Loading...
HomeMy WebLinkAbout900006~Rev.:'m Tc: - CHASE MANHATTAN MORTGAGE CORP. 1040 OLIVER ROAD MONROE, LA 71201 ATTENTION: CUSTODY:SiERVICES Prepared By: DAVID MAT:THEWS 9 0 0 0 0 6 L I",lOOL(..,../I_,NTY CLERK R~quested by and R~tum to: Rzzording Deparmaent First Am~ican l~nders Advantage 1801 Lakepointe Drive, Suit~ 111 Lewisville, TX 75057 (469) 322-2500 ]Space Above This Line For Recordi.g Data] 11352262 MORTGAGE 1113s22626 2 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 2I. Certain rules regarding the usage of words used in this document are also provided in Section 16, (A) "Security Instrument" means this document, which is dated together with all Riders to this eot ument. 0l) "Borrower"is STEPHEN PRATT, MARRIED KAREN PRATT, MARRIi'ED May 12, 2004 Bo~oweristhemongagorunderthisSecudWInstmment. (C)"Lender"is CHASE MANHATTAN MORTGAGE CORP. Lender is a CORPORATIOK organized and existing under the laws of THE STATE OF New Jersey VVYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT -6(VVY) (0005) Page 1 of 15 Initials - \, VMP MORTGAGE FORMS - (800)521-729~ Form 3051 1/01 0900006 Lender's address is 343 Thornall Street;,, Edison, NJ 08837 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promisse,ry ;note signed by Borrower and dated May 12, 2 0 0 4 The Note states that Borrower owes Lender Two Hundred Twenty--Eight Thousand, and 00/100 Dollars (U.S. $ 2 2 8,0 0 0.012 } plus interest. Borrower has promised to pay this debt in regular Periodic payments and to pay the debt in fiJll not later than June 1, 2 034 0g) "Property" means the prope'.tty that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders te this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [-~ Adjustable Rate Rider ~] Condominium Rider ~ Second Home Rider [~] Balloon Rider ~3 Planned Unit Development Rider [-~ 1-4 Family Rider [--] VA Rider [--] Biweekly Payment Rider [---] Other(s) [specifyI (H) "Applicable Law" meam; all controlling applicable federal, state and local statutes, regulations, ordinances and administrative ~ules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinior..s. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, odmr than a transaction originated by check, draft, or similar paper instrument, which is initiated throngh an electronic terminal, telephonic instrument, computer, or magneti3 tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfels initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Eserowltems" means tho~e items that are described in Section 3. (L) "Miscellaneous Proceeds". means any compensation, settlement, award of damages, or proceeds paid by any third party (other than ~nsurance proceeds paid Under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or coridition of the PJ'operty. 0VI) "Mortgage Insurance" mear.s insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "PeriodiePayment" mean; tt.e regularly scheduled amount due for (0 principal and interest under the Note, plus (ii) any amounts uncerSection 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regt:lation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successgr legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RJ~SPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. ~]I~-a(WY) (0005) Page 2 of 15 Form 3051 1/01 (P) "Successor in Interest of Bbr, rower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, aud all renewals, extensions and modifications of the Note; and (il) the performance of Borrower's covenaots and agreements under this Security Instrument and the Not::. ~For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors 'and assigns, with power of sale, the following described property located in the COUNTY of LINCOLN [Type of Recording ~lufisdiction] [Name of Recording Jurisdiction] See Attached Legal Description EXHIBIT "A" Parcel ID Number: ("Property Address"): 371817~010040 1197 VZSTA DR THAYNE which currently has the address of [Sa-act] [City] , Wyoming 8 312 7 [Zip Code] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Proper~¥" 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 to an,, encmnbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variation:; by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agr6e as follows: 1. Payment of Principal ;'nterest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay. when due tl:.e principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments cue under the Note and this Security Instrument shall be made in U.S. currency. However, if any check o? other instrument received by Lender as payment under the Note or this initials:~Q (~(~-6(WY) (0005) Page 3 of 15 Form 3051 1101 Security Instrument is returued 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 .su~:h check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, o~- entity; or (d) Electronic Funds Transfer. Payments are deemed rect':iwd by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any paymer,;t or partial payment if the paymeut or partial payments are insufficient to bring the Loan current. Lender' may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any 'dg;hts hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lefider may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower C.oes not do so within a reasonable period of time, Lender shall either apply such fi~nds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the futu~.e against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrumeut. 2. Application of Paym~.nts or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied~b5 Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. . If Lender receives a payrtaent from 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 tban on,~ Feriodic Payment is outstanding, Lender inay apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that ani~, excess exists after the payment is applied to the full payment of one or more Periodic Payments, such (~:xoess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the 'Note shall not extend or pos'tp0, ne the due date, or change the amount, of the Periodic Pay~nents. 3. Funds for Escrow Items[ Borrower shall pay to Lender on the day Periodic. Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Propedzy; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any surr'ts ~ayable by Borrower to Lender in lieu of the payment of Mortgage Insurance pretniums in accordanqe with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow' Itcm. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower. : shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay 'h~ Funds for any or ali Escrow Items. Lender may waive Borrower's obligation to pay to Lender Fur:ds' for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts (~-6(WY) (oo0s) , ~a~o4 o~s Form 3051 1101 ; · 0':900006 due for any Escrow Items for wt..i~ch payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts 5-idencing such payment within such time period as Lender may require. Borrower's obligation to make s!uch payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement cor!tained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrow]er is obligated to pay Escrow Itmns directly, pursuant to a waiver, and Borrower fails to pay the amoutt due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borro:wer shall then be obligated under Section 9 to repay to Lender 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 requ x~d under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to' permit Lender to apply the Funds at the time specified u..ader RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender :';hall 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 in an institution whose deposits are insured by a federal agency, instrumentality, or entity (includir~g Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. I~eader shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires intere:;t to be paid on the Funds, Lender shall not be required to pay Borrower any intel'est or earnings on the J?unds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Let:der shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. . If there is a surplus of Fu'nds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds it-. accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender Shall notify Bo/rower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments, if there is a de:ficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by !LESPA, 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 full of ali sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrcwer shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Secm-ity Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, an/] Assessments, if any. To the extent that these items are E~c:ow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly dCs:harge any lien which has priority over this Security Instrument' unless Borrower: (a) agrees in writing ta'the payment of the Obligation secured by the lien in a manner acceptable to Lender, but only so long as E:crrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the llen while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrumcn~t. If Lender detennines that any part of the Property is subject to a lien which can attain priority over this Security Instrmnent, Lender may give Borrower a notice identifying the ~-6(V~Y) (0005) Page ~ of 1§ Form 3051 1101 lien. Within 10 days of the date cn which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth ab3ve in this Section 4. Lender may require Bon'ower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lend{7:r!in connection with this Loan. S. Property Insurance. FJorrower shall keep the m~provemcnts now existing or hereafter erected on the Property insured against loss: by fire, hazards included within the term "extended coverage," and any other hazards including, but net limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintain~ed in the amounts (including deductible levels) and for the periods that Lender requires. What Lender ~eCluires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrie',- providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower'~.~ choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in ~:onnection with this Loan, either: (a) a one-time charge for flood zone determination, certification anc tracking services; or (b) a one-time charge for flood zone detcnnination and certification services and ~':u~sequent charges each time remappings or similar changes occnr which reasonably might affect such de,termination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone deter~aination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrowe?s equity in the Property, or the corn ~nts of the Property, against any risk, hazard or liability and might provide greater or lesser coverag~ than was previously in effect. Borrower acknowledges that the cost of ~he insuranc~ 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 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 p~.ym~nt. All insurance policies required by Lender and renewals of such policies shall be subject to Lender*s right to disapprove such polic.e~, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, I~orrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower o~tains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction ~,f, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgage,~ 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 ~n~de promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proce.~,&, whether or not the underlying insurance was required by Lender, shall be applied to restoration or rcpai~: of the Property, if the restoration or repair is economically feasible and Lender's security is not lessene'~l. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to i:L~nder's satisfaction, provided that such inspection shall be undertaken promptly. Lender may d~sburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is m~de in writing or Applicable Law requires interest to be paid on ~.,uch insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such pr;)ceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out' of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not ~:cimomically feasible or Lender's security would be lessened, thc insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with ~ I,qitia '~ (~-6(WY) (0005) , Page s of t5 ' Form 3051 1101 0 0000¢; ,- s 49 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the; 2roperty, Lender may file, negotiate and settle any available insurance claim and related matters. If Bmrower does not respond within 30 days to a notice fi.om Lender that the insurance carrier has offered to ts~ttle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the no;t~ce is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, BorroWer hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's ri g?ats (other than the right to any refund of unearned premiums paid by Borrower} under all insurance p(,licies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lend/:r may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or tiffs Security Instrument, whether or not then due. 6. Occupancy. Borrower. shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after lhe execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal.residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, x;bich consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are be'rand Borrower's control. 7. Preservation, Mainterr. ance and Protection of the Property; Inspections'. Borrower shall not destroy, damage or impair thc'Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property fi'om deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section: 5 that repair or restoration is not econommally feasible, Borrower shall promptly repair the Property :if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairirlg or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Properts, Borrower ~s not relieved of Borrower's obligation fo} the completion of such repair or restoration. Lender or its agent may 'imake reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may i?spect the interior of the improvements on the Property. Lender shall g~ve Borrower notice at the time of c?prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender-:with material information) in connection with the Loan. Material representations include, but are'. not limited to, representations concennng 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 the.covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that migh} significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which re;ay attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower hag abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to Frgtect Lender's interest in. the Property and rights under this Security Instrument, including protecting', ;md/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions <.:an include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable (~-6(WY) (ooos) ' Pa~e ? otls Form 3051 1101 O9OOOO ,:2 5 0 attorneys' fees to protect its intei'eist in the Property and/or rights under this Security Instrument, including ItS secured position in a banknq~.,tcy.proceeding. Securing the Property inclndes, but is not limited to, entering the Property to make re[airs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building 6r~- other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so an d is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Sect%n 9. Any amounts disbursed b.x[' Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instnum nt. These amounts shall bear interest at the Note rate from the date of disbursement and shall be paya31e, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument' i~ on a leasehold, Borrower shall comply with all the provisions of the lease, if Borrower acquires fee ;Sfle to the Property, the leasehold and the fee title shall not merge mfless Lender agrees to the merger in va'iting. 10. Mortgage Insurance. i~f Lender required Mortgage hlsnrance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverag~ 'cequired by Lender ceases to be available from the mortgage insurer that previously provided such insur(n~'e and Borrower was required to make separately designated payments toward the premiums for Mor'}gage Insurance, Borrower shall pay the premimns required to obtain coverage substantially equivale~.t to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrc,wer of the Mortgage Insurance previously in effect, t~om an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall contin'.~c to pay to Lender the amount of the separately designated payments that were due when the insurance ci:)verage ceased to be in effect. Lender ;viii accept, nsc and retain these payments as a non-refundable .~oss reserve in lieu of Mortgage Insurance. Such.loss reserve shall be non-refundable, notwithstandin~ the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any irterest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insarance coverage (in the amount aud for the period that Lender requires) provided by an insurer selectell :by Lender again becomes available, is obtained, and Lender requires separately designated payments t~oward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required tO make separately designated payments toward the premiums tbr Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refimdable loss reserve, until Lender's requirement for Mortgage Insur~'.nce ends in accordance with any written agreement between Borrower and Lender providing for such termi, nation or until termination is required by Applicable Law. Nothing in tiffs Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimb,lrses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not,repay the Loan as agreed. Bon-ower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other p".~rties that share or modify their risk, or reduce losses. These agreements are on terms and conditions thaf are satist~actory to the mortgage insurer and the other party (or parties) to these agreements. These agreem~rts may require the mortgage insurer to make payments using any source of funds that the mortgage insure[ may have available (which may include funds obtained fi'om Mortgage Insurance premiums). As a result of these agreen)ents, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate ot7 any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be charact6~rized as) a portion of Borrower's pay~nents for Mortgage htsurance, in exchange for sharing or modi~,ifig the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, th/: arrangement is often termed "captive reinsurance." Further: (a) Any such agreement.,: will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any ot'h~r terms of tfie Loan. Such agreements will uot increase the amount Borrower will owe for Mortgal!;e Insurance, and they will not entitle Borrower to any refund. 6(WY) (000§) i Page aof~5 Form 3051 1101 0900006 ? 51 (b) Any such agreementsi~w?l not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the l?omeowners Protection Act of 1998 or any other law. These rights may include the right to recetve certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have tae Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Misceilhneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to I~nder. If the Property is damaged.! ;uch Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration O~:.repair is economically feasible and Lender's security is not lessened. During such repair and restoratienlperiod, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportulnity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided th~I such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a sir~.gle disbursement or in a series of progress payments as the work is completed. Unless an agreement isI made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the reslioration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to tbe sums secured by this Security Instrument, whetl~er or not then due, with th: .excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taidag, destruction, or loss in wdue of the Property, the Miscellaneous Proceeds shall be applied to the snms secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which tbe fair market value of the Property immediat~ily before the partial taking, destruction, or loss in value is equal to or greater than the amount of the iiums secured by this Security Instrument immediately before the partial taking, destruction, or loss in ~. v~alue, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instru .rient shall be reduced by thc amount of the Miscellaneous Proceeds multiplied by the following fi-ae, tion: (a) the total amount of tbe sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance sball be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured im~n:diately before the partial taking, destruction, or loss in value, unless BorroWer and Lender otherwise ;tg/ee in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrurncn'~ whether.or not the sums are then due. If the Property is abando~'~ed by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the. next sentence') offers to make an award to settle a claim for damages, Borrower fails to respond to Leffder within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscell;treous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Ins!~rament, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceed~. ~ Borrower shall be in defaul} ':f any action or proceeding, whether civil or criminal, is begun that, in Lender's jndgment, could result" i:a forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinst~tite as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest !nthe Property or rights under this Security Instrument. The proceeds of any award or claim for damages ':hat are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be o~,.id to Lender. All Miscellaneous Proceed~ that are not applied to restoration or repair of the Property shall be . applied in the order provided for'ir~ Section 2. (~'6(WY) (ooo~) Page 9 of 15 Form 3051 1101 0 0000 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amqrtization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor iff Interest of Borrower shall not ()perate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Be:rrower or to refuse to extend tinm for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in }.n'~erest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts 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 Lial:,ility; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instnnnent only to mo.~tgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument: (b) is not personally obligated to pay the sums secured by tlfis Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations wifl~ :egard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions af Section 18, any Successor m 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 from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and a~,xeements of this Security Instrument shall hind (except as provided in Section 20) and benefit the succeslsors and assigns of Lender. 14. Loan Charges. Lend'~ may charge Borrower fees for services performed in connection with Borrower's defimlt, for the pu!pose of protecting Lender's interest in the Property and rights under this Security Instrument, including, ~,bqt not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the ~:).l:sence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be cor'strued as a prohibition on the charging of such fee. Lender tnay not charge fees that are expressly prohibite :1 by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan ci~arges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any Such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; ar:d (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will he treated as a~ partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice i'o. Borrower in connection with this Security InstrUment shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other rhe,'ans. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law express'~y requires otherwise. The notice address shall be the Property Address Unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's cMnge of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower. shall only report a change of address through that specified procedure. There may be only one design3tcd notice address under this Secnrity Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Irstrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice.., required by this Security Instrument is also required under Applicable Law, the Applicable Law requh:ement will satisfy the COlTesponding requirement under this Security Instrument. in~iials.~¢{~ Page 10 of 15 Form 3051 1/01 4~-~(WY) (ooos) 16. Governing Law; Severability; Rules of Construction. This Security InstrUment shall be governed by federal law and th'c law of the jurisdiction in which the Property is located. All rights and obligations contained in this ~;¢curity Instrument are subject to any requirements and limitations of Applicable Law. Applicable La'~ might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silenc :. shall not be construed as a prohibition against agreement by contract. In the event that any provision or ':lausc of this Security InstrUment or the Note conflicts with Applicable Law, such conflict shall not afl'oct other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security !li~strument: (a) words of thc masculine gender shall mean and include corresponding neuter words or ~words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. , 17. Borrower's Copy, Boliower shall be given one copy of thc Note and of this Security InstrUment. 18. Transfer of the Pro[~!rty or a Beneficial Interest in Borrower. As used in this Section 18, "Interest i ......... n the Property mean~:any legal or beneficial tnterest in the Property, ~nclud~ng, but not hm~ted to, those beneficial interests tran.,'iferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in fidl of all sums secured by this Security InstrUment. However, this opt::on shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this oi:tion, Lender shall give Borrower notice of acceleration. The notice Shall provide a period of not less thaa~30 days from the date the notice is given in accordance with Section 15 within which Borrower must p~ty all sums secured by this Security Instrument. If Borrower fails to pay these stuns prior to the expiraSon of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right t~~ Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the fight to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five d~tys before sale of the Property pursnant to any power of sale contained in this Security InstrUment; (b) st.ch other period as Applicable l_aw might specify for the termination of Borrower's right to reinstate; ,c,r (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: ,~a) pays Lender all sums which then would be due under this Security Instrument and the Note as if nc acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, i[roperty inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security InstrUment; and (d) takes such action as Lender ma5 reasonably require to assure that Lender's interest in the Property and rights under this Security Instruhtent, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits ar: insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as ~' no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Changel-of Loan Servicer; Notice of Grievance. The Note or a partial interest 'in the Note (together with this Se?.~rity Instrument) can be sold one or more times without prior notice to Borrower. A sale might result¢in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under th: Note and this Security Instrument and performs other mortgage loan servicing obligations under the ~,~ote, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given.written notice of the change which will state the nmne and address of the new Loan Servicer, the addresS, to which payments should be made and any other information RESPA Page 11 of 15 Form 3051 1101 requires in co~mection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servtcer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the ~Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser ::~rless otherwise provided by the Note purchaser. Neither Borrower nor Len:ler may commence, join, or be joined to any judicial action (as either an individual litigant or the membe: of a class) that arises from the other party's actions pursuant to this Security Instrument or that allege5 that the other party has breached any provision of, or any duty owed by reason of, this Security Instmm':rt, until such Borrower or Lender has notified the other party (with such notice given in compliance wit[. the requirements of Section 15) of snch alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a tim: period whicb must elapse before certain action can be taken, that time period will be deemed to be re.a~;onable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to E.o,~ower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 1.g shall be deemed to satisfy the notice and opportunity to'take corrective action provisions of this Section 20. 21. Hazardous Snbstane~s~ As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, k'zrosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, ;naterials containing asbestos or formaldehyde, and radioactive materials; "En ' (b) ~ vtronmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or envir'ptimental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or rem6val action, as defined in Environmental Law; and (d) an "Environmental Condition" means a conditiom tl~at can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause dr permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaien to releass, my Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else'to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Envir~m',mental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a:condition that adversely affects the value of the Property. The preceding two sentences shall not apply ~o the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (inch'ding, but not limited to, hazardous substances in consumer prodncts). Borrower shall promptly gv¢ Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any govemm,:ntal or regulatory agency or priw~te party involving the Property and any Hazardous Substance or Environmental Law of which Bon'ower bas actual ~knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substar'.ce, 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 govermnental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Enviromn~ntal Cb:anup. Page 12 of 15 Form 3051 1101 NON-UNIFORM COVENi~'NTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedi.~:;. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any cffvenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 nuless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action requi'red to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower: by which the default must be cured; and (d) that failure to cure the default on or before the date s~cified in the notice may result in acceleration of file sums secured by this Security Instrument and !;ale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense C-f Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Securi'3a, Instrument without further demand and may invoke the po~ver of sale and any other remedies t~ermitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing tile remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the' .gale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold iu It~e manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following ord.?: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; aud (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all stuns secured by this Security Instrument, Lender shall release this Security Instrument. Borrower j~hall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted '~nder Applicable Law. 24. Waivers. Borrower x:eleases and waives all rights under and by virtne of the homestead exemption laws of Wyoming. ~ (~-6(WY) (ooos) Page 13 of 15 Form 3051 1101 BY SIGNING BELOW, B ~rrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any I~icer executed by BmTower and recorded with it. Witnesses: (Seal) -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) I<~REN PRg.?? -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower 1~6(WY) (0005) Page 14 otlS Form 3051 1101 0.~0000~ , - o57. STATE OF WYOMING, County ss: LF/LO/// The foregoing instrument was acknowledged before me this Pla y 12, 2 0 0 4 by STEPHEN PRATT, MARRI];D KAREN PRATT, MARRIED No tal3'/Public Page 15 of 15 Form 3051 1101 Exhibit "A" ~:, 5 ~' LOT SEVEN (7) IN STAR '¢ ALLEY RANCH PLAT THIRTEEN (13) AS PLATTED AND RECORDED IN THE OFFICIAL RECORDS OF LINCOLN COUNTY, WYOMING