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HomeMy WebLinkAbout9002883o555 (o4) Rctnm To: NEW CENTURY MORTGAGE 18400 VON KARMAN, SUITE IRVINE, CA 92612 CORPORATION 1000 Prepared By: NEW CENTURY MORTGAGE CORPORATION 9 0 0 2 8 8 BOOK "C RE .,E IVED CLEF(Ix .... o86 , ; [Space Above This Line For Recording Data]. MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this doctnnent, which is dated June 1 6, 2004 together with all Riders to this document. (B) "Borrower" is SCOTT THOMAS HOLDERMAN , A SINGLE MAN AND SHELLEY [~ROOKE SINGLE WOMAN GOINg , A Borrower is the mortgagor under this Security Instrument. (C)"Lender"is NEW CENTURY MORTGAGE CORPORATION Lender isa CORPORATION organized and existing under the laws of CA L I FORN I/~ WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORbl INSTRUMENT Page 1 of 15 altla VMP MORTGAGE FORMS-(8001521-7291 OOO1647186 Form 3051 1/01 Lender's address is 18400 VON KARNIAN, SUITE 1000 IRVINE, CA 92612 Lender is the mortgagee under this Security Iustrument. (D) 'Nute" means the promissory note signed by Borrower and dated June 1 6, 2004 The Note states that Borrower owes Lender One Hundred Ninety-One thousand, Six Hundred and No/lO0 Dollars (U.S. $ 191,600.00 ) plus interest. Borrower has promised to pa y this debt iu regular Periodic Payments and to pay the debt in full not later than July 1, 2034 (E) "Property" means the property 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 prepayn~ent charges and late charges due under the Note, and all sums due under this Security Instrument, plus iuterest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~] Adjustable Rate Rider [-~ Condominium Rider [-~ Second Home Rider [~ Balloon Rider [-~ Planned Unit Development Rider [---] 1-4 Family Rider [--] VA Rider [---] Biweekly Payment Rider ~] Oth::r(.~) [specify] Prepayment Rider (Il) "Applicable La;v" means all controlling applicable federal, state ant: local statutes, regulations, -ordinances and administrative rules and orders (that have the effect of law~ a:; well as all applicable fin,fi, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" means all dt:'es fees, assessments and other charges that are imposed on Borrower or the Property by a condomi;~ium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other titan a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic ,err~niual, telephonic instrument, computer, or magnetic tape so as to order, iustruct, or authorize a financial'in;;titution to debit or credit an account. Such term includes, but is not limited to, point-of-sale translers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated cleari~ghouse transfers. (K) "Escrow Items" means those items that are de.scribed in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of c, amages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) dmnage to, or destruction of, thc Property; (ii) condemnation or other raking of ail or any part of the Property; (iii) conveyance m lieu of condemnation; or (iv) misrepresentations of, or omi::sions as to, the value and/or condition of rite Propcrty. (M) "Mortgage Insurance" means insurance protecting Lender against the nbnpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) pr;ncipal and interest under the Note, plus (ii) any amounts nnder Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Setflement 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 successor legislation or regulation that governs the same snbject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imoosed 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) (ooos) Pago 2 o~ ~5 0°01647186 Form 3051 1/01 (P) "Successor in Interest of Borrower" means any party that has taken fide t,~ the Property, whether or not that party Ires assumed Borrower's obligations tinder the Note and/or this Securi.y Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security h]strument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; aud (ii) the performance of Borrower's covenanls and agreements tinder this Secnrity Instrument and the Note. For this purpose, Borrower does hereby n.ortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale. the followi,qg described property located tn the COUNTY o[ LINCOLN : [Type of Recording Jurisdiction] [Name of [,.ecording Jurisdiction] SEE LEGAL DESCRIPTION ATTACHED HERETO AND NADE I PAR] HEREOF. Parcel ID Number: 37182830501600 521 THREE RIVERS DRIVE , ALPINE ("Property Address"): whi.:h currently has the address of [Streetl [City] , Wyom:ng 83128 [Zip Codel TOGETftER WITH all the ~mprovements now or hereafter erected on th...' 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. Ail of the foregoing ~s referred to in ~his Security Instrument as the "Property." BORROWER COVENANTS that Borrower ~s lawfully seised of the es ate hereby conveyed and has the fight to mortgage, grant and convey die Property and that rite Proper~_y 'is tmencumbered, except for encumbrances of record Borrower warrants and will defend generally the d le to rite Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for [.ational use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender coveuant and agree as ~[ollows: 1. Payment of Principal, Interest, Escrow Items, Prepayment C]arges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt ev-denced by the Note and any prepayment charges and late charges due under the Note. Borrower shall alst~ pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security In:mument shall be made in U.S. currency. However, if any check or other instrument received by Lender as p ~yment under the Note or this (~l't ~___ 0001647186 (~}~-6(WY) (ooo5) Page 3 of ~s Form 3051 1/01 Security Instrmncnt is returned to Louder unpaid, Lender may require that anT, or all subsequent payments duc under thc 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, treasure!r's check or cashier's check, provided any such che, ck is drawn upon an institution whose deposits arc insured by a federal agency, instrumentality, or entity; or (d) Electronic Fuuds Transfer. r: Payments are deemed received 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 'ao::ice provisions in Section 15. Lender may return any pa. yment or partial payment if the payment or partial payLnents are insufficient to bring the Loan current. Lender may accept any payment or partial payment insuffiCi(-.:nt to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or pard'al payments in the future, but Lender is not obligated to appJy such payments at die time such l;ayments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need rot pay interest on unapplied funds. Lender may hold such unapplied fuuds until Borrower makes payment to bring die Loan current. If Borrower does not do so within a reasonable period of time, Lender shall eLth~:r apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the ouL~mnding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrow~r might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Iustrument or performing the covenants and agreements secured by this Security Instrument. 2. Applicatinu of Payments or Proceeds. Except as otherwise described ih this Section 2, all payments accepted aud applied by Lender shall be applied iii the following order of priority: (a) interest due under the Note; (b) principal due tinder the Note; (c) amounts due under Section 3. Such rpayments shall be applied to · each Periodic Payment iii the order in which it becmne due. Any remaining am::)unts shall be applied first to late charges, secoud to any other amounts due under 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 Ihm[ one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, ~ch payment can be paid in fnll. To the extent that any excess exists after the payment is applied to the tadl payment of one or more Periodic Payments, such excess may be applied to any late charges due. Volantary prepayments shall be applied first to any prepayment charges and then as described in the Note. An y application of payments, insurance proceeds, or Miscellaneous Proce¢ ds to principal due under the Note shall not extend or postpoue the due date, or change the amount, of the Peri.~dic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until die Note is paid in full, a sum (the "Funds") to provide for pay/nent of amounts due for: (a) taxes and assessments and other items which c~ attain priority over this Sec lrity Instrmnent as a lien or encumbrance on the Property; (b) leasetiold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortg~:ge Insurance premmms, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mdrt, gage Insurance premiums ]n accordance will[ the provisions of Section I 0. These items are called "Escrow :Ite'ms." At origination or at any time during the term of the Loan, Lender may require that Community' Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessm:~nts shall be an Escrow Item. Borrower shall pro~nptly furnish to Lender all notices of mnounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrowe:'s obligauon to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay' tc. Lender Funds for any or all Escrow Items at any dine. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the mnounts due for any Escrow,'Items for which payment of ~__~' . 0001647186 (~I~-6(WY) (ooos) Page 4 of 15 Form 3051 1/01 Funds has been waived by Lender and, if Lender requires, shall furnish to I:.,e ~der receipts evidencing such payment within such time period as Lender may require. Borrower's obligat~oii to make such 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 mnount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and B0rtower shall then be obligated under Section 9 to repay to Lender any such anlount. Lender may revoke th~ Waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon :,re.ch revocation, Borrower shall pay to Lender 'all Funds, and in such amounts, that ,are then required under this ,~-ection 3. Lender may, at any time, collect and hold Funds in an amount (a) suffi:~nt to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed file m~.ximum amount a lender can require under RESPA. Lender shall estimate the mount of Funds due on ;he basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in acc,)rdance will] Applicable Law. The Funds shall be held in an institutiou whose deposits are insured by a federal agency, instrmnentality~ or entity (including Lender, if Lender is an institution whose deposits are so ins.uteri) or in any Federal Home Loan Bank Lender shall apply Ihe Funds to pay the Escrow Items no late~7 than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Ix.ands, 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 paid on the Funds, Lender shall not be required to pay Borrower any interest or earmngs 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 annual 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 flmds in accordance with RESPA. If there is a shorta~ e of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPZ~, and Borrower shall pay to Lender the amount necess~y to make up the.shortage in accordance witli RESPA, but in no more than 12 monthly payments. If them is a deficiency oR Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the mount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment m full of all sums secured by this Security Instrument, lxnder 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 tim Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if ,'my, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manve' provided in Section 3. Borrower shall promptly discharge any lien which has priority over J, is Security Instrument unless Borrower: (a) agrees in writing to the paymeut of the obligation secured by the lien m a manner acceptable to Lender, but only so long as Borrower ~s performing such agreement; (b) conte{ts the lien in good faith by, or defends against enforcement of file lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of 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 Lende~ subordinating the lien to this Security Instrument. If Lender determines that any part o[ the Property is s~Ibject to a lien which can attain priority over this Security Instrmnent, Lender may give Borrower a notice ~identifying the lien. Within 10 (~-6(WY) moos) Fage 5 o! 15 (~tJ. C~/,'0001647186 ~."'~' -~"!_:,T ~'":-- Form 3051 1/01 .,::;::., ;,. . days of the date on which that notice is given, Borrower shall satisfy the lieJ'l or take one or more of the acfious set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate ~.a:.; verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now exi:;ting or hereafter erected on the Property insured against loss by fire, hazards included within the term "extenqted coverage," and any other hazards iucluding, bnt not limited to, earthquakes and floods, for which 'Vender requires insurance. This · Insurance shall be ~naintained in the amounts (including deductible levels) ~:ml for the periods that Lender · requires. What Lender requires pursuan[ to the preceding sentences can change' during the term of the Loan. Thc 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 BesTower to pay, in connection with this Loan, either: (a) a one-ti~ne charge ~or flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone !d,~terminafion and certification services and snbsequent charges each time rcmapp]ngs or similar changes o{ cur which reasonably might affect such determination or certification. Borrower shall also be responsible ;for the payment of any fees imposed by the Federal Emergency Management Agency in connection wi~ tim review of any flood zone detemfinafion resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover L~nder, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, h~ard 'or liability and might provkle greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insnrance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any mnounts disbursed by Lencer under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These,amounts shall bear interest at the Note rate frown the date of disbursement and shall be payable, with such in;mest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a slandard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to~ liold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all re:eipls of paid premiums and renewal notices. If Borrower obtains any for~n of insurance coverage, not othe[wise required by Lender, for damage to, or destruction of, the Property, such policy shall include a smdmd mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance ca, tier and Lender. Lender may make proof of loss if not ~nade promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoratiou or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not le,ssened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportumty to inspect sucli Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection si.all be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single pay[nent or in a series of progress payments as the work is completed. Unless an agreement is ~nade in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shah not be required to 9ay Borrower any interest or emnings on such proceeds. Fees for public adjusters, or other third parties, re[~i.]ed by Borrower shall not be paid out of the iusurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to r'-'-~, r'"' 0001647186 I~-6(WY) (ooo5) Page ~ o~ ~5 Form 3051 1/01 the sums secured by this Security Instrument, whether or not then due, v(itl the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and setde '.any available insurance claim and related matters. If Borrower does not respond within 30 (lays to a notice fl.mn Lender that the insurance ca-tier has offered to settle a clai~n, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any i??ance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, md (b) any other of Borrower's rights (oilier than the right to any refund of unearned premiums paid by Bbrrower) under all insurance policies covering the PrOperty, insofar as such rights are applicable to the coy?rage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to l. ay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall confi~;ue to occupy the Property as Borrower's princip~ residence for at least one year after the date of occupancy, unless Lender otherwise agrees iii writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's conLrol. 7. Preservation, Maintenance and Protection of the Property; Insl;ections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or c ~nrnit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain tl'e Property in order to prevent the Property frown deteriorating or decreasing in value due to its condition. U[~less it is determined pursuant to 'Section 5 that repmr or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid ti(the( deterioration or damage. If insurance or condenmation proceeds are paid in connection wid) damage to, or the taking of, die Property, Borrower shall b,: 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 ~s completed. If the insurance or condemnation proceeds are not sufficient to repatr or restore die Property, Borrower is not relieved of Borrower's obligation for the completion of such re,ak or restoration. Leuder or its agent may make reasonable entries upon and inspecttons of the Property. If it has reasonable cause, Lender may inspect die interior of the improvements on ~e Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying ~uch reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during' the Loan application process, Borrower or any persons or entities acting at die direction of Borrower or with Borrower's knowledge or consent gave materially false, ~nisleading, or inaccurate information or star. e.'nents 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 Prt,perty as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Und;er, this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this,S'murity Instrument, (b) there is a legal proceeding that ~night significanfly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for (ondemnafion or forfeiture, for enforcement of a lien which may attain priority over this Security Insmment or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or approprmte to protect Lender's ~nteresl in the Property :md rights under fills Security Instrmnent, including protecting and/or assessing die value of die Property, and securing and/or repairing the Property. Lender's actions can inch]de, but are not limited to: (a) paying an5' sums secured by a lien which has priority over this Security Instrument; (b) appearing in court: and (c) paying reasonable (~-6(WY) {ooos> Page 7 ot 15 0001647186 Form 3051 1/'01 · ,.-.- :,,. ']:': .:,- ,/, .'. .. attorneys' fces to protect its interest in file Property and/or rights under this Sie~!~rity Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windi)ws, tkain water from pipes, eliminate building or other code violations or dangerous conditions, and ha-re utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have tv do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability fcr :~ot taking any or all actions authorized under this Section 9. Any mnounts d~sbursed by Lender under.fins Section 9 shall become additional debt of Borrower ,ecured by tins Security Instrmnent. These amounts shall bear interest at .th('. Note rate from the date of disburse~nent and shall be payable, with such interest, upon notice from Ce~der to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with/dl the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee rifle s~;~all not merge unless Lender agrees to the merger in writiug, 10. Mortgage Insurance. If Lender required Mortgage Insurance as a ctmdition of making the Loan, Borrower shall pay the pre~ninms required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available fr.m~ the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the pre~nimns required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from ~n alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage ts not available, Borrower shall continue to pay to Lender the mnount of file separately designated payments fl'~at were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a oon-refnndable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundablei notwithstanding rite fact that file Loan is ulfi~nately 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, pay~nents if Mortgage Insurance coverage (in file amount an d for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is oblained, and Lender requires separately designated paymenls towar:l the premiums for Mortgage Insurance. If Lender required Mortgage [nsur~ce as a condition of ~naking ',he Loan and Borrower was required to make separately designated paymcms toward the premiums for Martgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance m effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreemeut between Borrower and Lender providing for such termination or until tennirabon is required by Applicable Law. Nothing in this Section l0 affects Borrower's obligation to pay interest aX lhe rate provided itl the Note. Mortgage Iusurance reimburses Leu der (or any entity that purchases the lX. ote) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party I~ 1he Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in for3e from time to time, and may cnter mit agreemeots with other parties that share or modify their risk, or reduce:losses. These agreemenks are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreemenks. These agreements may reqmre tile mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, anqthSr insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or~i~,directly) amounls that derive from (or might be characterized as) a portion of Borrower's payments for Mor:'gage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If sac 1 agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share pf the premiums paid to the insurer, file arrange~nent is often termed "captive reinsurance." Further: (a) Any such agreements will nnt affect the amounts that Borri}¥'er has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements w'ill not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrow.er to any refund. {j~ ,~01647186 1~I~-6(WY) (ooos) Page ~ o~ ~5 Form 3051 1/01 (b) Any such agreements will not affect the rights Borrower has any - with respect to the Mortgage Insurance under the ltomeowners Protectinn Act of 1998 or any ·other law. These rights may include the right to receive certain disclosures, to request and obtain czncellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. I1. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellmeous Proceeds are hereby assigned to and sh~l be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be apPlied~to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold sucll Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work Im;~ been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lende} may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the ,york 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 requked to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would b~ 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. Snch Miscellaneous Proceeds shall be appliled in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Prope~t?, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or nqt then due, with the excess, if any, paid to Borrower. In"the event of a partial taking, destruction, or loss in value of the Pr(~l~erty in which the fair market -valne of the Property immediately before the partial taking, desu'uction, or loss in value is equal to or greater than the mnount of the sums secured by this Security Instrument immedk:ttely 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 Miscellaneoug Proceeds multiplied by the following fraction: (a) the total ~unount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair'market value of the Property i~nmediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower: In the event of a partial taking, destruction, or loss in value of the Prol;terty in which the fair market value of the Property immediately before the partial taking, destruction, o~ Joss-in value is less than the mnount of the sums secured immediately 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 stuns secured by tiffs Security.Instrument 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 the .next sentence) offers to make an award to settle a claim for dmnages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrmnent, whether or not then due. "Opposing Party" means the ,hird 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 default if any action or proceeding, whether civil'or criminal, is begun that, in Lender's judg~nent, could result in forfeiture of the Property or other material :i[~pairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cnre sdcn a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or ~ther material impairment of Lender's interest in the Property or righls under this Security Instru~nent The p~oceeds of any award or claim for damages that are attributable to the in~pair~nent 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 thc order provided [or in Section 2. 001 6 Form 3051 1/01 .; 12. Borrower Not Released; Forbearance By Lender Not a Waive3. Exteusion of the time for payment or lnodification of amortization of the sums secured by this Security' 3nstrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to rel~:a,,ie the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commX~nce proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify mnort~ation of the sums secured by this Security Instrnment by reason of any demand mad,: by the original Borrower or m~y Successors in Interest of Borrower. Any forbearance by Lender in exercising ,'my right or re~nedy including, without limitation, Lender's acceptance of payments from third pcr~,ons, entities or Successors in Interest of Borrower or in mnounts less than the amount then due, shall not b,: a'waiver of or preclude the exercise of any right or remedy. 13. Jnint and Several Liahility; Co-signers; Successnrs and Assigns Bo md. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several.' I-!owever, any Borrower who co-signs this Security Instrument but does not execute 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 Pr.~perty under the terms of this Security Instrument; (b) is.not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender anff any other Borrower can agree to extend, im,dffy, forbear or make any accolnmodations with regard to the terms of this Security Instrument or th: Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrmnent in writing, and is approved.by Lender, shall oblain all of Borrower's rigllts and benefits under this Secnrity Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in wri ting. 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 p~:rformed ]n connection with Borrower's default, for the purpose 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, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be constrtled as a prohibition on the charging of such fee Lender inay not charge fees that are expressly probibited by this Security Instrument or by Applicable Law If the Loan is subject to a law which sets maximum loan charges, and t:mt law is finally interpreted so that the interest or other loan charges collected or to be collected in connec~fi,m with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit: arid (b) any sums already collected from Borrower Which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by redo¢ing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces pr!nc~pal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made be direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out ot such overcharge. 15. Notices. All notices given by Borrower or Lender iii connection with ,his Security Instrument must be in writing. Any notice to Borrower in connection with tiffs Security Instrument shall be deemed to have been given to Borrower when mailed by first class Inail or when actually de~tivered to Borrower's notice address if sent by oilier means. Notice to any one Borrower shall constitute ;notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be: the Property Address unless Borrower has designated a substitute notice address by notice to Lender. BoiTower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, theu Borrower shall only report a change of address through that specilied procedure. There may be only one designated notice address under this Security Instrument at any one 01me. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's addrCs~ slated herein unless Lender has designated another address by notice ~o Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lcn"ler. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable ,Law requirement will satisfy the corresponding requn:emem under this Security Instrmnent. .q~l]..~/, 0001647186 I~-6(WY) {ooo5) Page Ioof 15 Form 3051 1/01 '"'9 6 16. Governing Law; Severability; Rules of Construction. This Secur!ty Instrument shall be governed by federal law and the law of the jurisdiction iii which the Property is locat(~,d. All righks and obligations contained in this Security Instrument are subject to any requirements and lilaitations of Applicable Law. Applicable Law might explicitly or implicidy allow the parties to agree by q0nxact or it might be silent, but such silence shall not be c0nstrtled as a prohibition against agreement by;c(~.ntract. In the event that any provision or clause of this Security Instrtnnent or the Note conflicts with Appli';able Law, such conflict shall not affect other provisions of this Security Instrument or the Note which cm'l be given effect without the conflicting provision. . . As used in this Secnrity Instrument: (a) words of the masculine get.der shall mean and include corresponding neuter words or words of the feminine gender; (b) words in"the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion a, ithout any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and l'~f Iris Security Instrument. 18. Transfer of tlie Property or a Beneficial Interest in Borrower..As used in this Section 18, "Interest in Ihe Property" means any legal or beneficial interest in the Property~ including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, instahment sales contract or escrow agreement, the inteut of which is the transfer of title by Borrower at a future t:tat~: to a purchaser. If all or any part of the Property or any Interest in the Property is sold or'transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) .~vithout Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of mceleration. The notice shall provide a period of not less than 30 days from the date the notice is give~'~ ii~ 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 remedi.~,s 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 to have enforcement of this Security Instrument ;:liscontinued 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 Instrnment; (b) such other period as Applicable Law might specify fur the termination of Borrower's right to reinstate; or (c) enlry of a judg~nent enforcing this Security Instrum~:nt. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenanls or agreement,s; (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' p_~rpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) tak:~'s such action as Lender may reasonably requke to assure that Lender's interest in the Property and righlz' under this Security Instrument, and Borrower's obligation to pay the sums secured.by this Security Instrume:~t, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses ie one or more of the following forlns, as selected by Lender: (a) cash; (b) money order; (c) certified check, ba..~k check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whoseldcposits are insured by a federal agency, instrumentaiity or entity; or (d) Electronic Funds Transfer. Upon Yelnstatement by Borrower, this Security Instrnment and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shail not apply in the case of accele]:at:on under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The ~qote or a partial interest in the Note (together with this Security Instrument) cai] be sold one or ~nore times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Paylnenls due nnder the Note and this Security Instrument and performs other mot!gage 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 to a sale of the Note. If there is a change of the LOan Servicer, Borrower will be given written notice of the change which will state the nmne and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a (~)~-6(WY) (ooo5) Page 11 ol 15 ~,..~~01647186 Initials :~; , Form 3051 1/01 notice of transfer of servicing. If the Note is sold and thereafter file Loan is serviced by a Loan Servicer oilier than the purchaser of the Note, the mortgage loan servicing obligations to Bi>rrower will remain with the Lom~ Servicer or be transferred to a successor Loan Servicer and are not asglmned by the Note purchaser unless otherwise provided by the Note purchaser. !~ Neither Borrower nor Lender may commence, join, or be joined to ~Ln3 judicial actiou (as either an individnal litigant or the IT.m]nber of a class) that arises fro[n the other party'S raC'ions pursuant to this Security Instrument or that alleges that the oilier party has breached ,any provision of, odany duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other.'p~.rty (with such notice given in compliance with tile requirements of Section 15) of such alleged breach and ,'ff£ ~rded the oilier party hereto a reasonable period after the giving of such notice to take corrective action. If Al plicable Law provides a time period which must elapse before certain action can be taken, that time period wi :I be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to t~m,e given to Borrower pursuant to Section 22 and file notice of acceleration given to Borrower pursuant to S,,:ction 18 shall be deemed to satisfy the notice and opportunity to lake corrective action provisions of this Sec ion 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazaffious Substances" are those snbsmnces defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law mid the following substances: gasoline, kerosene, oilier flammable or toxic petroleum i,roducts, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, ond radioactive materials; (b) "Environmenh'd Law" means federai laws and laws of the jurisdiction where the'Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" i']cludes any response action, remedial action, or removal action, 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 canse or permit the presence, use, disposal, storage, or release of any Hazardous Substauces, or threaten to release any Hazardous Substances, on or in the P]:operty. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environ[nental Law, (b) which creates an Environmental Condition, or (c) which, due to fl,e :gresence, 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 generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer 9mdt]cts). Borrower shall promptly give Lender written not]ce of (a) any investigati~m, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party i']v,.Jlving the Property and any Hazardous Substance or Environmental Law of which Borrower has ~ctual knowledge, (b) any Environmental Condition, inclnding but not limitcxl 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 Subs(ance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removtd or other remediation of any Hazardous Snbstance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Noflfing herein shall create an3 obligation on Lender for an Euvironmental Cleanup. Form~3051 '1/01 NON-UNIFORM COVENANTS. Borrower and Lender further covenant ~.ad agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borro;ver's breach of any covenant or agreement in this Security .Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise), rhe 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 wbicb the default must be cured; anff (d) that failure to cure the default onor before the date specified in the notice may result in acceleration of the sums secured hy this Security Instrument and sale of the Property. The notice shall h~rtlser inform Borrower of the rigbt to reiustate after acceleration and the right to bring a court action to Assert the non-existence of a default tlr any other defense of Borrower to acceleration and sale. If the default is not cured on or befm'e the date specified in the notice, Lender at ils option may require immediate payment in full of all sums secured by this Security Instrument without further demand anti may invoke the power of sale and any other remedies permitted by Applicable Lan'. Lender sh;ll he entitled to collect all expenses incurred in pursuing the remedies provided Jn this Section 22, including, but not limited to, reasonahle attorneys' fees and costs of title evidence. If Lender invokes' the power of sale, Lender shall give notice of inteht to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender slmli give notice of tbe sale to Borrower in the manner provided in Section 15. Lender shall publish tile ootice of sale, and tbe Property shall be sold in the manner pr!':scribed by Applicable Law. 'Lender or its designee may purchase the Property at any sale. The proceed..s of the sale shall be applied in the following order: (a) to ali expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (cl any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all stuns secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument. bnt only il' 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 vi'tue of the homestead exe~nptiou laws of Wyoming. ::::::,~ ~.,~ 001647186 (~-6(wY)(ooos) Pag,~3o~S Form 3051 1/01 - =99 BY SIGNING BELOW, Borrower accepts and agrees to file terms and,' covenants contained in Security Instrument and in any Rider executed by Borrower and recorded wi'dj ih Witnesses: SCOTT T"RO"HAS~' i-tOI/DEItl4AN (Seal) -Borrower SHELLEY BROOKE GOINS -So~ower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (~;6(WY) (ooos) Page 14of15 0001647186 Form 3051 1101 STATE OF WYOMING, by The foregmng instrument was acknowledged before me this County ss: My Commission Expires: County of ~'~ St'ate of t Lincoln ~ Wyoming [ ~~My Commission Expires ~ Notary Public ~-6(W Y) 1ooo~) Page 15ol 15 0001647186 Initlal$)~~ Form 3051 1/01 ADJUSTABLE RATE RIDER (LIBOR Six-Month Irate× (As Published In The Wall Street Journal) - Rate Caps) 2 YEAR RATE LOCK THIS ADJUSTABLE RATE RIDE'R is made this 1 § t h day of J u n e , 2004 ,and is incorporated intt and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrc,.ment") of the same date given by the undersigned ("Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to NEW CENTURY NORTfiAGE CORPORATION ("Lender") of the same date and covering the property described in the Security Instrument and located at: 521 THREE RIVERS BRIVE , ALPINE, WY 83128 (Property Address) THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 5.8 5 0 0 %. The Note provides for changes in tile interest rate and the monthly payments as fo!lows: 4. INTEREST RATE AND MDNTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay raay change on the first day of J u I y, 2 0 0 fi and on the same day of every 6th month thereafter. Each date on which my interest rate could change is called an "Interest Rate Change Date." (B) The Index Beginning with the first Iuterest Rate Change Date, my interest rate will be based on an Index plus a margin. The "Index" is tile average of interbank offered rates for slx-month dollar deposits in tile London market ("LIBOR"), as published in The Wall Street Journal "Money Rates" Table. The most recent Index figure available as of the first business day of the month inm~ediately preceding the month in which the Change Date occurs is called the "Current Index." If the Index is no longer a~ail:4ble, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. NCMC 2/28 Six Month LIBOR Adjustable Ra: e Rider RE-409 (111803) Page I of 3 0001647186 RE409Plifd krr 010404 0 00Z88 (C) Calculation of Changes ~ At each Interest Rate Charge Date, the Note Holder will calculate my new interest rate by adding Five and Three-Tenths percentage points ( 5.3000 %)tothe Current Index. Tile Note Holder Will then round this figure to the nearest one-eighth of one percentage point (0.125%). Subject to the limit sta~ed in Section 4(D) below, this rounded amount will be my new interest rate until the next Interest Rate Change Date~ (i) Interest-Only Period. The ,Interest-only Period" is tile period from tile date of this Note through J u I ¥ 1 ,~ 2 0 0 fi . For the Interest-only Period, the Note Holder will calculate the amoun[ of the monthly payment to be one-twelfth (1/12th) of one (l) year's interest at 5.8 5 0 0 '~ per annum. The result of this calculation will be the amount of my monthly payment until the Interest Rate Change Date. (ii) Amortization Perked. The "Amortization Period" is the period after the Interest-only Period and continuing tu,til the Maturity Date. During the Amortization Period, after calculating my new inteyr'~St rate as provided in Section 4(C) above, the Note Holder will then calculate the amount of 'the monthly payment that would be sufficient to fully repay the remaining unpaid principal in equal monthly pa'Yments by the Maturity Date, assuming, for purposes of each calcul:ifion, that the interest rate remained unchanged during that period. The result of this calcula;5on will be the new amount of my monthly payment. (D) Limit on Interest Rate Cha~es The interest rate I am required to pay at the first Change Date will not be greater than 7.35 0 0 % or less than 5.8 5 00 %. r['h,e, reafter, my interest rate will never be increased or decreased on any single Change Date by more than one a~ ;1 one half percentage points (1.5%) from the rate of interest I have been paying for the preceding month. My intdrest rate will never be greater than 1 2.8 5 0 O % nor less than 5.8 5 0 0%. (E) Effective Date of Changes My new interest rate will become effective on each Interest Rate Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Interest Rate Change Date until the amount of my monthly payment changes again. (F) Notice of Changes Tile Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly pa'yn~ent at least 25 days i~efore the effective date of any change. The notice will include information required by law to be giveq me and also the title and telephone nmnber of a person who will answer any questions 1 may have regarding the notice. NCMC 2/28 Six Momh LIBOR Adjustable Rate Ria'er. RE-409 [7[ :?~ .~: .~-; (111803) ['i:; i-::? '; .::~!:i:.i ' ': 0001647186 Page 2 of 3 :::::::::::::::::::::::::: . j o 11. GOVERNING LAW - SECURED The Note is governed by federal law and the law of the jurisdiction in which the property encumbered by the Security instrument (as defined below) is located. In addition to the protections given to the Note Holder under the Note, a Mortgage, Deed of Trust or Security Deed (the "Security Instrument"), dated the same date as the Note protects the Note Holder from possible losses which might result if i do not kec. p the promises which 1 make in the Note. That Security Instrument describes how and under whal conditions 1 may be required to make immediate payment in full of all amounts I owe under the Note. Some of those conditions are described as follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of ali stuns secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited b }, federal law as of the date of this Security Instrument. If Lender exercises this option, Le. nder shall give Borrower notice of acceleration. The notice shall provide a period of nor less than 30 days fr)m the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Ins~ament. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any r..~medies pernfitted by this Security Instrument without further notice or demand on Borrower. BY SIGNING BELOW, Bo:xower accepts and agrees to the terms and covenants contained iii this Adjustable Rate Rider. - Borrower - Borrower - Borrower - Borrower - Borrower - Borrower - Borrower (Sign Original Only) NCMC 2/28 Six Month LIBOR Adjustable Rate Rider RE-409 (111803) Page 3 of 3 0001.647186 RE409P3.ifd krr 010404 ..-304 Loan Numbe~] 001647186 PREPAYMENT RIDER ADJUSTABLE RATE LOAN This Prepayment Rider is. made this 1§th day of June 2004 and is incorporated into and shall be deemed to amend and supplement the Promissory Note (the "Note") and Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure repayment of Borrower's Note to NEW CENTURY NORTfiAfiE CORPORATION (the"Lender"). To the extent that the pr:~visions of this Prepayment Rider are inconsistent with the provisions of the Note and/or Security Instrument, the provisions of this rider shall prevail over and shall supersede any such inconsistent provisions of the Note and/or Security Instrument. In addition to the covenants and agreements made in the Note and Security Instrument, the Borrower and Lender furth~x covenm~t and agree as follows: 5. BORROWERS RIGHT TO PREPAY I have the right to, make prepayments of principal any time before they are due. A payment of principal only is known as a 'prepayment". When I make a prepayment, I will tell tl~:e Note Holder in writing I am doing so. The Note Holder will rise all of my prepayments to reduce the amount of principal that I owe under this Note. If I make a pa?t~al prepayment, there will be no changes in the due dates of my monthly payments unless: the Note Holder agrees in writing to those changes. My partial prepayment may reduce the amount of my monthly payments after the first Change Date following my partial prepayment. If within 2 year(s) frmn the date of execution of the Security Instrument, I make a full prepayment or, in' certain cases a partial prepayment, and the total of such prepayment(s) in any 12-month period exceeds TWENTY PERCENT (20%) of the original principal amount of this loan, I will pay a prepayment charge in an amount equal to the payment of 6 months advance interest on the amount by which the total of my prepay:rncnt(s) within that 12-month period exceeds TWENTY PERCENT (20%) of the original principal amount of the loan. BY SIGN1NG BELOW, 'Borrower accepts Contained in this h;e~ymgnt Rider. and agrees to the terms and covenants NCMC Generic Prepayment Rider RE 103 Revised (020800) RE-103Jld JP 0517B2 Attached Legal Description -005 Lot 12 ForeSt Meadow Subdivision, according to the official plat thereof in the Office of the County Clerk, Wyoming This is a 1st Real Estat~ Mortgage recording concurrentyly with a 2nd Real Estate Mortgage dated June 16, 2004 in favor of New Century Mortgage Corporation in the original amount of $47,9'30.00