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(_09- Return To: A'rgent Mortgage Company, LLC P.O. Box 14130, Orange, CA 92863-1530 L~ tJ fi © Prepared By:Argent Mortgage Company, LLC REL, r..IVED LI NCOL[q ~ er:,, . t'.l 7'¢. (;'LEtx K Roseanne Elisalda 2603 Main Street,Irvine, CA 92614 BO0~ --[Space Above This Line For Recording Data] MORTGAGE DEFINITIONS Words used in nmltiple sections of this document are defined below mid other words are defined in Sections 3, 11, 13, 18, 20 and.21. Certain rules regarding the usage of words used in this document are also provided iu Section 16. (A) "Security Instrument" means this document, which is dated June 16, 2004 together with all Riders to this doc.nnent. (B) "Borrower" is STEVEN E. SPAULDING and LISA M. SPAULDING, HUSBAND AND WIFE Borrower is the mortgagor unde~ this Security Instrument. (C) "Lender" is Argent Mor';gage Company, LLC Lender is a Limited Liabilit~y Company organized and existing under the laws of Delawa re -'~ q, 3 '~ WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~®-6{WY} Iooos~ ..~ VMP MORTGAGE FORMS - 800)521-729~ 0058759598 - 9503 Form 3051 1/,01 06/16/2004 11:34:17 Lender's address is One City,; Boulevard West Orange, CA 92868 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissoW note signed by Borrower and dated June 16, 2004 The Note states that Borrower o've~; Lender seventy-nine thousand three hundred twenty-five and 00/100 Dollars (U.S. $ 7 9,32 5.00 -) plus interest. Borrower has pronfised to pay this debt in regular Periodic Payments and to pay the debt in45dl not later than July 1, 2034 (E) "Property" means the properti? that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sum:} dae 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 Boirower [check box as applicable]: [~ Adjustable Rate Rider gl Condominium Rider ~ Second Itome Rider [~ Balloon Rider ~1P!anned Unit DeveloPment Rider ~-~ 1-4 Family Rider [-~ VA Rider ~! B.weekly Payment Rider [-~ Other(s) lspecifyl (H) "Applicable Law" means, all controlling applicable federal, state and local statutes, regulations, ordinances and administrative ri'des and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions (I) "Community Association Due,;, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or si:nilar paper ins':rument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" ~neans those ilmns that are described in Section 3. (L) "Miscellaneous Proceeds" :ne;ms 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) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lku of condemnation; or (iv) misrepresentations of, or onfissmns as to, the value and/or condition of the Property. (M) "Mortgage Insurance" me:ms insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under 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, Reguhtion X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successo? legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are tmposed in regard to a "federally related mortgage, loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~-6{WY) 00s8 s98 - 9soz 06/16/2004 11:34:17 Form 30§1 1/01 (P) "Successor in Interest of Bori'ower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN TblE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Notre. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors, an?l assigns, with power of sale, the following described property located in the Coun t'~/' of LINCOLN : [Type of Recordinl~ Jurisdiction] [Name of Recording Jurisdiction] LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF: Parcel ID Number: 12-3218-30.-3-15-246-00 206 EAST 5TH AVENUE AFTON ("Property Address"): which currently has the address of [Street] [City] , Wyoming 83110 [Zip Code] TOGETHER WITH all ~he improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "ProI,ert ~,." BORROWER COVENANI'S.that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant an] convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to ,'my encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variatior:s lzy jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepaytnent Charges, and Late Charges. Borrower shall pay when due me principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments d'ae under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this 00587~i9.~98 - 9503 (~J~-6(WY)(ooo51 Pageaof15 06/16/2004 11:34:17 Form3051 1/01 Security Instrument is returner, to' Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this ~Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash{ (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any~. su~.h check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality~, o!· entity; or (d) Electronic Funds Transfer. Payments are deemed receivb, d by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any pay~ne,nt or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender rr~ay accept any payment or partial payment insufficient to bring the Loan current, without waiver of an3 rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not'pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes Dayment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return then] to Borrower. If not applied earlier, such flmds will 'be applied to the outstanding principal balance under the b'ote irmnediately prior to foreclosure. No offset or claim which Borrower might have now or in the furore against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. I 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2~ all payments accepted and applier! by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) princ!ipal due under the Note; (c) mnounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late ch?ges, second tO any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a pay. me:it from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any latecharge due, the payment may 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 repaym{.nt of the Periodic Payments if, and to the 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, such 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 payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or pcstpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow It~n~;. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a)taxes and assessments ano other items which can attain priority over this Security Instrument as a lien or encumbrance on the P~;operty; (b) leasehold payments or ground rents on the Property, if ,'my; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accomance with the provisions of Section 10. These items are called "Escrow Items." At origination or at a:~y ime during the term of the Loan, Lender may require that Community Association Dues, Fees, and 'Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Bcrroa, er shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Fonds 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 directl y, when and where payable, the amounts (~-6(WY) Iooo5) 0058~59598 - 9503 Page4ot'15 06/16/2004 11:34:17 I-orm3051 1/01 0:900 .60 due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make.,,'.;uch 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 "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount ~lue for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrow.'~r shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given ~n accordance with Section 15 and, '~pon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, cot eot and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender .shill estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otberwise m accordance with Applicable Law. The Funds shall be helot ~n an institution whose deposits are insured by a federal agency, instrumentality, or entity (inclu6ing Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. l,ender shall apply tile Funds to pay tile Escrow Items no later than the time specified under RESPA. Lendel shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or Verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires inte:-est to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the ~Funds. BorroWer and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an ammal accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds iq accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to raake up the shortage in accordance with RESPA, but in no more than twelve 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 twelve monthly payments. Upon payment in full of al sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Le~der. 4. Charges; Liens. Borr.)wer shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Conrmunity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly Cischarge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing :o the payment of the 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 enforcerrent of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument.. If Lender determines that any part of the Property is subject to a lien which can attain priority over t~is Security Instrument, Lender may g~ve Borrower a notice identifying the (~-6(WY) {9904),02 0o587~59~9a - 9503 06/16/2004 11:34:17 Form3051 3/99 lien. Within 10 days of the date 0n ~?hich that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth abo,?e in this Section 4. Lender may require Borr0'we7 to pay a one4ime charge for a real estate tax verification and/or reporting service used by Lender'. in (connection with this Loan. 5. Property Insurance. B'crrower. shall keep the improvements now existing or hereafter erected on the Property insured against los~ by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintai~ed in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pu'rsuant to the preceding sentences can change during the term of the Loan. The insurance carrier :pr6viding the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's ch'oice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and :trai':king services; or (b) a one-time charge for flood zone determination and certification services and s~bsequent charges each time remappings or similar cbanges occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the Payment of any fees imposed by the Federal Emergency Management Agency in co~mection with the review of any flood zone deternfnation resulting from an objection by Borrower. If Borrower fails to mainthin,any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against.any risk, hazard or liability and might pr?vide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of ti? !nsurance coverage so obtained migbt significantly exceed the cost of insurance that Borrower could h,.we obtained. Any an~ounts disbursed by Lender under this Section 5 shall become additional debt of Borro'~,er. secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date o:~' disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting p"ayment All insurance policies requ?ed by Lender and renewals of such policies shall be subject to Lender's right to disapprove such polici?s, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an addition:ll l~ss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, 3orrower shall promptly give to Lender all receipts of paid premiums and reneWal notices. If Borrower obtains m~y form of insurance coverage, not otherwise required by Lender, for damage to, or destruction o3", t~e Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee 'ant/or as an additional loss payee. In the event of loss, Borro'a, er shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not n~adi~ promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance procee4s, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repa'~r c f the Property, if the restoration or repair is economically feasible and Lender's security is not lesseneff D'uring such repair and restoration period, Lender shall have the right to hold such insurance proceeds uritil'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 prdceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such. insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of t'he insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not econCmically feasible or 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) Iooo5~ 0058~75~598- 9503 06/16/2004 11:34:17 Form3051 1/01 : ' C the excess, if any, paid to Borrow.fr. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons' th,, Froperty, Lender may file, negotiate and settle any available insurance claim and related matters. If l~.orrower does not respond within 30 days to a notice from Lender that the Insurance carrier has offered tc se.tle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the n:)tke is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an mnount not to ~xceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's ]igffts (other than the right to any refund of unearned premiums paid by Borrower) under all insurance po?icies 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. Borrowe'7 snail occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal ]~esidence for at least one year after the date of occupancy, unless Lender otherwtse agrees in writing, whi:h consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are I:ey0nd Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair tl:e 3roperty, allow the Property to deteriorate or cormnit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property 5rom deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condenmation proceeds are paid in connection with dmnage to, or the taking of, the Property, Borrower shall be responsible for repairi~.ng :or restoring the Property only if Lender has released proceeds for such purposes. Lender ]nay disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may ~nspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior tnspection specifying such reasonable cause. 8. Borrower's Loan Al:,plieation. Borrower shall be in default if, during the Loan application process, Borrower or any pe]sor, s or entities acting at the direction of Borrower or with Borrower's lmowledge or consent gave ma:erially false, m/sleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender'.; 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 might significantly affect Lender's interest in the Property m~d/or rights under this Security Instrument (such ~s e proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which 'ma/, attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has.abandoned the Property, then kender may do and pay for whatever is reasonable or appropriate to -3rotect Lender's interest in the Property and rights under this Security Instrument, including protecting a'ad/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions?cat include, but are not limited to: (a) paying any sums secured by a lien whidh has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable (~-6(WY) (0005) oo5a~5~a - 95o3 06/16/2004 11:34:17 Form 3051 1/01 attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruti~tcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make reFiairs,.change locks, replace or board up doors and windows, drain water from pipes, eliminate building, ori other code violations or dangerous conditions, and have utilities turned on or off. Although Lender m.:~y take action under this Section 9, Lender does not have to do so and is not under any duty or obligation t;o, d,~ so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Sectibn 9. · Any ,amounts disbursed ;by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instr~i~m~nt. These an!ounts shall bear interest at the Note rate from the date of disbursement and shall be payables, with such interest, upon notice from Lender to Borrower requesting payment. : If this Security Instrumeint i:s on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fe5 tiqe to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger iniI writing. 10. Mortgage Insurance'. If Lender required Mortgage Insnrance as a condition of making the Loan, Borrower shall pay the premiums .required to maintain the Mortgage Insurance in effect. If, for any reason, - the Mortgage Insurance cover,~ge required by Lender ceases to be available from the mortgage insurer that previously provided such instl.ranCe and Borrower was required to make separately designated payments toward the premiums for Miort~'.age Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalentlto the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Bol'ro~,er of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially 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 effect. Lender will accept, use and retain these payments as a non-refundabl,i: lcss reserve in lieu of Mortgage insurance. Such loss reserve shall be non-refundable, notwithstandi~.g the fact that the Loan is ultimately paid in 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 requires) provided by an insurer selec;:ed .by Lender again becomes available, is obtained, and Lender requires separately designated payment~ toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of ~aking the Loan and Borrower was required to make separately designated payments toward the premim~ns for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Inst)rance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's !3bl{gation to pay interest at the rate pravided 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 the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluae their total risk on all such insurance in force from 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 fi;at ~re 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 inslure;i may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agre!ements, Lender, any purchaser of the Note, anotber insurer, any reinsurer, any other entity, or any affiliate 6f anY of the foregoing, may receive (directly or indirectly) mnounts that derive from (or might be charactt~.rized as) a portion of Borrower's payments /'or Mortgage Insurance, in exchange for sharing or mod:ifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Len.:ler takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, !:he '.'.arrangement is often termed "captive reinsnrance." Further: (a) Any such agreemehts will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any otb!er terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any rebind. - 503 ~-6(WY) Iooos} Paa. ~ o~ ~s 06/16/2004 11: 34: 1'/ Form 3051 1/01 Co) Any such agreement,~ ;fill not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under tl~'ie ltomeowners Protection Act of 1998 or any other law. These rights may include the right to rt:ce2ve certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have;the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insu?ance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Misc*ellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to .'Lender. If the Property is damagd~l, .such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restorati6r2 o~? repair is economically feasible and Lender's security is not lessened. During such repair and restorat!.or! period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an oppor:~ur, ity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided th'it such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a'slng, le disbursement or in a series or' progress payments as the work is completed. Unless an agreemer, t i; made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the ?estoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous ,.Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with [he excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided fc.r ia Section 2. In the event of a total takng,'destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to th~ s'ams secured by this .Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property inm~ediatell/ 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 inm~ediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following flhction: (a) the total amount of the sums secured immediately before the partial taking, destruction, o~ loss in value divided by (b) the fair market value of the Property immediately before the partial t~ing, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial t~king, destruction, or loss in value of the Property in which the fair market value of the Property irmnedia:el,/before the partial taking, destruction, or loss in value is less than the amount of the sums secured i~,m~!.ediately 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 Instrumer~'t 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 in 'thc next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lt.nder 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 sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneouis Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in defa'~lt ;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 righCs under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, rein:;tate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in L~nder's judgment, precludes forfeiture of the Property or other material impairment of Lender's interes: in the Property or rights under this Security Instrument. The proceeds of any award or claim for dmnages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall bc paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided fdr in Section 2. (~}~-6(WY) ~ooo51 Pageg°l~15 06/16/2004 11:34::1."/ Form3051 1101 12. Borrower Not Released;:F0rbearanee By Lender Not n Waiver. Extension of the time for payment or modification of amottiz~ltion of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Intlerest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of 'Bo~-rower. Lender shall not be required to cmnmence proceedings against any Successor in Interest of Bi')rrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured.' by; this Security Instrument by reason of any demand' made by the original Borrower or any Successors in l~te~est of Borrower. Any forbearance by Lender in exercising any right or remedy including, without lirni, tation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrow~zr br in an'~ounts less than the amount then due, shall not be a waiver of or preclude the exercise of any righ'l o{' remedy. 13. Joint and Several Lie, bil;ity;. Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obli~ati':ons and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): da) is co-signing this Security Instrument only to mob"tgi:ge, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; db) is not personally obligated to pay the sums secured by this Security Instrument; and dc) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with rt:gard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provision., of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benef:tts under this Security Instrument. Borrower shall not be released from Borrower's obligations and lial~'ilit5' under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the pul;pose of protecting Lender's interest in the Property and rights under this Security Instrument, including,: 'but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, theiab.'i, ence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be co!;~strued as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited ky this Security Instrument or by Applicable Law. If the Loan is subject to ai'law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan aha.~ges collected or to be collected in connection with the Loan exceed the permitted limits, then: da) any: such loan charge shall be reduced by the amount necessary to reduce the charge tO the permitted limit; zind db) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borro,,,'er. Lender may choose to make this refund by reducing the principal owed under the Note or by maJ:ing a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provide<l for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. ' 15. Notices. All notices ~given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower wten mailed by first class mail or when actually delivered to Borrower's notice address if sent by other, mt}ans. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expre0sly requires otherwise. The notice address shall be the Property Address unless Borrower has designated ~'~ substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's chadge of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borr6wex shall only report a change of address through that specified procedure. There may be only one designat:ed notice address under this Security Instrument at any one time. Any notice to Lender shall be given 'oy delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law r~::(lu':rement will satisfy the corresponding requirement under this Security Instrument. (~-61WY)~ooos) : p.ge*oo{~5 06/16/2004 11:34:17 Form3051 1/01 16. Governing Law; S,~verability; Rules of Construction. This Security Instrument shall be gbverned by federal law and t.i~e,law of the jurisdiction in which the Property is located. All rights and obligations contained in this iSecurity Instrument are subject to ay requirements and limitations of Applicable Law. Applicable Li.w'might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silent'lc shall not be construed as a prohibition against agreement by contract. In the event that any provision o: clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not aft'edt other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security~ h~strument: (a) words of the masculine gender shall mean and include corresponding neuter words oy' W~ords of the feminine gender; (b) words in the singular shall mean and include the plural and vice ver,;a; and (c) the word "may" gives sole discretion without any obligation to take any action. ~ 17. Borrower's Copy. Bo'rrower 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" mean'~ ~ny legal or beneficial interest in the Property, including, but not limited to, those beneficial interests traas!Serred 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 date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial iuterest in Borrower is sold or transferred) without Lender's prior written consent, Lender may ?equire immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this Option, Lende? shall give Borrower notice of acceleration. The notice shall provide a period of not less thgh 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pty all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiratio'u of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right ~o have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) sccE' other period as Applicable Law might-specify for the termination of Borrower's right to reinstate;.o~. (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a)pays Lender all sums which tben would be due under this Security Instrument and the Note as if nc acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may :reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unch.anlged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the tbllowing forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstater~ent by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if r~o acceleration had occurred. However, this right to reinstate shall nm 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~ Security 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 l~ervicer unrelated to a sale of the Note. If there is a.change of the Loan Servicer, Borrower will be give~, written notice of the change which will state the name and address of the new Loan Servicer, the address tc which payments should be made and any other information RESPA (~)~-6(WY) Iooo5) 0058~5..9~598 - 9503 06/16/2004 11: 34: 17 Form 3051 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 other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with tl!e Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Leander may conunence, join, or be joined to any judicial action (as either an individual litigant or the mem'~er of a class) that arises from the other party's actions pursuant to this Security Instrument or that alle~:~es,~that the other Party has breached any provision of, or any duty owed by reason of, this Security Instrumeni, until such Borrower or Lender has notified the other party (with such notice given in compliance with ti~e requirements of Section 15) of such alleged breach ,and afforded the other party hereto a reasonal:le 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 reaslonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Bor~rower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section i'.8 :;hall be deemed to satisfy the 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 Envirolunental Law and the following substances: gasoline~ kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvent;, r~mterials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or envirofmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or remov.d action, as defined in Environmental Law; and (d) an "Environmental Condition" means a conditior: that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause ar permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release ~my Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anytt~ing affecting the Property (a) that is ~n violation of any Environmental Law, (b) which creates an Env:~romnental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to. the presence, use, or storage on the Property of small quantities of Hazardous Substances that are ge~nerally recognized to be appropriate to normal residential uses and to maintenance of the Property (ii~cluding, but not limited to, hazardous substances in consumer products). Borrower shall promptly~o~w'~' ~ 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¥ironmental Law of which Borrower has actual knowledge, (b) any Enviromnental Condition, inch~ding 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 adyersely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulajory authority, or any private party, that any remowd or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance, with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Clea:nup. (~)~-6{WY) (0005) 0058~5~)598 - 9503 06/16/2004 11:34:17 Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree 'as follows: 22. Acceleration; Remedies.i 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 18 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 tlie date .ipecified in the notice may result in acceleration of the sums secured by this Security Instrument and salie 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 o? Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option ma)' 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.pe'rnfitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuin~ the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees anti costs of title evidence. If Lender invokes the pcwer of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance' with Applicable Law. Lender shall give notice of the 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 purchase the Property at any sale. The proceeds of the sale shall be applied in the following oriterl (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' lees; (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 Instrum{!nt) but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower 'releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. (~;)®-6(WY) {ooos) 0058~7~1598 - 9503 06/16/2004 11:34:17 Form3051 1/01 o-~-~oo~o ~ '- ,?3 2 BY SIGNING BELOW, Borrrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any ?lider executed by Borrower and recorded with it. Witnesses: (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (~I(~6(WY) (ooo5] 0058759598 - 9503 Pagel4ofl§ 06/16/2004 11:34:17 Form3051 1/01 STATE OF VVYOMING, The(~re~oing instrument ~va$~ acknow edged,before me this -~a 'y/~7:)% th/Yea r My Commission Expires: .%Iffi..LEY ,~N.ION.L ,;. NOTN~f PUffiJC Notary Public 40o-15WY [4/02) Page 15 of 15 0058759598 - 9503 06/16/2004 11:34:17 AM LEGAL DESCRIPTION Part of Lot 2 of Block 27 of ,the Town of Afton, Lincoln County, Wyoming more particularly described as follows: BEGINNING at the Northwest comer of said Lot 2 and running thence East 6 rods; thence South 6 rods; thence West 6 rods; thence North 6 rods to the POINT OF BEGINNING. ADJUSTABLE RATE RIDER (LIBOR Six-Month-Index (As Published in the Wall Street JournalI. Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 16th day of June, 2004 and is ~ncorporated into and shall be deemed .to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrur]e~t") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rale Note (the "Note") to Argent Mortgage Company, LLC (the "Lender") of the same date and covering the property describeC in the Security InstrUmen! and located at: 206 EAST 5TH AVENUE, AFTON, WY 83110 [Property Address] THE NOTE CONTAII~iS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND ]'HE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORF~OWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAX:MLIM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. in addition to the covenants and agreements made in the Security Instrument, Borrowgr and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 7.500 %. The Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND IV'ONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay m~y change on the first day of July, 2006 , and on that d,a,.y every Date.Sixth .re°nth thereafter. Each date on which my interest rate could change is called a Change (B) The Index Beg~nmng with the first Char,g¢ 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 London market ("LIBOR"), as published in the Wall Street Journal The mos{ recenl Index figure 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 which is based upon comparable informatior, h The Note Holder will g~ve me notice of this choice. Loan Number: 0058759598 . 9503 610-1 (Rev 1/01) Page 1 of 3 06/16/2004 11:34:17 AM O r (C) Calculation of Changes Before each Change ;)ale, the Note Holder will calcurate my new interest rate by adding six percentage points ( 6,003 %) to the Currenl Index. The Nole Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(1~) below, this rounded amount will be my new interest rate until the nexl Change Date. The Note Holder will ,'.hen determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the maturity date at my new 'nterest rate in substantially equal payments. The result of this calculation will be the new a:'noJnt of my monthly payment. (D) Limits on Interest Rr-,te Changes The interest rate I am required ::o pay at the first Change Date will not be greater than 9.500% or less than 7.500%. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more, than One( 1.000 %) from the rate of interest I have been paying for the preceding six months. My interest rate will never be greater than 13.500)% or less than 7.5O0)%. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment begir~ning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law :o be given me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Section 18 of the Security Instrument is amended to read as follows: Transfer of the Properrty 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 nol 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 date' to a purchaser. Loan Number: 0058759598 - 9503 610-2 (Rev 1/01) Page 2 of 3 06/16/2004 11:34:17 AM If all or any pad of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural pe~;scn and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited I:,y federal law. Lender also shall not exercise this option if: (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 L~n,:ler'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 I)y Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to s~gn an assumption agreemer.~t that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. Il' Lender exercises 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 from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums .';ecured by this Security 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 fu~'ther notice or demand on Borrower. BY SIGNING BELOW, Borrow~,r accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. Bo~ower LISA M. SP~,L~LDIN(~ (Seal) (Seal) (Seal) Borrower Borrower Loan Number: 0058759598 - 9503 610-3 (Rev 1/01) Page 3 of 3 06/16/2004 11:34:17 AM