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HomeMy WebLinkAbout89999730646 (03) 89999 7 REOE IVED LiNCO[._F! 0,3'' ' ,., ~',]TY CLERk [Space Above This Line For Reeo,'ding Data] MORTGAGE 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 u¢age of words used m this document are also provided m Section 16. (A) "Security Instrument" means this document, which is dated June 3rd , 2004 ,together wifl~ all Riders to this docmnent. (B) "Borrower" is Thomas W. Bergen, a single person I BmTower is the mortgagor under this ~e~urity Instrmnent. (C) "Lender" is FCE Credit Union . Lender is a Credit Union organized and existing under tile laws of tile State of Nebraska Lender's address is P.O. Box 54103( Omaha, NE 68154 Lender is the mortgagee under this S(curity Instrument (D) "Note" means the promissory note signed by Bon'ower and dated June 3rd 2004 . The Note states that Borrower owes Lender Two Ht, ndred Thirty Three Thousaml and 00/100 Dollars (U.S. $233,000.00 ) plus interest. Bon'ower has promised to pay this debt in regular Periodic Payments and to pay the debt m fifil not late,' than June 7, 2024 (E) "Property" means the property ;hat is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any p,'epayment charges and late charges due under the Note, and all sums due nnder this Security Instrument, plus interest. (G) "Riders" means all Riders to thi~ Security Instrument that are executed by Borrower. The following Riders are to be execated by Borrower [check box as :~pplicable]: [] Adjustable Rate Rider , [] Condominium Rider [] Second Ho,ne Rider [] Balloon Rider .. [--] Planned Unit Development Rider [] Other(s) [specifYl [] 1-4 Fanfily Rider .; [-} Biweekly Payment Rider (H) "Applicable Law" means all oontrolling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that haw; the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" means all dues, tees, assessments and other charges that are imposed on Bon'ower or the Propertyby a condominium association, homeowners association or similar organizalion. (J) "Electronic Funds Transfer" means any transfer of funds, other than a tt'ansaction originated bycheck, draft, or similar paper instrument, which is initiated thi'ough an electronic terminal, telephonic insmnnent, compt,ter, or magnetic tape so as to order, instruct, or anthorize a finan~;.ial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, tTansfers initialed by telephone, wire transErs, and at.tomated clearinghonse transfers. . (K) "Escrow Items" means those il'Cms that are described in Section 3. (L) "Miscellaneous r eeeds means any compensatIon, settlement, award ofdalnages, or proceeds paidbyanythird party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to;or destruction of, the Property; (ii) condenmation or other !aking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissiops as to, the value anct/or condition of the Property. (M) "Mortgage Insurance" means,insurance protecting Lender against the nonpa)anent of, or delhult on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due :{bi' (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this S'ecurity Inshmnent. (O) "RESPA" means the Real Estate Setllement Procedures Act (12 U.S.C. §2601 et seq.) and its in~plementing regulation, Regulation X (24 C.F.R. Part 3500), ~:$ they mighl be amended from time to time, or any additional or successor legislation or regt,lation that governs the same su')je:t matter. As used in this Security Insl,'nment, "RESPA" refers to all reqnirements and restrictions that are imposed in ~egard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" unebr RESPA. (P) "Successor in Interest of Borrowes" means anypartythat has taken lille to the Property, whether or not that partyhas assumed Borrower's obligations undm- the Note and/or this Security Instrument. WYOMING--Single Family--Famfie Mae/F~eddie Mae UN'IFORM INSTRUMENT Form 3051 1/01 (page 1 of 7pages) 9789.CV (5/04) Al401 ¢' : GOTO(0002eb30) TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Dhlder: (i) the repayment of the Loan, and all renewals, extensions and modifications of rite Note; and (ii) the perfomiance of Bolq'ower's covenants and agreements under this Securitylnstrument and theNote. For this purpose, Borrower does hereby mor;tgage, grant and convey to kender and Lender's successors and assigns, with power of sale, the following described pr0pe~ty!locate~l in the County of I,incoln :. [Type of Recording Jurisdiction] [Name of Recording Jurisdict!3n] Legal Description Attached Here~a and Made a Part Hereof as Exhibit A. which currentlyhas the address of 63 Ali)ine Village Lane Alpine __, Wymning 83128 [City] [Zip Code] [Street] ("Prope,'ty Address"): TOGETHER WITH all tl:e ~':mprovements now or hereafter erected on the property and all easements appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions sh'all also be covered b~, this Security Instrument. All of the Ibregoing is referred to in this Security h~strument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey tile Pro3erty and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will detbnd 'generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants roi' national use and non-uniform covenants with limited variations by jurisdiction to coustitute a unilbrm security instrt, ment 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. Bmxower shall pay when due the principal of, and interest on, tile debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Itmns pursuant to Section 3. Payments due under the Note and tiffs Security Instrument shall be rnade in U.S. currency. However, if any check or other instrmnent received by£ender as payment under the Note or this S:cUrity Instrument is returned to Lender unpaid Lender may require that any or all subsequent payments due under the Note and this Security Instrmnent be made in on~ or more of the fullowmg fumes, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check m' cashier's check, provided any such cbeck is dravm uFon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transtbr. Payments are deemed receivea by Lender when received at the location designated m the Note or at such other location as may be designated by Lender in accordance wifl~ the notice provisions ill Section 15. Leuder may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept anypayment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or p~irtial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted.' Ire:ach Periodic Payment is applied as o fits scheduled due date, then Lender need not pay interest on unapplied funds. Lender mayhold such unapplied funds until Borrower makes paymenttobring fl~e koancun-ent. If Borrower does not do so within e' reasonable period of time, Lender shall either apply such funds or return them to Bon'ower. If not applied earlier, such funds will be applied to the outstanding principal balance under tile Note immediately prior to foreclosure. No offset or c}aim which Borrower might have now or in the future against Lender shall relieve Borrower frmn making paynients due under the Note and this Security lnsmunent or perforating the covenants and agreements secured by this Security Instrument. 2. ApplicatiOn of Paym,mts or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; !b) principal due under the Note; (c) im~ounts due under Section 3. Such payments shall be applied to each Periodic Pa)anent m the order in which it became due.: Any remaining amounts shall be applied ilrst to late charges, second to any other amounts due under this Security lnsnmrent, and then to reduce the principal balance of the Note. If Lender receives a paymen', fi'om Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment' may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Len:ler may apply any payment received fi'om Borrower to the repayment of the Periodic Pay~nents if, and to tile extent fl~at, each payment can be paid in full. To thc extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Vohmtary prepayments shall be applied first to imy prepayment charges and then as described m the Note. WYOMING-Single Family--Fa"hie Mae/Fre~idiei'Mac UNIFORM INSTRUMENT Form 3051 1/01 (page 2 of Tpages) 9789.CV (5/04) Al 401 ~ - -~--~ GOTO(0002eb30) Any application of payment;;, insurance proceeds, or Miscel[aneous Proceeds to principal due under the Note shall not extend or poslpone the due date, ~r }:hange the amount, of/he Periodic Payments. 3. Funds for Escrow ltemsl Borrower shall pa~ to bender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (ti.;e ;'Funds") to provide for payalent of amounts due for: (a) taxes and assessments and other items which can attain priority ~wr tiffs Security Instrument as a licit or encumbrance oil the Property; (b) leasehold paynren~s or ground rents on the Prop:¢rty if any; (c) premiums for any and ail insurance reqnired by Lender under Section ~; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Moagage Insurance premiums itl accordance withrthe provisions of'Section 10. These items are cai[ed "Escrow Items." At ol~gination or at any time during the term of the Loan, Lender may require that C'onmmnity Association Dues, Fees, and Assessments, if any, be escrowed k y Borrower, and such dues, fees and assessments shall be ail Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Bolmwer's obligation to pay the Funds for any or all Escrow Items. Lender may wmve Borrower's Obligation to pay m L~nder Funds for any or all Escrow l terns at any time. Any such waiver may onlybe m writing. In the event of such waiver, Bo:xower shall pay directly, when and where payable, the amounts due lbr any Escrow Items for which payment of Funds hlas been waived by Lender and, if Lender requires shall furnish to Lender receipts evidenciug such payment wiflfin such ti{ne period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all ptu-pot;eslbe deemed to be a covenant and agreement contained in this Security htstrtnnenl, 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 fie a, mount due for an Escrow Item, Lender may exercise its ri.errs under Section 9 and pay such amount and Borrower shall' thtsn be obligated tinder Section 9 to repay to Lender any su'~h amount. Lender may revoke tile waiver as to any or all Escro,g, Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Le ~der all Funds, and in such amorous, that are then required under this Section 3. Lender may, at any time, co' lect and hold Funds ill an ainonnt (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, anc~ (b) not to exceed the maxinmnl amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held itl an institution whose deposits are insured by a federal agency, instmnmntality, or entity (including Lender, if Leader is an institW, ion whose deposits are so insured) or m ally Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow he ms no later than the time specified under RESPA. Lender shall not charge Bon'ower for holding and applying the Funds, mmually analyzing tile escrow account, or veril&fing the Escrow Items, unless Lender pays Bon-ower interest on the Funds and Applicable Law permits Lender to make such a cluarge. Unless an agreement is mad.e in writing or .Applicable Law rt;qmres interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agn'ee ill writing, however, that interest shall be paid on the Funds. Lender shall give to Bon'ower, "~vithout charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Fund; h~ld in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with P,E~;P,~:~. lfthere is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Bon'ower as required by I~ESPA, re'id Borrower shall pay to Lender fl~e amount necessary to make tip the shortage in accordance with RESPA' but in no more than 12 monthly payments. If fuere is a deficiency of Funds held iii escrow, as defined under RESPA, Lei~der shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the detici~ncy in accordance with RESPA, but in no more than 12 momhly pa)anents. Upon pa)anent m full of all ~unils secured by this Secuhty hlslrtunent, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Bm'rower shall pay all taxes, assessments, charges, titles, and impositions attribulable to the Property which can attain priority ovtr 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 ltems, 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 Bon'ower: (a) agn-ees in writing to the payment of th': obligation secured by the lien iu a manner acceptable to Lender, but only so long as Borrower is performing such agn'eemm~t; (b) contests the lieu in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enlbrcement of the lien while those proceedings are pending, but only until such proceedi~lgs are concluded; or (c) secures from tile holder of the lien an agreement satisfactory to Lender subordinating the lien to this .3ecmft¥ Instrument. If Lender determines that anypalt of the Property is subject to a lien which can attain priority over this Security Instrmnent, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that 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 Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender itl connection with this Loan. 5. Property Insurance. Borrower shall keep the improveinents now existing or hereafter erected on the Property insured against loss by fire, hazards ir:!cluded within the term "exteuded coverage," and any other hazards including, but not lilnited to, earthquakes and floods, fo:' which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for' ttreperiods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the tram of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right !o disapprove Borrower's choice, ~vhich right shall not be exercised unreasonably. Lender may require Borrower to [:ay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge lbr flood zone determination and certification services and subsequent charges ea':h time remappihgs or similar changes occm' which reasonably might affect such detemfination or certification. Borr:)wer shall also be responsible lbr the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zoue determination resulting from an objection by Bon'ower. If Borrower fails to maintaln any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage .;hall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Propcrt)'5 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 nfight significantly exceed the cost of insurance that Bon ower could have obtained. Any amounts disbm'sed by Lender under this Section 5 shall become additional debt of Borrower ~, ecured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall inch;de a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall lave;the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as all additional loss payee. In the event of loss, Borrow,~.r Shall give Prompt notice to the insurance carrier and Lender. Lender maymake proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any nsurance proceeds, whether or not the underlying h~surm ce was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economicall;y feasible and Lender's security is not lessened. Duhng such repair and restoration period, Lender sl!all have the right t6 hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been comPleted to Lender's satisthction, provided that such inspection shall be uudertaken WYOMING--Single Family--Fannie Mae/Fre:ldi~ Mac [kNIFORM INSTRUMENT Form 3051 1/01 (page 3. of 7 pages) 9789.CV (5/04) Al401 , GOTO(OO02eb30) promptly. Lender may disburse proieCds for the repairs and restoration in a single payment or in a series ofprogn'ess payments as the work is completed. [~n~ess an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender S*~nal'tl not be required to payBorrower any interest or eamines on such roceeds. Fees for public adjusters, or otber third par.!ie~, retained by Borrower shall not be paid out of the insur~'nce proceePc~s 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 shal~, be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrox'i~,er. Such insnrance proceeds shall be applied in the order provided lbr in Section 2. If Borrower abandons the Pmp'erty, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respon~l ~iithin 30 days to a notice from Leuder that the insurance carrier has offered to settle a claim, then Lender may negotiate an, l s::ttle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Propd'/tyilunder Section 22 or otherwise, Borrower hereby assigms to Lender (a) Borrower's rights to any insurance proceeds in anl amount not to exceed the amounts unpaid t,nder the Note or tbis Secm'ity Instrument, and (b) any other of Borrower's right? (cdher than tbe right io any refund of unearned premimns paid by Borrower) trader all insurance policies covering the Prop~rts;; insofar as such rights are applicable to the coverage of the Properly. Lender may use the insurance proceeds either to r~pair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due 6. Occupancy. Bon-owe~'. slmll occupy, establisb, and use the Property as Borrower's principalresidence within 60 days after the execution ol'this Se'~zui:ity Instrument and shall continue to occupy the Property as Bon'ower'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 e}.xt&mating circumstauces exist which are beyond Borrower's control. 7. Preservation, Mainte:imace and Protection of the Prol)erty; Inspections. Borrower shall not destroy, damage or i~npair the Properly, allow the Properly to deteriorate or conmfit waste on the Property. Whetber or not Bo~'ro,~,ver is residing in the Property, [lorrower shall maintain the Prolperty in order to prevent the Property fi'om deteriorati:ng:'or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Botxower shall promptly repair the Property if damaged to av.o. id fresher deterioration or damage} If!insurance or condemnation proceeds are paid in connection with damage to, or the talong ot, the Prope~Xy, Borrower shDl be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender i!'~a? disburse proceeds for the repairs and restoration m a single payment or in a series of progress payments as the work is ~:ornpleted. If the inst~rance or condemnatim~ proceeds are not sufficient to repair or restore the Properly, Bon:ower is not,tel eyed ofBorrowei' s obligation for the completion of such repair or restoration. Lender or its agent maymake reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the iraprovements on the Properly. Lender shall give Borrower notice at the time of or prior to such an interior inspection Sl:iec:ifying such reasonable cause. 8. Borrower's Loan Appli'cation. Borrower shall be m default if, during the Loan application process, Borrower or any persons or entities !acting at the direction of Borrower or with Borrower's lmowledge or consent gave materially false, misleading, or inaccnrate inforn~ation or statenrents to l_ender (or lhiled to provide Lender with material information) in connection with the L~}ari. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Properh, a!~ Borrower's principal residence. 9. Protection or' Lenderi's ilnterest ill the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrtunent, (b) there is a legal proceeding that might significantly affeci Lender's interest in the Property and/or rights under this Securilylnstmnaent (such as a proceeding in bankruptcy, proba e, for condemnation or forfeiture, for enforcement ora lien which may attain priority over this Security Instrument or to en~force laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reaso:nable or appropriate to protect Lender's interest m the Property aud rights under this Security Insa'ument, including prote~tir,.g and/or assessing the value of thc Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any stuns secured by a lien which has priority over this Security Instrument; (b) appeariag in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Sectifit~ Instrument, including its secured position in a banLrnptcy proceeding. Secnrmg the Propmly includes, but is not limit.:,~d r~o, entering the Property to make repai,'s, change locks, replace or board up doors and windows, drain water from pipes,, elinmmte building or other code violations or dangerous conditions, and have utilities turned on or ofl~ Although Lender m~!y t:ake action under tbis Section 9, Lender does not have to do so and is not under any duly or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by [~en:der under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts :d~all bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice ·fi'om'Ler~der to Borrower requesting payment. If this Security instrument is~on,a leasehold, Bm'rower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the l¢;asehold and the fee title shall not merge unless Lender agrees to the merger in w*iting. 10. Mortgage insurance, lfrLender required Mortgage Insurance as a condition of nraking the Loan, Borrower shall pay,the premiums rec~uil;ed to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender! ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was requiredlto imake separately desiga~ated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums req~ifired to obtain coverage substantially equivalent to the Mortgage Insmance previously in effect, at a cost substantially equiv~31eiit to the cost to Borrower of the Mortgage Insurance previously in effect, fi'om an alternate mortgage insurer selected b!~, Lender. If substantially equivalem Mortgage Insurance coverage is not available, Bon-ower shall continue to pay to Len):ler the amount of the separately designated payments t ~at were due when the insurance coverageceased to be ill effect. Lend,ir will accept, use and retain these pasments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reser,~e ghall be non-refimdable, notwithstanding the fact that the Loan is ultimatelypaid in full, '.and. Lender shall not be required~to )?ay Borrower any interest or earnings on st,ch loss reserve. Lender can no louger reqmre loss reserve payments if Mo :tg~ige Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lei:~dt!~,r again becomes available, is obtained, and Lender reqnires separately designated payments toward the pre~niums 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 for Mortgage Insurance, Borrower shall pay the premiums rec'ui~ed to maintain Mortgage Insurance in efl~ect, or to provide a non-refundable loss reserve, until Lender's requirement fl'or Mortgage Insurance ends m accordance with any written agreement between Borrower and Lender providing for s'nc!!~ termination or until ternfination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obliga'i:ion to pay interest at the rate provided in the Note· Mortgage Insm'ance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as ag~'eed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate'xheir total risk on all such insurance m force fi'om time to tiine, and may enter into ag*eements with other parties that sha re or modify their risk, or reduce losses· These agreements are on terms and conditions that are satisfactory to tile 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 fi~nds that the mortgage insurer may have available (which may include funds obtained flora Mo~lgage Insurance premiums). As a result of these agreements.! Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive fi'om (or might be characterized as) a portion of Borro'~ve~"s payments for Mortgage Insurance, m exchange for sharing or modiBfing the mortgage insurer's risk, or reducing, losses. If such agre'ement provides that an affiliate of Lender takes a share of the WYOMING--Single Family--Famfie Mae/Fret'.dieiMac UNIFORM INSTRUMENT Form 3051 llOl (page 4 of 7pages) 9789.CV (5/04) Al401 insurer's risk in exchange for a sl~'ar~ of the premimns paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Ally such agreemen(s Will not affect the amounts that BorroWer has agreed to pay for Mortgage Insurance, or any other terKns of .~h4 Loan. Such agreements will not increase the amonnt Borrower will owe for Mortgage Insurance, and they wi'Il l'mt entitle Borrower to any refund. (b) Any such agreements: Will not affect the rights Borrower has - il' any - with respect to the Mortgage Insurance nnder the Homeowners Protection.. Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to req.ue~t and obtain cancellation of the Mortgage Insurance, tu have the Mortgage Insurance terminated antomatic;;lly, and/or to receive a refund of an~' Mortgage Insurance premiums that were t, nearned at the time of such cam ellation or termination. 11. Assignment of Miscella'.neons Proceeds; Forfeiture. All Miscellaneous Proceeds are herebyassigned to and shall be paid to Lender. If the Property is damaged,lsu~h Miscellaneons Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right tc. h~ild such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has bem~ c~,nnpleted to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the results and restoration m a single disbursement or in a series ol~probn-ess payments as tile work is completed. Unless an ag~'i~e~hent is made in writing or Applicable Law reqt,ires interest to be paid on such Miscellaneous Proceeds, Lender sh!all'not be required to pay Borrower aay iaterest or earnings on such Miscellaneous Proceeds. If the restoration or repai~ is hot econonfically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sun~!s secured by this Security lnstrtunent, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellane.)u? Proceeds shall be applied in the order provided for ill Section 2. In the event of a total taking,ldestruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to tile sums secured by this ~'~lecurity Instrunmnt, whether or not then due, with tbe excess, if any, paid to Bon'ower. In the event ora partial taking, destruction, or loss in value of the Property ill which the fair market value of the Property immediately before the parSa[taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Sect fity Instrmnent imrhediately before the nartial takim, destruction or loss io value nn ess Borrower and Lender otherwise agree tn writing :theI' sums secured by thais Security~'nstrument si'lull be reduced 'by tile amount of tile MisCellaneous Proceeds multiplied [~y the following fi'action: (a) the tota anou it of the sums secured immediatelybelbre the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property inmlediately before the partial taking, destruction, or loss in value. Al~y balance shall be paid to Borrower. · In the event ora partial ta[Jng, destruction, or loss ill value of the Property ill which tile fail' market value of the Property imtnediately belbre the pa?rial taking, destruction, or loss in vah, e is less than the mnount oftbe sums secured immediately before tile partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agn-ee in writing, the Miscellaneous Proceeds shall be,applied to the sums secured by this Security Instrument whether ornot the sums are theu due. If the Property is abandon~'d by Bon'ower, or if, after notice by £ender to Borrower that the Opposing Party (as defined in the next sentence) ofl~rs to make an award to settle a claim for damages, Borrower thils to respond to Lender within 30 days after the date the notice i!s given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Proper'!y or to the stuns secured by this Security Instrument, whether or not tben due. "Opposing Party" means the third p::urt¥ that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action ill regard to Miscellaneous Proceeds. Borrower shall be in det~ault :if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture c.ftlie Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Bor'ower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing' the action.or ~roceeding to be dismissed with a roling that, in Lender's judgment, precludes forfeiture of the Property or other nlaterial inlpairment of Lender's interest in the Pl:operty or rights under 01is Securitylnstroment. Tile proceeds of any award or claim tbr damages that are attributable to the inlpaimlent of Lender's interest in the Property are hereby assigned and shall be paid tc/x:nder. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order 'provided for itt Section 2. 12. Borrower Not Released; ForbearanCe By Lender Not a Waiver. Extension of the time for pa)anent or modification of amortization of the s an~s secured by this Security Instrun~ent granted by Lender to Borrower or any Successor ill Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Bon'ower. Lender shall not be required to commeh, ce proceedings against any Successor in Interest of Borrower or to relhse to extend time for payn~ent or otherwise modil~ ammXization of the sums secured by this Security Instrument by reason of any dentand made by the original Borrower or an'y Successors in Interest of Borrower. Any forbearance by Lender m exercising anyright or remedy including, without limitation,, Lender's acceptance of pa)qnents limn third persons, entities or Successors m Interest of Borrower or in amounts les~ than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrowercovenanls and abn'ees that Borrower's obligations and liability s!lall be joint and several. }towever, any Borrower who co-signs ibis Security Instrument but does not execute the Ndte (a "co-signer"): (a) is co-signing this Sect, rity Instrument only to mortgage, grant and convey the co-signer's interest i.;~ tlie Property under the terms of this Security Instrument; (b) is not personallyobligated to pay the sums secured by this Securit5~' Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any acco!m [lodations 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, ally Successor in Interest of Borrower 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 fi'om Borrower's obligations and liability under this Security Instrument unless Lender agrees to ~,uch release in writing. The covenants and agreements oftbis Security lnstrun~ent shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges.. Lenler,;may charge Bon'ower fees/bt services performed in connection with Borrower's default, for the purpose of protecting L{mder's interest ill the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, p~;op0.;rty inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrun~ert t6 charge a specific fee to Borrower shall not be constrt ed as a prohibition on the charging of such fee. Lender may nc.:t c!~arge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a 1a¢¥ which Sets maxinmm loan charges, and that law is finally interpreted so that the interest or other loan charges collecte&or to be ~ollected in connection with the .,L~,~an exceed the permitted limits, then: (a) any such loan charge shall be reduce::d Vy the amount necessary to reduce Ibe charge to the permitted limit; and (b) any S UnLS already collected fi'om Borrower wl~ich exc.e~eded Permitted limits will be relhnded to Borrower. Lender maychoose to make this refund by redocing the principa~ owed onder the Note or by making a direct payment to Bon~ower. Ifa refund reduces principal, the reduction will be Ia-eat :d as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under tile Note)..Borrower's acceptance of any such reft nd nude by.direct payment to Borrower will constitute a waiver of any right ofa.:tion Borrower might have arising out old'such overcharge. 15. Notices. All noticesOgi~:en by Borrower or Lender in connection with this Security lnstrttn~ent must be in writing. Any notice to Borrower in ,zonnection with this Security Instrument shall be deemed to have been given to Bon'ower when mailed by first class mail or wael~' actually delivered to Borrower's notice address if sent by other means. Notice to ally WYOMING--Single Fanfily--Fannie Mae/F~'eddie Mac UNIFORM INSTRUMENT Form 3051 1101 (page 5 of 7pages) 9789.CV (5/04) Al 401 GOTO(0002eb30) one Borrower shall constitute notice 2o all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Addre~ t!nless Borro,wer has designated a substitt,te notice address by notice to Lender. Borrower shall promptly notify Lendi'.r 6f Borrower s change of address. If Lender specifies a procedure for reporting Borrower's change of address, then B0rr~wer shall onlyreport a change of address through flint specified procedure. There may be only one designated notice adi]rqss under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing i~. by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrowe~. Any notice in connection witl~ this Security Instrument shall not be deemed to have been given to Lender until actually reil. eii,~ed by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicablle Law requirement will satisfy the corresponding requirement under tbis Secm-ity Insh'ument. ~ ~: 16. Governing Law; Seve?a~aility; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdi:i:tion in which the Property is located. All rights and obli ations contained in this Sec.urity Instrument are subject to any i'eC?uirements and limitations of Applicable Law. Applicablge Law might explicitly or implicitly allow the parties to agree bsi ctintract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the tlv~nt that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall nli, t ~iffect other provisions of this Security hlstrument or the Note which can be given effect without the conflicting provisional. ~ As used in this Security Instrm~ient: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the fe~ninine gender:; (b) words in the Singular shall mean and include the plm'al and vice versa; and (c) the word "may" gives sole discretion withou~t any obligation to take any action. 7. Borrower s Copy. Bo,.rrower shall be given one copy o! the Note and oftlns Security Instrument. ~ 18. Transfer of the Prope(ty iora Benelicial Interest iii Borrower. As used in this Sectio ~ 18 "Interest in l:'roperty" means any legal or benefictallinterest in the Property, including, but not limited to, those ben[ficial interesi~ transferred in a bond for deed, contradt lbr deed, installment sales contract or escrow agn-eement, the intent of which is the transfer of title by Borrower at a future dhte to a purchaser. If all or airy part of the Propellty Pr any Interest in the Property is sold or transferred (or if Borrower is not a natural pers.on and a beneficial interest in B~rr0wer is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in fidl of al! sums secm'ed by tiffs Security Instrument. However, this option shall not be exercised by Lender if such exercise i.?' prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days fi:om the date the Dotice is given in accordance with Section 15 withio which Bort'ower must pay all sums secured by this Security Instrument',. If Borrower fails to pay these st, ms prior to the expiration of this period, Lender may invoke any remedies permitted b':'; tliis Security Instrument without fiu'ther notice or demand on Borrower. 19. Borrower's Right to l~ieil!.state Alter Acceleration. If Borrower meets certain condilions, Bon'ower shall have the right to have enforcement oft.his Security Instrument discontinued at any time prior to the earliest of.' (a) five days before sale of the Property pursuant tb a.hy power of sale contained in this Security Insn'ument' (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 conditiods are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as ifrlo acceleration had occt,rred; (b) cures any del~ault of any other covenants or agreements; (c) pays all expenses incl*,~rrgd iii enforcing this Security lnstrunient, including, but not limited to, reasonable attorneys' fees, property inspection an~l valuation fees, and other l~es incurred for the purpose of protecting Lender's interest iii the Property and rights under this Sequrity instrument; and (d) takes such action as Lender inay reasonably require to assure that Lender's interest in the Pro'.2e0y and rights under this Secm'ity lnsmnnent, and Borrower's obligation to pay the sums secured by this Security Instrthn~;:nt, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in o~]e ,)r more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasu::erls check or cashier's check, provided any such check is drawn upon an institt, tion whose deposits are insm'ed by a federal agency, instrtuneutality or entity; or (d) Electronic Ftmds Transfer. Upon reinstatement by Borrower, this Secuhty Insta'ument and obligations secured hereby shall remain fidly eflbctive as if no acceleration had occurred. However, tins right to reinstate shall not apply iii the case of acceleration tnder Section 18. 20. Sale of Note; Change ~fLoan Servicer; Notice of Griewmce. The Note or a partial interest iii the Note (together with this Security Instrmnent) can be sold one or more times withoul prior notice to Borrower. A sale nfight result }n a change in the entity (known as the "Loan Servicer") that collects Periodic Payments doe under the Note and this Security nstrument and performs other mortga :,~e ~:oan servicing obligations tinder the Note, th s Security Instrument, and Applicable Law. There also might be one or more clianges of the Loan Servicer unrelated to a sale of the Note. lfthere is a change of the Loan SerGcer, Borrower will be g:'iven written notice of the change which will state the name and address of the new Loan Servicer, the address to which paBrsent's should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If thc Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgag~ iloan servicing obligations to Borrower will remain with the Loan Servicer or be h'ansferred to a successor Loan Servio:~r and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lend& may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that ~.rises titan the other party's actions pursuant to this' Security Instrument or that alleges that the other party has breached ans:' provision of, or any df~ty owed by reason of, this Secm:ity h~strunmnt, until snch Bon'ower or I.ender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded ::he other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law l~:;'m!ides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable fi~r purposes of tiffs paragraph. The uotice of acceleration and opportunity to cure given to Bon'ower pursuant tO SectiOn 25} and the notice ofacceleratio i given to Borrower pursuant to Section 18 shall be deemed to satis¢ the notice and oppot!tunity to take corrective action provisions of this Section 20: 2!. llazardous Substance;. :As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substancSs, ~pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, andradioactive materials; (b) "Environmental Law" means federal !~ws and laws of the jurisdiction where the Property is located that relate to health, safety or e Mronmental protection; (c) Environmental Cleanup" includes airy response actio;i~, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cat,se, contribt,te to, or otherwise trigger an Enviro,unental Cleanup. Borrower shall not cause or 1: ermit the presence, use, disposal storage, or release of any Hazardous Substances or threaten to release any Hazardous Sur,stances, on or in the Property. l~orrox~ er shall not do, nor allow anyone else to ~to, anything affecting the Property (a) that is ill violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the prCse.nce, use, or release ora Hazardous Substance, creates a condition that adversely affects the value of the Property. The [ receding two sentences shall not apply to the presence, use, or storage on the Property of small quantities ofllazardous Subst ~nces that are generally recognized to be appropriate to normal residential uses and to maintenan'ce of the Prop, erty (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of(a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory ~ge~my or private party involving the Property and any Hazardous Substance or Environmental Law of Which Borrower hhs actual knowledge, (b) any Enviromnental Condition, includingbut not limited to, any spilling, leaking, discharge, releas,5 or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release ora Hazardou; Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulat?ry authority, or any private party, that any removal or other remediation of any WYOMING--Single Family~-Fannie Mae/Fred?lie,~Vlac UNIFORM INSTRUMENT Form 3051 1/01 (page 6 of Tpages) 9789.CV (5/04) Al401 ~ Hazardous Substance affecting the 1r mperty is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental ~w. Notbing herein shall create any obligation on Lender tbr an Environmental Cleanup. NON-UNIEO~ COVENANTS. Bo~ower and Lender fin-lher covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covena~d or agreement iu this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law brovides otherwise). The notice shall specit~: (a) the deihult; (b) the action required to cure the default; (c) a ,.late, not less than 30 days fi'om the date lhe notice is given to Borrower, by which the delhult must be cured; and (d} that thilure to cure the default on or belbre the date specified in the notice may result iu acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall fi~rtber intBrm Borrower of the rig'ht to reinstate alter acceleration and the right to bring a court action to assert the non-existence ora delhult or any o;her det~nse of Borrower to acceleration and sale. If the delhult is not cured ou or belBre the date specilied in the n)tice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without.fin'tller demand and may iuvoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entilled to collect all expenses iucurred in pursuing the remedies provided in this Seetio~t 22, including, but nol limited to, reasonable attorneys' l~es and costs of title evidence. If Lender invokes the pov~er of sale, Lender shall give uotice of intent to foreclose to Borrower and to the person in possession of the Pro.?erty, ifdifl~reut, in accordance wiH~ ApplieableLaw. Lender shall gi~ e aotice of the sale to Borrower iu the mauuer provided in Sectiou15. Lender shall publish the notice of sale, ant~ the Property shall be sohi iu the manner prescribed by Applicable Law. Lender or its designee may purchase the Pt operty at any sale. The proceeds of the sale shall be applied in the lhllowing order: (a) to all expenses of the sale, i'ncluding, but not limited to, reasouable attorneys' t~es; (b) to all sums secured by this Security Instrumeut; aud (c) any excess to the persou or persons legally entitled to it. 23. Release. Upon pa~ni'mt of all sums secured by this Security Instrument, Lender shall release this Secm-i~ Instrument. Bon'ower shall pay an:/recordation costs. 'Lender may charge Bon'ower a fee for releasing this Security Insa-ument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permifled under Applicable Law. 24. Waivers. Bo~ower releases and waives all rights under and by vu'rue of the homestead exemption laws of Wyoming. BY SIGN~G BELOW, Bolrower accepts and a~ees to the lerms and covenants contained in this Sectu'i~ Insffument and in any Rider execute4 by Bmxower and recorded with Wimesses: Borrower Thomas W. Bergen (Seal) (Seal) BolTowef (Seal) (Seal) STATE OF Wyoming [,qpace Below This Line For Acknowledgmentl ,'~i '"' '~2 '~ hf--~-7"~-'"'~/~ County ss: On this 3rd day of__~ June , 2004 , before me, the undersigned, a Notary Public in and for said State, personally appea~ed Tho~nas W. Bergen, a single person (known to me) (or proved to ine on :be'basis of satisfactory evidence) to be the person(s) whose name(s) subscribed to the foregoing instrmm ntand acknowledged that he executed the same. WITNESS my band and official seat. (Reserved for official seal) Teton ~ wyormng } Name (typed or printed) My Commission expires: WYOMING--Single Family--Famfie Mae/Fr(,ddie Mac UNIFORM INSTRUMENT 9789.CV (5/04) A 1401 Form 3051 1/01 (page 7 of 7 pages) GOTO(0002eb30) A, DJUSTABLE RATE RIDER THIS ADJUSTABLE RATE RIIi)E',R is lnade this 3rd day of June., 2004 , and is incm-porated into and shall be deeme!d to amend and supplement the Mortgage, Deed of Trust, or Security Deed (tile "Security lnstrmnent") of the same da!'e ~iiven by the undersigned (the "Borrower") to secm'e Bon'ower's Adjustable Rate Note (the "Note") to FCE Credit Union (the "Lender") of the same date and cc, vering the property described iu tile Security instrument and located at: 63 Alpine Village Lane Alpine, WY 83128 [Property Address } THE NOTE CONTAIN~s PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND,THE SCHEDULED PAYMENT. TIlE NOTE LIM ITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS.. ]'n addition to the covenants and agreements made in the Security lnsn'ument, Borrower and Lender fi~rther covenam' and agree as follows': A. INTF REST RATE AND sCHEDULED PAYMENT CHANGES The Note provides for an init al interest rate of 4.900 %. The Note provides for changes in file interest rate and the scheduled payments as follovcs: 4. INTEREST RATE AND SCHEDULED PAYMENT CItANGES (A) Change Dates The interest rate I will pz.ymay change on June 22, 2004 , and on the first of every month thereafter. Each date on which my interest rate could change is called a "Change Date." (B) The Index The interest rate on th. is Note is subject to change from time to time based on changes m an index, which is the rate set at the sole dis{'~rerion of the credit union board of directors. The Rate is not indexed, either internally or externally (the '~Index"). The Index is not necessarily tile lowest rate charged by Lender on its loans and is set by Lender in ks sole discretion. If the Index becomes t, navailable during the term of this loan, Lender may designate a substlitu~;e index after notifying me. Lender will tell ne tile current Index rate upon my request. 1 understand that Le.M~r may make loans based on other rates as well. The interest rate change will not occur more often than each scheduled payment. The Index currently ~s 4.900 % per annum. The interest rate to be applied tothe unpaid principal balance of this Note will be at a rate equal to the Index, adjusted if necessary for fll.~ maxi~num rate limitation described below, resulting m an initial rate of 4.900 % per annum. Notwithstanding any other provision of this Note, the variable interest rate or rates provided for in this note will be subject to the following maxmmm rate. On each Change Date occuning under this Note, the interest rate will change. The interest rate to be applied to the unpaid principal balance as of the Change Date will be rt a rate equal to the Index for such Change Date, adjusted if necessary for the maximmn rate limitation des"~ribed below. This interest rate will become my new interest rate. Lender will then determine the scheduled payment amount, calculated at the new interest rate and in substantially equal payments that would be suffi~¢ient to repay the unpaid principal, as of the Change Date, that I am expected to owe on the Maturity Date. The result of this calculation will be the amount of my new scheduled paymem NOTICE: Under no circumstan :es will the ~nterest rate oil this Note be more than the lesser of 16.000% per annum or the nmximum rate ~ llowed by applicable law. Unless waived by Lender, any increase in the iuterest rate will increase the amounts of my payments. (C) Limits on Interest Rate Changes The ~nterest rate I am ret uired to pay will never be increased more than O ne and 500/1000 percentage points ( 1.500.%) annually. My interest rate will never be greater than 111.900 %. M ULTISTATE ADJUSTABLE RATE RIDER - F;rst Mortgage - Capped © Creative Thinking, Inc. 2004 Page I of 2 15888.CV [4/04) Al401 CTI Compliant Forms (c) i 7 0 (D) Effective Date of Clnmges My new interest rate w':ll become effective on each Change Date. I will pay tile amount of ~ny new scheduled payment beginnin~ on fl~e first scheduled payment date after the Change Date until the mnount of my scheduled payment changes agz:in. (E) 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 scheduled payment before the effective date of any change. The notice will inch]de in tbtmafion required by law to be given to me and also fl',.e title and telephone nmnber ora person who will answer any question I may have regarding the notice. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Section 18 of the Security Instrument is amended to read as follows: Transfer of the Property or ;~. Benelicial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or k'eneficial interest in the Property, including, but not limited to, those beneficial interests transfen'ed in a bom for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transl~r oftitl~ I~,y Bmxower at a future date to a purchaser. If all or any part of the Property or any Inlerest in the Property Is sold or transtkn'ed (or ifBon'ower is not a natural person and a beneficial interest in Borrower is sold or frans fen-edJ without Lender's prior writlen consent, Lender may require immediate payment in full of all sums secured by this Security h~strument. However, tiffs option shall not be exercised by Lender if Such exercise is prohibited by Applicable Law. Lender also shall not exercise this option iff (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as ifa ne,'v loan were being made to the transferee; and (b) Lender reasonably detemfines that Lender's security will not be impaired by the loan assumption and that the risk ora breach of any covenant or agq'eement in this Security ln;trmnent is acceptable to Lender. To tile extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumpti,m. Lender may also require tile transferee to sign an assmnption agreement that is acceptable to Lender and that ok, ligates the transferee to keep all lhe promises and agreements made m the Note and in this Security Instrument. ';3o.~xower will continue to be obligaled under the Note and this Security Instrument unless Lender releases Borrcwer in ~witing. If Lender exercises the )ption to require immediate payment iii full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days fi'om the date the notice is given in accordance with Section 15 Wi'~.hin which Borrower musl pay all sums secured by this Security Instrument. If Borrower fails to pay these stuns prior to the expiration of this period, Lender may revoke any remedies permitled by this Security lnsminaent without further notice or demand on Borrower. BY SIGNING BELOW, Bon'ower accel:tS and agrees to the terms and covenants contained in this Adjustable Rate Rider. Borrower Thomas W. Bergen (Seal) (Seal) Borrower BOlTOW~[ (Seal) Bon'ower (Seal) MULTISTATE ADJUSTABLE RATE RIDER = Firat Mortgage - Capped © Creative Thinking, Inc. 2004 Page 2 of 2 15888.CV (4/04) Al401 CT! Compliant Forms (c) GOTO(0002eb31 . '.'%5;,;.::.- . ': i;',;t':" EXHIBIT "A" - That part of Lot 33 of Alpine Village Subdivision No. 1, Plat 2 Amended of record in the Office of the Clerk of Lincoln County as ?lat No. 264, within the NE l/4 of Section 19, T37N, R118W, Lincoln County, Wyoming, being i~art of that tract of record in the Office of the Clerk of Lincoln in Book 306 of Photostatic Recorc~s on page 648, described as follows: BEGINNING at the northeast point of said Lot 33, on the southerly right-of-way line of:Village Lane: thence S 36 degrees 56.1' E, 376.81 feet along a northeasterly boundary of said Subdivision, identical with northeasterly line of said Lot 33; d~ence N 89 degrees 36.9' W, 565.51 feet, along a southerly boundary of said Subdivision, identical w/th the southerly one of said Lot 33, to a point; thence N 07 degrees' 55.8' W, 247.77 feet to a point on said southerly right-of-way line; thence 82 degrees 04'14, E, t.k'e Base Bearing for this survey, 376.86 feet, along said southerly right-of-way line, to the POINT OF BEGINNING. each "corner" marked by a 5/8" x 24" steel reinforced rod with or without a 1 1/2" aluminum cap inscribed "LS 526" with appropriate details; each "pohu" marked by a 5/8" x 24" steel reinforcing rod with a 2" aluminum cap inscribed "SURVEYOR SCHERBED, LTD. BIG PINEY. WY PLS 536:1", with appropriate details; all in accordance with the plat prepared to be filed in ~e Office of the Clerk of Lincoln County tided "WILLIAM R. ROPER PLAT OF LOT 33 ALPINE V~LAGE SUBDIVISION NO. 1 PLAT 2 AMENDED WITH?N TI-~ NE 1/4 SECTION 19 T27N R11SW LINCOLN. COUNTY, WYOMING, dated 1 November 1993