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HomeMy WebLinkAbout9002429602h2 ,i_lf',IOOL N ,"r, IJ!.,ITY,.,,.., OLERK 0690532619 Return To: Prepared By: FIELDSTON~ MORTGAGE COMPANY 11000 BROF'EN LAND PKWY, #600 COLUMBIA, M.D 21044 KATHY CRISP FIELDSTONE' MORTGAGE COMPANY BOOK [Space Above This Line For Recm'di.g Data] MORTGAGE 100052606905326194 DEFiNITIONS Words used in multiple section~ of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. CeCain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" ~neans this docnment, which is dated June 16, 2004 , ~ogether with all Riders ~o this document (B) "Borrower" is LOLA GERARDY,, an unmarried woman Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic 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 Instrument. MERS i,,; 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 Mae/Freddie (~}®-6A(WY) (ooo5) Page, VMP MORTGAGE FORMS Mac UNIFORM iNSTRUMENT WITH MERS Form 3051 1101 0800 42 .... 150 "Lender" is FIELDSTONE MORTGAGE COMPANY Lender is a CORPORA',~ION organized and existing under the laws of MARYLAND Lender's address ~s 11000 BROKEN LAND PKWY, #fi00 COLU14B:IA, MD 21044 (E) "Note" means the promi)s0ry note signed by Bon'ower and dated June sixteenth, 2004 The Note states that Bon'ow~r owes Lender ONE HUNDRED THIRTL~ FOUR THOUSAND & 00/100 Dollars (U.S. $ 134,000.00 ) plt, s interest Borrower has promised to pay this debt in regular Periodic Payments and to pay the deb't in fi, Il not later than JULY 1, 2034 (F) "Property" means the 'oroperty that is described below under the heading "Transfer of Rights in the Property." - (G) "Loan" means the debf e,,idenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest (H) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Bm'rower [check box as applicable]: [--~ Adjustable Rate Rider [-~ Condominium Rider [--] Second Home Rider ~] Balloon Rider ~-~ Planned Unit Development Rider [---] 1-4 Family Rider [--] VA Rider [-'-] Biweekly Payment Rider [---] Other(s) [speciBTl (I) "Applicable Law" means all controlling apphcable federal, state and local statutes, regolations, ordinances and administratix"e roles and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed ~n Borrower or the Property by a condominium association, homeowners association or similar organizat:.on. (K) "Electronic Funds Transfer" means any trans£er of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic ins~rnment, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such tem~ includes, bnt is not limited to, point-ol:sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3 (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) fbr: (i) damage to, or destruction of,. the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in heu of condemnation; or (iv) misrepresentations or; or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, pins (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the R. ea~ Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or success,)r ~egislation or regnlation that governs the same snbject matter. As used in this Security Instrument, "RESP~J' refers to all requirements and ,'est,'ictions 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) {ooos) Page 2 ot 15 Initialw~~ Form 3051 1101 (Q) "Successor in Interest cf Borrower" means any party that has taken title to the Properly, whether or not that party has assumed Borrower's obligations under the Note and/or Ibis Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (0 the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the perfmTnance of Borrower's covenants and agreements tinder this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of /VIERS, with power of sale, the following described property located in the COUN~!Y of Lincoln : [Type of Recor['ing Jurisdiction] [Name of Recording Jurisdiciion] LOT 199 IN NORDIC RI~CHES DIVISION NO. 13, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. Parcel[D Number: 31 SPUR LOOP ETNA ("Property Address"): 36192330018300 which currently has the address of [Street] [City] , Wyoming 83118 [Zip Code] TOGETHER WITH all tk.,e improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures row or hereafter a part of the property. All replacements and additions shall also be covered by this Security l'nstrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower undenqands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or cnstom, MERS (as nominee for Lender and Lender's success ~rs and assigns) has the right: ;o exercise any or all of those interests, including, but not limited to, the right tc foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant aad convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject lo.any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-nniform covenants with limited variations by jurisdiction to constitute ,q uniform security instrument covering real property. (~-6A(WY) (0005) Page 3 of 15 Initials: ~ Form 3051 1/01 0690532619 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows' 1. Payment of Primilipal, Interest, Escrow Items, Prepayment Chargesl and Late Charges. BolTower shall pay when d':uei~the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and lat~,: charges due under the Note. Borrower shall also pay fi,nds for Escrow Items pnrsuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U:S. currency. However, if any c:heck or other instrument received by Lender as payment tinder the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this.SeCurity Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check i.,': drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or i(d). Electronic Fnnds Transfer. Payments are deemed received by Lender when received at the location design:ated 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 payrr.ent or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender m~zy accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refi~se such payment or partial payments in the fi~ture, 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 unapptied funds. Lender may hold such unapplied fiinds until Borrower makes payment to bring the Loan current. If Borrower does not do so wSthin a reasonable period of time, Lender shall either apply such fitnds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance tinder the Note immediately prior.to !foreclosure. No offset or claim which Borrower might have now or in the fiiture against Lender shall relieve Borrower from making payments due tinder the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Pays. riel)ts or Proceeds. Except as otherwise described in this Section 2, all payments accepted and apphed by Let. der shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due und~:r the Note; (c) amounts due tinder Section 3. Such payments shall be applied lo each Periodic Payment in th'~' order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due tinder this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment 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 ont', Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repaytnent 9f the Periodic Payments if, and to the extent that, each payment can be paid in fidl. To the extent that any,excess exists after the payment is applied to the fidl payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepaymmt'charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due tinder the NOte shall not extend or postPone 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 tinder the Note, until the Note is plaid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and 0thor 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 insurance retiuired by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrewer to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisic~ns iof Section 10. These items are called "Escrow Items." At origination or at any time during the term of die'iLoan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly fii'-nish to Lender all notices of amounts to be paid tinder this Section. Borrower shall.pay Lender the Funds'for Escrow Items nnless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower% 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 due for any Escrow Items for which payment of (~-6A(WY) (ooos) P~ ~ o~ is . Form 3051 1/01 090024k !5° 0690532619 Funds has been waived by Lender and, if Lender requires, shall fiu~ish to Lender receipts evidencing such payment within snch time pe~idd as Lender may require. Borrower's obligation to make snch payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "~c,venant and agreement" is used in Section 9. If Borrower ~s obligated to pay Escrow Items direclly, pursnant to a waiver, and Borrower fifils to pay the amount due for an Escrow Item, Lender may exercise its rights Ymder Section 9 and pay such am.oulll and Borrower shall then be obligated under Section 9 to repay to Len~der any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice giyen in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in snch amounts, that are then required tinder this Section 3. Lender may, at any tim~:, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds al the time specifed under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Fnnds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held inan institution whose deposits are insured by a federal agency, instrnmentality, or entity (including Lender, if' Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not cLarge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be p;:ic on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borro've.r and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to .Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplns o? Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess fimds ~n accordance with RESPA. If there is a shortage of Funds hekl in escrow, as defined tinder RESPA, Lender shall noti~ Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make tip 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 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 fidl o ~ all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property Which can attaifi priority over this Security Instrument, leasehold payments or gronnd rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any To the extent that these items are Escrow Items, Bon'ower shall pay them in the manner provided in Section 3. Borrower shall promptly fi. ischarge any lien which has priority over this Security Instrumenl unless Borrower: (a) agrees in writieg .to the payment of the obligation secured by the lien tn a manner acceplable to Lender, but only so long as Eorrower is performing snch agreement; (b) contests the lien in good failh by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while tl'..ose 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 Lend{:r determines that any part of the Property is subject to a lien which can attain priority over this Security IEstrument, Lender may give Borrower a notice identifying lhe lien. Within 10 " Initials:~~'' Form 3051 1/01 (~t~-6A(WY) (ooos) Page 5 oi~ 15 0690532619 days of the date on which t"~ati notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in lhis S~¢ction 4. Lender may requke BoiTo!~,er to pay a one-time charge for a real estate tax verification and/or reporting service nsed by Lender in Co,anection with this Loan. 5. Property Insurancei' Bi~rrower shall keep the improvements now existing or hereafter erected on the Property insured against loss~ by fire, hazards included within the term "extended coverage," and any other hazards including, but not l~im!ted to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintaineld in the amounts (including deductible levels) and ~br the periods that Lender requires. What Lender requi~L2s ~pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one4ime charge for flood zone determination, certification and tracking se:}vices; or (b) a one-time charge for flood zone determination and certification services and subsequent ch~.i.rges each time 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 Em&gencY Management Agency in connection with the review of any flood zone determination resulting from'lan objection by Borrower. If Borrower fails to ffmintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's optiqn and Borrower's expense. Lender is under no obligation to purchase any particular type or amount o( coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower'~ equity in the Property, or the contents of the Property, against any risk, hazard or liability and might proiyide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost :of'the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower. cotild nave obtained. Any amounts disbursed by Lender nnder this Section 5 shall become additional debt of Borrower secnred by this Security Instrument. These amonnts shall bear interest at the NOte rate from the date or' disbursement and shall be payable, with such interest, upon notice fi'om Lender to Borrower requesting paymenL All insurance policies ~i'eq fired 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 add:!tio'aal loss payee. Lender shall have the righl to hold the policies and renewal certificates. If Lender requirvs, Borrower shall promptly give to Lender all receipts of paid preminms and renewal notices. If Borrower o~tains any form of insurance coverage, not otherwise required by Lender, for damage to, or destrnction o!:~~, tbe Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee a!ad/Or as an additional loss payee. In the event of loss, Bon'o:a, er shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss. if not rnade promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proce, eds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repak of the Property, if the restoration or repair is economically feasible and Lender's secnrity is not lessendd. During such repair and restoration period, Lender shall have the right to hold such insurance proceedS u~til Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds ?or the repairs and restoration in a single payment or in a series of progress payments as the work is cgmpleted. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such i0su,rance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Flees for public adjusters, or other third parties, retained by Borrower shall not be paid ont of the insurance prc;ceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible oriLender's security would be lessened, the insurance proceeds shall be applied to (~-6A(WY) (ooo5) Initials: ~ Page 6 of 15 Form 3051 1101 0690532619 the sums secured by this Se:nrity Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance prozeeds shall be applied in the order provided for in Section 2. If Borrower abandons tl~e Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrou'er does not respond within 30 days to a notice fi'om Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the clairB. The 30-day period will begin when the notice is gken. In either event, or if Lender acqmres the Prope~xy under Section 22 or otherwise, Borrower hereby a'ssi~ms to Lender (a) Borrower's nglits lo any insurance proceeds in an amount not to exceed the amounts unpakt under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right D ~!.ny refund of unearned premiums paid by Borrower) under all insurance policies covehng the Property, ihsofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repah' or restore the Property or to pay amounts unpaid under the Note or this Security Instrument,. whether or not then due. 6. Occupancy, Borrowe:' shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the exe&~ti0n of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for al least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably witliheld, or unless extenuating circumstances exist which are beyond Borro',ver's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair'the Prope~y, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restormioa is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insnrance or condemnation proceeds are paid in connection with damage to, or .he 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 work is completed. If the insnrance 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 m~y 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 g~ve Borrower notice a! the time o!' o2 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 ~ntities acting at the direction.of Borrower or-with Borrower's knowledge or consent gave materially false', nfisleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representavons concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lende?s Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that mighi significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such a~' a proceeding in bankrnptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrowe~~ has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate tc protect Lender's interest in lhe Property and rights tinder this Security Instrument, including protecrng and/or assessing the value of the Property, and securing and/or repainng the Property. Lender's actions can include, but are not limited to: (a) paying any soms secured by a lien which has priority over this Sel;urlty Instrument; (b) appearing in court; and (c) paying reasonable (~-6A(WY) (ooos) Page 7 of 15 Form 3051 1101 0690532619 attorneys' fees to protect its i'nte~;:est in the PrOperty and/or rights tinder this Secnrity Instrnment, including its secured position in a bankrur, tcy! proceeding Securing the Property includes, but is not limited to, entering the Property to make repairsl change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other.:c°d~e violations or dangerous conditions, and have utilities turned on or off. Although Lender may take a!ction under this Section 9, Lender does nol have to do so and is not under any duty or obligation to do so.! Itl. is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section Any amounts disbursed by Lender tinder this Section 9 shall become additional debt of Borrower secured by this Security ,~ ' In~itrument, These amounts shall bear inlel'est at the Note rate from the date of disbursement and shall be tlay~Ible, with such interest, upon notice fi'om Lender to Borrower requesting payment. If this Security Instrum,:mt }is on a leasehold, Bon'ower shall comply with all the provisions of the lease. If Borrower acquires fee titl.~ to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insuraniee. ;If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the prerrjums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available fi'om the mortgage insorer that previonsly provided such insurance and Borrower was required Io make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insnrance previously in effect, at a cost substantially equivalent to the cost to Bon-ower of the' Mortgage Insurance previously in effect, fi'om an alternate mortgage insurer selected by Lender. If substanti~flly equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effi~ct.: Lender will accept, use and retain these payments as a non-refi~ndable loss reserve in heu of Mortgage Ihsm'ance. SUch loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid iff full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender reqnires) provided by an insurer selected by Lender again becomes available, is obtained, and Lehde:r requires separately designated payments toward the premiums for Mortgage Insurance. If Lender requir~:d Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately'.deSignated payments toward the pre~niums for Mortgage Insurance, Borrower shall pay the premiums requi?ed.to maintain Mortgage Insurance in effect, or to provide a non-refi,ndable loss reserve, until Lender's requi'cement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lend, er providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 iaffects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimbitrses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay, the Loan as agreed. Borrower is not a party to the Mortgage Insnrance. Mortgage insurers evaluate their total risk on all sucl/ insurance in force fi'om time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreemeniis may require the mortgage insurer to make payments using any source of fi~nds that the mortgage insurer m[.y l/ave available (which may inch, de fimds obtained from Mortgage Insurance premiums), i As a result of these ag[cements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate 9f any of the foregoing, may receive (directly or indirectly) amounts lhat derive from (or might be characterizedI as) a portion of Borrower's payments for Mortgage Insurance, in exchange for shin-lng or modifying thel 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 o.'.~en:termed "captive reinsurance.'' Further: (a) Any such agreen'/ents will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or arO' other terms of the LOan. Such agreements will not increase the amount Borrower will owe for Mor'tgage Insurance, and they will not entitle Borrower to any refund. (~-6A(WY) tooo5) INtials: ¢ PageSof15 Form 3051 1101 0690532619 (b) Any such agreeme'nts will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under tllcl Homeowners Protection Act of 1998 or any other law. These rights may include the right to receivt c,ertain disclosures, to request and ohtain cancellation of the Mortgage Insurance, to have the Mortgage Insurauce terminated automatically, and/or to receive a refund of any Mortgage Insurance premium; that were unearned at the time of such cancellation or termination. 11. Assignment of M~iscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid i;o Lender. If the Property is damaged', such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration of' repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportuni?y to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such ~nspection 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 t3 Pay Borrower any interest or earnings on such Miscellaneous Proceeds. if the restoration or repair is not ec~nbmically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the. sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total t;ki~g, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums sec{~tred by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partia~ tvking, destruction, or loss in value of the Property in which the fair market value of the Property immediitely before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, vnL:ss Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be rednced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (al the totitl z, mount of the sums secured immediately before the partial taking, destruction, or loss in value divided by ()) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Bon'ower. In the event of a partia~ taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amonnt of the sums secnrec bnmediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in Writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instr':iment whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined m the next .;entence) 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 Proc ~etas either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether~or not then due. "Opposing Part)'" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in dcfaalt 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 material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by cansing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Prope~xy or rights under this Security Instrument. The proceeds of any award or claim for damages that are attribut~bl~ to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. Form 3051 1101 .i5S 0690532619 12. Borrower Not RClea::sed; Forbearance By Lender Nut a Waiver. Extension of the time for payment or modification of amorlization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successc)r ir, Interest .of Borrower shall not operale to release lhe liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Boni'ower or to refuse to extend time tbr payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any de~nand made by the original Borrower or any Successors in Interest (ff ~orrower. Any forbearance by Lender in exercising any right or remedy including, without limitati0nl Lender% acceptance of payments fi'om lhird persons, entilies or Successors in Interest of Borrower or in ai:,no~mts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy.[ 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's oblil~at',mns and liability shall be joint and several. However, any Borrower who co-signs this Security instrurnen:~ but does not exectlte the 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 tinder the terms of this Security Instrument; (b) is n6t personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree Io extend, modify, forbear or make any accommodations with regard to the terms of this Security Inslrument or the Note without the co-signer's consent. Subject to the provisior:s o? Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations tinder this Sectlrity Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits tinder this Security Instrument. Bon'ower shall not be released from Borrower's obligations and '!iab'ility tinder this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successo~:'s and assigns of Lender. 14. Loan Charges. Liender may charge Borrower fees for services performed in connection with Borrower's default,' for the purpose of protecting Lender's interest in 'the Property and rights under this Security Instrument, includiUg, but not limited to, attorneys' fees, property inspection and valuation tees. In regard to any other fees, the~ abs. ence of express authohty in this Security Instrument to charge a specific fee Io Borrower shall not be cot strued as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibitediby this Security Instrument or by Applicable Law. If the Loan is subject t6 a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other lo~n charges collected or to be collected in connection with the Loan exceed the permitled limits, then: (a) any, such loan charge shall be reduced by the amoont necessary to reduce the charge to the permitted limit; and (?) any sums akeady collected fi'om Borrower which exceeded permitted limits will be refi~nded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Bon'ower. If a reft,nd redtlces principal, the reduction will be treated as a partial prepayfftent without any prepayment charge (whether or not a prepayment charge is provided for tinder the Note)( Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of arY right of action Borrower might have arising out of snch overcharge. 15. Notices. All notice{i gi'¢en by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice toI Bqrrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other me~:ns.: Notice tO any one Borrower shall constitute notice to all Borrowers unless APplicable Law expressly ~eq~ires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify. Lender of Borrower's chang, of address. If Lender specifies a procednre for reporting Borrower's change of address, then Borrower shall on{y report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or iby imailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is a~,so t:equired tinder Applicable Law, the Applicable Law requirement will satisfy the corresponding requireme.nt t.;nder this Security Instrnment. Form 3051 1101 (~-6A(VVY) (oo05) : Paa' 1001~ 15 !59 0690532619 16. Governing Law; Scw!rability; Rules of Construction. This Security Instrument shall be governed by federal law and the law Of ihe jurisdiction in which the Property is located. All rights and obligations contained in this Security Ifi~trument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties ~o agree by contract or it might be silent, bul such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Se::urity Instrument or the Note conflicts with Applicable Law, soch conflict shall not affect other provismns o.r 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 the feminine gender; (b) words in the singular shall mean and include the plural and vice ve'.'st~t; and (c) the word "may" gives sole discretion withoul 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 Property or a Beneficial Interest in Borrower. As nsed in this Section 18, "Interest in the Property" me~ns any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests tt'ansfe:-red in a bond for deed, contract for deed, installment sales conn'act or escrow agreement, the intent of whicl: i~ the transfer of title by Borrower at a fi~tttre date to a purchaser. If all or any part of the '*roperty or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a bereficial interest in Borrower is sold or transferred) without Lender's prior wrmen consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, tiffs option shall nor ~'e exercised by Lender if such exercise ~s prohibited by Applicable Law. If Lender exercises this option, Lender shall give Bon'ower nolice of acceleration. The notice shall provide a period of not less ,~han 30 days from the date the nolice is given in accordance with Section 15 within which Borrower must, pay all sums secured by this Securily Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without fitrther 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 da'/s before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such o~.~er period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) enn-/ of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender al'. s.tms which then would be due under this Security Instrument and the Note as if no acceleration had occtm'ec;; (b) cures any det'ault of any other covenants or agreements; (c) pays all expenses incurred in enforcir, g ~this Security Instntment, including, but not Limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees ~ncurred [or 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 ~hat 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 unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any: such check is drawn upon an instilution whose deposits are insured by a federal agency, instrumentality or e!~tity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right..to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Secm:i~' 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 the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law There also might be one or more changes of the Loan Servicer unrelated t9 e sale of the Note. If there is a change of the Loan Servicer, Borrower will be g~ven written notice of the rh, nge which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other inforn~ation RESPA requires in connection with a Initials: (]~)--6A(WY) (0005) Page~lo~15 Form 3051 1/01 0690532619 notice 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 N~,3te, the mortgage loan servicing obligations to Borrower will remam with the Loan Servmer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided b) the Note purchaser. Neither BmTower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) lhat arises from the other party's actions pursuant to this Security Instrument or that alleges th~ l 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 the other proxy hereto a reasonable period after the g,ving of such notice to take corrective action. If Applicable Law provides a time period which must elapse beibr~~. certain action can be taken, that time period will be deemed to be reasonable for pnrposes of this paragrap ~. 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 18 shall be deemed to satisfy the notice and oppormmty to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Seclion 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasohne, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldeliyde, and radioactive materials; (b) "Environmental Law" means fe~:leral laws and laws of the jurisdiction where the Properly is located tha! relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal ¢~cton, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not catse or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release'any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to de, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an F:nv~ronmen/al Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects lhe value of the Property. The preceding two sentences shall not apply to:the presence, use, or storage on the Property of small quantilies of Hazardous Substances that are generall~'~ recognized to be appropriate to nornml residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or En'dronmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, it~cluding 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 which adtersely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any pnvme party, Ihat any removal or other remediation of any Hazardous Substance affectiflg ~he Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with [nvironmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. (~)~-6A(WY) (ooo5) Paga~2o;~5 Form 3051 1/01 Inilials:l~ 0690532~19 NON-UNIFORM COVE'N~ANTS. Borrower and Lender fin-ther covenant and agree as follows: 22. Acceleration; Reme~lies. Lender shall 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 1~1 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required 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 in acceleration of the sums secured by this Security Instrument ant sale 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 of Borrower to acceleration and sale. If tbe 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 permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuh% the remedies provided in tbis Section 22, including, but not limited to, reasonable attorneys' fees a~ ~ costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in posseMon of the Property, if different, in accordance witb Applicable Law. Lender shall give notice of ~.i:~e sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may [.t rchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security 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 Instrument, but only if the fee is paid lo a third party for sermces rendered and the charging of the fee is permitte.l.under Applicable Law 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. (~t~-6A(VVY) (0005) Page 13o/~5 Form 3051 1/01 0690532619 BY SIGNING BELOW Borrower accepts and agrees to the temps and covenants contained in this Security Instrument and in. an)' l~ider executed by Borrower and recorded with it. Wimesses: / -Borrower LOLA GERARDY (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower ~6A(WY) (ooos) Paga ~n offs Form 3051 1101 0690532619 ,STATE OF WYOMING, ' Lincoln The foregOing instrument wa:; acknowledge?efore me this by / LOI~ GERRY ! MY Commission ExPires: ' County ss: Notary Public ~-fiA(WY) (ooo5) Pa~e ,s o~,S Initials: Form 3051 1/01 0~00242 STATE OF IDAHO COUNTY OF BONNEVILLE ) )ss. ) On June 16, 2004 , before me, the undersigned, personally appeared Lola Gerardy, known or identified to me to be the person(s) Whose name(s) is subscribed to the within instrument, an¢: acknowledged to me that she executed~t-h-eNsame. / /OTARY FOk TH~STA~E ~B.xq~2, ~ , *Co.m****o~ ~p*re,: ~~/.~ ~~~ 0690532619 ADJUSTABLE RATE RIDER THIS ADJUSTABLE RATE RIDER is made this s:Lxte,~d.,a~/~.of.,,~,. JUNE, 2004 and is incorporated into and seal] be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the nndersigned (the "Borrower") to secure Borrower's Adjustable ?,z:.te Note (the "Note") to FIELDSTONE MORTGAGE COMPANY (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 31 SPUR LOOP, ETNA, Wyoming 83118 [Proper~ Address] THIS NOTE CON rAINS PROVISIONS ALLOWING FOR CHANGES IN MY INTEREST RATE AND MY MONTHLY PAYMENT. INCREASES IN THE INTEREST RATE WILL RESULT IN HIGHER PAYMENTS. DECREASES IN THE INTEREST RATE WILL RESULT IN LOWER PAYMENTS, ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security lnstrnment, Borrower and Lerdcr further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 5. 990 changes in the interest rate and the monthly payments, as follows: %. The Note provides for 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will p~,y may change on the first day of July, 2006 , and on that day every SIXTH month thereafter. Each date on which my interest rate could change is called a "Change Date." MULTISTATE ADJUSTABLE RATE RIDER-Single Family (~899R (0009) ./IHII01 Page ! of 5 Initials: ~.~2~__ VMP MORTGAGE FORMS - (800' 5257291 .!_66 0.: 0024 (B) The Index Beginning with the first C;mnge Date, my interest rate will be based on an Index. The "Index" is: the average of interbank offered rates for six month U.S. dollar-denominated deposits in the Lond¢~m market(LIBOR) as published weekly in the Wall Street Journal. The most recent Index figure available as of the date: ~ 45 days [~] *** before each Change Date is calleci the "Corrent Index."*** the 1st business day of. the month If the Index is no longer available, the Note Holder will choose a new Index that is based upon comparable information. The ]XfotD 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 FIVE AND ONE-HALF percentage points ( 5,500 °/or. to the Current Index. The Note Holder will then round the result of this addition to the ~ Nearest I I Next Highest [-~ Next Lowest one-eighth ( .125 %). Subject to the limits stated in Section 4('D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amonnt of the monthly payment that would be sufficient to repay the unpaid principal [ an~ expected to owe at the Change Date in fidl on the maturity date at my new interest rate in substantially eqtml payments. The result of this calculation will be the new amount of my monthly payment. ~] Interest-Only Period The "Interest-only Period" is the period from the date of this Note throughs/ol/2009 For the interest-only period, afte~ calculating my new interest rate as provided above, the Note Holder will then determine the am aura of the monthly payment that would be sufficient to pay the interest which accrues on the nnpaid principal of my loan. The result of this calculation will be the new amoum of my monthly payment. The "Amortization Period" i'~ the period after the interest-only period. For the amortization period, after calculating my new interest ra~e ~s provided above, the Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the nnpaid principal that I am. expected to owe al the Change Date in full on the Matur:,ty Date at my new interest rate in substantially equal payments. The result of this calculation will be the nzw amount of my monthly payment, (~899R (0009) Page 2 of 5 Initials: (D) Limits on Interest Rate Changes (Please check approprJate boxes; if no box is checked, there will be no maximum limit on changes.) [---] (1) There will be nc maximum limit on interest rate changes. [---] (2) The interest raYe I am required to pay at the first Change Date will not be greater than % or less than %. [~] (3) My interest rate w:ll never be increased or decreased on any single Change Date by more than percentage points ( %) from the rate of interest I have been paying for the preceding period. ~X~ (4) My interest ['ate w:ll never be greater than 11. 990 %, which is called the "Maximum Rate." ~ (5) My interest rate w:ll never be less than 5. 990 %, which is called the "Minimom Rate." [---] (6) My interest rate w':ll never be less than the initial interest rate. [--X--] (7) The interest ra-e I am required to pay at the first Change Date will not be greater than 8. 990 % or less than 5. 990 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than ONE percentage points ( 1. 000 %) from the rate of imerest I have been paying for the preceding period. (E) Effective Date of Ct anges My new interest rate wi)l become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amoum of my monthly payment changes aga n. (F) Notice of Changes The Note Holder will del.wir or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before t[e fffective date of any change. The notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice (~)~899R (0009) Page 3 of 5 nitials: ~ o, ooa4a ! $ 3 B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROVirER Uniform Covenant 1§ of the Security Instrument is amended to read as follows: 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 benefic:ial 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 Bon'ower at a future date to a purchaser. If all or any part of. title Property or any Interest in the Property is sold or transferred (or if a Borrower is not a nam:al 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 In:}trument. However, this option shall not be exercised by Lender if such exercise is prohibited by Apphcable Law. Lender also shall not exercise this option iff (a) Borrower causes to be' submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's s~curity will not be impaired by the loan assumption and that the risk of a breach of any covenant ~r agreement in this Security Instrument is acceptable to Lender. To the extent petmiaed by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's- cgnsent to the loan assumption. Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agi'eements 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 Borrower in writing. If Lender exercises Ihe option to require immediate payment in full, Lender shall give Borrower notice of accifleration. The notice shall provide a period of not less than 30 days from the date the notice is g'ivea 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 may invoke any remedies pemfitted by this Security Insu'ument without further notice o~r d~mand On Borrower. (~899R (0009) Page 4 of 5 Initials: BY SIGNING BELOW, Borrower accepts and agrees to the lerms and covenants contained in this Adjustable Rate Rider. -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower ~Borrower (Seal) (Seal) -Borrower -Borrower (~899R (0009) Page 5 of 5