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HomeMy WebLinkAbout899961Return To: NATIONAL CITY MORTGAGE CO. P.O. BOX 809068 DALLAS, TX 75380-9068 8 9 9 9 6 Prepared By: JOSEPH CONTE NATIONAL CITY MORTGAGE CO. P.O. BOX 809068 DALLAS, TX 75380-9068 RECEIVE[) LINCOLN COI_II',ITY CLERK BOOK [Space Above This Line For Recording Data] MORTGAGE 0003324794 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. Cer'min rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrmnent" means this document, which is dated together with all Riders to this document. 01) "Borrower" is DAVID M HOFFMAN An U'rmtarried Man June 1, 2004 Borrower is the ~nortgagor un, lin this Security Instrument. (C) "Lender" is DELTA FINANCIAL GROUP Lender is a corporatic,n organized and existing under the ..laws of THE STATE OF UTAH WYOMING -Single Family- Fanr:te :Mae/Freddie (~)®-6(WY) (0005) J//~/ Page 1 oX 15 Initials: VMP MORTGAGE FORMS - (800)521-729' Mac UNIFORM INSTRUMENT Form 3051 1/01 Lender's addressm 8142 S STATE, MIDVALE, UT 84047 Lender is the mortgagee under this Security lnstrumem (D) "Note" means the promissory note signed by Borrower and dated ,June 1, 2004 The Note states that Bonowe: owes Lender FIFTY THREE THOU,SAND FIVE HUNDRED FIFTY & 00/100 Dollars (U.S. $ 53,550.00 ) plus interest. Borrower has promised to pay this debt iu regular Periodic Payments and to pay the debt in flfll not later than July 1, 2034 (E) "Property means the )roperty that is described below under the heading "Transfer of Rights in the Property." (F) "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. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: __~ Adjustable Rate Rider Balloon Rider [---] VA Rider ~-~ Condomininm Rider [] Plam~ed Unit Development Rider [-'-] Biweekly Payment Rider [--] Second Home Rider ~-] 1-4 Family Rider [---] Other(s) [specify] (I~ "Applicable Law" means all coutrolling applicable federal, state and local statutes, regulations, ordhmnces and administrative rules and orders (that bare the effect of law) as well 'as all applicable final, non-appealable judicial opinit;ns. (I) "Community Association Dues, Fees, aud Assessments" means all dues, fees, assessments and other charges that are hnposed on Borrower or fire Property by a condonmfium association, homeowners association or similar orgamzation.. (J) "Electronic Fnuds Trm~sfer" means any transfer of fimds, other than a transaction orightated by check, draft, or similar paper instrun~ent, which is initiated tlu'ough an electronic terminal, telephonic instrument, computer, or magnetic tape go as to order, tnstruct, or authorize a financial institution to debit m: credit an account. Such term include, s, but is not limited to, point-of-sale trausfers, automated teller machine transactions, transfers initiated hy telephone, wire transfers, and antomated clearinghouse transfers. (K) "Escrow Items" means those items flint are described in Section 3. (L) "Miscellaneons Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other titan insurance proceeds paid under the coverages described h~ Section 5) for: (0 damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of ct}nderm~ation; or (iv) misrepresentations of, or omissions as to, the value aud/or condition of fl~e Property. (M) "Mortgage Insnrance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (0 principal and interest under the Note, plus (ii) any amounts u:tder Section 3 of this Security Instrument. (O) "RESPA" means fl~e l~eal Estate Settlemeut Procedures Act (12 U.S.C. ~ection 2601 et seq.) and its hnplementing regulation, Rel,mlation X (24 C.F.R. Part'35..00), as they nfight be amended from time to time, or any additional or successt,r legislation or regulation that governs the same subject matter. As nsed in this Security Instrument, "RESP.~" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage ioan" even if tim Loan does not qualify as a "federally related mortgage loan" under RESPA. Initials: l~l~-6(WY) (0005) Page 2 oh ,5 Form 3051 1/01 (P) "Snccessor ill Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assmned Borrowqr's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN T~HE PROPERTY This Security Instrument secares to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the pertbrmance of Borrower's covenants and agreements under this Security Instrument and thegN)re. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successms and assigns, with power of sale, the following described property located in the COUNTY of Linc o in ; [Type of Recorilin~g Jurisdiction] [Nanle of Recording Jurisdiction] SEE ATTACHED LEOAL Parcel ID Number: 211622,29305500 1315 9TH WEST AVE, KEMMERER ("Property Address"): which currently has the address of [Street] [City] , Wyoufing 83101 [Zip Code] TOGETHER WITH all the improveinents now or hereafter erected on the property, and all easements, appurtenances, and fixtures ,ow 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 COVEN~.NTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant ar.d convey 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 clahns and demands, subject lo ~ny encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited varia:ions by jurisdiction to constitute a uniform security ~nstrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when tine the 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. Pay~rems due under the Note and this Security Instrument shall be made in U.S. currency. However, if any cl'teck or other instrument received by Lender as payment under the Note or this Initials: (~l~-6(WY) (ooos) Page 3 of is Form 3051 1/01 Security Instrument is returne~ to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this 'Security Instrument be made in one or more of the following fornxs, as selected by Lender: (a) cash; (b) moae5 order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check i,, drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or {d) Electronic Funds Transfer. Payments are deemed .i'ec~eived 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 m Section 15 Lender may return any paYment or partial payment if the payment or partial payments are insufficient to bring the Loan current Lender mv, y accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights'he,~'eunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not :.)bligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender tnay 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 apFlied, earlier, such funds will be applied to the outstanding principal balance under the Note inunediately prior to foreclosure. No offset or claim which Borrower mtght have now or in the future against Lender shall :elieve Borrower from making payments due under the Note and tiffs Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2, Application of Payrreuts or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lerder shall be applied in the /bllowing order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in thi~ order in which it became due. Any remahm~g 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 fire Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late 9harge 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 apl)lied to the full payment of one or more Periodic Payments, such ex:ess 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 post¢one the due date, or change the amount, of the Periodic Payments. 3, Fnnds for Escrow lter,~s. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is p~tid in full, a sum (the "Funds") to provide tbr payment of amounts due for: (a) taxes and assessments and t)ther items which can attain priority over this Security Instrument as a lien or encumbrance on the Properr/; (b) leasehold payments or ground rents on the Property, if any; (c) preminms 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 tl~e Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, aM such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furn~,h to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds :hr Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow ltems..Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any thne. ,~.ny such waiver may only be in writing. Iu the event of such waiver, BorroWer shall .pay directly,' when and~. where payable, the amounts due for any Escrow Items for which payment of (~-6(WY) (0005) Page 4 o~ ~s Form 3051 1/01 .-021 Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time p~riqd as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for rll purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "t;ov~nant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursu'ani to a waiver, and Borrower fails to pay the amoum doe tbr an Escrow Item, Lender may exercise ~ts rigP:ts ~under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lerder any such amount. Lender may 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 m an amount (a) sufficient to permit Lender to apply the Funds at the time specifier; under RESPA, and (b) not to exceed the maximmn amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of cra'rem data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so ~nsured) or in any Federal Home Loan Banlc. Lender shall apply the Funds to pay the Escrow Items no later than the tinte specified under RESPA. Lender shall not Charge Borrower for holding and applying the Funds, mmually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower ~nterest on the Fuuds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be l.~aid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrc'.wer and Lender can agree in writtng, however, that interest shall be paid on the Funds. Lender shall give to Bcrrower, without charge, an ammal accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the-excess funcs in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessarY to make up the shortage in accordance with RESPA, but ~n no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower aq 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 titan 12 monthly payments. Upon payment in full of ail sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by 'Lender. 4. Clmrges; Liens. E;orrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property 'vhich can attain priority over this Security Instrument, leasehold payments or ground rents on the Property; if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. · Borrower shall promptily discharge any lien which has priority over .this Security fustrument unless Borrower: (a) agrees in writff~g to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement )f Lhe lien in, legal proceedings which in Lender's opinion operate to prevent the e~fforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the hol&:~r Of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender iletermines that any part of the Property is subject to a lien which can attain priority over this Security Ir,stmment, Lender may give Borrower a notice identifying the lien. Within 10 (~-6(WY) (o00$) Form 3051 1/01 days of the date on wlfich ~::hat notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borro~ver to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender iu co!m~¢ction wifl~ this Loan. 5. Property htsurance. B'orrower shall keep the improvements now existing or hereafter erected on the Property insured against loss b'y fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender reqmres insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender reqmres. What kender requires:pursuant to the preceding sentences can change during the term of fl~e Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's ch6ice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connec :tot:, with this Loan, either: (a) a one-time charge for flood zone determinanon. certification and tracking services; or (b) a one-thne charge for flood zone determination al~d certification services and subsequent charges each time remappings or similar changes occur which reasonably nfight affect such determination or certification. Borrower shall also be responsible for rite payment of any tees imposed by the Federal Emergency Management Agency in comlection with the review of any flood zone deternfination resulting from an objection by Borrower. If Borrower fails to maiutain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option aod Borrower's expense. Lender is under no obligation to purchase any particular type or amount or' 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 provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost'of the insurance coverage so obtained might significantly exceed the cosl of ittsurance that Borrower cotild have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of B:~rrower secured by this Security Instrumeut. These amounts shall bear interest at the Note rate from the date c,f 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 F'olicies, 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 reqni(es,. Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrowe::: obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction cf, the Property, such policy shall include a standard mortgage clanse and shall name Lender as mortgagee and2sr as an additional loss payee. In the event of loss, Br,rmwer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not ~nade pro~nptly by Borrower. Unless Lender and Borrower otherwise agree iu writing, any insurance proceeds, whether or not the underlying iusurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is econmnically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceed; m3til Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lentlerls satisfaction, provided that such inspection shall be undertaken promptly. Lender ~nay disburse proceeds ,for fl~e repairs and restoration iu a single payment or in a series of progress payments a~ the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such iasurance 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 (~-6(WY) (ooo5) paoa 6 ol ~5 Form 3051 1/01 the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender nuty file, negotiate and settle any available insurance claim and related matters. If Borrdwer does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle i:a c!aim, then Lender may negotiate and settle the clahn. 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~as~,,igns 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 toany refund of unearned prennums paid by Borrower) under all insurance policies covering the Prope/ty, 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 Iustntn~ent, whether or not then due. 6. Occupancy. Borrower i;hall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence 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 exteouating circumstances exist which are beyond Borrower's control. 7'. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair tse Property, allow the Property to deteriorate or con,'nit 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 Section 5 that repair or restox:ation is not econo~nically feasible, Borrower shall promptly repair the Property if damaged to avoid further ]eterioration or damage. If insurance or condemnation proceeds are paid in connection With damage to,. Or the taking of, the Property, Borrower shall be responsible for repairing or restoring 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 Property, 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 mhy inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time 'c;f or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan A'.pplication. Borrower shall be in default if, during the Loan application process, Borrower or any persons o:' 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 materia'l information) in connection with the Loan. Material representations include, but are not limited to, represent; tions concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrun~ent. 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 ~s a proceeding in bankruptcy, probate, for condenmation or forfeiture, for e~fforcement of a lien whi::h may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower ~as abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate ;o 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 actiors can include, but are not linfited to: (a) paying any sums secured by a lien which has priority over this S.¢cm'ity Instrument; (b) appearing in court; and (c) paying reasonable ~-6(W¥) (0o0s) Initials: Page 7 of 15 Form 3051 1/01 attorneys' fees [o protect its interest in the Property and/or rights nnder this Security Instrmnent, including its secured position m a bat~cruptcy proceeding. Securing the Property includes, bul is nol limited to, entering tbe Property to make repairs, change locks, replace or board up doors and windows, drain water froln pipes, elhninate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does nee bare to do so and is not under any duty or obligation to do so I! is agreed that Lender incurs no liability for not taking any or all actions authorized under this Sectiou 9. Any amounts disbursi~d by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Ir~strument. These amounts shall bear interest at the Note rate fi'om the date of disbursement and shall be pay~able, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasebold, Borrower shall comply with all the provisions of the lease. If Borrower acqmres fee tille to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance, If Lender required Mortgage Insurance as a condition of inaking the Loan, Borrower shall pay the premiums required to maintain the Mm'tgage Insurance in effect. If, for any reason, fl~e Mortgage fusurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to ~nake separately designated pay~nents toward the premiums for Mgrtgage 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 efl'ect, fi'om an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurauce 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, 'notwithstanding the fact that the Loan is ultimately paid .n full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lende? can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the perkd 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 requited Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the prenfitnns for lvlortgage 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 termination el' 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 recur if Borrower does not r~pay the Loan as agreed Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance iu force h'om time to time, and may enter rote agreements with ether parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insnrcr and the other party (or parties) to these agreements These agreements rnay require the mortgage insurer to make payments using any source of funds that the mortgage insurer n-:ay have available (which tnay include funds obtained fi'om Mortgage Insurance prenfiuins). ; As a result of these afreements, 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 characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a d~are of the insm-er's risk in exchange for a share of the premiums paid to the insurer, the arrangement is ofleu termed "captive reinsurance." Further: (a) Any such agreements will not affect the ammmts that Borrower has agreed to pay for Mortgage Insurance, or aay ather terms of the Loan. Sudt agreements will not increase the amount Borrower will owe for Mm'tga.ge Insurance, and they will not entitle Borrower to any refund. Initials: d~.', (~I~-6(WY) (0005) Page a o~ ~5 Form 3051 1/01 (b) Any such agreen~el~ts will not affect tile rights Borrower has - if any - with respect to the Mortgage htsurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to recei,,e certain disclosures, to reqnest and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to ·receive a refund of any Mortgage Insnrance premi:nns that were unearned at tile time of snch cancellation or terminatiou. 11. Assignmeut of l~.liscellaueons Proceeds; Forfeiture, All Miscellaneous Proceeds are hereby assigned to and shall be paid to Leuder. If the Property is damz!ged, 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 pe}riod, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect snch Property to ensure the work has been completed to Lender's satisfaction, provided that s,ch 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 nmde in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required' tC pay Borrower any interest or earnings on snch 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 Ii~strument, whether or not then due, with file excess, if any, paid to Borrow~:r. Such Miscellaneous Proceeds shall be applied in the order provided tbr 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 taking, destruction, or loss in value of the Property in which the fair market value of the Property immecia~ely before the partial taking, destruction, or loss in value is equal to or greater than the amount of the suitus 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 fraction: (a) the toimtam0unt of the sums secured inm~ediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property hnmediately before the partial taking, destruction, or loss in value. Any ·balance shall be paid to Borrower. In the event of a pard d taking, destruction, or loss in value of the Property in which the fair market value of the Property imm~:diately ·before the partial taking, destruction, or loss in value is less than the amount of the sums secur~d immediately before the partial taking, destruction; or loss in value, unless Borrower and Lender other.vise 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 &tIned in the nexf sentence) offers to make an award to settle a claim for danmges, Borrower fails to respond to Lender withir' 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 Instrument, whethe:? or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in d. efault if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of file Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate 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 Prop ~rty 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 Proc eeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Sec~tion 2. .(~-6(WY) (Ooos) , 1 Page 9 o~ ~5 Form 3051 1/01 ,. 0o6 . 12. Borrower Not R, elcased; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor,in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Bo~ro~ver or to refuse to extend time tbr payment or otherwise modify amortization of the sums secured by thxs Security Instrument by reason of any demand made by file original Borrower or any Successors in Interest .of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in am'ounts less than tile amount then due. shall not be a waiver of or preclude the exercise of any right or rem~d,',. 13. Joint and Several Liability; Co-signers; Successors a,d Assigns Bound. Borrower covenants and agrees that Borrower's obligaions and liability shall be joint and several However, any Borrower who co-signs this Security Instru.~ent but does not execute the Note (a "co-signer"): (a) is co-siguing this Seem-try Instrument only to mortgagq, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is ~ot personally obligated to pay tile sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modity, forbear ox- make any acconunodations with regard to the terms of this Security Instrument or tile Note without file co-signer's consent. Subject to the provis~oas of Section 18, any Successor hi Interest of Borrower who assumes Borrower's obligations under this Secnrity 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 nnder 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 successoi:s and assigns of Lender. 14. Loan Charges. !~ender may charge Borrower fees for services performed in connection with Borrower's default, for thd, purpose of protecting Lender's interest in the Property and rights under this Security Instrument, includij~g, but not linfited to, attorneys' fees, property inspection and valnation fees. In regard to any other fees, th~: absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be coastrued'as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibitec~ by this Security Ins.trument 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 interest or other loan charges collected or to be collected iu comlection with the Loan exceed the permitted limits, tllen: (a) al:!'y such loan charge shall be reduced by the amonnt necessary to reduce the charge to the permitted limit; and '(b) any stuns already collected from Borrower which exceeded permitted limits will be refunded to Borrow~.:r. Lender may choose to make this re['und by reducing the principal owed under the Note or by making a direct payment to Borrower. If a retired reduces principal, the reduction will be treated as a partial prepaymeut without any prepayment charge (whether ox' not a prepayment charge is provided for under the Note). Borrower's acceptance of any snch refined made by direct payment to Borrower will constitute a waiver of a{ly ?ight of action Borrower nught 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. Ally notice to B~orrower in comlection 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 chancre of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or' by mailing it by first class mail to Lender's address stated herein unless Lender has designated another addr:ss by notice to Borrower. Any notice in connection With this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also .required nnder Applicable Law, tile Applicable Law requiremefit will satisl~ the corresponding requirement under this Security Instrument. .3 , Initi Is: (~-6(WY) (ooo5) e.o~ ~oo~ ~s Form 3051 1/01 16. Governing Law; Scverability; Rules of Construction. This Security Instrument shall be governed by federal law and tile law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security In'~trument are subject to any requirements and limitations of Applicable Law. Applicable Law might explici:ly or implicitly allow the parties to agree by contract or it might be sileot, but such silence shall not be co~i;strued as a prohibition against agreement by contract. In the event that any provtsion or clause of this Sei':urity Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions o7~ this Security Instrument or the Note which cai[ be given effect without the conflicting provision. As used in this Seeuri~.ty Instrument: (a) words of the masculine gender shall mean and inctnde corresponding neuter words ~r:words of the feminine gender; (b) words in the singular shall mean and include the plural and vice ve':sa; and (c) the word "may" gtves sole discretion without any obligation to take any action. 17. Borrower's Copy. [,orrower 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" means any legal or beneficial interest itl fire Property, including, but not linfited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a 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 ben'~ficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require inunediate 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 thisI option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less hah 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 not:ce or demand on Borrower. 19. Borrower's .Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such 'other'period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entrs: of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender ami sums which then would be due under this Security Ihstrument 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, property inspection and .valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and righ':s under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure taat Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to 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 the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check; provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or e~',tity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this SecUrity Instrument and Obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right 'to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Chang:,e 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 chanl:,e 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 ilnstrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated lc' a }ale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of file cjange which will state the name and address of the new Loan Servicer, file address to which payments should be made and any other information RESPA requires in connection with a (~-6(WY) (0o0s) Initials: Psge 11 o115 Form 3051 1/01 notice of transfer of servicing. If the Note is sold and thereafter tile Loan is serwced by a Loan Servicer other ·an the purchaser of the Nitre,, d~e mortgage loan servicing obligations to Borrower will remmu with tile Lo~n Servicer or be transfers'ed to a successor Loa~ Servicer and are not assume~ by the Note purchaser unless otherwise provided by 'the~ Note purchaser. Neither Borrower nor Lender may conm~ence, join, or be joined to any judicial action (as either an individual litigant or the men. bet 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 Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the reqmrements 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 act]on. If Applicable Law provides a time period which must elapse bef3re certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleratmn and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportu'xiO~ to take corrective acuon provisions of this Section 20. 21. Hazardotm Subst:mces, As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or i~azardous substances, pollutants, or wastes by Enviromnental Law and the following substances: gasolire, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, m:;~terials containing asbestos or formaldehyde, and radioactive materials; (b) "Envirom'nental Law" means ~federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environr:~ental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal ~.ction, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can ca"~se, contribute to, or otherwise trigger an Enviromnental Cleanup. Borrower shall not cause Or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to doI anything affecting the Property (a) that is in violation of any Envirotunental Law, (b) which creates an Eaviromnental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a .condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the' presence, use, or storage on the Property of small quantities of ltazardous Substances that are generally~, recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but n3t 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 Itazard0us Substance or *Enviromnental Law of which Borrower has. actual knowledge, (b) any Environmental Condition, ini:luding but not linfited to, any spilling, leaking, discharge, release or da:eat of release of any Hazardous S~bs~tance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which '~dversely affects the value of the Property. If Borrower learns, or is notified by any govermnental or regniatdry authority, or any private party, that any removal or other remediation of any Hazardous Substance affecth!g the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. : . Inilials: ~(~);6(Wy) (ooo5) , Page 12 o! 15 Form 3051 1/01 -'-,-029 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as lbllows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of an,, 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 '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 cra'cd; and (d) that failure to cure the default on or before tile dt~te specified in the notice may result in acceleratiou of thc sums secured by this Security Instrument a..nd sale of the Property. Thc notice sball furtber iuform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the uon-existcnce 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 ir~ the notice, Lender at its option may require immediate payment ill full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and auy other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursring the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' lees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in pos.,ession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the rammer provided in Section 15. Lender shall publish the notice of sale, ~nd the Property shall be sold iu the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. Tim proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, inchuling, but not limited to, reasonable attorneys' fees; (b) to all s~tms secured by this Security Iustrument; and (c) any excess to the person or persons legally entitled to 23. Release. Upon payment of.all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borro¥/er shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrt merit, but only if the fee is paid to a third party tbr services rendered and the charging of the fee is pernfitted under Applicable Law. 24. Waivers. Borrower rel:xases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. I~-S(WY) (ooos) Page 13 of 15 Form 3051 1/01 ... ~.-,' 030 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: DAVID M HOFFMAN~ (Seal) -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~F~6(WY) (ooos) Paoe 14 ol ~5 Form 3051 1/01 STATE OF WYOMING, 0"~~'''v~'''°~'''- County ss: The foregoing instrument was acknowledged before me this c:~/b~~ ~ ~JJ-d/~j ~~6~¢ ~J WAND/'.N NEWMAN- NOT .FIY-PUBLIU [ ]COUNTY OF ~ "STATE OF J~ I LINCOLN I~ ,WYOMING[ Notary Public (~)~-6(WY) (0005) Page 15 of 15 Form 3051 1/01 0003324794 O22 1-4 FAMILY RIDER (Assignment of Rents) THIS 1-4 FAMILY RIDER is made this 1st day of June 200o, and is incorporated into an.l shall be deemed to amend and supplelnent the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of lhe same date g~ven by the undersigned (the "Borrower") to secure Borrower's Note to DELTA FINANCIAL gROUP (the "Lender") of the same date and covering the Property described in tim Security Instrument and located at: 1315 9TH WEST AVE, KEMMERER, Wyoming 83101 [Propen7 AddressI 1-4 FAMILY COVENANTS. In addition to the covenants and agree~nents inade in the Secnrity Instrument, Borrower and Dmder further covenant and agree as follows: A. ADDITIONAL PROPERTY SUBJECT TO THE SECURITY INSTRUMENT. In addition to the Property described in the Security Instrument, the following items now or hereafter attached to the .Property to the extent they are fixtures are added to the Property description, 'and shall also constitute the Property covered by the Security Instrument: building materials, appliances and goods of every nature whatsoever now or hereafte:: located in, on, or used, or intended to be nsed in copmection with the Property, including, but not limited to, those for the purposes of supplying or distributing heating, cooling, electricity, gas, water, air and light, f'n? prevention and extinguishing apparatus, security and access control .apparatus, plumbing, bath tubs, water heaters, water closets, sinks, ranges, stoves, refrigerators, dishwashers, disposals, washers, dryers, awnings, storm windows, storm doors, screens, blinds, shades, curtains and curtain rods, attached mirrors, cabinets, paneling and attached floor coverings, all of which, incfuding replacements and additions thereto, shall be deemed to be and remain a part of the Property covered by the Security h~strument. All of the foregoing togethei7 with the Property described in the Security Instrument (or the leasehold estate if the Security Instrument is on a ieasehold) are referred to in this 1-4 Family Rider and the Security Instrnment as the "Property." MULTISTATE 1- 4 FAMILY RIDER!- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 1 of 4 (~j57R (0008) VMP MORTGAGE FORMS- (800)521-7291 Form 3170 1/01 .033 B. USE OF PROPERTY; COMPLIANCE WITH LAW. Borrower shall not seek, agree to or make a change in the use of the Proper~:y or its zoning classification, unless Lender has agreed in writing to the change. Borrower shall comp~,y with all laws, ordinances, regulations and reqmrements of any govermnental body applicable to the Proper[/. C. SUBORDINATE L!~ENS. Except as permitted by federal law, Borrower shall not allow any lien infertor to the Security Instrument to be perfected against the Property without Lender's prior written permission. D. RENT LOSS INSUIL~NCE. Borrower shall maintain insurance against rent loss in addition to the other hazards for which insurance is required by Section 5. E. "BORROWER'S RIGHT TO REINSTATE" DELETED. Section 19 is deleted. F. BORROWER'S OCCUPANCY. Unless Lender and Borrower otherwise agree in writing, Section 6 concerning Borrower's occupancy of the Property is deleted. G. ASSIGNMENT OF LEASES. Upon Lender's request after defaull, Borrower shall assign to Lender all leases of the Property and all security deposits made in com~ection with leases of the Property. Upon the assignment, Lender shall have the right to modify, extend or terminate the existing leases and to execute new leases, m Lender's sole discretion. As used in this paragraph G, the word "lease" shall mean "sublease" if the Security Instrument is on a leasehold H. ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION, Borrower absolutely and uncc, ndihonally assigns and transfers to Lender all the rents and revenues ("Rents") of the Property, regardless of to whom the Rents of the Property are payable. Borrower authorizes Lender or Lender's agents to collect the Rents, and agrees that each tenant of the Property shall pay the Rents to Lender or Lender's agents. However, Borrower shall receive the Rents until: (i) Lender has given Borrower notice of default pursuant to Section 22 of the Security Instrument, and (ii) Lender has given notice to the tenant(s) that the Rents are to be paid to Lender or Lender's agent. This ass~gmnent of Rents constitutes an absolute assigmnent and not an assignment fbr additional security only. If Lender gives notice ~f default to Borrower: (i) all Rents received by Borrower shall be held by Borrower as trustee for the benefit of Lender only, to be applied to the sums secured by the Security Instrument; (ii) Lender shall be entitled to collect and receive all of the Rents of the Property; (iii) Initials: (~57FI (0008) Page 2 of 4 Form 3170 1/01 Borrower agrees fltat each tenant of the Property shall pay all Rents due and unpaid to Lender or Lender's agents upon Lender's written demand to the tenant; (iv) unless applicable law provides otherwise, all Rents collected by Lender or Lendt.:r's agents shall be applied first to the costs of taking control of and managing the Property and collecting eke Rents, including, but not limited to, attorney's fees, receiver's lees, prentiums on receiver's bonds, repair and maintenance costs, insurance premiums, taxes, assessments and other charges on the Property, and then to the sums secured by the Security Instrument; (v) Lender, Lender's agents or any judicially appointed recetver shall be liable to account for only those Rents actually received; and (vi) Lender shall be entitled to have a receiver appointed to take possession of and manage the Property and collect the Rents and profits derived from the Property without any showh~g as to the inadequacy of the Property as security. If the Rents of fl~e Prol:erty are not sufficient to cover the costs of taking control of and managing the Property and of collecting he Rents any funds expended by Lender for such purposes shall become indebtedness of Borrower m I,ender secured by the Security Instrument pursuant to Section 9 Borrower represents an¢ warrants that Borrower has not executed any prior assignment of the Rents and has not performed, and will not perform, any act that would prevent Lender from exercising its' rights under this paragraph. Lender, or Lender's agents or a judicially appointed receiver, shall not be required to enter upon, take control of or maintain the property before or after giving notice of default to Borrower. However, Lender, or Lender's agents or a judicially appointed receiver, may do so at any time when a default occurs. Any application of Rents shall no~ cure or waive any default or invalidate any other right or remedy of Lender. This assigmnent of Rents of the Property shall terminate when all the sums secured by the Security Instrument are paid in full. I. CROSS-DEFAULT i PROVISION. Borrower's default or breach under any note or agreement in which Lender has an interest.shall be a breach under the Security Instrument and Lender nuty invoke any of fl~e remedies pernfitted by the Security Instrument. (~;~(~57R (0008) Page 3 of 4 Initials: ~/~j~ Form 3170 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained h~ this 1-4 Family Rider. DAVID M HOFFMAN ~ (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) .Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~)<~57R (0008) Page 4 of 4 Form 3170 1/01 0003324794 OS,U u l , 03 5 /q)JUSTABLE RATE RIDER (LIBOR Index - Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 1st day of June 2004 , and is incorporated into and sha~l be deemed to amend and supplement the Mortgage, Deed of Trust, or Deed to Secure Debt (the "Security I~.zstrument'') of the same date given by the undersigned (the "Borrower") to secure Borrower's Note to DELTA FINANCIAL 'GROUP (the "Lender") of the same da:e and covering the property described in the Security Instrument and located at' 1315 9TH WEST AVE , KEblMERER , Wyoming 83101 [Property Address] THE NOTE COI'.ITAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE. AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND ?HE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security lnstntment, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 6.7 5 0 changes in the interest rate and the monthly payments, as follows: %. The Note provides for 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of July 2006 , and on that day every sixth month there~ fter. Each date on which my interest rate could change is called a "Change Date." MULTISTATE ADJUSTABLE RATE RIDER (LIBOR Index) - Single Family - Freddie Mac UNIFORM INSTRUMENT I~®-815R (0008) For~] 319 1/01 'Page 1 of 4 Initial,a: VMP MORTGAGE FORMS - (800)521-7291 (B) The Index Beginning with the first Change Date, my interest rate wilt be based on all Index. The "I,~dex" is the average of interbank offerec' r~.tes for six-month U.S. dollar-denonfinated deposits in the London market ("LIBOR"), as published in The Wall Street Journal. The most recent Index figure available as of the first business day of the month h~m~ediately preceding the month in which the Change Date occurs 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 intbrmation. The Note Holder will give me notice of this choice. (C) Calculation of Changes Betbre each Chauge .Da~e, the Note Holder will calculate my new interest rate by adding SEVEN AND ONE- QUARTER percentage points ( 7.2 5 0 %) 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 lin.its stated in Section 4(D) below, this rounded a~nount 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 tl~at I am expected to owe at the Change Date in full on the maturity date at my new interest rate in substantit.lly equal payments. The result of this calculation will be the new amount of my monody payment. (D) Limits on Interest'Rate Chauges The interest rate I am required to pay at the first Change Date will not be greater than 9.7 5 0 % or less than 7.2 5 0 %. Thereafter, my interest rate will never be increased Or decreased on any single Change Date by more than one percentage point (1%) from the rate of interest I have been paying for the preceding six months. My interest rate will never be greater than 12.750' %' : (E) Effective Date of Changes . My new interest rate Will become effective on each Change Date. I will pay the amount of my new monthly payment beginning ~n the first monthly payment date after the Change Date until the amount of my monthly payment changes ag~:,.in. Initials: ~ (~<~815R (0008) Page 2 of 4 Form 3192 1/01 (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The nottce will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF TIlE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Umform Covenant 18 of the Security Instrument is amended to read as fullows: Transfer of the Property ora Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Proper(~," means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond Ibr deed, contract for deed, installment sales contract or escrox, agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser.~ If all or any .part .)f the Property or any Interest in the Property is sold or transferred (or if a Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior Written consent, Lender may require inunediate payment in full of all stuns secured by this Security Ir:strument. 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 intbrmation required by Lender to evaluate the intended transferee as if a new .loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasouable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to 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 Leuder releases Borrower in writing. If Lender exercises the option to reqnire inm~ediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is 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 pernfitted by this Security Instrument without further notice or demand on BOrrower. (~;st 5R (0o0a) Initials: Page 3 of 4 Form 3192 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. . (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~815R (0008) Page 4 of 4 Form 3192 1/01 Exhibit A ' 039 A portion of Lot 1 of Mock 10 of the Lincoln Heights 4~h Subdivision to the City of Kemmerer, Lincoln County, Wyoming, being more padicularly described as follows: Beginning at the Northeast corner of said Lot 1, thence South along the easterly boundary of said Lot 1 a distance of 52.28 feet to the POINT OF BEGINNING; Thence N89°58'42"W, a distance of 24.86 feet; Thence N89°52'33"W, 1 distance of 30.47 feet; Thence S89°54'12"W, a distance of 44.67; Thence South along the westerly boundary of Lot 1, a distance of 57.72 feet; Thence East along the southerly boundary of said Lot 1 a distance of 80.00 feet to a point of curvature the:-~ce along said curve to the left through a central angle of 90°00'00'' an arc distance of 31.42 feet to the point of tangency, said curve has a radius of 20.00 feet; Thence North along the easterly boundary of said Lot 1 a distance of 37.72 feet to the point of beginning