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HomeMy WebLinkAbout900344Return To: HOMI~COMINGS FINANCIAL NETWORK, l-qC ONE MERIDIAN CROSSING. STE MINNEAPOLIS. MN 5542~ Loan Number: 042-105313-3 Prepared By: HomeComings F:i~nancia] 14850 Quorum. Drive, Dallas, TX 75254 Network Suite 500 RECEIVED LII.!COLN r'~'~l..., ,.I,-v,.,: , CLERK [Space Above This Line For Recording l)atal MORTGAGE MiN 100062604219531333 DEFINITIONS Words used in multiple sectionl' af tiffs document are defined-below and other words are defined in Sections 3, 11, 13, 18, 20 and 2.'i. Certain rules regarding the usage of words used in this docmnent are also provided in Section 16. (A) "Security Instrument" mean~; this document, which is dated JUNE 15TH, together with ali Riders to this dccument. (B) "Borrower" is BENJAJ~IN L. HALE AND J~d4IE N. HALE, HUSBAND AND WIFE 2004 Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Elecfi'onic Registration Systems, Inc. MERS ~s a separate corporation that ~s acting solely as a nominee for I,ender aud Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number el P O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS MFWY7770 (11/00) / 042-105313-3 Page 1 of 15 initials: VMP MORTGAGE FORMS - 18001521-7~2'a 1 Form 3051 1/01 (D) "Lender" is HOMECOlqINGS FINANCIAL NETWORK INC. Lender is a CORPORATIOi~ organized and existing under the laws of DELAWARE Lender's address is 14850 QUORUM DRIVE, SUITE 500 DALLAS, TX 75254 (E) "Note" means the promi.;sory note signed by Borrower and dated JUNE 15TH, 2004 The Note states that Borrower owes Lender TWO HUNDRED THOUSAND AND NO/100 Dollars (U.S. $ 2 0 0,0 0 0.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later thanJULY 1ST, 2034 (F) "Property" means the pr)perry that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt 'cAdenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all ;~lms due under this Security Instrumen t, plus interest. (H) "Riders" means all Rid:.rs to this Security Instrument that are executed by Borrower The following Riders are to be executed b5 3orrower [check box as apphcable]: ~ Adjustable Rate Rider,_-'~ Condominium Rider ~ Second Home Rider ~ Balloon Rider -_-~ Planned Unit Development Ride~V~ 1-4 Family Rider ~ VA Rider -~ Biweekly Payment Rider [~ Other(s) [specifYl (I) "Applicable Law" me~ns all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as 'all applicable final, non-appealable judicial opinions.. (J) "Cmnmunity Association Dues, Fees, and. Assessments" means all dues, fees, assessments and other charges that are imposed r~ Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paI er instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or m~gnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such ~.erm includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means t'hose items that are describedin Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other tha'ninsurance 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 ir_ lieu of condemnation; or (iv) misrepresentationsof, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security lnstrmnent. (P) "RESPA" means the Real Estate Settlement ProceduresAct (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Rt.~ulation 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 subject matter. As used in this Security Instrument, "RESPA" refers to all requirementsand restrictions that are imposed in regard to a "federally related mort~:age loan" even if the Loan does not qualify as a "federally related nmrtgage loan" under RESPA. MFWY7770 (1.1/00) / 042-105313 -2: lnitial*:_~ 3 t4fl ~. II~-6AIWY} (ooo5}.ol Page 2 o~ ~S Form 3051 1/01 --453 (Q) "Successor in Interest of Borrower" 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 I?l~[ THE PROPERTY This Security Instrumentsecares 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 Instrumentand the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nomine: for Lender and Lender's successors and assigns) and to the successors and assigns of MERS,' with power of sale, the following described property located in the COUNTY of LINCOLN [Type of Rocor ~ing ][urisdictlon] [Name of Recording luriadiction Lo§al description act:ached hereto and made a parr hereof Parcel ID Number: 12 - 3 1'~ 9 - 1 0 - 2 - 0 0 - 0 10.0 0 which currently has the address of 321 FAIRVIEW NORTH £'R 142 , [Str~'et] FAIRVIEW [City] , Wyoming 83 119 [Zip Codel ("Property Address"): TOGETHER WiTH ~ll the improvements now or hereafter erected 0n the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covere~d by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the 'Trloperty." Borrower understands and agrees that MERS holds only legal title to the interests granted b'y E'orrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, bUt not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWERCOVENA!NTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, .grant and convey the Property and that the Property is unencumbered, except for encumbrancesof record. Borrower warrants and will defend generally the title to the Property against all' claims and demands, subject tb any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national Use and non-uniform covenants with limited varia'i0ns by jurisdiction to constitute a uniform security instrument covering real property. MFWY7770 (11/00) / 042-105312-3 l~-6A (WY) Iooo5).ol P~9= 3 ot 15 Form 3051 1/01 O OOh 4 UNIFORMCOVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal,: Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when clue tke principal of, and interest on, the debt evidenced by the Note and any prepaymentcharges and late c%rges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security lnstrument shall be made in U.S. currency. However, if any check or other instrumentreceivedby Lender as payment under the Note or this Security Instrumentis returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Sficurity Instrument be made in one or more of the following forms, as selected by Lender: (a) cash (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentalit?¢, or entity; or (d) Electronic Funds Transfer. 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 notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial i)ayment insufficient to bring the Loan current, without waiver of any rights hereunderor prejudice to its.rights to refuse such payment or partial payments in the future, but Dnder is not obligated to apply such payments at the time such payments are accepted. If each Periodic P~yment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lcndermay hold such unapplied funds until Borrowermakes payment to bring the Loan current. If Borrower does not do so within a reasonableperiod of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Not.~: immediately prior to foreclosure. No offset or claim which Borrower might have now or in the futt' re against Lender shall relieve Borrower from rna'king payments due under the Note and this Security Instm~entor performing the covenants and agreementssecured by this Security Instrument. 2. Application of Paymer:ts or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) princ;~pal due under the Note; (c) mnounts due under Section 3. Such payments shall be applied to each Perio,~ic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other ammmts clue 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 than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment0f the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that, a~y excess exists after the payment is applied to the full pa'y~nent of one or more Periodic Payments, such ex:ess may be applied to any late charges clue. Voluntary prepaymentsshall be applied first to any prepayment charges and then as described in the Note. Any application of paym :nts, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Fumls for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is ~paid in full, a sum (the "Funds") to provide for payment of amounts clue for: (a) taxes and assessments and other items which can attain priority over this Security Instrumentas a lien or encumbranceon the Property; (b).leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; aud (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any Itime 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 Ii;em. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Bcrrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay thee Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Fvnds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of sucl~ waiver, Borrower shall pay direcdy, When and where payable, the amounts (~II~-6AIWY} 1ooo5}.ol : Page, 4 o~ ls Form 3051 1/01 due for any Escrow Items foz which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender recei'ptS evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreementcontained 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 amou;nt due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and B~rrOwer 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 in accordance with Section 15 ~nd, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then -equired under this Section 3. Lendermay, at any tim!:, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lemier shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance wi th Applicable Law. The Funds shall .be ltehl in an institutim~ whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lenderis an institution whose deposits are so insured) or in any FederalHomeLoan Ban:c Lender shall apply the Funds to pay the Escrow Itemsno later than the time specified under RESPA. Lev der shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow accounb or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law p:rmits Lender to make such a charge. Unless an agreementis 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 earnings on ti~e 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 RESP/,. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess fund s in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Len3t:r shall notify Borrower as requiredby RESPA, and Borrower shall pay to Lender the amount necessar) to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If thereis:' a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as requiredby RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accorded-ce with RESPA, but in no more than 12 monthly payments. Upon payment in full of a'l sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. BorrOwer shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and CommunityAssociation 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 shM1 promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agreesin writing to the payment of the obligation securedby the lien in a manneracceptable to Lender, but only so long ~ts Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcementof 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 frem the holder of the lien an agreementsatisfactory to Lender subordinating the lien to this Security Instrum'ent. If Lender determinesthat any part of the Property is subject to a lien which can attain priority ovei' this Security Instrument, Lender may give Borrower a notice identifying the MFWY7770 (11/00) / 042-105313..3 I[~-6AIWY} loooskol P~5o~15 Form 3051 1/01 o.9oo , 44 5 G MFWY7770 (11/00) / 042-105313-3 (~)~-6AIWY) tooos}.ol i' lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth abc,ye in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lendei' in connection with this Loan. 5. Property Insurance. BOrrower shall keep the improvements now existing or hereafter erected on the Proper~ insured against h-)ss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakesand floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lendm rt~quires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrowm:i's choice, 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 an'd tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent'charges each time remappings or similar changes occur which reasonably might affect such ~determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency ManagementAgency in connection With the review of any flood zone deteimination resulting from an objection by Borrower. If Borrower fails to nmi~tain 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 t,o~erage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower'~ equity in the Property, or thc contents of the Property, against any risk, hazard or liability and nfight provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of tt, e insurance coverage so obtaiued mig!~t significantly exceed the cost of insurance that Borrower c0ukl have obtained. Any amounts disbm'sed by Lender under this Section 5 shall become additional debt of Bor !'ower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date' oi disbursement and shall be payable, with such interest, 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 poliqies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/oras an additit mai loss payee. Lender shall have the riglit to hold tlie policies and renewal certificates. If Lender require.,, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower o.b~ains any form of insurance coverage, ' not otherwise required by Lender, for damage to, or destruction of the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgatze and/or as an additional loss payee. In the event of loss, Bor.:ower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptlyby Borrower. 'Unless Lender and Borrower otherwise agree in writing, any insuranceproceeds, whether or not the underlying insurance was requiredby Lender, shall rc~ , be applied to restorationor pmr of the Property, if the restoration or repair is econonfically feasible and Lender's security is not lessenzd During such repair and restorationperiod, Lender shall have the right to hold such insurance proceeds ~,lntil 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. Lendermay disburse Proceeds for the repairs and restorationin a single l~ayment or in a series of progress payments as the wt'~rk is completed. Unless an agreementis 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 pioceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid 'ou~. of the insurance proceeds and shall be the sole obligation of Borrower. If the restorationor repair is not.economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to tie ~ums'secured by this Security lnstrunrent, whether or not then due, with Pag*6of 15 Form 3051 1/01 - the excess, if any, paid to Bo-rt;wer. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons t.m'Property, Lender may file, negotiate and settle any available insurance claim and related matters. If .Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to Cettle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or il' Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to ex~ceed the amounts unpaid under the Note or this Security Instrument, anti (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covenng the Property, iusofar as such rights are applicable to the coverage of the Property. Len cle:~ may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrumeut and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Mainti;nanee and Protection of the Property; Inspections. Borrower shall not destroy, damage or in, pair tae Property, ~,dlow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section :; that repair or restoration is not economically feasible, Borrower shall promptly repair the Property, il: damaged to avoid further deterioration or damage. If insurance or condemnationproceeds are paid m co]mecfion with damage to, or the taking of, the Property, Borrower shall b.e responsible for repair-m~ or restoring the Property only if Lender has released proceeds for such purposes. Lenderma~ disburse p~oceedsfor the repairs and restorationin a single payment or in a series of progress payments as the worl~ is completed. If the insurance or condemnationproceeds are not sufficient to repair or restore the Proper~y, 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 reasonablecause, Lender may 'a~spect the interior of the improvemeutson the Property. Lender shall give Borrower notice at the tim e of.or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Al?phcation. Borrower shall be in default if, during the Loan application process, Borrower or any pexsons or entities acting at the dh'ection of Borrower or with Borrower's knowledge or consent gave mater,lally false, misleading, or inaccurate information or statementsto Lender (or failed to provide Lender with material information) in connection with the Loan. Material representationsinclude, but are. not limited to, representationsconccrning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's h~terest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform ti e covenants and agreementscontainedin this Security Instrument, (b) there ~s a legal proceeding that migl~t s~gnificantly affect Lender's interest in the Property and/orrights under this Security Instrument(such :~s ~ proceeding in bankruptcy, probate, for condemnationor forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower t as .abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to pro~ect Lender's interest in the Property and rights under this Security Instrument, including protecting and/orassessing the value of the Property, and securing and/orrepairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this 3ecurity Instrument; (b) appearing in court; and (c) paying reasonable MFWY7770 (11/00) / 042-105313-3 Initials: (~-6AIWY) Iooos}.o~ Pa, De ?o! ~s t Form 3051 1101 453 attorneys' fees to protect its intei'estin the Property and/orrights under this Security Instrument, including its secured position in a ban2ruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate buildin~ ar other code violations or dangerous conditions, and have utilities turned on or off. Although Lender nYq~y take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed .oy; Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instran'tent. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrumcntis on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fe'~ ttle to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger ia writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiu m,';required to maintain the Mortgage Insurancein effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insrrance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalenc to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage insurance previously in effect, from an alternate mortgage insurer selected by Lender. if substantially equivalent Mortgage Instirance coverage is not available, Borrower shall cont.nt.e 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-refundableloss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding: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 ff Mortgage InSurance coverage (in the amoun [ and for the period that Lender requires) provided by an insurer selected 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 making the Loan and Borrower was required to make separately designated payments toward the preminms'for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance ir:~ effect, or to provide a non-refundable loss reserve, until Lender's requirementfor Mortgage Insura,ace ends in accordancewith any written agreementbetween Borrower and Lender providing for such tenninationor until terminationis requiredby Applicable Law. Nothing in this Section 10 affects Borrower's *)bIigation to pay interest at the rate provided in the Note. Mortgage Insurance reirrbu:rses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does'nos repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evalua'te (heir total risk on all such insurance in force from time to time, and may enter into agreementswith other parties that share or modify their risk, or reducelosses. These agreements are on terms and conditions that ~:tre satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreementsmay require the mortgage iusurer to make payments using any source of funds that the mortgage ins arcr may have available (which may include funds obtained frmn Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be chin acierizedas) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modlfying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of I~er.der takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, thc arrangement is often termed "captive reinsurance." Further: (a) Any such agreeme~ts will not altect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Morlga ge Insurance, and they will not entitle Borrower to any refund. MFWY7770 (11/00) / 042-105313-3~! ¥ Initials: ¢ (~-6A{WY) Iooo5~.o~ Pa~, ~ ot ~s Form 3051 1/01 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under ~be, Homeowners Protection Act of 1998 or any other law. These rights may include the right to t'ec~ive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to haw~ ti~e Mortgage Insurance terminaied automatically, and/or to receive a refund of any Mortgage Insure:nee premiums that were uuearned at the time Of such cancellation or termination. 11. Assignment of Mivce;:laneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damag ed!, such Miscellaneous Proceeds shall be applied to rcstorationor repair of the Property, if the restoratien or repair is economically feasible and Lender's security is not lessened. During such repair and restor~ti6nperiod, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an oppt rtt_nity to inspect such Property to ensure the work has been completed to Lender's satisfaction, providel~t that such inspection shall be underlakenpromptly. Lender may pay for the repmrs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, LEnder shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If th~', rcstorationor repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied ~o the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided'for in Section 2. In the event of a total~taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applie&to t~e sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Bon ower. In the event of a partial mk!ng, destruction, or loss in value of the Property in which the fair market value of the Property imme&ately before the partial taking, destruction, or toss in value is equal to or greater than the amount of tl-'e ~,ums secured by this Security Instrumentimmcdiately before the partial taking, destruction, or loss ir value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the mnount of the Miscellaneous Proceeds multiplied by the following l~action: (a) the total amount of the sums secured immediately before the partial taking, destruction, or oss in value divided by (b) the fair market value of the Property immediately before the partiai taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial lakmg, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured imtnediately 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 InstrumcJnt 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 tlie next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to tenet'er within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscsllaneous Proceeds either to restoration or repair of the Property or to the sums securedby this Security ~nstrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneo.~s Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proc~:eds. Borrower shall be in def:ml,i: if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights .~nder this Security Instrument. Borrower can cure such a default and, if accelerationhas occurred, reinstate as provided in Section 19, by causing the a~tion or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest ia the Property or rights under this Security Instrument. The proceeds of any award or clain~ for damagss that are attributableto the impairmentof Lender's interest in the Property are hereby assigned and shall 5e .paid to Lender. All Miscellaneous PrOceed:; that are not applied to restoration or repair of the Property shall be applied in the order provided 70rlin Section 2. MFWY7770 (11/00) / 042-105313-3. (~)dSAlWY! ~ooo~.o~ InJtJals;~ { Pag~9of 15 Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the ti~ne for payment or modification of an' ortizationof the sums securedby this Security Instrumentgrantedby Lender to Borrower or any Successor in.~Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest 6f Borrower. Lender shall not be required to commenceproceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortizationof the sums securedby this Security Instrumentby reason of any demandmadeby the original Borrower or any Successors inl IMerest of Borrower. Any forbearanceby Lender in exercising any right or remedy including, without lir'ait'.ation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrcwcr or in amounts less than the a]nount then due, shall not be a waiver of or preclude the exercise of any rigb~ or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's ob]'igations 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"): (a) is co-signing this Security Instrumentonly to m'grtgage, grant and convey the co-signer's interest in the Property under the terms of this SecUrity Instrumzn.t (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees thzt Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations.,wi':h Yegard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisiox;s 'of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under !his Security Instrumentin writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and lla 9il'~ty under this Security Instrumentunless 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 'pt-?pose of protecting Lender's interest in the Property and rights under this Security Instrument, including l:ut not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, th6 a~2sence of express authority in this Security Instrumentto charge a specific fee to Borrower shall not be cqnstrued as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibi' ed. by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpretedso that the interest or other loan ':harges collected or to be collected in connection with the Loan exceed the permittedlimits, then: (a) an5 s~ich loan charge shall be reduced by the amount necessary to reduce the charge to the permittedlhnit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Bd:rower. Lender may choose to make this refund by reducing the principal owed under the Note or by making 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 provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower wi'l constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. Ail notices gi,~en by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice' lc, Borrowerin connectionwith this Security Instrumentshall be deemcdto have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. 'Not~ce 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. Borrower shall promptly notify Lender of Borrower's cha'age of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shMl only report a change of address through tha~ specilied procedure. There may be only one desigaa~:ed notice address under this Security Instrument at any one time. Any notice to Lender shall be given '3y 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 Instrmnentshall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrumentis also required under Applicable Law, the Applicable Law ret'tu!rement will satisfy the corresponding requirement under this Security MFWY7770 (11/00) / 042-105313-3; {0oo5Lol Initials: I, Page 10 o115 Form 3051 1/01 16. Governing Law; ,~:ev~erability; Rules of Construction. This Security Instrument shall be governed by federal law and thc. law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject [o any requirements and linfitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such siler~ce, shall not be construed as a prohibition against agreementby contract. In the event that any provision or :clause of this Security Instrunmnt or the Note conflicts with Applicable Law, such conflict shah not ~ffe.ct other provisions of this Security Instrunrentor the Note which can be given effect without the confli ;ting provision. As used in this Security llnstrument: (a) words of the masculine gender shall mean and include corresponding neuter words cr words of the feminine gender; (b) words in the singular shall mean and include the plural and vice ve.~sa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Proptrty or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" me,ms any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferredin 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 t"roperty or any Interestin the Property is sold or transferred(or if Borrower is not a naturalperson and a bereficial interest in Borrower is sold or transferred)without Lender's prior written consent, Lender may require immediate payment in fttll 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~0pfion, 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 accordancewith Section 15 within which Borrower must .oay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expii'~tion of this period, Lender may invoke any remedies permitted by this Security Instrument without fitrther notice or demand on Borrower. 19. Borrower's Right ~to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to' have enforcement of this Security instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) !luch other period as Applicable Law might specify' for the termination of Borrower's right to reinstate'; or (c) entry of a judgmmnt enforcing this Security Instrument. Those conditions are that Borrower. (a) pays Lender all sums which then would be due under this Security Instrumentand the Note as if no ,a. ccelerationhad occurred; (b) cures any default of any other covenants or agreements; (c) pays all expen;es, recurred 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'4 interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender n'tay! reasonably require to assure that Lender's interest in the Property and rights under this Security Instruraent, and Borrower's obligation to pay the sums secured by this Security Instrument, shall c0ntinueunchanged. Lendermay require that Borrowerpay such reinstatementsums and expenses in one or more of the 'following forms, as selected by Lender: (a) cash; (b) money order; (c) certified Check, bank check, t~ ea;urer's check or cashier's check, provided any Such check is drawn upon an institution whose deposits ;tr6 insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstaten:?entby Borrower, this Security lnstrumentand obligations secured hereby shall remain fidly effective as' if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration '~mder Section 18. 20. Sale of Note; Change ti, f Loan Servicer; Notice of Griev.'mce. The Note or a partialinterest in the Note (together with this Security Instrument)can be sold one or more times without prior notice to Borrower. A sale might resuYt in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under th,: 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 Lc an Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be ~iv,sn written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA MFWY7770 (11/00) ! 042-10531'3-3' Initiala:~ { Page~o~s Form3051 1/01 requiresin connection with a nO~lCe of transfer of servicing. If thc Note is sold and thereafterthe Loan is serviced by a Loan Servicer o'.h~r than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remainwith ~:he Loan Servicer or be transferredto a successor Loan Servicer and are not assumed by tile Note purchase, r nnless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be ioined to any judicial action (as either an individual litigant or the mm~.tb~r of a class) that arises from the other party's actions pursuant to this Security Instrumentor that alk ges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance wi~'h .tile reqnirementsof Section 15) of such alleged breach and afforded the other party hereto a reasonabli~ 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 ::easonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to B6rrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section i8 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Sectioa 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or :tazardous substances, pollutants, or wastes by EnvironmentalLaw and the following substances: gasoline, l?~erosene, other flmnmable or torac petrolemn products, toxic pesticides and herbicides, volatile solvent~, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means lederallaws and laws of the jurisdiction where the Propertyis located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environm entalLaw; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threatento releaseany HazardousSubstances, on or in the Property. Borrowershall not do, nor allow anyone else to do, auything affecting the Property Ia) that is in violation of any Environmental Law, (b) which creates an Env]XonmentalCondition, or (c) which, due to the presence, use, or release of a HazardonsSubstance, 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 (incl adihg, but not limited to, hazardous substances in consumer products). Borrower shall promptly g Jvc Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governrr'ental or regulatory agency or private party involving the Property and any Hazardous Substance or Enw'ronmental Law of which Borrower has actual knowledge, (b) any Environment alCondition, indu ~lir.g but not linfited to, any spilling, leaking, discharge, release or th],eat of release of any Hazardous Subs,tance, and (c) any condition caused by the presence, use or release of a HazardousSubstance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulator/authority, or any private party, that any removal or other remediation of any HazardousSubstance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance wi.th Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cle~nup. MFWY7770 (11/00) ! 042-105313-3 Page 12 of 15 Form 3051 1/01 0S 00344 - 4g, 3 NON-UNIFORMCOVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any coTenant or agreement in this Secnrity Instrument (but not prior to acceleration under Section lg t:!nless Applicable Law provides otherwise). The notice shall specie: (a) the default; (b) the action required to cure the defanlt; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which tbe default must be cured; and (d) that failure to cure the default on or before tbe datt~ specified in tbe notice may result in acceleration of the stuns secured by this Security Instrument and sale of the Property. The notice shall furtber inform Borrower of tile right to reinstate after accehration and the right to bring a court action to assert the non-existence of a default or any other defen.~e of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in lull of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedie~ permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuit~,g *~he remedies provided in this Section 22, including, but not limited to, reasonable attorneys' lees and costs of title evidence. If Lender invokes the l~ov:'er 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 tbe manner provided in Section 15. Lender shall publish the notice of sale~ ~n0 the Property shall be sold io the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following o~:der: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' tees; (b)to all sums secnred by this Secnrity Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. UponPayment of all sums securedby this Security Instrument, Lendershall release this Security Instrument. Borrower Shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services renderedand 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. ~ MFWY7770 (11/00) / 042-105313-5. : (~I~6A{WY) IooosLo~ Page 13 ol 15 Form 3051 1/Ol BY SIGNING BELOW, B~)rrower accepts and agrees to the terms and covenants contained in this Security Instrument and in an), Rider executed by Borrower and recorded with it. Witnesses: '%EN~IN L. HALE (Seal) -Borrower ~IE N. H~LE ~ - (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower MFWY7770 (11/00) / 042-105313-3 (~)~6AIWY) Iooos~.o] Pagel4of]5 Form 3051 1/01 STATE OF WYOMING, The foregoing instrumer.t was acknowledged before me this 15TH by BENJAMIN L. HALE AND JAMIE N. HALE, HUSBAND AND WIFE JUNE County ss: LINCOLN 2004 My Commission Expires: Notary Public MFWY7770 (11/00) ! 042-105313-3 (~}~-fiA(WY) Parle 15ot 15 Initial Form 3051 1/01 LEGAL DESCRIPTION A portion of the property as'referred to in the Deed recorded in Book 144PR on page 405, with the Office of the Clerk of L,incoln County, Wyoming, within the NW~ANW~A of Section 10, T31N Rll9W, of the 6th P.M., Lincoln County, Wyoming, the metes and bounds being more particularly described as follows: BEGINNING at an Alumir,~um Cap on Iron Pipe marking a point in the North line of said NW~ANW¼, said Point of keginning 228.00 feet S 89°59'04" E, 'along said North line from the B.L.M. type Monument marking the Paul N. Scherbel RLS 164, 1978 - 1981 adjusted location for the Northwest Comer oy: said NW ~,4 NW lA; thence S 89o59'04.' E, continuing along said North line, 295.16 feet to an Aluminum Cap on Iron Pipe; thence S 0000'57'' W, perpendicular to said North line, 295.16 feet to an Aluminum Cap on Iron Pipe; thence N 89059'03.' W, parallel with said North line, 295.16 feet to an Aluminum Cap on Iron Pipe; thence N 0000'57" E, perpe, ndicular to said North line, 295.16 feet to the Point of Beginning.