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HomeMy WebLinkAbout900049Return To: Major Mortgage 6101 Yellowstone Rd LI17 Cheyenne, WY 82009 888-589-9500 Prepared By: 6101 Yellowstone Rd LL17 Cheyenne, WY 82009 888-589-9500 9000l 9 RECEIVED 'LINCOLN COUNTY CLERK Oh ,.l:Ji-I I 0 [:'l'J h: 0 ~ [Space Above This Line For Recording Data] MORTGAGE MIN 001603355 100049200000013638 5 DEFINITIONS Words used in multiple sectigns of this document are defined below and other words are defined in Sections 3, 11, 13, i8, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated dune together with all Riders to this document. (B) "Borrower" is M. Thad E:rown and Tracy Ellen Brown, 8th, 2004 Husband and Wife Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage El,.:ctronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrumeat. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888)679-MERS. WYOMING:Single Family-Fannie lt/;ae/Freddie Mac UNIFORM INSTRUMENT WITH MERS ~}®-6 A(W Y)(ooos).o~ VMP MORTGAGE FORMS - Form 3051 1101 090004 413 (D) "Lender" is Major Mo: tgage Lender is a Wyoming Corpe~ration organized and existing under th:: laws of The State Lender' s address is 6101 Ye.lowstone Rd LL17, of Wyoming Cheyenne, WY 82009 (E) "Note" means the promisse y note signed by Borrower and dated June 8th, 2004 The Note states that Borrower o.~ves Lender One Hundred T¢~enty Three Thousand Five Hundred and no/100. Dollars (U.S. $ 123,500.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and lo pay the debt il: full not later than July 1st, 2034 (F) "Property" means the propsrty that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evi-lenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sm~ i due under this Security Instrument, plus interest. (H) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Bcrrower [check box as applicable]: ~ Adjustable Rate Rider ~i] Condominium Rider [-~' Second Home Rider [---] Balloon Rider ~] Planned Unit Development Rider [---] 1-4 Family Rider ~ VA Rider ~--] Biweekly Payment Rider [--] Other(s) [specifyI (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opiniona. (J) "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 organizat:on. (K) "Electronic Funds Trans.ler" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magn'~tic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such tern includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means tho~e items that are described in Section 3. (M) "Miscellaneous Proceeds' means any compensation, settlement, award of dmnages, or proceeds paid by any third party (other than .asurance proceeds paid tinder 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 l=u of condemnation; or (iv) ~nisrepresentations of, or omissions as to, the value and/or condition of the P operty. (N) "Mortgage Insurance" m( ans insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Paymem" mean:the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts urn.er Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regtt~tion X (24 C.F.R. Part 3500), as they might be amended from time to ti,ne, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "R ~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. · ' ,.,,,,,,: (~}~-6A(WY)(ooo~)o~ P~o~,~ Form 3051 1101 (Q) "Successor in Interest of !a.~rrower" means any party that has laken title to the Property, wbether or not that party has assumed Bort s.v",er's obligations under lhe Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secureslto Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; aha (ii) the perlbrmance of Borrower's covenants and agreemems tinder this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, gram and convey to MERS (solely as nominee f~r Lender and Lender's successors and assigns) and to the successors and assigns of MERS, w'th power of sale, the lbllowing described property located in the Lincoln of Count y [Type of Recordin ~ Ivrisdiclion] [Name of Recording Jurisdiclion] Part of Lot 2 of Bloch 26 of Afton Townsite, Lincoln County, Wyoming being more parmicular-,w described as follows: Commencing a[ the Southwest corner of sgi~d Lot 2 and running thence North 7.5 rods; thence East Een rods; thence .~;ou[h 7.5 rods; thence West ten rods Eo [he point of begxnning. Parcel ID Number: ("Property Address"): Afton 541 Madison Street which currently has the address of [Slice[t [Cit)] , Wyoming 83110 [zip co&1 TOGETHER WITH" all tile improvements now or hereafter erected on tile property, and all easements, appurtenm~ces, .ant! fixtures now or hereafter a parl of the property. All replacements and additions shall also be covered by this Security Instrument. All of tile foregoing is referred to in this Security lnstrun~ent as the "Prol:~erty." Borrower understands and agrees that MERS holds only legal title to the interests granted by Bor;q~wer in this Security lostrument, but, if necessary to comply with law or custom, MERS (as nominee for Lm3der and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limiied to, the right to lbreciose and sell the Property; and to take any action required of L,.~,der including, but not limited 1o, releasing and canceling this Security Instrument. BORROWER COVENAI(D'S that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant mic convey the Property and that the Property is unencumbered, except tbr encumbrances of record. Borrc'wer warrants and will defend generally tile title to the Property against all claims and demands, subject to 'any encumbrances of record. THIS SECURITY INSTkUMENT combines uniform covenants for national use and non-uniform covenants with limited variatiOa,s by jurisdiction to constitute a' unifbrm security inslrument covering real property. (~)~6 A(WY) Form 3051 1101 O O004L UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the.principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned tc' Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Sei:urity Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (1'?)' 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 (d) Electronic Funds Transfer. Payments are deemed receiYed by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment o~ partial payment if the payment 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 rights 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 Paymed~t is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lend,i: may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such fi. rods or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Nott immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future-against Lender shall relieve Borrower from making payments due under the Note and this Security Instrur~cnt or performing the covenants and agreements secured by this Security Instrument. 2. Application~.of Payme<.ts or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied b? Lender shall be applied in the fbllowing order of priority: (a) interest due under the Note; (b) princiPa.l due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic'Payment in the order in wlfich it became due. Any remaining amounts shall be applied first to late char~:es, gecond to any other amounts due under this' Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a paymen:~ 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 than one ?eriodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that a~y excess exists after the payment is applied to the full payment of one or more Periodic Payments, such ex :ess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepaymen-, charges and then as described in the Note. Any application of payment;, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postl:o ~e the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Item~. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insur~mce required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance' with the provisions of Section 10. These items are called "Escrow Items." At origination or at any .time during the term of the Loan, Lender may require that Community Association Dues, Fees, m~d As~'ssments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts Page4 ol'15 Form 3051 1101 ..,!: .?: :i '! "'. : '.. · ',,,; ;,', .,,; .:q.;.:!;:;:',, · ::.:::;?;:~;,.. -,:,.:,;::;,,; '.. 5:,2.5? due for any Escrow Items for wMch payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts ~videncing such payment within such time period as Lender may require. Borrower's obligation to ~nake such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement corta~ined in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrowe, is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amourt due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such mnount 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, m~d in such amounts, that are then requlred under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender r;hall estimate the amount of Funds due on the basis of current data and reasonable estimates of expendi!u[es of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held !n 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 Home Loan Bank. 1. ender shall apply the Funds to pay the Escrow Items no later than the time specified tinder RESPA. Lender saall not charge Borrower for holding and applying the Funds, a,mually analyzing the escrow account, o!' ,,erifying the Escrow Items, nnless 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 interest to be paid on the Funds, Lender shall not bd 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. Le~dx shall give to Borrower, wi,bout charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Fun:Is held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess fimds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to .make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by 5~ESPA, and Borrower'shall pay to Lender the amount necessary to make uP the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all ~;UlnS secured by this Security Instrument, Lender shall promptly reftmd to Borrower any Funds held 'by [.e~qder. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if-my, and Com,nunity Association Dues, Fees, and Assess,nents, if any. To the extent that these items are Eszrbw Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly dis~.:harge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing 1o the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as 17:io*rower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcemm't of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from'the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this.Security Instrument, Lender may give Borrower a notice identifying the (~-6A(WY) P~ge $ o1' 15 Form 3051 11Ol O OO04L ...... 417 lien. Within 10 days of file date'on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth abo~:e in this Section 4. Lender may require Borrol~ver to pay a one-time charge for a real estate tax verification and/or reporting service used by Lende~r.in connection with this Loan. S. Property Insurance. Borrower shall keep tbe improvements now existing or hereafter erected on the Property insured against lo,~s, by fire, hazards included within tile term extended coverage," and any other hazards including, but no'~limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the mnounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan The insurance carrie,: ~oroviding 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 Bon'ower to pay, in connection with this Loan, either: (a) a one-time Charge for flood zone determination, certification and "racking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each ti,ne remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option ~:~d Borrower's expense. Lender is under no obligation to purchase any particular type or amount of cc:verage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrowe,':~ equity in the Property, or the contents of the Property, against any risk, hazard or liability and might p~r0vide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of ':he insurance coverage so obtained might significantly exceed tile cost of insurance that Borrower could have obtained. Any mnounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrt,ment. These mnounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies requi'~ed by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policf'e;, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additiot,al., 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 premiums and renewal notices. If Borrower· obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction c'f. the Property, such policy shall include a standard mortgage clause and shall nmne Lender as mortgagee. ~.nd/or as an additional loss payee. In the event of loss, Borr6wer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceecs, whether or not tile underlying insurance was' required by Lender, shall be applied to restoration or repai: of the Property, if the restoration or repair is economically feasible and Lender's security is not lessehed. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds u,a~il Lender has had an opportunity ~o inspect such Property to ensure the work has been completed to .'~ender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on su~:h insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out ~f the insurance proceeds and shall be tile sole obligation of Borrower. If the restoration or repair is not ee0nomically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the' ~;ums secured by this Security Instrument, whether or not then due, with ~-6A(WY)(ooo5).o~ .age~o~5 Form 3051 1101 41o° the excess, if any, paid to Bor:c!wer. Such insurance proceeds shall be applied in tile order provided for in Section 2. If Borrower abandons tie Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Bcrrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to "settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the r.,o~ice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Bo"r)wer hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to e>:ceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's :i';hts (other than the right to any refund of unearned premiums paid by Borrower) under all insurance I:.olicies covering tile Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under t~e Note or this 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, t-he execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are ~eyond Borrower's control 7. Preservation, Maint,..nance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair tn~, Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Boxrower 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 Sectic.n 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Propert): if daxnaged to avoid further deterioration or damage. If insurance or condemnation proceeds are peic' in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the wori: s completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. *' Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of o;' prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan A~plication. 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 ~naterial information) itl connection with the Loan. Material representations include, but a?e. not limited to, representations concerning Borrower's occupancy of the Property as Borrower's princil-ial residence. 9. Protection of Lende(.s.Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform-.b'~ covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that mil~ht significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such a; a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which~ r4ay attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower.h,s abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to;protect Lender's interest itl the Property and rights under this Security Instrument, including protectin~ and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's action;: can 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 (~-6A(WY) {oo05).ot ' ! Page7 of ~ Form 3051. 1101 attorneys' fees to protect its inte est in the Property and/or rights under this Security Instrument, including its secured position in a bankrtil~tcy proceeding. Securing the Property includes, but is not limiled entering the Property to make tel:airs, change locks, replace or board up doors and windows, drain water fi'om pipes, eliminate building ~,: other code violations or dangerous conditions, ~md have utilities turned on or oft". Although Lender may. take action unde,' this Section 9, Lender does not have to do so and is not under any duty or obligation to I,) so. It is agreed that Lender incurs no liability 1bt not taking any or all actions authorized under this Sec:ion 9. Any amounts disbnrsed b) Lender under this Section 9 shall become additional debt of Borrower secnred by this Security lnstrunknt. These mnounts shall bear interest at the Note rate flora the date of disbursement and shall be payat; ':, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument i is on a leasehold, Borrower shall comply with a}l the provisions of the lease. Il' Borrower acquires lee l.ille to the Property, the leasehold and the tee title shall not merge unless Lender agrees to the merger in w'riting. 10. Mortgage Insurance. ~{' Lender required Mortgage Insurance ,as a condition of making the Loan, Borrower shall pay the premium, required to maintain tile Mortgage Insurance in effect. It~ for any reason, the Mortgage Insurance coverag,.' .required by Lender ceases to be awlilable fi'om the mortgage insurer that previously provided such insun, ire and Borrower was required to make separately designated pay~nents toward the premiums fbr Mor:gage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalerr to the Mortgage Insurance previously in effect, at a cost sttbstantially equivalent to the cost to Borrc .,,er of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by llender. If substantially equiwdent Mortgage Insurance coverage is not available, Borrower shall contim~e to pay to Lender the mnotJnt of the separately designated payments that were due when the insurance c,,verage ceased to be in effect. Lender will accept, use mad retain these payments as a non-refundable ..ess reserve ill lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding"the fact that tile Loan is ultimately paid in filll, and Lender shall not' be required to pay Borrower any in'[crest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage I,';urance coverage (in the mnount and lbr the period that Lender requires) provided by all insurer selectet' by Lender again becomes available, is obtained, and Lender requires separately designated payments t.,ward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of m'~.iiag the Loan and Borrower was required to ,nake separately designated payments toward the premiums Ibr Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance i,.l effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage lnsun;.~ce ends in accordance with any written agreement between Borrower and Lender providing for such termiimtion or until termination is required by Applicable Law. Nothing iu this Section 10 affects Borrower's ob,igation to pay interest at the rate provided in the Note. Mortgage Insurance reimblttses Lender (or any entity that put-chases the Note) for certain losses it may incur it' Borrower does n, repay the Loan as agreed. Borrower is not a piety to the Mortgage Insurance. Mortgage insurers 'evaluate their total risk on all such insurance ill force from time to time, and may enter into agreements with other iFarties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satislhctory to the inortgage insurer and the other party (or parties) to these agreements. These agreem, l~ts maX require the mortgage insurer to make payments using any source of funds that the mortgage .insurgr may have available (which may include fimds obtained from Mortgage Insurance I~remiums). As a result of these agreen.cnts Lender, any purchaser of tile Note, another insurer, any reinsurer, any other entity, or any affiliate c?f may of the foregoing, may receive (directly or indirectly) mnounts that derive from (or might be charac':~rized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or rnodifs'.i.ng the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Le ,ler takes a share of the insurer's risk in exchange for a share of the prenfiums paid to the insurer, tim .u'rangement is often termed "captive reinsurance." Further: (a) Any such agreements ~ill not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any olii{er terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortga~.~.e, Insurance, and they will not entitle Borrower to any refund. i(0005).01 Page ~-,6~: ...._ ~ Form 3 0 5 0' 0004 (b) Any such aflFeenlenr2~ :~vill not affect lhe rights Borrower has - if any - wilh respect Io the ~orlgage Insurance under the Homeowners Proteclion Acl of 1998 or any other haw. These rights may include lhe right Io ~e'eeive cerlain disclosures, to requesl ami oblain cancellation of the Mortgage hlsuranee, lo hav(~ the Mortgage Insurance [erminaled automatically, and/or [o receive a refand of lilly Mortgage lnst:nmce l)remiums lhat ~vere unearned al lhe lime of such eancellalion or lerminatio,. 11. Assignment 0f Miscellaneous Proceeds; Forfeil,re. All Miscellaneous Proceeds are hereby resigned I'o and shall be paid to, L~nder. If the Property is dmnagcd, such Miscellaneous Proceeds shall be applied to restoralion or repair of the Property, if the restoratio ~ or repmr is economically tbasible and Lender's security is not lessened. During such repair and restora';:o~ period, Lender shall have the right to hold such Miscellm~eous Proceeds until Lender has had ~ oppor u fity [o inspect such Property to ensure the work has been compleled [o Lender's satisfaction, providec~ tlat such inspection shall be undertaken promptly. Lender may pay lbr the repairs and restoration in a sm31e disbursemenl or in a series of progress payments as the work ~s completed Unless an agreement ,s made"in writing or Applicable Law requires interest lo be paid on such Miscellaneous Proceeds, Lende. r shall not be required to pay Borrower any interest or e~nings on such Miscellaneous Proceeds. IF the re~toration or repair is not economically l~asible or Lender's security would be lessened, the Miscellaneom; P'oceeds shall be applied to the sums secured by this Security Instrument, whet[er or not then due, wifl~'.lh0 excess, if any, paid lo Borrower. Such Miscellaneous Proceeds shall be applied in the order provided f.~r in Section 2. In the event of a total l'ak~ing, destruction, or loss in value of the ProperS, lhe Miscellaneous Proceeds shall he applied to th,: .roms secured by this Security lustrument, whether or not then due, with the excess, if ~y, paid to Bor~',ower. In the event oF a partial raking, destruction, or loss in value of the Property in which the fifir market value of the Property immedij~t'eiy before the partial tt~ing, destruction, or loss in value is equal to or grealer than the amount of lh.¢ sums secured by this Security Insh'ument immediately betbre the partial ~ing, destruction, or loss i~ value, unless Borrower m~d Lender otherwise agree in writing, the sums secured by this Security lnsh'ument shall be reduced by ti~e amount of the Miscellaneous Proceeds nmltiplied by the following fi-~ction: (a) the total amount of the sums secured immediately bet~,'e the partial taking, destruction, c~r 'oss in value divided by (b) ihe lhir market value of the Property immediately before the parlial 'inking, destruction, or loss in value. Any balance shall be paid 1o gorrower. In the event of a partial taai~g, destruction, or loss in value of d~e Property in which the lhir market value of the Property immedi;~tiely belbre the partial taking, deslrucfion, or loss in value is less than the amount of the sums secured kamedialely betbre the partial taking, destruction, or loss in value, unless Borrower m)d Lender otherwiJe agree in writing, the Miscellaneous Proceeds shall be applied Io the sums secured by this Security Instrument whether or not the sums m'e lhen due. If the Property is aban,'l,m, ed by Borrower, or it~ al~er notice by Lender Io Borrower that the Opposing Party (a defined i~: II~e next sentence) offers to make an awed 1o settle a claim tbr dmnages, Borrower fails to respond Io L. euder within 30 days after the date the notice is given, Lender is aulhorized to collect and apply the MiscS:laneous Proceeds either 1o resloraliou or repair of the Property or to the sums secured by this Security lr, slrument, whether or not then duc. "Opposing Party" means Ihe lhird party that owes Borrower Miscel tm ~gt s Proceeds or the party againsl whom Borrower ha a right of action in regard to Miscelim~eous Proce~:ds~ Borrower shall be in defi~mlt' if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could .reshlt'.in forfeiture of the Property or other material impairment o1' Lender's interest in [l~e Property or rig[~s ~tmder this Securily h~strumen[. Borrower can cure such a defimlt and, if acceleration has occurred, reim'tate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling lhat, ~l: 'Lender's judgmeut, preclndes Forlkilure of Ihe Property or olher material impairmenl of Lender's intere~ i~ the Properly or rights under this Security Instrument. The proceeds of any award or claim for damag': that are attributable io Ibc impairment o1' Lender's inlerosl in thc Property ~ee hereby assigned and shall t-}e Nfid to Lender. All Miscellaneous Procc':.s that are not applied to restoration or repair of the Property shall be applied in the order provided I~:' in Section 2. 0 30004 } 12. Borrower Not Releas~::J; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amor:!ization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in.<nterest of Borrowe{ shall not operate to release the liability of Borrower or any Successors in lnterest of ~iorrower Lender shall not be required to commence proceedings against any Successor in Interest of Bo'rrower or to refuse to extend time 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 Ir=/ierest of Borrower· Any forbearance by Lender in exercising any right or remedy including, without :limilalion, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrow(..? or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any tigh~ :or remedy. 13. Joint and Several Lialility; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obhganons and liability shall be joint and several. However, any Borrower who co-signs this Security lnstrumert but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to moOl;age, grant and convey the co-signer's interest in the Property under the terms of this Security Instrumenl; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that bender and any other Borrower can agree to extend, modify, forbear or make any accommodations with.:'egard to the terms of this Security Instrument or the Note without the . co-signer' s consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under.thi~i Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and ben:fits 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 agi:~,ements of this Security Instrument shall bind (except as provided in Section 20) and benefit the succe'~;sors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purFose of protecting Lender's interest in the Property and rights under this Security Instrument, including, bii~t not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the a'~.sence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be const?ued as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited 'Sy 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 chaYges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such lom~ charge shall be reduced by the amount necessary to' reduce the charge to the permitted limit; and'(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 mzking a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a ~[artial 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 5~onstitute a waiver of any right of action Borrower might have arising out of such overcharge. ' 15. Notices. All notices gl. yen by Borrower or Lender in connection with this Security Instrument to.Borrower in cormection with this Security Instrument shall be deemed to must be in writing. Any notice :'" have been given to Borrower wn.en 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 expressl? requires otherwise. The notice address shall be the Property Address unless Borrower has designated ..¥ substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrowc~ shall only report a change of address through that specified procedure. There may be only one designa,;cd notice address under this Security Instrument at any one time. Any notice to Lender shall be given [,y delivering it or by mailing it by first class mail to Lender's address stated' herein unless Lender h~,s designated another address by notice to Borrower. Any notice in connection with this Security In~'t.rument shall not be deemed to have been given to Lender until actually received by Lender. If any notice, required by this Securiiy Instrument is also required under Applicable Law, the Applicable Law requ!rement will satisfy the corresponding requirement under this Security Instrument. Form 3051 (~-6A(WY) (ooo5).o~ I.: Pag. ~o o~ ~5 1101 O OO04L , ,. 4 2 ;2 16. Governing Law; Se'verability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction iu which the Property is located. All rights and obligations contained in this Se~curity. Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law' might explicitly or i~nplicitly allow the parties to agree by contract or it might be silent, -but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or (}lause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or Words of tbe feminine gender; (b) words in the singular shall mean and include the plural and vice vers;~;; 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 Prope~Tty or a Beneficial Interest in Bo,'rower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests trar sferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of',vhich is the transfer of title by Borrower at a fi~ture date to a purchaser. If all or any part of the Pro[erty 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 full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this oFtion, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days' from the date lhe notice is given in accordance with Section 15 within which Borrower must p~,y all sums secured by this Security Instrument. If Borrower thils to pay these sums prior to the expiralion of this period, Lender may invoke any remedies permitted by this Security Instrument without furth~;r notice or demand on Borrower. 19. Borrower's Right .to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) subh other period as Applicable Law might specify for the termination of Borrower's right to reinstate; 'o:' (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower:'(a'l pays Lender all sums which then would be due under this Security Instrument and the Note as if no' ecceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expense~ incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, p:operty inspection and valuation fees, and other fees incurred tbr the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue uncharged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the }~ollowing forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, tre, s:~rer's check or cashier's check, provided any such check is drawn upon an institution whose deposits ara 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 i;.' ho acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration ruder Section 18. 20. Sale of Note; Change eT Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Sec urity 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 tlie' Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. Tbere also might be one or more changes of the Loa/i' Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be giver written notice of the chm~ge which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA (~-6A(WY) (ooo5).o~ Page ~ af 15 Form 3051 1101 O O00 I: 423 requires in connection with a n6tice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer 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 tile Note purchaser Unless otherwise provided by the Note purchaser. Neither Borrower nor Lm,.,cler may commence, join, or be joined to any judicial action (as either an individual litigant or the mem.Y~r of a class) that arises from the other party's actions pursuant to this Security lnstrmnent or that alle!?s that the other party has breached any provision of, or any duty owed by reason of, this Security Instrunicnt, until such Borrower or Lender has notified the olher party (with such notice given in compliance witin the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonab? period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be rd~Sonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section ~$' shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Sectior:. 20. 21. Hazardous Substances. 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., kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvent!;, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" .mean)'federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Enviromnental Cleanup" includes any response action, remedial action, or removal action, as defined in Enviromnental Law; and (d) ,an "Environmental Condition" means a condition' that can cause, contribute to, or otherwise trigger an Environmental Cleanup. '. Borrower shall not cause ~ permit the presence, use, disposal, storage, or release of any ltazardous Substances, or threaten to relea~se any 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 Envi,ronmental Condition, or (c) which, due to tile presence, use, or release of a Hazardous Substance, creates e' condition that adversely affects the value of the Property. The preceding two sentences shall not apply: t3 the presence, Use, or storage on the Property of small quantities of Hazardous Substances that are ~;enerally recognized to be appropriate to normal residential uses and to maintenance of the Property (in.11uding, but not limited to, hazardous substances in consumer products). Borrower shall promptly gice Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any goverm~emtal or regulatory agency or private party involving the Property and any Hazardous Substance or En¥iionmental Law of which Borrower has actual 'knowledge, (b) any Environmental Condition, incluchng but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance whmh ad/e, rsely affects the value of the Property. If Borrower learns, or is notified by any govermnental or regula-ory 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 En~,ironmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. (~-6 A(WY)(ooo5).o~ Page 12 of 15 Form 3051 110'1 090004,9 424 NON-UNIFORM COVENANTS. Borrower and Lender fiarther covenant and agree as follows: 22. Acceleration; Remedies. Lender sball give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otbenvise). The notice shall specify: (a) the default; (b) the action requ)red to cure the default; (c) a dale, 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 ~t,~ecified in the notice may result in acceleration of the sums secured by this Security Instrument and s: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 af 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 Security Instrument without further demand and may invoke the power of sale and any other remedies [.,ermitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing' the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes'the pcb'er of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possess!on of the Property, if different, in' accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, a~d the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee tuffy purchase the Property at any sale. The proceeds of the sale shall be applied in the following or,let: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b)'~o all sums secured by this Security Instrument; and (c) any excess to the person or persons legally ?n, titled to it. 23. Release. Upon paymeni of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a t~e for releasing this Security Instrume~ni, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted u,nder Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. Page 13 o1' 15 Form 3051 1101 .-.-. 425 BY SIGNING BELOW, Borrower accepts and a§rees [o the terms and covenants ¢omained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: (Seal) M. Thad Brown -Borrower ~ Tracy/~llen Brown ~~'~ (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower l~lJ~6 A(W Y) (ooos).o~ Page 14 of ! § Form 3051 1/01 STATE OF WYOMING, The foregoing instrumeni' was acknowledged before me this by M. Thad Brown and Fracy Ellen Brown Lincoln June 8th, 2004 County ss: My Commission Expires: Notary Public ,.,,,.,.: I 0'" /1 'T' ~ (~-6A(WY) 1ooo51.o~ ',' Pag~ t5 o~ rs Form 3051 1101 ,.427 FIXED:TADJUSTABLE RATE RIDER (One-Year Treasury Index - Rate Cal)s) 001603355 THIS FIXED/ADJUSTAELE RATE RIDER is made this 8th day of June 2004 and is incorporated into and sl-'dl be dee~ned to amend and supplement the Mortgage, Deed of Trust, or Secm'ity Deed (the "Security Instrument") of the same date given by the undersigned ("Borrower") to secure Borrower' s Fixed/Adjus:.3.ble Rate Note (the "Note") to Ma3or Mortgage ("Lender") of the san~e date an, covering the property described in the Security Instrument and located at: 541 Hadison Street:, Afton, Wy 83110 [Property Address] THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN AD IUSTABLE INTEREST RATE, THE NOTE LIMITS THE AMOUNT BORROW[:R'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME ANL.) THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the coven, ants and agreements made in the Security Instrument, Borrower and Lende, fi~rther covenant and agree as follows: A. ADJUSTABLE RATE AND MONTItLY PAYMENT CHANGES The Note provides for an i~qitial fixed interest rate of 5.375' %. The Note also provides for a change in the ini ;al fixed rate to an adjustable interest rate, as follows: 4. ADJUSTABLE INTEREST'RATE AND MONTItLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day Of July 2 011 , and the adjustable interest rate 1 will pay may change on that day every 12th month thereafie:'. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on Wkich my adjustable interest rate could change, is called a "Change Date." MULTISTATE FIXED/ADJUSTABLE RATE RIDER - ONE-YEAR TREASURY INDEX- Single Family - Fannia Mae Uniform Instrumont '(~843R (O00fi).01 Form 311J2 1101 Page 10f4 'nitia',:~_"~-¢~/~ VMP MORTGAGE FORMS - (800)5:21-7291 42'8 (B) The Index Beginning with tile first C?b.mge Date, my adjustable interest rate will be based on an Index. The "Index" is the weekly average yie'd on United States Treasury securities adjusted to a conslant maturity of one year, as ~nade available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer a,,ailable, tile Note Holder will choose a new index that is based upon comparable inlbrmation. The Not(. Holder will give me notice of this choice. (C) Calculation of Chang,~.s' Before each Change Date, tee Note Holder will calculale my new interest rate' by adding Two and three quarters percentage points ( 2.7 50 %) ~o the Current Index. The Note Holder will tben round tile result of this addition to tee nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amour t' ¢/ill be my new interest rate until tee next Change Date. The Note Holder will then. d(termine the amount of the montldy payment tbat would be sufficient to repay the unpaid principal that I. a!-n. expected to owe at the Change Date in It, Il on the Ivlaturity Date at my new interest rate in substantially ¢;qual payments. The result of this calculation will be tile new amount of my monthly payment. , (D) Limits on Inlerest Ra :e Changes The interest rate I am ':er, uired to pay at the first Change Date will not be greater than 10.3'/5 % or h';ss thm~ 2. '/50 %. Thereafter, my adjustable interest rate will never be increased or ]e;~reased on any single Change Date by more than two percentage points from the rate of interest I have'been paying for the preceding 12 months. My interest rate will never be greater than 10.3'75 , %. (E) Effeclive Date of Cha at-es My new interesi rate will vecome effective on each Change Date. I will pay the amount of my new montlily payment beginning on.the first monthly payment date after the Change Daie until tile amonnt of my monthly payment changes agaih. (F) Notice of Changes ~' ' TEe Note Itolder will delix e~ or mail to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and of aay changes in my adjustable interest rate before the effective date of any change. Tbe notice will include ~.h= amount of my monthly payment, any information required by law to be given to me and also the title ar d telephone number of a persoa who will answer any question I ~nay }lave regarding tee notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST 1N BORROWER 1. Llntil Borrower's initial'¢(xed interest rate changes to an adjustable interest rate under tee terms stated in Section A above, Uniform Covenant 18 oftbe Security lnsh'mnent shall read as follows: I~843R (0006).01 Page 2 of 4 Form 3182 1/01 O: O004D Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract o~ escrow agreement, the intent of which is the transfer of title by Borrower al a future date to.a purchaser. If all or any part of thc Property or any Interest in the Property is sold or transferred (or if Borrower. is not, a natural. .pers°n and a beneficial interest in Borrower is sold or transferred) without Lender s prior wn?.en consent, Lender may require immediate payment in full of all sums secured by this Securilv Instrument. However, this option shall not be exercised by Lender if such exercise is prohibiter' by Applicable Law. If Lender exercises this option, Lender shall l}ive Borrower notice of acceleration. The notice shall provide a period of not less than 30 nays from the date the notice ~s given in accordance with Section 15 Mthin which Borrower must pay all sums secured by this Security Instrument. If Borrower fai!s to pay these sums prior to the expiranon of this period, Lender may invoke any remedies 'oerm]tted by this Security Instrument without further notice or demand on Borrower. 2. When Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrument described in Section BI above shall then cease to be in effect, and the provisions of Uniform Covenant 18 of the Security Instrument shall be amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Properts'" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract o[~ 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 wrir, en consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited) by Applicable Law. Lender also shall not exercise this option iff (a) Borrower causes to be su'omitted to Lender information required by Lender to evaluate the intended transferee as if a~ new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of ar7 covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitte~ by Applicable Law, Lender may charge a reasonabl c.ondition to Lender's conse~'tI to. the loan assumption. Lender al'so ma)~ require the tr~nsf~'eerea~ toa sign an assumption agreement that is acceptable tO Lender and that obligates the transferee to keep all the promises and 'agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security lnstrmnent unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of accelerati.r.n. The notice shall provide a period of not less than 30 days from the date the notice is given i.h accordance with Section 15 within which Borrower must pay all (~)~843 R (0006).01 Page.3 of 4 43O sums secured by this Sec]:ity Instrument. If Borrower fails to pay these sums prior to the expiration of this period, [ender may invoke any remedies permitted by this Security Instrument without further notice or deinand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Fixed/Adjustable Rate Rider. . ' (Seal . ~/~,~.t~_~ , v~.._~ (Seal) M. Thad Brown -Borrower Tracy~Ellen BroWn -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower ~1,~843 R (0006) 01 Page4 of 4 Form 3182 1101