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HomeMy WebLinkAbout899889Return To: Bank of Star Valley P.O. Box 8007 Afton, WY 83110 888-589-9500 Prepared By: P.O. Box 8007 Alton, WY 83110 888-589-9500 [Space Above This Line For Ile~ording Data] MORTGAGE MtN RECEIVED LINOOLk~ COUi",JTY CLERK 001603504 100049200000014891 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 June 1st, 2004 together with all Riders to this document. (B) "Borrower"is Ernest Lane Townsend and Carolyn Joyce Townsend husband and wife Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electroriic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. IV[ERS is organized and existing under the laws of Delaware, and has an address and telephone nmnber of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. WYOM lNG-Single Family-Fannie I~~ aelFr~.ddie (~®-6 A(WY)(ooo5).o~ Mac UNIFORM INSTRUMENT WITH MERS Form 3051 1101 (D) "Lender"is Bank of Star Valley Lender is a Wyoming Cor[~or:ation organized and existing under me laws of Lender's address is P.O. Bc.,x ~3007, The State of Wyoming Afton, WY 83110 (E) "Note" means the promissory ',note signed by Borrower and dated June 1 s~c, 2004 The Note states that Borrower owes Lender One Hundred Forty One Thousand Five Hundred and no/100. ~ Dollars (U.S. $ 141,500.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in fitll not later than June 1st, 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 sums 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 E;orrower [check box as applicable]: [--] Adjustable Rate Rider [-~ Condominium Rider ['~ Second Home Rider ~ Balloon Rider ~'~ Plarmed Unit Development Rider [~ 1-4 Family Rider ~ VA Rider ~ Biweekly Payment Rider ~-] Other(s) [specify] (I) "Applicable Law" mean~ all controlling applicable federal, 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. ' (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed or. Borrower or the Property by a condominium association, homeowners association or similar organiz~.tion. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, d[aft, or similar paper instrument; which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, 'transfi:~rs initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceed."," n-cans any compensation, settlement, award of damages, or proceeds paid by anythird party (other than ins~rance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction o[ the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condenmation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the ProPerty. (N) "Mortgage Insurance" nleans insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" meaqs the regularly scheduled an~ount due for (i) principal and interest under the Note, plus (ii) any amounts urlderlSection 3 of this Security Instrument. (P) "RESPA" means the Rea~ Es:ate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Re~:ulation X (24 C.F.R. Part 3500), as they might be amended from time to ti~ne, or any additional or successor legislation or regulation that governs the sane subject matter. As used in this Security Instrument, "I~ES?A" refers to all requirements and restrictions that are imposed in regard to a "federally related mortga'ge l~an" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~I~-6A(WY) (ooos).o~ Page 2 or,5 ,,t,' Form 3051 1101 (Q) "Successor in Interest of B~rrower" means any party that ]las 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 TH E 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 th~ Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee! fo:r Lender and Lender's successors and assigns) and to the successors and assigns of MERS, wit. h power of sale, the following described property located in the County Clerk of Lincoln County Clerk · [Type of Record ir g Jv. risdiction] [Name of Record lng Jurisd iction] Lot 9 of Star Valley Ranch Plat 9, Lincoln County, Wyoming as described on the official plat thereof. Parcel ID Number: ("Property Address"): Thayne 122 Alpine Way which currently has the address of [Street] [Ci~] , Wyoming 83127 [Zip Code] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Pr>perry." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee fc'r 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 required of Lende:r including, but not limited to,~ releasing 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 c3nvey'the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject tc any encumbrances of record. THIS SECURITY 1NST?,UMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. (~1~-6 A(W Y)(ooo5).o~ Page3o~5 ~ Form 3051 1/01 695 UNIFORM COVENANTS. Borrower and Lender covenant m~d agree as fbllows: 1. Paytnent of Princil~al,, 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 chm~ges 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 payment under the Note or this Security Instrument is returnet to Lender unpaid, Lender may require that any or all subsequent payments due nnder 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 any sttch check is drawn upon an institution whose deposits are insured by a federal agency, instrumentaliq,, or entity; or (d) Electronic Funds Transfer. Payments are deemed re,:ei;,/ed 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 ~nay accept any payment or pa,'tial 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 L :nc'er is not obligated to apply such payments at the time.snch 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 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 tinder the Not~ immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Ins':rument or performing the covenants and agreements secured by this Security Instrument. ~ 2. Application of Paymeats 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 tinder the Note; (b) pri.m:ipt,l due tinder the Note; (c) amounts due under Section 3. Such payments shall be applied to each PeriC~dic Payment in the order in which it became due. Any remaining amounts shall be applied first to late/:barges, second to any other an~ounts due under this Security Instrument, and then to reduce the principal bHance of the Note. If Lender receives a pa,.,ment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay anY flare 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 fi'om Borrower to the repaymmt of the Periodic Payments it; and to the extent that, each payment can be paid in full. To the extent thai any excess exists after the payment is applied to the full payment of one or more Periodic Pay,nents, suc? 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 paymen's, 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 l(:enn.s. 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 and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents 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 prenfiums in acco,'dar,ce 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 Coinmunity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be m~ Escrow Item. Borrower shall promptly filrnish to Lender all notices of amounts to be paid under this Section. B)rr0wer 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. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts 11~-6 A {W Y)(0005),0~ Page 4 of 15 Form 3 0 51 1101 '.. '-,.6'90 due for any Escrow Items for Which payment of Funds ha/s been wmved by Lender mid, if Lender requires, shall furnish to Lender receipt.:; 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 Borrower 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 Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke t~ae '.a, aiver as to any or all Escrow Items at any ti~ne by a notice given in accordance with Section 15 ar'd, upon such revocation, Borrower shall pay to Lender all Funds, and in such mnounts, 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. Lender sh;lll estimate the amount of Funds due on the basis of current data and reasonable estimates of expent':itules of future Escrow Items or otherwise in accordance with Applicable Law. . The Funds shall be he:'.d in an institution whose deposits are ihsured by a federal agency, instrumentality, or entity (inclt!ding Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Le(,der 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, 9r verifying the Escrow Ite~ns, unless Lender pays Borrower interest on the Funds and Applicable Law permits~ Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires int'~res'; to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Fuads. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. L.mder shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Func~s held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in a;;cordance 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 shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is ~.. 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 Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Boxrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has 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 Bonower is perfornfing such agreement; (b) contests the lien in good faith by, or defends against enforce'nentlof 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 flora the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security lnstrmnent. If Lender determines that any part of the Property is subject to a lien which can attain priority over :his Security Instrument, Lender may give Borrower a notice identifying the (~-$ A(W Y) Page 5 ot I 5 Form 3 0 51 1 I01 lien. Within 10 days of the da~"e cn which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth a!)o~..e in this Section 4. Lender ma~y require Bo:ro~ver to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in cormection with this Loan. 5. Property losurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against l'oss by fire, hazards included within the term "extended coverage," and any other hazards including, but riot limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be mainlain'ed in the amounts (includiug 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 ~3roviding the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrowei"s';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 arid ~:racking services; or (b) a one-time charge for flood zone determination and certification services and~ su:bsequent 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 fees imposed 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, ard Borrower's expense. Lender is under no obligation to purchase any particular type or amount of :overage. Therefore, such coverage shall cover Lender, but might or inight not protect Borrower, Borrow~r':~ equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost o" tke insurance coverage so obtained might significantly exceed the cost of insurance that Borrower coule, have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Bmrower secured by this Security Instrument. These amounts shall bear interest at tbe 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 o£ such policies shall be subject to Lender's right to disapprove such pol:.cies, 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:;, Borrower shall promptly give to Lender all receipts of paid prelniums and renewal notices· If Borrower 'oblains 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 t:nd/or as an additional loss payee. In tile event of loss, Borroxver shall give prmnpt notice to tile insurance carrier and Lender. Lender may make proof of loss if no;. mhde promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proc¢ee~s, 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 lessered. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds unlil Lender has had an opportunity to inspect such Property to ensure the work has been completed te' 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 x~ork: is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid or such insurance proceeds, Lender shall not be required to pay Borrower m~y interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out olf the ~nsurance proceeds and shall be the.sole obligation of Borrower. If the restoration or repair is no'.. economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to tlhe ~;ums secured by this Security Instrument, whether or not then due, with I~-6A(WY) (ooos).o~ P~j~6ol~s '1~' Form 3051 1101 .. 698 the excess, if any, paid to Bor:'ower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the P'operty, Lender may file, negotiate and settle any available insurance claim and related matters. If E~ormwer 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, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance pol:cies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower s?:all occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instniment and shall continue to occupy tbe 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 nnless extenuating circumstances exist which are beyond Borrower' s control. 7. Preservation, Mainttnance and Protectiou of the Property; Inspections. Borrower shall not destroy, damage or impair the [roperty, allow the Property to deteriorate or co~nmit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall m;aintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Sectioa 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property' if damaged to avoid further deterioration or dmnage. If insurance or condemnation proceeds are paid ir. connection with damage to, or the taking of, the Property, Borrower shall be responsible for repair!ng or restoring the Property only if Lender has released proceeds for such purposes. 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. If the insurance or condemnation proceeds are not sufficient to repair or restore the Proper~y, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may: make reasonable entries upon and inspections of the Property. If it has reasonable cause; Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of Br 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, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Pro~ection of Lender'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 might 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 tbrfeiture, for enforce~nent of a lien which may' attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower 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 actions can include, but are not limited to: (a) paying any sums secured by a lien which bas priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable (~;I~-6A(WY) (0005).01 ' Page 7 o~:5 ~(~ Form 3051 1/01 attorneys' fees to protect its ir~terest in the Property and/or rights under this Security Instrument, including its secured position in a ban~ruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to lnake repairs, 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 m'ay take action tinder this Section 9, Lender does not have to do so and is not under any duty or obligation ':o d,o so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this [:ection 9. Any amounts disbursed .by ,Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instr~lmdnt. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payabl!e, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrum~-nt is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee ti".le to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger if writing. 10. Mortgage Insurance, If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premirms required to maintain the Mortgage Insurance in effect. It; ~br any reason, the Mortgage Insurance cover:~ge required by Lender ceases to be available from the mortgage insurer that previously provided such ins~rance 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 equiva.ent 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 b3~ 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, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstandi'ng the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower anyl 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 Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums ~?or 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 tbr such termini~tion 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 not 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 [,arties that share or modify their risk, or reduce losses. These agreements are on terms and conditions tl":at 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 fimds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreem~,nts, 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) mnounts that derive from (or might be cha"acterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or mocifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of CenJer takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, iihe i~rrangement 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 amount Borrower will owe for Morttage Insurance, and they will not entitle Borrower to any refund. (~-6 A(W Y)(000~i).0~ :ihi(iaiI! Page 8 o! 15 ~ Form 3 0 51 1101 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to rI:ceive 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 Insu,.r~ance premimns that were unearned at the time of such cancellation or termination. ~ · 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to 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 econotnically feasible and Lender's security is not lessened. During such repair and restoratign period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided' :hat such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a ~:ingle disbursement or in a series of progress payments as the work is completed. Unless an agreemen': is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lend.:r shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided fo:- in Section 2. In the event of a total ~aking, 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 taking, destruction, or loss in value Of the Property in which the fair market value of the Property in-unediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of th.,· sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in, .value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following f::?.ction: (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 i~mnediately before the partial 'i.aking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immedir::'t.~ly befbre the partial taking, destruction, or loss in value is less than the amount of the sums secured i~mnediately 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 aban¢oned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in. lhe next sentence) Offers to make an award to settle a claim for dmnages, Borrower fails to respond to LSnder 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 l'hstrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against who~n Borrower has a right of action in regard to Miscellaneous Proce~:ds. Borrower shall be in def~.,ult if any action or proceeding, whether civil or criminal, is begnn that, in Lender's judgment, could res~dt in forfeiture of the Property or other material impairment o£ Lender's interest in the Property or rigt-.t3 under this Security Instrument. Borrower can cure such a default and, it' acceleration has occurred, relr.s,ate as prowded m Section 19, by causing the action or proceeding to be dismissed with a ruling that, ia'Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's intere{:t in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages! that are attributable to the impairment of Lender' s interest in the Property are hereby assigned and shall be)paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided 6)[ in Section 2. (~-6 A(WY)(ooo5).Ol Form 3051 1101 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amc rtization 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~i Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of B~rrower or to refuse to extend time for payment or otherwise modify amortization of the sums secure,~ by this Security Instrument by re,on of any demand made by the original Borrower or any Successors in ~i;~terest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in lnterest of Borrow6r or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any rigid! 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 Instrmn~nt but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the,co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay 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 accon~nodations with 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 Bfirrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of 'Borrower's rights and benefits under this 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 sucqcssors and assigns of Lender. 14. Loan Charges. Lend?r may charge Borrower fees for services Performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including,~'~ut not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the ~.bsence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be con~trued as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibitei~l by this Security Instrument or by Applicable Law. lfthe Loan is subject to a .!:aw which sets maxinmm loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any'such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; m~d (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Bor~'ower. Lender may choose to make this refund by reducing the principal owed under the Note or by m3king a direct payment to Borrower. Ifa refund reduces principal, the reduction will be treated as e' partial prepayment without any prepayment charge (whether or not a prepayment charge is providedi. for under the Note). Borrower' s acceptance of any such refund made by direct payment to Borrower wil'l constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15..' Notices. All notices ~:,iven 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 ~heans. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law express'[y requires otherwise. The notice address shall be the Property Address unless Borrower has designate~ .a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower' s c[ange of address. If Lender specifies a procedure for reporting Borrower' s change of address, then Borrov/~r shall only report a change of address through that specified procedure. There may be only one desigrzted notice address under this Security Instrument at any one time. Pray 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 In~trmnent 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 req, nirement will satisfy the corresponding requirement under this Security [nstnlment. 11~-6 A(W Y)(ooo5).o~ Page 10 of ! 5 ~ Form 3 0 $1 1 101 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and t~e law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument 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 silemie s'mll not be construed as a prohibition against agreement by contract. In the event that any prowsion 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 conflic:ing provision. As used in this Security Ins:trument: (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 vet?a; and (c) the word "may" gives sole discretion without any obligation to take any action. ~ 17. Borrower's Copy. Bcrrower 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" mears any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests tra'nsferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent ot 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 b,meficial 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 cption, 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 t~,ay 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. 19. Borrower's Right t.o Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right ito t~ave 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 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 Instrmnent 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' fees,: prt)perty 'inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's int~':rest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may r~easonably require to assure that Lender's interest'in the Property and rights under this Security InstrSlment, and Borrower's obligation lo pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one. or more of tk:e following forms, as selected by kender: (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 a~re insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrun~ent 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 ofacceleratiofi under Section 18. 20. Sale of Note; C. hang,¢ 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 resul', iu 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 Lo:m Sxvicer unrelated to a sale of the Note. if there is a change of the Loan Servicer, Borrower will be giw'm written notice of the change which will state the name and address of the new Loan Servicer, the addre.qs to which payments should be made and any other information RESPA (~-6A(WY) (0005).0~ i Page ~ ot ~5 ~ -- Form 3051 1101 ?0° requires in connection with a not.ice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer cthe' than the purchaser of the Note, tbe 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 purchases miless otherwise provided by the Note purchaser. Neither Borrower nor L~.md!:r may commence, join, or be joined to any judicial action (as either an individual litigant or the me[iabe, r of a class) that arises fro]n the other party's actions pursuant to this Security Instrument or that all.~,ge~ that the other party bas 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 co~npliance wlith the requirements of Section 15) of snch alleged breach and afforded the other party hereto a reasom~ble 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 Bcrrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opporttinity to take corrective action provisions of this Section 2'0. 21. Hazardous Substances. As used in this Section 21: (a) "I-][azardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flanunable or toxic petroleum products, toxic pesticides and herbicides, volatile s01ver:ts, tnaterials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" me,ins :?ederal laws and laws of the jurisdiction where the Property is located that relate to health, safety or em~ironmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or re:noval action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition ~.hat can cause, contribute to, or otherwise trigger an Enviromnental Cleanup. Borrower shall not cause', or permlt the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, hny.thing affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an En,fironmental Conditionl or (c) which, due to the presence, use, or release of a Hazardous Snbstance, creates:a condition that adversely affects the value of the Property. '['he preceding two sentences shall not appl'i), 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 (incl'~ding, but not limited to, hazardous substances in consumer products). Borrower shall promptly giye Lender writ~.en notice of (a) any investigation, clai~n, 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 Envirorm~ental Condition, inc' uding but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which a~:lve,rsely 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 a:,?fecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance ¥~ith Enviromnental Law. Nothing herein shall create any obligation on Lender for an Enviromnental cleanup. Inilials~ ,1~ (~)~'6A(WY) (01105).01 :'[ Page 12 o! 15 ~' Form 3051 t/01 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Reined les..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 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action reqaired 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 cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in tlr~. ndtice, Lender at its option may require 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 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, iu accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following onler: (a) to all expenses of the sale, including, but not li~nited 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 paymeat 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 permitted .under Applicable Law. 24. Waivers, Borrower releases and waives all rights under m~d by virtue of the homestead exemption laws of Wyoming. (~)~-6A(WY) (0005).01 Page 13 o~ ~5 Form 3051 1101 BY SIGNING BELOW, Bcrrower accepts and agrees to the terms m~d covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: ~~'~'~ e ~.~ ,~?~' J~~ (Seal) Ernest Lane Townsend -Borrower · (Seat) Caro~n ~y~e Towhsend '-Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~J~(~6A(WY)(ooos).Ol Pagel4 o1~5 Form 3051 1101 STATE OF ~ ~ County ss: The foregoing instrument was acknowledged before me this dune 1st, 2004 by Ernest Lane Townsend and Carolyn Joyce Townsend ] ~] M~: Commission ~pires ~ My Commission Expires: Notary PublicO- (~-6 A(WY)(ooos).ot Page '5 gl 15 ....... -' Form 3051 1101 707 PLANNED UNIT DEVELOPMENT RIDER 001603504 THIS PLANNED UNIT DEVELOPMENT RIDER is made this 1 s t day of June 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 datt;, given by the undersigned (the "Borrower") to secure Borrower's Note to Bank of Star Valley (the . "Lender") of the same date and covering the Property described in the Security. Instrument and located at: 122 Alpine Way, Thayne, Wy 83127 [Property Addressl 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 Star Valley Ranch Association, (the "Declaration"). The Property is a part of a planned unit de'velopment known as StarValley Ranch Association [Name of Planned Unit Development] (the "PUD"). The Property a!:so includes Borrower's inter, est in the hotneowners association or equivalent entity owning or managing the common areas and facilities of the PUD (the "Owners Association") and the uses, benefits and proceeds et4 Borrower's interest. PUD COVENANTS. h? addition to the covenants and agreements made in the Security Instnunent, 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. Tl~e "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 rnles or,: regulations of the Owners Association. Borrower shall prmnptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. MULTISTATEPUD RIDER-Singl'i;Family- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 31511 1/01 Page 1 of 3 (~TR (0008) VMP MORTGAGE FORMS - (800)521-7291 ~.,~' B. Property Insurance. So long as the Owners Association ~naintains, with a generally accepted insurance carrier, a "master" or "b!anket' policy insuring the Property which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for tile 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 provision in Section 3 for the Periodic Payment to Lender of the yearly premium instalhnents for property insur~mce on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed .satisfied to the extent that the required coverage is provided by the Owner,,' 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 blanket 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 common areas and facilities of the PUD, any proceeds payable to Borrower are hereby assigned and shall be paid :o Lender. Lender shall apply the proceeds to the sums secured by the Security Instrument, whether ornm then due, with the excess, if any, 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, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection 'a, ith any condemnation or other taking of all or any part of the Property or the common areas and facilit:es ,)f 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 after notice to Lender and with Lender's prior written consent, either phrtition or subdivide the Property or consent to: (i) the abandomnent or termination of the PUD, except for abandonment or termination required by law in the case of substantial destruction by fire or other casaalty or in the case of a taking by condemnation 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 of professional management and assumption of self-management of the Owners Association; or (iv) any action, wl~ich would have the effect of rendering the public liability insurance coverage maintained by tile Owners '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 L'znder under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to otlier terms of payment, these amounts shall bear interest fro:n the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. (0008) :lnitial~?~t~ Page 2 of 3 ~(,.~.. Form 3150 1101 BY SIGNING BELOW, Borrower accepts mid agrees to the terms and prowsions contained in this PUD Rider. Ernest Lane Townsend -Bbtrower Carolyn Jo'yce Townsend -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (0008) Page 3 of 3 Form 3150 1101