTABLE INTEREST RATE TO A NEW FIXED RATE: ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE :~.ND MONTHI, Y PAYMENT CHANGES The Note provides for mi initial fixed interest rate of 5. 0000 %. The Note also provides for a change in the ig. itial fixed rate to an adjustable interest rate, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHI, Y PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rare on the first day of 3une, 2011 , and the adjustable interest rate I will pay may change on that day every 12th month thereafter, The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on'which my adjustable interest rate could change, is called a "Change Date." MULTISTATE FIXED/ADJUSTABLE RATE RIDER - ONE-YEAR TREASURY INDEX CONVERTIBLE - Single Family - Fannie Mae Uniform Instrument IIII I Il Iltl IIII IIII !111 IIII (B) The Index Beginning with the first Change Date, nay adjustable interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one-year, as made available bY the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding Two and Five / Eighths: percentage Points ( 2. 6250 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125 %). Subject to the limits stated in Section 4(D) below, this rounded ambunt will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that 1 am expected to owe at the Change Date in full on the 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. (I)) Limits on Interest i~Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than ]_0. 0000 % or less than 2. 6250 %. Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more than two percentage points from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 10.0000 %, which is called the "Maximum Rate." (E) Effective Date of Qhanges My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning i)n 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 the change in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any change. 'The no, rice will include the amount of my monthly payment, any information required by law to be given to me and also the titl~ and telephone number of a person who will answer any question I may have regarding the notice. B. FIXED INTEREST R)~TE OPTION The Note provides for Borrower's option to convert from an adjustable interest rate with interest rate limits to a new fixed interest rate, as follows: (~844R (0006) Page 2 of 5 Initials:J~,/~ *' F~rrn 3183 1/01 5. FIXED INTEREST RATE CONVERSION OPTION (A) Option to Convert to Fixed Rate I have a Conversion Op:Jon that I can exercise unless I am in default or this Section 5(A) will not permit me to do so. The "Conversion Option" is my option to convert the interest rate I am required to pay by this Note from an adjustab'e rate with interest rate limii s to the fixed rate calculated under Section 5(B) below, The conversion can only t~ke place on the first, second or third Change Date. Each Change Date on which my interest rate can convert from an adjustable rate to a fixed rate also is called the "Conversion Date." I can convert my interest rate otfly on one of these three Conversion Dates. If I want to exercise the Conversion Option, I must first meet certain conditions. Those conditions are that: (i) I must give the Note ltolder notice that I want to do so: (ii) on the Conversion Date, I must not be in default under the Note.or the Security Instrument; (iii) by a date specified by the Note Holder, I must pay the Note Holder a conversion fee of U.S. $].00.00 ; m~d (iv) I must sign and give the Note Holder any documems the Note Holder requires to effect ~he conversion. (B) Calculation of Fixed ~'.ate My new, fixed interest rate will be equal to Fannie Mac's required net yield as of a date and time of day specified by the Note Hol:ler for: (i) if the original ten~ of this Note is greater than 15 years, 30-year fixed rate first mortgages covered by applicable 60-day mandatory delivery commitments, plus five-eighths of one percentage point (0.62~'; 5~,), rounded to the nearest one-eighth of one percentage point (0.125 %); or (ii) if the original term of this Note is 15 years or less, 15-year fixed rate first mortgages covered by applicable 60-day mandatory delivery commitments, plus five-eighths of one percentage point (0.625 %), rounded to the nearest one-eighth of one percentage point (0.125%). If this required net yield cannot be determined because the applicable commitments are not available, the Note Holder will determine my interest rate by using comparable information. My new rate calculated under this Section 5(B) will not be greater than the Maximum Rate stated in Section 4(D) above. (C) New Payment Amount and Effective Date If I choose to exercise t~he' Conversion Option, the Note .Holder will determine the amount of the monthly payment that would be sufficient to repay the unpaid principal I am expected to owe on the Conversion Date in full on the Maturity Date at my new fixed interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. Beginning with my first monthly payment after the Conversion Date, I will pay the new amount as my monthly payment until the Maturity Date. C. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, or after Borrower exercises the Conversion Option under the conditions stated in Section B above, Uniform Covenant 18 of the Security Instrument shall read as follows: Transfer of the Praperty or a Beneficial Interest in Borrower. 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 b,:neficial interests transferred in a bond for deed, contract for deed, Initials.'~ (~844R (0006) Page 3 of 5 Form 3183 1/01 installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date ro a pnrchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this optmn shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 2. When Borrower's iv. itial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, and until Borrower exercises the Conversion Option under the conditions stated in Section B above, Uniform Covenant 18 of the Security Instrument described in Section C1 above shall cease to be in effect, and the provisions of Uniform Covenant 18 of the Security Instrument shall be amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. 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 :geneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part Of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) Without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to'be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably deternfines 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 reqmre 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 obligated 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 Initials: ~ (~844R (0006) Page 4 of 5 ' Form 3183 1~01 ' 4.34 the date the notice is given in accordance with Section 15 within which Borrower must pay all sums sqcured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice 07 demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Fixed/Adjustable Rate Rider. DAV I D O. '~F/ELCHER -~o=ow~r. -~o,-row~r (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~844R (0006) Page 5 of 5 Form 3183 1/01 PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNF[ DEVELOPMENT RIDER is made this 25th day of May 2004 , and is incorporated into ,'md shall be deemed to amend and suppl6ment the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the stone date, given by the undersigned (the "Borrower") to secure Borrower's Note to FIRST INTERSTATE BAN~(. A CORPORATION (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 734 SADDLE DRIVE .ETNA.WY 83118 [Property Address] The Property includes, but is not limited to, a parcel of land improved with a dwelling, together with other such parcels and certain common areas and facilities, as described in LANDOWNERS PROTECTIVE .COVENANTS, CONDITIONS AND REGULATION FOR NORDIC RANCHES (the "Declaration"). The F'roperty is a part of a planned unit development 'known as NORDIC RANCHES [Name of Planned Unit Developmen0 (the "PUD"). The Property also includes Borrower's interest in the homeowners association or equivalent entity owning or managing the common areas and facilities of the PUD (the "Owners Association") and the uses, benefits and proceeds of Borrower's interest. PUD COVENANTS. In addition to the covenants and agreements made in the Security Instrument. Borrower and Lender further covenant and agree as follows: A. PUD Obligations. Borrower shall perform all of Borrower's obligations under the PUD's Constituent Documents. TLe "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or regulations of the Owners Association. Borrower shall promptly pay, when due, all dues and assessments .imposed pursuant to the Constituent Documents. 47BELCHER. DO4 MULTISTATE PUD RIDER - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ~/~,~rm 3150 1/01 Page 1 of 3 ini[ials:~7/~L (~7R (0008) MW 08/00.01 VMP MORTGAGE FORMS - (8001521-7291 B, Property Insurance. So long as the Owners Association maintains, wiih a generally accepted insurance carrier, a "master" or "blanket" policy insuring the Property which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for the periods, and against loss by fire, hazards included within the term "extended coverage," and any other hazards, including, but not limited to, earthquakes and floods, for which Lender requires insurance, then: (i) Lender waives the provisior in Section 3 for the Periodic Payment to Lender of the yearly premium installments for property insurance on'the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance 7overage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. What Lender requires as a condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blaaket policy. In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to conmaon areas and facilities of the PUD, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply the proceeds to the sums secured by the Security Instrument, whether ot not then due, with the excess, if an),, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, an~ount, and extent of coverage to Lender. D. Condemnation. Th,~ proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connecL on with any condemnation or other taking of all or any part of the Property or the conm~on areas and facilities of the PUD, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except alter notice to Lender .and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the PUD, except for abandonment or termination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condenmation or eminent domain; (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the express benefit of Lender; (iii) termination o:? professional management and assumption of self-management of the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Ow:-ters Association unacceptable to Lender. F. Remedies. If Borrower does not pay PUD dues and assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. 47BELCHER,D04 (I~;'~. iooo~ Initials: Page 2 of 3 Form 3150 1101 BY SIGNING BELOW, Bc,rrower accepts and agrees to the temps and provisions contained in this PUD C--~ider. -Borrower -Borrowe[ (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower 47BELCHER. DO4 1~;7. iooo8} Page 3 o! 3 Form 3150 1/01