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HomeMy WebLinkAbout900003Return To: NATIONAL CITY MORTGAGE P.O. BOX 809068 DALLAS, TX 75380-906~8 Prcpacd By: SHANELL RICH NATIONAL CITY MORTGAGE P.O. BOX 809068 DALLAS, TX 75380-9'068 CO. 90OOO3 REr'F LINCOLf'.! ~" :,~1'~ ..' CO. -i-[space Almve This l,i.e Fur lle,'ordin~ Dalai MORTGAGE 000331143_5 DEFINITIONS Words used in multiple sectior, s o£ I/his document arc del'in'cd I)clow and mhcr wu,'ds arc dcliRcd m Set'lions 3, I1, 13, 18, 20 and 21. Certain rules regarding thc usage of words used in this document ~trc alsf, prm'idcd in Section 16. (A) "Security Instrument" m~ans this document, which is dated together with all Riders Lo this :locument. (B) "Borrower" is DAVID M HOFFMAN An Ur.married Man May 28, 2004 Borrower is thc mortgagor'under ;this Security Instrument. (C) "Lender" is DRr,TA FINAI, ICIAL GROUP Lender is a corpora't:.on organized and existing Under the laws of THE STATE OF UTAH WYOMING-~ingle Family-Fannie ivlae/Freddie Mac UNIFORM INSTRUMENT (~]~®-6(WY) (GOOS} /b~/ VMPMORTGAGE FORMS - [800)521-7291 Form 3051 1,01 Lender's addressis 8142 S STATE, MIDVALE, UT 84047 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promiJsory note signed by Borrower aud dated May 28, 2004 The Note states that Borrower owes Lender FIFTY THREE THO'USAND FIVE HUNDRED FIFTY & 00/100 Dollars (U.S. $ 53,55.0 00 ) plus interest Borrower hits promised [o pay this debt iu regular Periodic Payments and to pay the debt ~.n lull not later than July 1, 2034 (E) "Property" means the l:roperty that is described below uuder the heading "Transfer of Rights in the Property." (F) "Loan" means the debt ~videnced by the Note, plus interest any prepayment charges and late charges due under the Note, and all sums due under this Security h~strument, plus interest. (G) "Riders" means all Rid,~rs to this Security Instrun]ent that arc executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: Adjustable Rate Rider Balloon Rider VA Rider Condominium Rider Plalmed Unit Developinem Rider Biweekly Paymem Rider [-~ Second Home Rider ~] 1-4 Falmly Rider [~ Other(s) [specify] (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administratiw': rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Coummnity Association DUes, Fees, and Assessments" means all dues, tees, assessments and other charges that are hnposed on Borrower or the Property by a condominium association, homeowners association or similar organizgtion. (J) "Electronic Funds Traml'er" means any transfer of funds, other than a transaction originated by check, draft, or sinfilar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so ~s to order, instruct, or authorize a financial instinttion to debit or credit an account. Such term includes, but is not linfited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" n~eans rog.se items that are described in Section 3. (L) "Miscellaneous Procee~h'," means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described m Section 5) for: (i) damage to, or destruction of, lhe Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of coadenmation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpaymem' of, or delhult on, the Loan (N) "Periodic Payment" means the regularly scheduled amoum due for (i) principal and interest under the Note, plus (ii) any alnounts urder Section 3 of tiffs Security Instrmnent. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C Section 2601 et seq.) and its kmplementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successo:: legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are i~nposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~-6(WY) (ooo5) Page2 o~ ~5 Form 3051 1/01 0 0000 .1 (P) "Successor in Interest of Borrower" means any party that has taken title to file Property, whether or not that party has assumed Borrower's obligations under the Note dud/or this Security Instruntent. TRANSFER OF RIGHTS IN Ti-IE PROPERTY This Security Instrument secures to Lender: (i) the repayment of tile Loan, and all renewals, extensions and modifications of the Note; :and (ii) the performance of Bon'ower's covenants and agreements under this Security Instrument and the Ni)te. For this purpose, Borrower does bereby mortgage, grant and convey to Lender and Lender's succes.;ors and assigns, wid~ power of sale, the fbtlowmg described property located in the COUNTY of Lincoln : ]Type of R~corling Jurisdiction] [Name of Recording Jurisdiction] SEE ATTACHED LEGAL DESCRIPTION Parcel ID Number: 211622,t2 )305500 1319 9th lqEST AVE, KEI~4ERER ("Property Address"): which currently has the address of [Streeq [City] , Wyoming 83101 [Zip Code] TOGETHER WITH all the hnprovements now or herealier erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security (ns~rument. All of the Ibregomg is referred to in this Security Instrument as the "Property. ' BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and 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 claims and demands, subject :o ;iny encumbrances of record. THIS SECURITY INSTRUMENT conthines uniform covenants for national use and non-unilbrm covenants with limited varit:tions by jurisdiction to consmute a u,~ilbrm security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant aud agree as follows: 1. Payment of Principi.l, Interest, Escrow Items, P,'epayment Charges, dud Late Charges. Borrower shall pay when d~e :the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower sball also pay funds lbr Escrow Items pursuant to Section 3. Payments due under the Note and this Security lnm'ument shall be made in U.S. curt'ency. However, if any check or other instrument received by Lender as payment trader the Note or this Initials: ~/~/'~'FI i~)~-6(WY) (ooo5) Page 3 o! 15 Form 3051 1/01 Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is ,drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (t!) ~Electronic Funds Transfer. Payments are deemed rece;ived by Lender when received itt the location designated in the Note or at such other location as may be~ d~signated by Lender in accordance with the notice provisions in Section 15. Lender may return any payme~t ~or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may agcept any payment or partial payment iusufficient to bring the Loan current, without waiver of any rights h'er~under or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not o')ligated to apply such payments at thc roue such payments are accepted. If each Periodic Payment is applied as 'of its scheduled due date, theli Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so witltin a reasonable period of time, Lender shall either apply such funds or return them to Borrower If not applied-earlier, such funds will be applied to the outstanding principal balance under the Note innnediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall r61ieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application oI' Paym mt:s or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the fullowing 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 the order in which it became due. AW remaining amounts shall be applied first to late chargeS, second to any off'er' amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment /'rom Borrower fur a deliuqucnt 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, Leoder may apply any payment received/Yom 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 exc,~ss exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment ct~arges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amotmt, of the Periodic Payments. 3. Funds for Escrow Itt'ms. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid lin lull, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and otaex-~ items which can attain priority over this Security Instrument as a lien or encumbrance on the Property':. (b) leasehold payments or ground rents on the Property, if any; (c) prenfiunu for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance prelniums, if any, or any sums payable by Bor:~-ower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions'; 'cf Section 10. These items are called "Escrow Items." At origination or at any time during the term of the 1.oan, Lender may require ff~at Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furl,isl, to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds fcr Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. l,er~der may waive Borrower's obligz, tion to pay to Lender Funds for any or all Escrow Items at any time. Ary such waiver may only be m writing. In the event of such waiver, Borrower shall pay directly, when and ~vl_:~ere payable, the alnounts due for any Escrow Items for which payment of t (~-6(WY) (ooos) va~e4 o~ ~ Form 3051 1/01 Funds has been waived by I..m~der and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time p~.~riod as Lender may require. Borrower's obligation to nmke such payments and to provide receipts shall for ~..11 ouq~oses be deemed to be a covenant and agreement contained in tiffs Security Instrument, as the phrase "co¢.mant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuan., to a waiver, and Borrower fails to pay the amonnt due for an Escrow Item, Lender may exercise its rigLls under Section 9 and pay such amouul and Borrower shall then be obligated under Section 9 to repay to i. Lefider 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 tin'e, collect and hold Funds in an a,nom~t (a) sufficient to permit Lender to apply the Funds at the time speci:'ied under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount ol' Funds due on the basis of current data and reasonable estimates of expm~dimres of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held ir an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Honre Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the thne specified under RESPA. Lender shall not cha::ge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow ltems, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is nmde in writing or Applicable Law'requires interest to be r'aid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus ~',f Funds'held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess fun(Is in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lenrlel.shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessarl/ to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there ~s ~ deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amonnt necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in lull of ~,~1l sums secured by this Security h~strument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. ilorrower shall pay all taxes, assessments, charges, fines, and impositions attributable to die Property whlich can attain priority over this Security Insm,ment, 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 maturer provided m Section 3. Borrower shall promptly ,!discharge any lien which has priority over riffs Security Instrument unless Borrower: (a) agrees in writigg,to the payment of the obligation secured by the lien in a rammer acceptable to Lender, but only so long as Bor, rower is performing such agreement; (b) contests the lien in good faith by, or defends against eifforcement oflthe lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien whiD those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holdSr Of the lien an agreement satisfitctory to Lender subordinating [lie lien to this Security Instrmnent. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security l!~stmment, Lender may give Borrower a notice identifying the lien. Within t0 (~-6(WY) (0005) Page 5 ol tS Form 3051 1/01 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 h~ this Section 4. Lender may require BorroWer to pay a one-tinre charge for a real estate tax verification and/or reporting service used by Lender in conneation with this Loan 5. Property Insurance. Borrower shall keep the improvements now ex~sting or hereafter erected on the Property insured against loss b? fire, hazards included within the term "extended coverage,' and any other hazards including, but not limited to, earthquakes and floods, tbr which Lender requires insurance This insurance shall be maintained ia :he amounts (including deductible levels) and for the periods that Lender requires What Lender reqmres .pursuant to the preceding sentences eau change during the term of the Loan. The insurance carrier providing -he ~nsurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised um'easonably. Lender may require Borrower to pay, in cmmection ~'ith this Loan, either: (a) a one-time charge tbr flood zone determination, certification and tracking servic:es; or (b) a one-thne charge tbr llood zone determination and certification services and subsequent charges each time remapp~ngs or similar changes occur which reasonably might affect such determination or certification Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in comtection with the review of any flood zone deternfination resulting from an .abjection by Borrower. If Borrower fails to mair.!tain any of the coverages described above, Lender may obtain insurance coverage, at Dender's option )nd Borrower's expense. Lender is under no obligation to purchase any particular type or amount of cove-age. Therefore, such coverage shall cover Lender, but might or nfight not protect Borrower, Borrower's e:lmty in the Property, or the contents of the Property, against any risk, hazard or liability and nfight provide .greater or lesser coverage than was previously in effect. Borrower acPmowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of .insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security lnstrt,ment. These amounts shall bear interest at the Note rate from the date of d~sbursement and shall be payable, with such interest, upon notice h-om Lender to Borrower requesting payment. All insurance policies reqah'ed by Lender and renewals of such policies shall be snbject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall nmne Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid prenfiulns and renewal notices. If Borrower obta"ns any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not ma6e promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repaii' cf the Property, if the restoratiou 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 proceeds u,til Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender s isatisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds ,for the repairs and restoration in a single payment or in a series of progress payments as the work is comFleted. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insuraiice proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fee:~ f6r public adjusters, Or other third parties, retained by Borrower shall not be paid out of the insurance proce~:& not economically feasible or Lend (~-6(WY) (ooos) and shall be the sole obligation of Borrower. If the restoration or repair is er's security would be lessened, the insurance proceeds shall be applied to Page 6 of 15 Form 3051 1/01 the sums secured by this SeC'?r~ty Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided lbr in Section 2. If Borrower abandons the l:roperty, Lender may file, negotiate and settle any available insurance claim and related maners. If Borrowcx does not respond within 30 days to a notice l¥om Lender that the insurance carrier has offered to settle a Claim, then Lender nmy negotiate and settle the claim. The 30-day period will begin when the notice is given.! In either event, or if Lender acqt,ires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds m an amount not to exceed the amounts unp~iid', under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right tc a{ay refund of unearned premiums paid by Borrower) under all insurance policies covering the Property. i~sofa'r as such rights are applicable ~o the coverage of the Property. Lender may use the insurance proceec, s either to repair or restore the Property or to pay amounts unpaid under the Note or this Security lnstrmnert, whether or not then due. 6. Occupancy. Borrower 'shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the executioq of this Security Instrmnent and shall continue to occupy the Property as Borrower's principal residence fi.ir at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be um'easonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Prol)erty; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or conmfit waste on the Property. Whether or not Borrower is re~')iding in the Property, Borrower shall maintain the Property in order to prevent the Property fi'om deteriorating Ol decreasing in value due to its condition. U~fless it is detenmned pursuant to Section 5 that repair or restoration is not econonucally feasible, Borrower shall promptly repair file Property if damaged to avoid further 'de'!erioration or damage. If insurance or condemnation proceeds are paid in com~ection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if l'~ender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoratio{1 ia a single payment or in a series of progress payments as the work is completed. If the insurance oi' condenmation proceeds are not sufficient to repair or restore file Property, Borrower is not relieved of Bofi'ower's obligation for the comi)letiol~ of such repair or restoration. Lender or its agent ma2! make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may, inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of,)r prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Applitation. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's ~knowledge or consent gave materially false, misleading, or inaccurate inlbrmation or statements to Lender (or failed to provide Lender with material i'~crnmtion) in connection with the Loan. Material representations include, but are not limited to, representations: concerning Borrower's occupancy of the Property as Borrower's principal residenCe. 9. Protection of Lender"s ~interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform t:~e covenants and agreements contained in this Security h~strument, (b) there is a legal proceeding that might ~si~nificantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a :proceeding in bm~a-uptcy, probale, for condemnation or forfeiture, enforcement of a lien which n?ay attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower ha~ abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate toI prbtect Lender's interest in the Property and rigbts under this Security Instrument, including protecth':g and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions ,)a~ include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Sec~.trity Instrmnent; (b) appearing in court; and (c) paying reasonable ,, Initials: r~.~--6(WY) (o0o5) Page 7 o~ ~s Form 3051 1/01 ; attorneys' fees to protect its i:)terest in the Property and/or rights under this Security Ins(tangent, including its secured position in a bankrupfc}, proceeding. Securing file Property includes, but is not lin'fi(ed to, entering the Property to make repairs, ch:an~ge locks, replace or board up doors and windows, drain water from pipes, elinfinate building or other ',':ol:le violations or dangerous couditions, and have utilities turned on or off. Although Lender may take ai:ti;on under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so.i, I! is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section .9.'.' Any amoums disburse~I I:'~y Lender under this Section 9 Shall become additional debt of Borrower secured by this Security Ins;:rt!ment. These amounts shall bear interest at the Noie rate from the date of disbursement and shall beplayable, with such interest, upon notice fi'om Lender to Borrower requesting payment. '. i If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title:: tO the Property, the leasehold and (be lee title shall not merge mfless Lender agrees to the merger in writing.: 10. Mortgage Insurance,. If Lender required Mortgage Insurance as a condition of nmking the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, lbr any reason, the Mortgage hrsurance coverage required by Lender ceases to be .available from the mortgage insurer that previously provided such insu:ance and Borrower was required to nrake separately designated payments toward the prenfiums for Mortgage Insurance, Borrower shall pay the premiums required (o obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, t¥om an alternate mortgage insurer selected by 'L~nder. If subs(at, ti. ally equivalent Mortgage hrsurance .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 efft~ct. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Ir~surance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid id' full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the perioc that Lender requires) provided by an iusurer selected by Lender again becomes available, is obtained, and Lend,~r requires separately desig~mted payments toWard the premimns for Mortgage Insurance. If Lender required Mortgage Insurance as a conditiou of making the Loan and Borrower was required to make separately delsignated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums requii:ed to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requi~:enrent for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing lbr such ternfination or until termination is required by Applicable Law. Nothing in this Section :10. affects Borrower's obligation to pay interest at the rate provided in file Note. Mortgage Insurance reimburses Lender (or any entity that 1)urchases the Note) for certain losses it may incur if Borrower does not re]aaiy the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insm'ers evalnate their total risk on all such insm'auce in Ibrce from tinge to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreemeuts are on tel'ms and conditions that:are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreement~i ],nay require the mortgage insm'er to make payments using any source of funds that the mor'tgage insurer may have available (which may include funds obtained from Mortgage Insurance premimns) ~: As a resnlt of these agreements, Lender, any purchaser of the Note, another insurer, any reinsnrer, any other entity, or any affiliate cif .any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments tbr Mortgage Insurance, in exchange for sharing or modil~ing the'imortgage insurer's risk, or reducing losses. If such agree~nent provides that an affiliate of Lender takes a s~al.'e of the insurer's risk in exchange ('or a share of the prenmuns paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or an~, lather terms of the Loan. Such agreements will not increase the arno(mt Borrower will owe for Mortga,lge Insurance, and they will not entitle Borrower to any refund. (~]~--6(WY) (0005) ' Page a ol ~5 , Form 3051 1/01 (b) Any such agreements '~vill not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgt-ge Insurance terminated automatically, and/or to receive a refuml of any Mortgage Insurance preniimn:'i that were nnearned at the time of such cancellation or termination. 11. Assigmnent of Mis,:el,aneous Proceeds; Forfeiture. All lVliscellaneous Proceeds are hereby assigned to and shall be paid to Leader. If the Property is damageql, such Miscellaneous Proceeds shall be applied to restoration or repair of the . Property, if the restoration or repair ~s economically feasible and Lender's security is not lessened. Duriug such repair and restoration pe~;iod, Lender shall have the righ! to hold such Miscellaneous Proceeds until Lender has had an opportunity to:inspect such Property to ensm'e the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disburseraent or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest Io be paid on such Miscellaneous Proceeds, Lender shall not be required to'pay Borrower any interest or earnings on such Miscellaneous Proceeds. It' 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 lustrument, whether or not fl~en due, with the excess, if any, paid to Borrower. ~uch Miscellaneous Proceeds shall be applied in the order provided fei- in Section 2. In the event of a total tak'ng, 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 t~king, destruction, or loss in value of the Property in which the l:air market value of the Property innnediat~ly before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums 'secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secm'ed by this Security Instrument shall be :'educed by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured inmlediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately belbre the partial taking, destruction, or loss in value. A~y balance shall be paid to Borrower. In the event of a Partial t.aking, destruction, or loss in value of the Property in which the t:air market value of the Property inm~ediai~ely before the partial taking, destruction, or loss in value is less than the amount of the stuns secured munediately before the partial taking, destructiou, or loss in value, unless Borrower and Lender otherwis~ agree in writing, the Miscellaneous Proceeds shall be apl)lied to the sums secured by this Security Instrument whether or not the stuns are then due. If the Property is abandonx, d ~.by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next seme~ce) offers to make an award to settle a claim for dmnages, Borrower thils to respond to Lender within 3(, days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Procee, ls either to restoration or repair of the Property or to the sums secured by this Security. Instrmnent, whether 'o:' ngt then due. "Opposing Part)," means the tl~ird party that owes Borrower Miscellaneous Proceeds or the par3' against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default' if any action or proceeding, whether civil or crinfinal, is begun that, in Lender's judgment, could result' in:forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under t~his Security Instrument. Borrower eau cm-e such a defimlt and, if acceleration has occurred, reinstate as provit~edl;in Section 19, by causing the actiou or proceeding to be dismissed with a ruling that, in Lender's judgn:em, precludes forfeiture of the Property or other material impairment of Lender's interest in the Propert) mI. rights under this Security Instrumcut. The proceeds of any award or claim for damages that are attributable to the i~npairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceecs that are not applied Jo restoration or repair of the Property shall be applied in the order provided for in Section 2. ,(~6(WY) (goos) · ~ inilial$:~~ Page 9 gl 15 Form 3051 1/01 Oh}OOOOa 12, Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument grauted by Lender to Borrower or any Successor !n Interest of Borrower shall nol operate to release the liability of Borrower or any Successors in Interest of E:orrower. Lender shall not be required to commence proceedings agantst any Successor in Interest of Borrower or to refuse to extend time fur payment or otherwise modify amortizatton of the sums secured by this Se~::urity Instrument by reason of any demand made by the original Borrower or any Successors in Interest 6f Borrower. Any tbrbearance by Lender in exercising any right or remedy including, without lhnitation,:4',ender's acceptance of payments fi'om third persons, entities or Successors in Interest of Borrower or in amc.urns less 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 aud Assigns Bound. Borrower covenants and agrees that Borrower's oblig.auons and liability shall be joint aud several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, -g :ant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modi~, forbear or make any accommodations with regard to the terms of this Security Instmmem or the Note without the co-stguer's consent. Subject to the provisiom of Section 18, any Successor in Interest of Borrower who assunres Borrower's obligations under this Secm:ity Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefi:s under this Security Instrmnent. Borrower shall not be released from Borrower's obligations and l'iahility under this SeCurity Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender 14. Loan Charges, Lenler may charge Borrower fees for services perfurmed in cotmection with Borrower's default, for the ?t~rpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees In regard to any other fees, the :ibsence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be comtmed as a prohibition on the charging of such fee Lender may not charge lees that are expressly prohibited g'y this Security lnstrmnent or by Applicable Law. If the Loan is subject to, a law which sets maxinmm loan charges, and that law is finally interpreted so that the tnterest or other loa~l :harges collected or to be collected m cmmection with the Loan exceed the permitted limits, then: (a) any. s~tch loan charge shall be reduced by the amount necessary to reduce the charge to the pernfitted limit; and (1:0 any stuns already collected from Borrower which exceeded pernhtted limits will be refunded to Borrower. '..Lender inay choose to make this refund by reducing the principal owed under the Note or by makh~g a direct payment to Borrower. If a refuud reduces principal, the reduction will be treated as a partial prepaym/im without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any"' right of action Borrower might have arising out of such overcharge. 15. Notices, All notices i'g~.ven by Borrower or Lender ~n connection with this Secnrity h~strument nmst be h~ writing. Any notice to Borrower m com~ection with this Sccnrity Instrument shall be deemed to have been given to Borrower whe.n mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change o.f address. If Lender specifies a procedure tbr reporting Borrower's change of address, then Borrower shall :~nly report a change of address through that specified procedure. There may be only one designated notice adthess under this Security Instrument at any one time. Any noti~ze to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated, another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have l:.etm given to Lender until actually received by Lender. If any notice required by this Security Instrument is ali!oi required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requiremen:: ~)nder dtis Security lnstrmnent. (~-6(WY) (ooos) ,' Page ~Oot ~S Form 3051 1/01 16. Governing Law; Sei'erability; Rules of Construction. This Security Instrument shall be governed by federal law and the law ,o? the jurisdiction ~n which the Property is located. All rights and obligations contained in this Security I.:ls'trument are subject to any rt:qmrcments and li~nitations of Applicable Law. Applicable Law nfight explici[ly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be con';trued as a prohibition against agreement by contract. In the event that any provision or clause of this S~ci~rity Instrument or the Note conllicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Secu::ity Instrument (a) words of the masculine gender shall mean and include corresponding neuter words 0r words of file feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy, Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Pr~)perty or a Beneficial Interest iu Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial mteresl m the Property, including, but not limited to, those beneficial interests trar'sl~rred in a bond for deed, contract lot' deed, instathnent sales contract or escrow agreement, the intent of Which is the transfer of title by Borrower itt a Mture date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest itt Borrower is sold m' transferred) without Lender's prior written Consent, Lender may requir:e irmnediate payment in tull of all sums secured by this Security Inslrmnent. However, this option shall not oe exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises th!s ioption, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less~ titan 30 days from fl~e date the uotice is given in accordance with Section 15 within wlfich Borrower must Fay 'all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to file expiration of this period, Lender may invoke any remedies pernfitted by this Secm'ity Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the rigli! to have enforcement of tiffs Seem'try Instrmnent discontinued at any thne prior to the earliest of: (a) five d;.ys before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) sucl~9 ¢5, ther period as Applicable Law might specil~ Ibr the termination of Borrower's right to reinstate; or (c) ent::y, of a judgment enfbrcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security lnstrmnent and the Note as if. no acceleration had occu>/recd; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing; this Security Instrument, including, but not linfited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred lbr the purpose of protecting Lender's interest in file Property and 'rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to 'assure:th. at Lender's interest in the Property and rights under this Secm'ity Instrument, and Borrower's obligation t.) r)ay the sums secured by this Security Instrmnent; shall continue unchanged. Lender may require that Bor:o'iver pay such reinstatement sums and expenses in one or more of the Ibllowing forms, as selected by Lende/: Ca) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any i:uch check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or en!.ity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and ob}igations secured hereby shall remain fully effective as if no acceleration bad occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Chaqg ~ of Loan Servicer; Notice of (h-ievance. The Note or a partial interest in the Note (together with this Sect:ri~y Instrmnent) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (lolown as the "Loan Servicer") that collects Periodic Payments due under the Note and this ~Security Insn-ument and pertbrms other mortgage loan servicing obligations under the Note, this Security [nstrmnent, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated :o ~a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the.cl~ange which will state the name aud address of the new Loan Servicer, the address to which payments should be made and any other intbrmation RESPA requires in com~ection with a (~-6(WY) (ooo5) . : Page~ o1~5 Form 3051 1/01 notice of transfer of servicing. I'! the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note ithe mortgage loan servicing obligations to Borrower will rentatn with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by th6~ Note purchaser. Neither Borrower nor Leficer may commence, join, or be joined to any judicial action (as either an individual litigant or the membec af a class) that arises from the other party's actions pm'suant to this Security Instrument or thai alleges that ~.e other party has breaclted any provision of, or any duty owed by reason of, this Security Instrument, until st'c~t Borrower or Lender has notified the other party (with such notice given in compliance with the requiremen:s, of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the givi~?.g: of such notice to take corrective action. If Applicable Law provides a tilne period which must elapse befor~ certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. ~.'l~e notice of acceleration and oppormmty to cure given to Borrower pursuant to Section 22 and the notice oI acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity :o take corrective action provisions of this Section 20. 21. Hazardous Substancea. As used in this Section 21' (a) "ltazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Enviromnental Law and the following substances: gasoline, k~rosene, other flanm~able or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, mhtsrials containing asbestos or l~mnaldehyde, and radioactive materials; (b) "Enviro]m~ental Law" means fec~eral laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmer~ttal protection; (c) "Environntental Cleanup" includes any response action, remedial action, or removal acti3n, as defined in Environmental Law; and (d) an "Enviromnental Condition" .means a condition that can cause~ contribute to, or otherwise trigger an Enviromnental Cleanup. Borrower shall not cause o: permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or m the Property Borrower shall not do, nor allow anyoue else to do, a~lything affecting the Property (a) that is in violation of any Enviromnental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a ,:ondition that adversely affects the value of the Property. The preceding two sentences shall not apply to the,.: presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally re~zognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not Iiir~fited 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 governme~ital or regulatory agency or private party revolving the Property ,'md any ltazardous Substance or Envirmnnental Law of which Borrower has actual knowledge, (b) any Environmental Condition, inclu{]ihg but noi lhnited to, any spilling, leakiug, discharge, release or threat of release of any Hazardous SUbs~tance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any govenm~ental or regu!atory'a')thority or any private party, that any removal or other remediation of any Hazardous Substance affecting thc Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create auy obligation on Lender tbr an Envirolm~ental Cleanup. (~-6(WY) (ooo5) Page ~2 ol ~5 Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Leuder further covenant and agree as tbllows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of an,' covenant or agreement in this Security lustrtunenl (but not prior to acceleration nnder Section 18 nnless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action 'equired to cure the default; (c) a date, ,mt less than 30 days h'om the date the notice is given to Borrower, by which the default mt,st be cured; nad (d) that failure to cure the default on or before the dr:to specified in the notice may result in acceleration of the sums seem'ed by this Security lnstrmnent and sale of the Property. The notice shall further iufo,-m Borrower of the right to reinstate after acceleratiou and tbe right to bring a court action to assert the non-existence of a defanlt or any other defe~;se of Borrowe,- to acceleration and sale. If tbe default is not cured on or before the date specified i~ the notice, Lender at its option may require immediate paymeut itt full of all sums secured by this Security Instrument without fln'tber demaud and may invoke tbe power of sale and any otber remedies permitted by Applicable Law. Lender shall be entitled to collect ali expenses incurred in pursuing the renredies provided in this Section 22, including, but not limited to, reasonable attorneys' fees aud costs of title evidence. If Lender invokes the power of sale, Lender shall give uotiee of intent to foreclose to Borrower and to the person in possession of the Property, il' different, iu accordance with Applicable Law. Lender shall give notice o!' the sale to Borrower in the rammer provided in Section 15. Lender shall publish the notice of sale, t:nd the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may'purchase the Property at any sale. The proceeds of the sale slmll be applied in the following order: (:'[) to all expenses of the sale, including, but uot linrited to, reasonable attorneys' fees; (b) to all stems secured by tiffs Security lnstrunmnt; and (e) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument. Lender shall release this Security Instrument. Borrow/er shall pay any recordation costs. Leader may charge Borrower a fee for releasing this Security Instnment, but only if the fee is paid to a third party for services rendered and the charging of the fee is permittxl under Applicable Law. 24. Waivers. Borrower releases and waives all rights tinder and by virtue of the homestead exemption laws of Wyoming. (~-6(WY) (0005) Page 13 o! ~5 Form 3051 1/01 0:90000:3 "" ·...~'".' *; 9 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any lider executed by Borrower and recorded wifl~ it. Witnesses: ID M HOFF~ (Seal) -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -B~D rrower (Seal) (Seal) -Borrower -Borrower {~)~6(WY) (ooos) Page ~4 ol 15 Form 3051 1/01 STATE OF WYOMING, foregoing instrument ',vas acknowledged before me this by ~)~~'The County ss: Notary Public (~.-6(WY) (ooos) Initials:/~'~ Page 15 o{ 15 Form 3051 1/01 0003311415 o oooo, a 1-4 FAMILY RIDER (Assignment of Rents) THIS 1-4 FAMILY RIDER is made this 28th day of May 2004 and is incorporated into and shall be deemed to amend and supplement fl~e Mortgage, Deed of Trust, or Security Deed (the "Security 'Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Note to DELTA FINANCIAL CROUP (the "Lender")ofthe same date and covering the Property described intbe Security Instrument and located at: 1319 9th WEST AVi~, KEM~ERER, Wyoming 83101 [PropertyAddress] 1-4 FAMILY COVENANTS. In addition [o the covenants and agreements made in the Security Instrument, Borrower and Len:let further cove~mnt and agree as follows: A. ADDITIONAL PROPERTY SUBJECT TO THE SECURITY INSTRUMENT. In addition to the Property described in the ~';ecurity Instrument, the following items now or hereafter attached to the Property to the extent they are fixtures are added to the Property descriptiou, and shall also constitute the Property covered by the Security Instrmnent: building materials, appliances and goods of every nature whatsoever now or hereafter l'0cated in,'on, or used, or intended to be used in com~ection with the Property, including, but not limited to, ihcse for the purposes of supplying or distributing heating, cooling, electricity, gas, water, air and light, fire orevention and extinguishing apparatus, security and access control apparatus, plumbing, bath tubs, water heaters, water closets, sinks, ranges, stoves, refi'igerators, dishwashers, disposals, washers, dryers, awnings, storm windows, storm doors, screens, blinds, shades, curtains and curtain rods, attached nfirrors, cabinets, paue!ing and attached floor coverings, all of which, including replacements and additions thereto, shall be deemed to be and remain a part of the Property covered by the Security InStrument. All of the foregoing together With the Property described in the Security Instrument (or the leasehold estate if the Secu.rity h~strument is on ~ leasehold) are referred to in this 1-4 Falnily Rider and the Security h]strument as the "Property." MULTISTATE 1-4 FAMILY RIDER-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT In!tials: Page 1 of 4 Form 3170 1/01 (~}(~57R (0008) VMP MORTGAGE FORMS- (800)521-7291 Oh}OOOOh B. USE OF PROPERTY: COMPLIANCE WITH LAW. Borrower shall not seek, agree to or make a change m the use of the Property or its zo]~g classification, unless Lender has agreed in writing to the change. Borrower shall comply with all laws, ordinances, regulations and require]nems of any govermnental body applicable to the Property. C. SUBORDINATE I,IENS. Except as pernfitted by federal law, Borrower shall not allow any lien h~ferior to the Secm'ity Insmtment to be perfected against the Property without Lender's prior written permission. D. RENT LOSS INSURANCE. Borrower shall maintain insm'ance agaiust rent loss in addition to the other hazards for which insurance is reqmred by Section 5. E. "BORROWER'S RIGHT TO REINSTATE" DELETED. Section 19 is deleted. F. BORROWER'S OCCUPANCY. Unless Lender and Borrower otherwise agree h~ writing, Section 6 concenfing Borrower's occut:an,:y of the Property is deleted. G. ASSIGNMENT OF LEASES. Upon Lender's request after default, Borrower shall assign to Lender all leases of the Property and ad security deposits made in com~ectiun 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, in Lender's sole discretion. As used m this paragraph G, the word "lease" shall mean "sublease" if the Security hxstrument is on a leasehold. H. ASSIGNMENT OF I,:~ENTS; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION, Borrower absolutely and unconditionally assigns and transfers to Lender all the rents and revenues ("Rents") of the Property, regardless o5 to whom the Rents of the Property :ire payable. Borrower authorizes Lender or Lender's agents to collect the Rents, and agrees that each tenure of thc 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) Leuder has given notice to the tenant(s) that fl~e Rents are to be paid to Lender or Lender's agent. This ass~gmnent of Rents consnmtes an absolute assigmnent and not an assign' nent for additional security only. If Lender gives notice oI default to Borrower: (i) all Reuts 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 Instrmnent; (ii) Lender shall ;)e entitled to collect and receive all of the Rents of the Property; (iii) (~57R (0008) Page 2 of 4 Initials: ~)~/'~f Form 3170 1/01 °3° Borrower agrees that 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 Lender's agents shall be applied first to the costs of taking conlrol of and lnanaging tl~e Property and collecting the Rents, including, but not limited to, attorney's fees, receiver's fees, premiums on receiver's bonds, repair and n~aintenance costs, insurance premiums, faxes, assessmems and oilier charges on the Property, and then to thc. sums secured by the Security Instrument; (v) Lender, Lender's agents or any judicially appointed receiver sl~al be liable to account for only those Rents actually received; and (vi) Lender shall be entitled to have a receiver appointed to take possession ol' and manage the Property and collect fl~e Rents and profits derived from the Property wifl~out any showing as to the inadequacy of the Property as security. If the Rents of the Prope:'ty are not sufficient to cover the costs of taking control of and managing the Property and of collecting the Rents any funds expended by Lender for such purposes shall become indebtedness of Borrower to Lender secured by the Security Instrument pnrsuant to Section 9. Borrower represents and warrants that Borrower has not executed any prior assigmnem of the Rents and has not performed, and will net perform, any act that would preveut Lender froln 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 Pror. er~y 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 not ;uce or waive any default or invalidate any other right or remedy of Lender. This assignmem of Rents of the Property shall terminate when all the sums secured by the Security Instrument are paid in full. I. CROSS-DEFAULT PROVISION. Borrower's default or breach under any note or agreement in which Lender has an interest s'~a~l be a breach under the Security Instrument and Lender may invoke any of the remedies permitted by the Security Instrument (0008) Page 3 of 4 Form 3170 1/01 BY SIGNING BELOW E',orrower accepts and agrees to fl~e terms and prov,sions contained in 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 0003311415 ADJHO- : :, oTABLE RATE RIDER (LIBOR Index - Rate Caps) THIS ADJUSTABLE RATE' RiDER is made this 28 th day of May 2004 , and is incorporated into and shall be C. eemed to amend and supplement the Mortgage, Deed of Trust, or Deed to Secure Debt (the "Security Instrument") of the same date given by the ondersigned (the "Borrower") to secure Borrower's Note to DELTA FINA/~CIAL GROI3P (the "Lender") of file same date and covering file property described in the Security Instrument and located at: 1319 9th WEST AVE KEMMERER , Wyoming 83101 [PropertyAddress] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE ./,ND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE. MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreetnents made in the Security Instmlnent, Borrower and Lender hrther covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 6.750 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 interesl rate I will pay m~y change on the first day of ,July 2006 , and on that day every sixth month thereafter. Each date on which my interest rate could change is called a "Change Date" MULTISTATE ADJUSTABLE RATE RIDER (LIBOR Index) -Single Family -Freddie Mac UNIFORM INSTRUMENT ~}~815R (0008) Form 31!)r~'jl/~0.~' VMP MORTGAGE FORMS - (800)521-7291 (B) The Index Begitming with the first Clmnge Date, my interest rate will be based on an Index The "Index" is the average of interbank offered rates for six-month U.S. dollar-&nommated deposits in the London market ("LIBOR"), as published in The Wall Street Jottrnal. The most recent Index figure available as of the first bnsiness day of the month in~nediately 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 information. The Ix otc Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Dat,~, the Note Holder will calculate my new interest rate by adding EIGHT /dq'D ONE-QUAR'I'ER percentage points ( 8. 250 %) lo the Current Index. The Note Holder will then round the result or' this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amoum will be my new interest rate until the next Change Date. The Note Holder will th~m determine the amount of thc inonthly payment that would be sufficient to repay the unpaid principal tha: I am expected to owe at the Change Date in full on the maturity date at my new interest rate in substantially equal payments. The result of this calculation will be the new amonnt of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I an' required to pay at the first Change Date will not be greater than 9.750 % or less Ihan 8.250 ftc. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than one percentage point (1%) fi'om the rate of interest I have been paying for the preceding slx 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 beghming on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. Initials: (~815R (0008) Page 2 of 4 Form 3192 1/01 O 00008 (F) Notice of Changes T. he Note Holder will deliver or mail to me a notice of an3' changes in my interest rate and me amount of my monttfly payment before the effective date of any change. The notice 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 THE PRDPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 18 of. the Security hlstrument is amended to read as follows: Transfer of the P:'eperty or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Properp3'" means any legal or beneficial interest in the Property, including, but nol linfited to, those beneficial interests transferred in a bond tbr deed, contract for deed, instalhnent sales contract or escro~ agreement, the-intent of which is the transfer of title by Borrower at a future date to a purchase'r: If all or any part of the Property or any Interest in the Property is sold or transferred (or il' a Borrower is not a naturftl person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require inm~ediate payment m full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise ts prohibited o,, Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender iifformation required by Lender to evaluate the i.ntended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably deternfines that Lender's security will not be impaired by thc loan assunalmon and that the risk of a breach of any covenant or agreement in this Security Instn~ment is acceptable to Lender. To the extent pergfitted by Applicable Law, Lender may charge a reasonable 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 aud that obligates the transferee to keep all the promises and agie~ments made in the Note and in this Security Instrument Borrower will continue to be obligated under the Note and this Security Instrument nnless Lender releases Borrower in writing. If Lender exercises the option to require mm~ediate payment in full, Leuder shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is g:wn in accordance with Section 15 within which Borrower must pay all sums secured by this 3ecurity Instrmnent. If Borrower fails to pay fl~ese sums prior to the exp~rauon of this perioC, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. Initials: (~815R (0008) Page 3 of 4 Form 3192 1/01 0S00008 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in fl~is Adjustable Rate Rider. DAV'rD H HOSFb~ -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~815R (0008) Page 4 of 4 Form 3192 1101 Exhibit A O~OOOo3 ,. - ,?3 9 A portion of Lot 1 of Blcck 10 of the Lincoln Heights 4''~ Subdivision to the City of Kemmerer, Lincoln County, Wyoming, being more particularly described as follows: Beginning at the Northeast corner of Lot 1 Block 10, thence West along the northerly boundary of said Lot 1 BIo:k 10 a distance]of 100 feet Thence South along the Westerly bOundaf'y of said Lot 1 Block 10, a distance of 52.28 feet; Thence N89°54'12"E, a distance of 44.67 feet; Thence S89°52'33"E, a distance of 30.47 feet; Thence S89°58'42"E, a distance of 24.86 feet; Thence North along the essterly boundary of said Lot 1 Block 10 a distance of 52.28 feet to the poinl of beginning