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HomeMy WebLinkAbout90008890577 (04) Return To: WELLS FARGO HOME MORTGAGE 3601 MINNESOTA DR. SUI~?E 200 LOOM NGTON, 9 0 0 0 8 8 Prepared By: WELLS FARGO BANK, N.A. 1919 DOUGLAS,, OMA/lA, 681010000 RECEIVED 'LINCOLN COUNTY CLERK NE [Space Above Tlds Lh~e For Recordh~g Data[ MORTGAGE DEFINITIONS Words used in multiple sec,'ions of tiffs document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 a:~d 21. Certain roles regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated JUNE 07, together with all Riders to this document. 0t) "Borrower" is KURT M BODILY, A SINGLE PERSON 2004 Borrower is the mortgagor underflfis Security Instrument. (C) "Lo.der"is WgLLS FA~RGO BANK, N.A. Lender is a NATIONAL ASSOCIATION organized and existing under ~he laws of THE UNITED STATES 0042682369 WYOMING-Sin Die Famil v-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~®-6(WY) (ooo6~ Page 1 of 115 Initiall: VMP MORTGAGE FORMS - (800] 521-729 Form 3051 1/Ol ,-'.. 598 Lender's address is P.O. I~0X'10304, D~S 1,IO'rN~..S, IA 503050304 Lender is the mortgagee under this Security Instrument. (D) "Note" nteans the promi';sory note signed by Borrower and datedfflJlqg 07, 2004 The Note states that Borrowt:r owes Lender TWO HIJHDR~.D TWI~IIqTY THOUSJklNID AlxtD 00/100 Dollars (U.S. $ * * * * 220,000.00' ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the deb' in full not later than ffLILY 01, 20"44 (E) "Property" means the ~roperty that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" ~neans the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all .,-urns due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by-Borrower [check box as applicable]: [~] Adjustable Rate Rider [] Condominium Rider ~] Second Home Rider ~ Balloon Rider []~ Planned Unit Development Rider ~ 1-4 Family aider r-] vA Rider [---] Biweekly Payment Rider ~'] Other(s) [specify] (H) "Applicable Law" meres all controlling applicable federal, state and local statutes, regulations, o~:dinances and adnfinistrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Cmnmunity Association Dues, Fees, and Assessments" means all dues, fees, assessments mul other charges that are imposed on Borrower or the Property by a coudonfinium association, homeowners association or similar organization. (J) "Electronic Funds Traasfer" means any transfer of funds, other than a transaction originated by check, draft, or similar pa[er instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or mzgnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an acconnt. Such :enn includes, but is not linfited to, point-of-sale transfers, autonmted teller machine transactions, transfers initiated by telephone, wire transfers, and autonmted clearinghouse transfers. (K) "Escrow Items" means ihose 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 th~n insurance proceeds paid under file coverages described in Section 5) lbr: (i) damage to, or destruction cf, the Property; (ii) condemnation or other taking of all or any part of file Property; (iii) conveyance in lien of condeunmtion; or (iv) nfisrepresentations of, or omissions as to, the value aud/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan (N) "Periodic Payment" mdans the regularly scheduled amount due for (i) principal and interest uuder the Note, plus (ii) any.amounts under Section 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, Rt gulation X (24 C.F.R. Part 3500), as they nfight be amended from time to tinle, or any additional or successor legislation or regulation that governs the same subject manet. As used in this Security Instrument, ;'RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortt;age loan" even if fl~e Loan does not qualify as a "federally related mortgage loan" under RESPA. (~-6(WY} Iooosl P~e 2 o~ ~s Form 3051 1/01 O O00S8 : 599 (P) "Successor in Interest o? Borrower" means any party dlat has taken title to the Property, whether or not that party has assumed Berrower's obligations' under the Note and/or fids Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument sectres to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; aad* (ii) tile performance of Borrower's covenants and agreements under this Security Instrument and the }~4ote. For fids purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successbr~ and assigns, with power of sale, the following described property located in the COUNTY of LINCOLN : [Type.of Recor(ing lurisdiction] [Name of Recording lurisdiction] LOT 1 OF CMR SUBDIVISION, LINCOLN COUNTY, WYOMING, ACCORDING TO THAT PLAT FILED IN THE OFFIC~ OF THE LINCOLN COUNTY CLERK ON JUNE 15, 1995, INSTRUMENT NO. 803595, PLAT NO. 363. *SEE ADJUSTABLE RATE RIDER THIS IS A PURCHASE MDNEY SECURITY INSTRUMENT. TAX STATEMENTS SHOULD BE SENT TO: WELLS FARGO HOME MORTGAGE, 10304, DES MOINES, I~ 503060304 P.O. BOX ParcelID Number: 35192320020100 302 CMR DRIVE ETNA ("Property Address"): which currently has rite address of [Str~etl [City] , Wyoming 83118 {zip Code] TOGETHER WITH a!.'l Ihe improvements now or hereafter erected on file property, and all easements, appurtenances, ami fixtures now or hereafter a part of the property. All replacmnents and additions shall also be covered by this Security Instruinent. All of file foregoing is referred to in this Security Instrument as file "P.::operty." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and l,as rite right to mortgage, grant.and convey the Property amt that file Property is unencumbered, except for encmnbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject ~.o any encumbrances of record. THIS SECURITY INSTRUMENT combines mfiform covenants for national use and non-uniform covenants wi[It linfited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Princi ~al, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when du~ the principal of, and interest on, die debt evidenced by the Note and any prepayment charges and late .zharges due under the Note. Borrower shall also pay funds tbr Escrow Items pursuant to Section 3. Paymmts due under the Note and this Security Instrument shall be made in U.S. currency. However, if any cl~eck or oilier instrument received by Lender as payment under the Note or tiffs $(WY) 1ooo51 pag~ 3 o~ ~ Form 3051 1/01 0900008 -60 0 Security Instntment is returned :to Lender unpaid, Lender nnay require that auy or all subsequent paylnents due under the Note and thi:~ Security Instrument be nmde in one or more of the tbllowing fornts, as selected by Lender: (a) casa; :(b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided avy such check is drawn upon au institution whose deposits are insured by a federal agency, instrumentali,'y, 'or entity; or (d) Electronic Funds Transfer. Payments are deemed r~cetved by Lender when received at file location designated in the Note or at such other location as may bc designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payr~ent or 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 futm'e, 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. Lender nuty hold such unapplied funds uatil Borrower makes payment to bring the Loan current. If Borrowe.r does not do so wiflfin a reasonable period of time, Lender shall either apply such funds or remm thein 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 future against Lender shall relieve Borrower fi'om making payments due under the Note and this Security htstrument or performing the covenants and agreements secured by this Security h~strument. 2. Application of Pa:.'ments or Proceeds. Except as otherwise described in this Section 2, all paymems accepted and applied by Lender shall be applied in file 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 Per odic Pay~nent in the order in which it became due. Any remaining amounts shall be applied first to late ,:harges, second to any other amounts due under this Security Iustrument, and then to reduce the principal t alance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any la~e charge due, the payment nmy be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repaynent of the Periodic Payments if, and to die extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, sut h excess 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 pay,neats, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or poapone the due date, or-change the amount, of the Periodic Payments. 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 assessmenls and other items which can attain priority over this Security Instrument as a lien or encumbrance on the ?roperty; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any ami all iasffrance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any ~,un/is payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premimns in acccrdance wifll the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during file term of file Loan, Lender may require that Conmmnity Association Dues, Fees, anlt Assessments, if any, be escrowed by Borrower, and such dues, fees ami assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under tiffs Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to p~y the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender ~unds 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, file amounts (~)~-6{WY) Iooosl , P~.,~ ot ~ ' ' Form 3051 1/01 o oooas '. 601 due for any Escrow Items fo~ which payment of Funds has been waived by Lender and, if Lender requires, shall funfish to Lender recei,)ts evidencing such payment widen such time period as Lender may require. Borrower's obligation to ma!'re snch payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement .contained in this Security Instrument, as file phrase "covenant and agreement" is used in Section 9. If BorTower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the a~ff3u,nt due for an Escrow Item, Lender ~nay exercise its rights under Section 9 and pay such amoum and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender ~nay revoke tke waiver as to any or all Escrow Ice,ns at any tinm by a notice given in accordance with Section 15 ~nd, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then mq~ired 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 speciE:ed under RESPA, and (b) not to exceed the nmximum amom~t a lender can require under RESPA: Lender shall estimate the a~nount of Funds due on the basis of current data and reasonable estimates of expeaditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bani.:. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lm::der shall not charge Borrower for holding and applying the Funds, ammally analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law p'.~rnfits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires i'nterest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on t:ae Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an axmual accounting of the Funds as required by RESPA. If there is a surplus ol Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funrs ia accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Leader shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make np the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held m escrow, as defined under RESPA, Lender shall notify Borrower as required ~y RESPA, 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 sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens, Bbrrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property v,hich can attain priority over this Security Instrument, leasehold payments or ground rents on the Property ' if any, and CoInmunity Association Dues, Fees, and Assessments, if any. To the extent that these items are EscrOw Items, Borrower shall pay them in the ~nanner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to file payment of file obligation secured by the lien in a manner acceptable to Lender, but only so long '.as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of file lien in, legal proceedings· which in Lender's opinion operate to prevent the enforcement of t'ae lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures fr~m 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 ovek ~is Security Instrmnent, Lender nmy give Borrower a notice identifying the {~)~-6(WY) (ooo~) Page 6 o~ t~ Form 3051 1 I01 , ,-.. 602 lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Bc~ower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender'in connection with this Loan. 5. Property Insurance.' Bdrrower shall keep the improvements now existing or hereafter erected on the Property insured against ~os~ by fire, hazards included within the term "extended coverage," and any other hazards including, but :iotqimitedto, earthquakes and floods, for which Lender requires insurance. This insurance shall be maidtai~ied in the amounts (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 carrY, er Providing the insurauce shall be chosen by Borrower subject to Lender's right to disapprove Borrowd'r's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in. cannection with this Loan, either: (a) a one-time charge for flood zone deternfination, certification and tracking services; or (b) a one-time charge 1br flood zone determination and certification services and subsequent charges each time remappings or sinfilar changes occur which reasonably might affect sucl~ deternfination or certification. Borrower shall also be responsible for the payment of any fees imposed try the Federal Enmrgency Management Agency in connection with the review of any flood zone dete:rmination resulting 'front an objection by Borrower. If Borrower fails to nmintain 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 ntight or nfight not protect Borrower, Borroxs'er's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost o.f tl:~e insurance coverage so obtained might sig]tificantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Bo:rower secured by this Security Instrmnent. These amounts shall bear interest at the Note rate from the dat~: of disbursement and shall be payable, with such interest, upon notice front Lender to Borrower requestin.~ payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, 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 requiret, Borrower shall promptly give to Lender all receipts of paid premimns and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destructio~ of, the Property, such policy shall include a standard mortgage clause and Shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Bolrrower shall give prompt notice to the insurance carrier and Lender. Lender nmy make proof of loss if no~ made prompdy by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceiis, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repai.r of the Property, if the restoration or repair is econonfically feasible and Lender's security is not lesselted. 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 Lender's satisfaction, provided that such inspection shall be nndertaken promptly. Lender may disbmse 5roceeds for the repairs and restoration in a single payment or in a series of progress payments as the ~vor~ is completed. Unless an agreement is nmde in writing or Applicable Law requires interest to be paid on stch insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on sucl' p~-oceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid o~t of the insurance proceeds and shall be the sole olSligation of Borrower. If the restoration or repair is no.: economically feasible o~- Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with ~-6(WY) Iooo~) Initil/~:~ Pa~=ao~5 ' Form 3051 1/01 the excess, if any, paid to Bo~;mwer. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons ttite Property, Lender may file, negotiate and settle any available insurance claim and related matters. If ~torrower does not respond within 30 days to a notice from Lender that file insurance carrier has offered t~ settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given In either event, or if Lender acquires the Property under Section 22 or otherwise, BQrrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under rile Note or this Security Instrument, and (b) any other of Borrower's gights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the 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 the 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' thb. execution of this Security Instrument and shall continue to occupy the Property as Borrower's princi2)al residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, ,wh:ich consent shall not be unreasonably wifltheld, or unless extenuating circumstances exist which are ?eyand Borrower's control. 7. Preservation, Maint, maace and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the .Property, allow the Property to deteriorate or contort waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property' from deteriorating or decreasing ill value due to its condition. Unless it is deternfined pursuant to Section 5 that repair or restoration is not ecmmmically feasible, BorroWer shall promptly repair the Property' ifi damaged to avoid further deterioration or damage. If insurance or condenmation proceeds are p~.id ~n 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 wor~'; is completed. If the insurance or condenmation 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 ma) make reasonable entries upon and inspections of the. Property. If it has reasonable cause, Lender mayqns.pect the interior of the improvements on file Property. Lender shall give Borrower notice at the time o~or 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 ng~.terially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lend.~.r with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of file Property as Borrower's princil,al residence. 9. Protection of Lender:'s Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform ihe covenants and agreements contained in this Security Instrmuent, (b) there is a legal proceeding that might 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, lbr enforcement of a lien which may attain priority over tiffs Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, fl~en Lender tnay do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actiom ca!~ 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) Iooos! Pag, 7 ot 15 Form 3051 1/01 604 attorneys' fees to protect its i'~tercst in the Property and/or rights under this Security Instrument, including its secured position in a bar'kruptcy proceeding. Securing file Property includes, but is not limited to, entering the Property to make: repairs, change locks, replace or board up doors and windows, drain water frmn pipes, elinfinate buildin~ or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not uuder 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 ~ection 9. Any amounts disbursed bylLender under fids Section 9 shall become additional debt of Borrower secured by this Security Inst:ument. These amounts shall bear iuterest at the Note rate from the date of disbursement and shall be p~:yable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrum!mt is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires f,;:e title to the Property, the leasehold and the fee title shall not merge mfless Lender agrees to the merger i a writing. 10. Mortgage Insurance. If Lemler required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Iusurance in effect. If, tbr any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to nmke separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay file premiums required to obtain coverage substantially equiwlent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected b',, Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue [o pay to Lender the amount of the separately designated payments that were duc when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refUndab e loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithStand,tng the fact that the Loan is ultinmtely paid in full, and Lender shall not be required to pay Borrower an} interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgag,,, Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer sele{ted by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums fur Mortgage Insurance. If Lender required Mortgage Insurance as a condition of ~naking the Loan and Borrower was required to nmke separately designated payments toward the premiffms for Mortgage Insurance, Borrower shall pay the premiums required to ~naintain Mortgage Insurance. in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Ins~urar, ce ends in accordance with any written agreement between Borrower and Lender providing for such te~ urination or until terndnation is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay file Loan as agreed. Borrower is not a party to file Mortgage Insurance. Mortgage insurers evaluate their total risk on all' such insurance in force from time to time, and may enter into agreements with o~er parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions t;lat are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage i~surer may have available (which tnay include funds obtained from Mortgage Insurance premiums). As a result of these agr:ements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be ch~?acterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange tbr sharing or mo lifying 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, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreemints will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or an)~ other terms of the Loan. Snch agreements will not increase the amount Borrower will owe for Mort:gage Insurance, and they will not entitle Borrower to any refund. (~)~-6(WY) (ooo~) ; I'aoe 8 o~ ~i Form 3051 1/01 .[ (b) Any such agreements will not affect the rights Borrower h~ - if any - with respect to the M ortgage Insurance under l~he Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to'hav,i~ the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Ins~]rance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Mi~,ceilaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid t,) Lender. If the Property is damag~d,i such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is econonfically feasible and Lender's security is not lessened. During such repair and restor~:tio~ period, Lender shall have the right to hold such/vliscellaneous Proceeds until Lender has had an oppc,rtUnity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provide,! that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a. :single disbursement or in a series of progress payments as the work is comPleted. Unless an agreement is 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 th( restoration or repair is not econoudcally feasible or Lender's security would be lessened, the Miscellaue0u'; Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with. thi: excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided q~r in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to t:!e ,sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Bor?ower. In the event of a partial i.ak~ng, destruction, or loss in value of the Property in which the fair market value of the Property immedi.ately before the partial taking, destruction, or loss in value is equal to or greater than the amount of fl~e sums secured by this Security Instrument inm~ediately before the partial taking, destruction, or loss in walue, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Inslrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following !!iraction: (a) the total amount of the sums secured immediately before the partial taking, destruction,, o~ os,'; in value divided by (b) the fair market value of the Property inm~ediately before the partial taking, des. tr,~ct~on, or loss in value. Any balance shall be paid to Borrower. In the event of a partial ~aldng, destruction, or loss in value of the Property in which the fair nmrket value of the Property inuned[ately before the partial taking, destruction, or loss in value is less than the amount of the sums secured manediately before the partial taking, destruction, or loss in value, mfless Borrower and Lender otherwi';e agree in writing, the Miscellaneous Proceeds slhall be applied to the sums secured by this Security Instrume:tt whether or not the sums are then due. If the Property is aban~lo~ied by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined i~. ~e next sentence) offers to make an award to settle a claim for damages, BorroWer fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and aPply the Miscellaneous Proceeds either to restoration or repair of the Property or to the stuns secured by this Security itns~rument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscel. lareous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Procebds. Borrower shall be. in de£~ult if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other ~naterial impairment of Lender's interest in the Property or rigats under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reihst~te as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, m Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's intere'st 'iln the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the i~npairment of Lender's interest in the Property are herebyassigned and shall he paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be · applied in the order provided i6r i.n Section 2. · (~)~-6( Y) (ooo~) ' $~,, ~ of ~ Form 3051 1/01 r ,. ,... 606 12. Borrower Not Relea/sed; Forbearance By Lender Not a Waiver, Extension of the time paymeut or modification of atnt:rtization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor ia Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest o?'Borrower. Lender shall not be required to connnence proceedings against any Successor in Interest of Borrower or to refuse to extend tilne for payment or otherwise modify amortization of the sums securei~l byl this Security Instrument by reasou of auy demand umde by the original Borrower or any Successors in :interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors itt Interest of Borrower Cr in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any rigi:/t or remedy, 13. Joint and Several Liability; Co-signers; SucceSsors and Assigns Bound. Borrower cove~mnts and agrees that Borrower's obli,;,ations and liability shall be joint and several. However, any. Borrower who co-signs fids Security Instrument but does not execute file Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage; grant and convey the co-signer's interest in the Property under file terms of this Security Instrumedt; (b) is not personally obligated to pay the sums secured by this Security Iustrument; and (c) agrees that Lender and any other Borrower eau agree to extend, modify, forbear or nmke any accommodations wi(t' regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to file provisions.;, of Section 18, any Successor iu Interest of Borrower who assumes Borrower's obligations under this Security Instrument iu 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 lial:i!ity under fids Security Instrument unless Lender agrees to such release itt writing. The covenants and agreements of this Security h~strument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14, Loan Charges. Louder may charge Borrower fees for services performed in comiection with Borrower's default, for the puipose of protecting Lender's interest itl the Property and rights under this Security Instrument, including, but not linfited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express auflmrity in fids Security Instrumem to charge a specific fee to Borrower shall not be construed as a proh~bmon on rite charging of such tee. Lender may not charge fees th~t are expressly prohibite.4 by this Security Instrumeut or by Applicable Law, If file Loan is subject to a ~aw which sets nmxinmin loan charges, and that law is finally interpreted so that the interest or oilier loan charges collected or to be collected in connectiou wi th file Loan exceed the permitted limits, then: (a) any 'such loan charge shall be reduced by the a~nouut necessary to reduce the charge to the permitted linfit; a:,id (b) any stuns already collected from Borrower which exceeded permitted linfits will be refunded to Bor:0wer. Lender nmy choose to make this refund by reducing the principal owed under the Note or by makix~g a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as ~,'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 wilt'constitute a waiver of any right of action Borrower might have arising out of such overcharge. 5. Nonces. All noUces g~ven by Borrower or Lender ~n comlection with this Security Instrument must be m wrmng. Any nottce to Borrower in cmmectlon with tilts Security Instrument shall be deetned to have been given to Borrower when nmiled by first class mail or when actually delivered to Borrower's notice address if sent by other nleans. Notice to any one Borrower shall constitute notice to all Borrowers mfless Applicable Law express~ requires otherwise. The notice address shall be the Property Address unless Borrower has designatec .a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's cl ange 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. TI,ere nmy be only one desig~:~ited .notice address under this Security Instrument at any one time. Auy 'notice to Lender shall be given by deliveriug it or by ~nailing it by first class nmil to Lender's address stated herein unless Lender h'.as designated anofl~er address by notice to Borrower. Any notice in connection with this Security LtStrument shall not be deemed to have been given to Lender until actually received by Lender.. If auy notice required by this Security Instrument is also required under Applicable Law, the Applicable Law req.firement will satisfy' the corresponding requirement under this Security Instrmnent. page 10 o! 16 Form 3051 1/Ol 16. Governing Law;, SeVerability; Rules of Construction. This Security Instrument shall be governed by federal law and .th,~ law of the jurisdiction in which the Property is located. All rights and obligations contained in thi~, Security Instrument are subject to any reqnirements and limitations of Applicable Law. Applicable EaxV might explicitly or implicitly 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:clause 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 conflP~ting provision. As used in this Secufit', instrument: (a) words of the masculine gender shall mean and include corresponding neuter words t:r iwords 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. Porrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18. "Interest in the Property" means any legal or beneficial interest in the Property, iucluding, but not limited to, those beneficial interests t~ausferred in a boud for deed, contract for deed, installment sales contract or escrow agreement, the intent c f Which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the t'rcperty or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a [)eneficial 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 Sect/rity Instrument. However, this o'3tion shall not be exercised by Leuder if such exercise is prohibited by Applicable Law. If Lender exercises this ~ption, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less titan 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender nmy invoke any remedies permitted by this Security Instrument without k rther notice or demand on Borrower 19. Borrower's Right .to Reinstate After Acceleration. If Borrower meets certain couditions, Borrower shall have the rig'lr to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) fly,~. days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify tbr the termination of Borrower's fight to reinstate'; .)r (c) entry of a judgment enforcing this Security Instruutent. Those conditions are that Borrower: (a) pays Lender all stuns which then would be due under this Security Instrument and the Note as if ao acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expense'¢ incurred in enforcing this Security Instrument, includ, ing, but not limited to, reasonable attorneys' feel property inspection and valuatiou tees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Iustrument; and (d) takes such action as Lender may reasonably require to assure that Leuder's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Iustrument, shall continue un,:hanged. Lender may require that Borrower pay such reinstatement sums and expeuses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, t=e~isurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits ,arc insured by a federal agency, instrumentality or entity; or (d) Electronic Fundfl Transfer. Upon reinsta~'ement by Borrower, this Security Instrument and obligations secured hereby shall remaiu fully effective m, if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleraticn imder Section 18. 20. Sale of Note; C!mnl;e of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this ,';eCurity Instrumen0 can be sold one or more times without prior uotice to Borrower. A sale might result 'in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under: the Note and this Security Instrument and performs other mortgage loan servicing obligations under th~ Note, tiffs Security Instrument, and Applicable L~w. There also nfight 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 gi~,~en written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be nmde and any other information RESPA 6(WY) (ooo6~ Page 11 of 115 Form 30151 1/01 requires in connection with a. notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer 45thOr 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 purchas!:r mfless otherwise provided by the Note purchaser. Neither Borrower nor ['ender may conm~ence, join, or be joined to any judicial action (as either an individual litigam or the mey~bixr of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded file other party hereto a reasonable 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 reasonable for purposes of this paragraph. The notice of acceleration and opportmdty to cure given tr Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Sectioxt 18 shall be deemed to satisfy file notice and opportunity to take corrective action provisions of this Section 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 Enviromnental Law and the following substances: gasoline, kerosene, other flanunable or toxic petroleum products, toxic pesticides and herbicides, volatile solveats, nhaterials contai~ting asbestos or fornuddehyde, and radioactive nhaterials; (b) "Environn~ental Law" me!tns federal laws and laws of the jurisdiction where die Property is located that relate to health, safety or enviromnental protection; (c) "Enviromnental Cleanup" includes any response action, remedial action, or r~imoval action, as defined in Environmental Law; and (d) an "Enviromnental Condition" means a condition that can cause, contribute to, or otherwise trigger an Enviromnental Cleanup. Borrower shall not cau~,~ o~: permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to rell.~ase any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do,~, auything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to file 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 app'y io 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 (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly gl'ye Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any goven'tmi'.ntal or regulatory agency or private party involving file Property and any Hazardous Substance or Eavironmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, inc:lu~,ing but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous St~bstance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which ~dv~rsely 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 oilier remediation of any Hazardous Substance ~' fie)ting 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 Environinental Cleanop. (~'6(WY) 10oo~} Pao~ ~2 o~ ~ ' ~ Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further coveuant and agree as follows: 22. Acceleration; Remedies'. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any ~ovenant or agreement in this Security Instrument (but not prior to acceleration under Section 1~-I m~less Applicable Law provides Otherwise). The notice shall specify: (a) the default; (b) the action re..iuired 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. specified in the notice may result iu acceleration of the sums secured by tiffs Security Instrument and sale of the Property. The notice shall farther inform Borrower of the right to reiustate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defen3e af Borrower to acceleration and sale. If the default is not cured on or before the date specified in t'~e notice, Lender at its option may require immediate payment in full of all sums secured by this Secarity Instrument without further denmnd and may invoke the power of sale and any other remedie~ permitted by Applicable Law. Lender shall be entitled to collect ali 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 [.ower of sale, Lender shall give notice of intent to foreclose to Borrower and to the persou in possession of the Property, if different, in accordauce with Applicable Law. Lender shall give notice of the sale to Borrower in the man,~er provided in Section 15. Lender shall publish the notice of sale, f. nd the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee.may purchase the Property at any sale. The proceeds of the sale shall be applied in the following o.'der: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Secnrity Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security lnstrumenL but only if the fee is paid to a third party for services rendered and the charging of the fee is permitte~ ,under Applicable Law. 24. Waivers. Borrowe~ re~eases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. (~-6(WY) {0005) Pag= 13 of 15 Form 3051 1/01 0:900088 · - .... 6i0 BY SIGNING BELOW, Borrower accepts and agrees to the terms and cove~mnts contained in this Security Instrument and in any RiOter executed by Borrower and recorded with it. Witnesses: KURT M BODILY J -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~I~6(WY] looos} , Pag~ ~4 of ~ Form 3051 1/01 09000b~ ,. 611 / STATE OF WYOMING, The foregoing instrmner~t was acknowledged before me this by KURT M BODILY County ss: My Commission Expires: County of ~ mats of · Notary Public '('~ (~-6G(WY) Iooo~j Page 15 of 16 Initials: Form 3051 1/01 FIXEI)/ADJUSTABLE RATE RIDER (One-Year Treasury Index - Rate Caps) THIS FIXED/ADJUSTABLE RATE RIDER is ~nade this 7 TH day of JUNE, 2004 and is incorporated into and :.;hall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned ("Borrower") to secure Borrower's Fixed/Adjkstabl.e Rate Note (the "Note") to WELLS FARGO BANK, N.A. ("Lender") of the same date a i~d covering the property described in file Security Instrument and located at: 302 CMR DRIVE, ETNA, WY 83118 [P~'operty Address] THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME A~D THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants aud agree~nents made in the Security Instrument, Borrower and Lin' der M'rther covenant aud agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides tbr a{'. initial fixed interest rate of 5. 125 %. The Note also provides for a change in the initial fixed rate to an adjustable interest rate, as follows: 4. ADJUSTABLE INTEREST KATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on tile first day of JULY, 2009 , and the adjustable interest rate I will pay nmy change on that day every 12th month thereaf.:er. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which ,ny adjustable interest rate could chauge, is called a "Change Date." 0042682369 MULTISTATE FIXED/ADJUSTAB~.E RATE RIDER - ONE-YEAR TREASURY INDEX- Single Family - Fannie Mae Uniform Instrument VMP MORTGAGE FORMS- (8001521-7291 O O00sS 63.3 (B) The Index Begi~ming with the first Change Date, my adjustable interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant nmturity of one year, as made available by thc Federal Reserve Board. The ]nest recent Index ill, ure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The N3tc Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AND THREE-QUART~.RS percentage points ( 2. 750 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eigbth of one percentage point (0.125 %). Subject to the limits stated iii Section 4(D) below, this rounded amou'.~t ,will be my new'interest rate until the next Change Date. The Note Holder will then 6etermine the amount of the mouthly payment that would be sufficient to repay the unpaid principal that .~ am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly pay~nent. (D) Limits on Interest R~.te: Changes The interest rate I am required to pay at the first Change Date will not be greater than 10.125 % or less than 2.7 50 %. Thereafter, my adjustable interest rate will never be increased or decreased 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 lo. 125 %. (E) Effective Date of My new interest rate will b~:come effective on each Change Date. I will pay the anmunt of my new monthly payment beginning on, tke first monthly payment date after the Change Date until the amount of my monthly payment changes a gain. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my iuitial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any change. The notice will include the amount of my monthly payment, any information required by law to be given to me and also the title and telephone number of a person who will a~kswer any question I may have regarding the notice. .. '. B. TRANSFER OF THE PRC,PERTY OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower's initi:~l fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Unifmn Covenant 18 of the Security Iustrmnent shall read as follows: (~:~)d843R (0006) . Page 20.f 4 ' Form 3182 1/01 Transfer of the l:'roperty or a Beneficial Interest in Borrower. As used in tiffs Section 18, "Interest in the Property" means auy legal or beneficial interest in file Property, including, but not linfited to, tho.,e beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, file intcut of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part c f flie Property or any Interest iu 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 i~mnediate payment in full of all sums secured by tiffs Se:urity Instrmnent. However, this option shall not be exercised by Lender if such exercise is prolfi5itc, d by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given iu accordance with Section 15 within which Borrower nmst pay all sums secured by this Security Instrument. If Borrower fi:ils to pay these stuns prior to the expiration of this period, Lender ma~.invoke any relnedies Fermitted by this Security Instrument w~thout further notice or denmnd on norrower. 2. When Borrower's i~fitial fixed interest rate 'changes to an adjustable interest rate under the terms stated in Section A above, U. nifimn Covmmnt 18 of the Security Instrmnent described in Section BI above shall then cease to be in effec t, ~nd the provisions of U~tiform Covenant 18 of the Security Instrument shall be amended to read as follows: Transfer of the l:'roperty or a Beneticial 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 or escrow agreement, the intent of which is the transfer of title by Borrower at a future dale 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 no~ a natural person and a beneficial interest in Borrower is sold or transferred) without Lender s prior written consent, Lender ]nay require inunediate payment in full of all sums secured by this Se:urity 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 if: (a) Borrower causes to be~subnfitted to Lender inlbnnation required by Lender to evaluate the intended transferee as ifa new loan were being nmde to the transferee; and (b) Lender reasonably determines ~hat Lender's security will not be impaired by the loan assumption and that the risk of a breach of.any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable tee as a condition to Lender's consent to the loan assmnption. Lender also nmy require the transferee to sign an assmnption agrxement that is acceptable to Lender and that obligates the transferee to keep all the promises anti agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrow;Sr in Writiug. If Lender exercise, s the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days trom the date the notice is given in accordance with Section 15 within which Borrower nmst pay all (~)~843R (0006) Initials: Page 3 of 4 Form 3182 1/01 09000 615 sums secured by this S~curity Instrument. If Borrower fails to pay these sums prior to the expiration of this period, lender nay invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. BY SIGNING BELOW. Borrower accepts and agrees to the terms and covenants contained in this Fixed/Adjustable Rate Rider. ..... (Seal) KURT 1~I BODILY -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower · (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~843R (0006) Page 4 of 4 Form 3182 1101