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HomeMy WebLinkAbout900348Return To: Argent Mortgage Compan/~, P.O. Box 14130, Orange, CA 92863-1530 LLC 9 0 [112 6 0 Prepared By:Argent Mortgage Company, LLC Roseanne Elisalda 2603 Main Street,Irvine, 926].4 CA [Space Above 'Fids Line For Recordi.g Data] MORTGAGE BOOK DEFINITIONS Words used in multiple sections of this docmnent are defined below and od]er 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 tiffs documel]t, which is dated June 16, 2004 together wid~ all Riders to this ~lc'cument. (B) "Borrower" is STEVEN ..*.. SPAULDING and LISA M. SPAULDING, HUSBAND AND WIFE Borrower is the mortgagor und.~r this Security Instrument. (C) "Lender" is Argent Mo:z~gage Company~ LLC Lender is a Limited Liabil~.ty Company organized and existing under the. aws of Delaware WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~®-6(WY) Iooo51 :~.~ 0058759598 - 9503 Form 3051 1/01 06/16/2004 11:34:17 NOTE: This serves to correct that certain Mortgage recorded June 17, 2004 in Book 559PR on page 219 of the records of the Lincoln County Clerk to correct the acknowledgement. Lender's address is One City ;Boulevard West Orange, CA 92868 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated June 16, 2004 The Note states that Borrower ~3Wes Lender seventy-nj, no thousand three hundred twenty-five and 00/100i Dollars (U.S. $ 79,325.00 ' ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt ia full not later than July 1, 2034 (E) "Property" means the prcperty that is described below under the heading "Transfer of Rights in the. Property." (F) "Loan" means the debt ev'"~dcnced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Rider.; to this Security Instrmnent that are executed by Borrower. The following Riders are to be executed by B )rrower [check box as applicable]: O ~} 0 0,~ ~ ~ Adjustable Rate Rider ~ Condominium Rider [~ Second Home Rider [--] Balloon Rider ~-] Planned Unit Development Rider [---'] 1-4 Family Rider ['--] VA Rider ~'~.Biweekly Payment Rider [---] Other(s) [snec;C,,].'' (It) "Applicable Law" means all controlling 'applicable federal, state and local statutes, regulations, ordinances and administrative ru~es and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. ti) "Comnmnity Association DUes~ Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeo'wners association or similar organiza ion. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transactiou originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale trm]sfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: ti) damage to, or destruction of, tl]e Property; (ii) conderrmation or other taking of all or any part of the Property; (iii) conveyance in }ieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the [ ro~erty. tM) "Mortgage Insurance" meaas insurance protecting Lender against the nonpaymem of, or default on, the Loan. tN) "Periodic Payment" meat s the regularly scheduled amount due tbr ti) principal and interest under the Note, plus (ii) any amounts unrler Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Reg~la'tion X (24 C.F.R. Part 3500), as they nfight 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 requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. , o058¥.9q598 - 9503 06/3.6/2004 ~1:34:~7 Fo[rn 30~q 0.90034S 47.4 (P) "Successor in Interest of l~;~orrower" means any party that has taken title to the Property, whether or not that party bas assumed Bcrr)wer s obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS INiTHE PROPERTY This Security Instrument secure~ to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Not. e; a.,~dI (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the ~4o;e. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's success6rs and assigns, with power of sale, the following described property located in the Cou(xt~y of LINCOLN [Type of Recordin~'~ Jurisdiction] [Name of Recording ]uris;diction] LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF: Parcel ID Number: 12 - 3 21 il - 3 0 - 3 - i 5 - 2 4 6- 0 0 which currently has the address of 206 EAST 5TH AVENUE , [Street] AFTON [City] , Wyoming 83110 [Zip Codel ("Property Address"): TOGETHER WITH all the improvements now or hereafter erected on the property, and all easenients, appurtenances, and fixtures now or hereafter a part of the property. All replacmnents and additions shall also be cove~ec by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVEN/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 encumbrances of record. Borro~ver warrants and will defend generally the title to the Property against all claims and demands, subject ~o any encumbrances of record. ~ THIS SECURITY INST1/UMENT combines uniform covenants for national use and non-uniform covenants with limited variatious by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Princi~mt, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when du ~ lhe principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late ~harges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Paymen:s due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this - 9so (~)~6(WY) Iooosl Page 3 ol ~5 06/16/2004 11: 34: 17 Form 3051 1/01 Security Instrument is returned co Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) casf; .~b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided an', such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed fete:veal by Lender when received al the location designated in the Note or at such other location as may be dtsignated by Lender in accordance with the notice provisions in Section 15. Lender may return any paymem or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any ~ights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lan~er is not obligated to apply such payments at the Ii,ne such payments are accepted. If each Periodic P:tyment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrowe~ does not do so within a reasonable period 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 No:e immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Ins'trt~ment or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied oy Lender shall be applied in the following order of priority: (a) interest due under the Note: (b) prin,;ipal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it becan~e due. Any remaining mnounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal b::lance of the Note. If Lender receives a paywent 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 nmy apply any payment received from Borrower to the repaymen: of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent thlt any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepay~ne.~t charges and then as described in the Note. Any application of payntents, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or pbstpone the due date, or change the mnount, of the Periodic Payments. 3. Funds for Escrow l*.ems. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Not~. i:; paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessment~, m~d other items which can attain priority over this Security Instrument as a lien or encumbrance on the lero'~erty; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all irsu:ance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premmms in acco;.dance with the provisions of Section 10. These ite~ns are called "Escrow Items." At origination or at ;my 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 assessments shall be an Escrow [tern. Borrower shall promptly furnish to Lender all notices of an~ounts to be paid under this Section. Bor~:ower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay me Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts (~-6{WY) 1ooo5) 0058'~59~98 - 9503 06/16/2004 11:34:17 '~orm3051 1/01 ,' °°3 476 O OOLt48 due for ~y Escrow Items for ~hich payment of Funds has been waived by Lender and, if Lender requires, shall Mrnish to Lender receipts' evidencing such payment within such time period as Lender may require. Borrower's obligation to m~'e'such payments and to provide receipts shall for all pu~oses be deemed to be a covenant and agreement ~::0ntained in this Security Instrument, as the phrase "coven~t ~d agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuit to a waiver, Borrower fails to pay the ~oEnt due for ~ Escrow Item, Lender may exercise its rights under Section 9 ~d pay such mnount ~d Bo~r.~wer shall then be obligated under Section 9 to repay to Lender ~y such ~ount. Lender may revoke tl,,e waiver as to m~y or all Escrow Items at any time by a notice given in accord~ce, with Section 15 zn0, upon such revocation, Borrower shall pay to Lender all Funds, and in such ~ounts, that are then req~:dred under this Section 3. Lender may, at ~y time, ;:ollect ~d hold Funds in ~ ~ount (a) sufficient to permit Lender to apply the Funds at the time specifieq under RESPA, ~d (b) not to exceed the m~imum amount a lender can require under RESPA. Lender shall estimate the ~ount of Funds due on the basis of current data and reasonable estimates of expe~.Oitures of Mture Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in ~ institution whose deposits are iusured by a federal agency, instrumentality, or entity (indufling Lender, if Lender is ~ institution whose deposits are so insured) or in ~y Federal Home Lo~ Ba~. Lender shall apply the Funds to pay the Escrow lte~ no later than tbe time specified under RESPA. Lender shall not charge Borrower for holding ~d applying the Funds, ~ually ~alyzing the escrow account or veri~ing the Escrow Ite~, unless Lender pays Borrower interest on the Funds ~d Applicable Law p~rmits Lender to make such a charge. Unless ~ agreement is made in writing or Applicable Law requires kterest to be paid on the Funds, Lender shall not be required to pay Borrower ~y interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. ~L~.:nder shall give to Borrower, without charge, ~ ~ual accounting of.the Funds as required by RESPA., If there is a su~lus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess Mnd; ~.n accord~ce with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to m~e up the shortage in accord~ce with RESPA, but in no more th~ twelve monthly payments. Ii lhere is a deficiency of Funds held in escrow, as defined under RESPA, Lender shMl noti~ Borrower.as required by RESPA, ~d Borrower shall pay to Lender the ~ount necessary to m~e up the deficiency in accord~ce with RESPA, but in no more th~ twelve monthly payments. Upon payment in full o~ ~11 sums secured by this Security Instrument, Lender Shall promptly reMnd to Borrower ~y Funds held k,y ~Lender. 4. Charge; Liens. BorTower shall pay all t~es, assessments, charges, fines, and impositions attributable to the Property which c~ attain priority over this Security Instrument, leasehold payments or ground rents on the Property,. if' ~y, ~d Conm~unity Association Dues, Fees, ~d Assessments, if ~y. To the extent that these items are' Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall protnptl? discharge ~y lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a m~er acceptable to Lender, but only so long i.s Borrower is perfornfing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the entbrcement of the lien While those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien ~ agreement satisfacto~ to Lender subordinating the lien to this Security Instn~nent. If Lender deter~nes that ~y pan of the Property is subject to a lien which c~ attain priority ovm fhis Security Instrument, Lender may g~ve Borrower a notice identi~ing the 00587159~98 - 9503 06/16/2004 11:34:17 Form3051 3/99 ,i'.:.., :',b,"/: V, :'-;; ' lien. Within 10 days of the dztefon which that notice is given, Borrower shall sat;sty the lien or take one or more of the actions set forth above in this Section 4. Lender may require Bt:'rrpwer to pay a one-time charge for a real estate mx verification and/or reponing service used by Len'~e~r in cmmection with this Lo~. 5. Property Insurance. B, orrower shall keep the improvements now existing or hereafter erected on the Property insured against 4o~s by fire, h~ards included within the term "extended coverage," ~d ~y other h~ards including, but qot li~ted to, earthqu~es and Iloods, for which Lender requires insurance. This insur~ce.shall be ma;nra;ned, in the ~ounts (including deductible levels) and tbr the periods that Lender requires. What Lende.r :,requires pursuit to the preceding sentences cm~ ch~ge during the te~ of the Lo~. The insur~ce carl}el providing the insur~ce shall be chosen by Bogower subject to Lender's right to disapprove BorroweT'~ choice, which right shall nol be exercised unreasonably. Lender may require Borrower to pay, in co,ecl;on with this Lo~, either: (a) a one-time charge for flood zone deter;nation, certification and tracking services; or (b) a one-time charge for flood zone deternfination ~d certification services ant ~ubsequent charges each time re~nappings or si~lar changes occur which- reasonably might affect such 6etenNnation or certification. Borrower shall also be responsible for the payment of ~y fees impose8 :by the FederM Emergency Management Agency in co,ecl;on with the review of ~y flood zone det~rnfination resulting from ~ objection by Borrower. If Borrower fails to m[intain ~y of the Coverages described above, Lender may obtain insur~ce coverage, at Lender's option, and Borrower's expense. Lender is under no obligation to purchase m~y paaicular type or ~ount of coverage. Therefore, such coverage shall cover Lender, but n6ght 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 nfight, provide greater or lesser coverage than was previously in effect. Borrower ac~owledges that the cost of [he insnr~ce coverage so obtained might signific~tly exceed the cost of insurance.that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. %ese amounts shall be~ interest at the Note rate from the dat~5 0f disbursement m~d shall be payable, with such interest, upon notice from Lender to Borrower requesting 9ayment. All insur~ce policies n:quired by Lender ~d renew~s of such policies shall be subject to Lender's right lo disapprove iuch; policies, shall include a stmidard mortgage clause, ~d shall name Lender as mortgagee ~d/or as ~ addit,onM loss payee. Lender shall have the right to hold the policies ~d renewal · certificates. If Lender require,s, Borrower shall promptly give to Lender all receipts of paid premiu~ and renewal notices. If Borrower. obtains ~y fom~ of insur~ce coverage, not otherwise required by Lender, for d~age to, or destruction of, the Propeay, such policy shall include a st~dard mortgage clause m~d shall n~e Lender as mortgagee ~d/or as ~ additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance c~rier ~d Lender. Lender may m~e proof of loss if net made promptly by Borrower. Unless Lender ~d Borrower otherwise agree in writing, ~y insur~ce pro:egds, whether or not the underlying insur~ce was required by Lender, shall be applied to restoration or rep.air of the Property, if the restoration or repair is economically feasible Lender's security is not lesseue]. During such repair ~d restoration period, Lender shall have the right to hold such insur~ce proceeds, until Lender has had ~ opportunity to inspect such Property lo ensure the work has been completed to Lender's satisfaction, provided that such insp~tion shall be undert~en promptly. Lender may disburse: proceeds for the repairs ~d restoration m a single payment or in a series of progress payments as the v,o:k is completed. Unless ~ agreement is made in writing or Applicable Law requires interest to be paid on :tuch insurm~ce proceeds, Lender shall not be required to pay Borrower any ~nterest or e~ings on such oroceeds. Fees for public adjusters, or olher third p~ties, retained by Borrower sh~l not be paid o'at, of the insur~ce proceeds ~d 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 sh~l be applied to ':he su~ secured by this Security Instrument, whether or not then due, with (~-6{WY) (ooo51 0058g~598 - 9503 Inilial$~L~ },---¥'~'X ~ 06/16/2004 11:34:17 Form 3051 1/01 0:900a48 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for In Section 2. If Borrower abandons tl'te 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 s.ettle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either evem, or if Lender acquires the Property uuder Section 22 or otherwise, Borrc.wer hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exCeed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's ri~,hts (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covenng the Property, insofar as such rights are applicable to the coverage of the Property. Lender. may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under t ~e Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borroweffs principal residence within 60 days afte] the execution of this Security Instrument and shall continue to occupy the Property as Borrower's pnncipal' residence for at least one year alter the date of occupancy, unless Lender otherwise agrees in wrtting, wtiich consent shall not be unreasonably witkheld, or unless extenuating circumstances exist which are l')'evond Borrower's control. 7. Preservation, Maintemmce and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borroa, er 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 detemfined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repatr the Property if damaged to avoid further deterioration or dan~age. If insurance or condenmation proceeds are paid,in connection with damage to, or the taking of, the Property, Borrower shall be responsible ibr repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condenmation proceeds 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 reasonable cause, Lender may in:;pect the interior of the ilnprovements on the Property. Lender shall give Borrower notice at the time of or prior to such an tnterior inspection specifying such reasonable cause. 8. Borrower's Loan App}ication. Borrower shall be in default if, during the Loan application process, Borrower or any pe~:sons or entities acting at the direction of Borrower or with Borrower's knowledge or consenl gave matmially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lendtr with material inlbrmation) in connection with the Loan. Material' representations include, but are not limited to, representations conceruing Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform thecovenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that mig,~t significantly affect Lender's interest in the Property and/or rights under this Security Instrtnnent (such as a proceeding in bankruptcy, probate, for condemnation or tbrfeiture, Ibr enforcement of a lien which 'may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower .ms abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protectir g md/or assessing the value of the Property, and securing and/or repairing 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 S6curity Instrument: (b) appearing in court; and (c) paying reasonable {~}~-6(WY) (ooo5} oo58(~,5~1598 - 9503 06/16/2004 11:34:17 Fotrn3051 1/01 ',.t. 479 attorneys' fees to protect its ~.aterest in tile Property and/or rights under this Security Instrument, including its secured position in a bm'~krhptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to inake r!:pairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate buildi~,g or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender ~lay 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 'Se~:tion 9. Any anmunts disbursed bSt Lender under this Section 9 shall become additional debt of Borrower secured by this Security Inst'~ur!aent. These amounts shall bear inlerest at the Note rate from tile date of disbursement and shall be' pryable, with such interest, upon notice from Lender to Borrower requesting payment. ~ If this Security Instrnment' is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires f¥'e ititle to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger iii writing. 10. Mortgage lnsuranc,e. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiams required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance cove:age required by Lender ceases to be available from the mortgage insurer that previously provided such imurance and Borrower was required to ~nake separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivtdeut to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected b~ iZender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall Continue to pay to Lender the amount of the separately designated payments that were due when the insuranc~ Coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss 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 ifaerest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage I:::lsurance coverage (in the mnount and for the period that Lender requires) provided by an insurer sele~:ted by Lender again becomes available, is obtained, and Lender requires separately designated payments ~:oward the premiunzs for Mortgage lusurance. If Lender required Mortgage Insurance as a condition of ::naXing the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums'required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage [nsur/mce ends in accordance with any written agreement between Borrower and Lender providing lbr such terns:nation or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance rei:nbnrses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with or'her parties that share or modify their risk, or reduce losses. These agree~nents are on terms and conditions thal are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgitge insurer to make payments using any source of funds that the mortgage itl.surer may have available (Which may include funds obtained from Mortgage Insurance premiums). As a result of these ag~X~ernents, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affil'atq of any of the foregoing, may receive (directly or indirectly) mnounts that derive from (or might be cN'~raCterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or, mo:lil~.qing the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of:.Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer/the arrangement is often termed "captive reinsurance." Further: (a) Any such agreement,a, will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms o1' the Loan, Such agreements will not increase the mnount Borrower will owe l'or Mor~:gage Insurance, and they will not eutitle Borrower to any refund. oosso~Os98 - ~so3 ~.-6{~/Y}10oo5~ P*~*8otl~ 06/16/2004 11:]4:1'/ Form30~l 1/01 ': ;' 480 (b) Any such agreements iwill not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under t,he Homeowners l'rotection Act of 1998 or any other law. These rights may' include the right to .¥ec..eive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to hav;~ H~e Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage lns~r:3nce premiums that were unearned at the time of such .cancellation or termination. ~ 11. Assignment of Mi.ecellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damag':d~ such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoraticn 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 such Miscellaneous Proceeds until Lender bas had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided tilat such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement'is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If tlit~ restoration or repair is not economically feasible or Lender"s security would be lessened, the Miscellaneoug Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with die excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided l'or; in Section 2. In the event of a total taking, destruction, or loss in wilue of the Property, 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. In the event of a "~ ' ..... partial ,akmg, destruction, or loss mn value of the Property mn which the fmr inarket value of the Property immed:'atcly before the partial taking, destruction, or loss in value is equal to or greater than. th.e amount of tl~e 'sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Ins.rument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fra,:tion: (a) the total amount of the sums secured inunediately before the partial taking, destruction, or :loss in value divided by (b) the fair market value of the Property immediately before the partial t~idng, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial lak~ing, destruction, or loss in value of the Property in which the fair market value of tile Property inm~ediat¢ly before the partial taking, destruction,, or loss in value is less than the amount of the sums secured ".rmnediately before tbe 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 Instrument whether or not the sums are then due. If the Property is aban;lo.~ed by. Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in tile next sentence) offers to lnake an award to settle a claim for damages, Borrower fails to respond to Let. der 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 lm, trument, whetber or not theu due. "Opposing Party" means the third party that owes Borrower Miscellareous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceed:;. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, tn Lender's judgment, could resul~ in forfeiture of the Property or other material impalm~ent of Lender's interest in the Property or rights under this Security Instrument Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceedihg to be dismissed with a ruling that, ?n Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for dmnaggs that are attributable to the ~mpairment of Lender's interest in the Property are hereby assigned and shall he paid to Lender. All Miscellaneous Proc¢.eds that are not applied to restoration or repair of the Property shall be applied in the order provided for~ in Section 2. (~-6{WY) (ooo5) - 9503 PageOof15 06/16/2004 11:34:17 Form3051 1/01 O OOkt4 12. BorroWer Not Rel,msed; F°rbearanee By Lender Not a Waiver. Extension of the time payment or modification of amo?tization of the su~ secured by this Security lnst~ment granted by Lender to Borrower or any Successm in Interest of Borrower shall not operate to release the liability of Borrower or ~y Successors in Interest of Borrower. Lender shall not be required to co~ence proceedings against ~y Successor in Interest ct ~orrower or to reMse to extend time for payment or otherwise ~nodi~ ~ortization of the sums secured by this Security Instrument by reason of m~y dem~d made by the original Borrower or any Successors in l'nterest of Borrower. Any forbear~ce by Lender in exercising ~y right or remedy including, without Ln~tation, Lender's accept~ce of payments from third persons, entities or Successors in Interest of Borrow{er or in ~ounts less than the mnount then due, sball not be a waiver of or preclude the exercise of any r;.gSt or remedy. 13. Joint and Several ~iability; Co-signers; Successors and Assigns Bound. Borrower coven~ts ~d agrees that Borrower's oHigations and liability shM1 be joint and several. However, any Borrower who co-signs this Security Instrmnent but does not execute the Nme (a "co-signer"): (a) is co-signing this Security Instrument only to rto(tgage, grm~t ~d convey the co-signer's interest in the Property under the temps of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; ~d (c) agrees teat Lender and ~y other Borrower can agree to extend, modify, forbear or m~e ~y acco~odations ~:i{~. regard to the tern of this Security Inst~ment or the Note without the co-signer's consent. Subject to the provisi(ns, of Section 18, ~y Successor in Interest of Borrower who assumes Borrower's obligations under this Security Inst~ment in writing, ~d is approved by Lender, shall obtain all 0f Borrower's rights ~d oenefits under this Security Instrument. Borrower shall not be released from Borrower's obligations m~d li.abSility under this Security Instrument unless Lender agrees to such release in writing. The coven~ts m~d~agreements of this Security Insmm~ent shall bind (except as provided in Section 20) ~d benefit the su:Ccssors ~d assigns of Lender. 14. Loan Charges. Lender may ch~ge Borrower fees for services ~erfom~ed in cmmection with Borrower's default, for the pu~ose of protecting Lender's interest in the Property ~d rights under this Security Inst~ment, including, :but not limited to, attorneys' lbes, property inspection ~d valuation fees. In regard to ~y other t~es, tee absence of express authority in this Security InstrUment t0 charge a specific fee to Borrower shall not be eonst~ed as a prohibition on the charging of such lee. Lender may not charge fees tbat are expressly prohibited by this Security Instrument or by Applicable Law. If the Lo~ is subject to a l:aw which sets maxi~num loan charges, m~d that law is finally inte~reted so that the interest or other 1o~ ch~ges collected or to be collected in co~ection wilh the Lo~ exceed the permitted li~ts, then: (a) aF.y Such lo~ charge shall be reduced by the ~munt necessary to reduce the charge to the pernfitted limit;,~d (b) ~y sums already collected from Borrower which exceeded pe~itted li~ts will be reMnded, to Borrower. Lender may choose to make this reMnd by reducing the principal owed under the Note or by m~ing a direct payment to Borrower. If a reMnd reduces pr;nc;pM, the reduction will be treated as a partial prepaymont witbout any prepayment cbarge (whether or not a prepay~nent charge is provided for under the Note). Borrower's accept~ce of ~y such re.nd made by direct payment to Borrower ~ill,: constitute a waiver of ~y right of action Borrower might have arising out of such overcharge. 15. Notices. All notice:; given by Borrower or Lender in com~ection with this Security Instrument must be in writing. Any notice ~o Borrower in co~ection with this Security Instrument shall be deemed to have been given to Borrowe: when mailed by first class mail or when actuflly delivered to Borrower's notice address if sent by other me~s. Notice to ~y one Borrower shall constitute notice to all Borrowers unless Applicable Law exprcssty requires othe~ise. The notice address shill be the Property Address unless Borrower has designa~ed~a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's chmge of address. If Lender specifies a procedure for reporting Borrower's ch~ge of address, then Borrower shall only ~ report a ch~ge of address through tbat specified procedure. There may be only one desigm3ted notice address under this Security Instrmnent at ~y one time. Any notice to Lender shall be given: by delivering it or by mailing it by first cl~s mail to Lender's address stated herein unless Lender. hhs designated ~other address by notice to Borrower. Any notice in co~e6tion with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If ~y ~otice required by this Security Instrument is flso required under Applicable Law, the Applicable Law r:quirement will satisfy the corresponding requirement under this Security Instmment. ~6{WY) looos} ~a0a~oo~ 06/16/2004 11:34:17 Form3051 1/01 16. Governing Law; ~':e~erability; Rules of Construction. This Security Instrument shall be governed by federal law and ':he law of the jurisdiction in which the Property is located. All rights and obligations contaiued' in this S.:curity Instrument are subject to auy requirements and limitations of Applicable Law. Applicable Ea~, might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such siter"ce~ shall not be construed as a prohibition against agreement by contract. In the event that any provision Or 'clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not a:ff~.:ct other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Securit~ Instrument: (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 versa; and (c) the word "may" gives sole discretion without any obligation to take any action. [ 17. Borrower's Copy. B3r;'ower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Prgpcrty or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means~any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. 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 ber:eficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this optibn shall not be exercised by Lender if such exercise is prohibited by Applicable Law. , If Lender exercises thi~ option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less 'than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pa:/ all sums secured by this Security lnstrumeut. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without 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 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) ~uch other period as Applicable Law nfight-specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower~ (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if Po acceleration had occurred; (b) cures any default of any other covenants or agreements: (c) pays all expense.,/incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender'~ iaaterest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instruinent, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchzmged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of t.~e: 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, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective at. if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleraticn under Section 18. 20. Sale of Note; Chan~je [~f Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this f;eC'Urity Instrument) can be sold one or more umes without prior notice to Borrower. A sale might testat in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under 'tlqe Note and this Security Instrument and perfomas other mortgage loan servicing obligations under th2 Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Lr~an Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be gixen written notice of the change which will state the name and address of the new Loan Servicer, the addr{~ss to which payments should be made and any other information RESPA t~-6(WY) (ooo5) 0058~.9~598 - 9503 06/16/2004 11:34:17 Fo~m3051 1/01 ~/" -~ ~ . · .. requires in connection with a'flodce of transfer of servicing. If the Note is sold ~d thereafter the Lo~ ~s serviced by a Lo~ Servicer o~hev th~ the purchaser of the No~e, the mortgage loan servicing obligations to Borrower will remain with the' Loan Servicer or be tr~sferred to a successor Lom~ Servicer ~d are not assumed by the Note purchaser mdess otherwise provided by the Note purchaser. Neither Borrower nor Lend2r may co~euce, join, or be joined to any judicial action (as either an individual litig~t or the member of a class) that arises frown the other party's actions pursum~t to this Security Instrument or that alleges that the other p~ty has breached any provision of, or any duty owed by reason of, this Security lnstrume ~t, until such Borrower or Lender has notified the other party (with such notice given in compliance W}th.the requirements of Section 15) of such alleged breach ~d aflbrded the other party hereto a reasonable period alter the g~ving of such uotice to t~e corrective action. If Applicable Law provides a time period which must elapse b~fore certain action c~ be t~en, that time period will be deemed ro be re~,sonable IBr purposes 0f this paragraph. The nonce of acceleration ~d oppo~unity to cure given to B6rrower pursuant to Section 22 aud the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy ~hc nonce ~d opportunity to take corrective action provisions of this Secti¢m 20. 21. Hazardous Substances. As used in this Section 21: (a) "H~dous Substm~ces" are those subst~ces defined as toxic m h~ardous subst~ces, polluters, or wastes by Environmental Law ~d the following subst~ces: gasoline, ~erosene, other fl~able or toxic petroleum products, toxic pesticides ~d herbicides, volatile solvents, materials containing asbestos or formaldehyde, ~d radioactive materials; (b) "Enviromental Law" mezns Tederal laws ~d laws of the jurisdiction where the Property is located that relate to health, safety or em,irOmental protection; (c) "Envirmm~ental Cle~up" includes ~y response action, remedial action, or re:~oval action, as defined in Enviroumental Law; and (d) ~ "Enviromental Condition" means a condition that c~ cause, contribute to, or otherwise trigger ~ Environmental Cle~up. Borrower shall not cause o~ pe~t the presence, use, disposal, storage, or release of any Hazardous Subst~ces, or threaten to release' any Hazardous Subst~ces, on or in the Property. Borrower shall not nor allow ~yone else to do, :~thing affecting the Prope~y (a) that is in violation of any Environmental Law, (b) which creates ~ Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Subst~ce, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not applf t'~) the presence, use, or storage on the Property of small quautities of Haz~dous Subst~ces that ~e ~enerally recognized to be appropriate to nom~al residential uses ~d mainten~ce of the Property (including, but not li~ted to, h~ardous subst~ces in consumer products). Borrower shMl promptly give Lender written notice of (a) any investigation, claim, dem~d, lawsuit or other action by ~y govern~mental or regulatory agency or private party involving the Property and ~y H~ardous Substance or E~wi~'onmental Law of which Borrower has actual ~owledge, (b) ~y Environmental Condition, inc uding but not limited to, ~y spilling, le~ing, discharge, release or threat of release of any Hazardous Su:)st~mce, ~d (c) ~y condition caused by the presence, use or release of a Hazardous Subst~ce which aSvOrsely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatq~ authority, or ~y private party, that any removal or other remediation of ~y H~ardous Subst~ce aTfecting the Property is necessary, Borrower shall promptly t~e all necessa~ remedial actions in accordm~ce With Enviromental Law. Nothing herein shall create ~y obligation on Lender for ~ Enviromental 21~mup. (~-6{WY) Iooo5) oos~5~59a - 9503 Paoe12of15 06/16/2004 11:34:17 Form3051 1/01 0 00a48 NON-UNIFORM covE qANTS. Borrower and Lender timber covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to aeeelerntion following Borrower's breach of any Co,~enant or agreement in this Security Instrument (but not prior to acceleration under Section 1~'; tmless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (e) a date, not less than 30 days from the date the notice is given t0 Borrowe~, by which the default mus~ be cured; nnd (d) that failure ~o cure default on or before the date specified in the notice may resul~ iu acceleration of the su~ secured by this Security Instrument nnd sale of the Properly. The notice shall furfl~er iuform Borrower of right to reinstate after accele:-a~tion and the ~right to bring a court action to a~er/the non-existence of a default or any other defem;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 in~ediate payment in ~ll of all sunm secured by this SecUrity Instrument without further demand and may invoke the power of sale and any other remedies per~tted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuin~ ::he remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and :osts of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in posses.,~icn of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, aad the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee ?nay purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (10 to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally~entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrowe: 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 rendered and the charging of the fee is permitted t,nder Applicable Law, 24. Waivers, Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. (~-6(WY) ~ooo51 0058~75_.~598 - 9503 06/16/2004 11:34:17 Form 3051 1/01 BY SIGNING BELOW., Borrower accepts ~d agrees to the te~s ~d covenants contained in this Security Instrument and in an} Rider executed by Borrower ~d recorded with it. Witnesses: (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (~6(WY) Iooosj 0058759598 - 9503 Page14ofl§ 06/16/2004 11:34:17 Form3051 1/01 STATE OF WYOMING, ~i~ ~ County ss: My Commission Exp~rcs4-h ()~ ~ ~o Notary Public 400-15WY(4/02} Page 15 of 15 0058759598-9503 06/16/2004 11:34:17 AM ~~'~ESCRIPTION 48 Part of Lot 2 of Block 27 o~' the Town of Aflon, Lincoln County, Wyoming more particularly described as follows: BEGINNING at the Northxt'est corner of said Lot 2 and running thence East 6 rods; thence South 6 rods; thence West 6 rods; thence North 6 rods to the POINT OF BEGINNING. 4'88 ADJUSTABLE RATE RIDER (LIBOR Six-Month-I~dex (As Published in the Wall Street Journal)- Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 16th day of June , 2004 and is incorporated into and shall be deemed!to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to Argent Mortgage Company, LLC (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 206 EAST 5TH AVENUE, AFTON, WY 83110 [Property Address] THE NOTE CONTAIN3 PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVEN.'~NTS 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 7.500 % The Note provides for changes in the interest rate and the monthy payments, as follows: 4. INTEREST RATE AN;3MONTHLY PAYMENT CHANGES (A) Change Dates The interesl rate I will pay' may change on the first day of July, 2006 , and on that day every sixth month thereafter. Eac.q date on which my interest rate could change is called a "Change Date." (B) The Index Beginning with the first Ch~:,nge Date, my interest rate will be based on an Index. The "Index" is the average of interbank offered rates for six-month U.S. dollar-denominated deposits in the London market ("LIBOR"), as published in the Wall Street Journal. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index."" If the Index is no Ionge' available, the Note Holder will choose a new index which is based upon comparable information. The Note Holder will give me notice of this choice. Loan Number: 0058759593 - 9503 610-1 {Rev 1/01) Page 1 of 3 06/16/2004 11:34:17 AM (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding six percentage points ( 6.000 %) to the Current Index The Note Holder will then round the result of this addition tothe nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(~ below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaiC principal that I am expected to owe at the Change Date in full on the maturity date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest !~ate Changes The interest rate I am requi'red to pay at the first Change Date wil not be greater than 9.500% or less than 7.500%, Thereaft,3r, my interest rate will never be increased or decreased on any single Change Date by mo~e than One( 1.000 %) from the rate of interest I have been paying for the preceding six month..;. My interest rate will never be greater than 13.500)% or less than 7.500)%. (E) Effective Date of Changes My new interest rate will be:ome effective on each Change Date. I will pay the amount of my new monthly payment beDnmng on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payrrent before the effective date of any change. The notice will include information required by law to be given me and also the title and telephone number of a person who will answer any questior I may have regard ng the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Section 18 of the Security Instrument is amendedto read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, thos~ beneficia{ interests transferred in a bond for deed, contract for deed, installmenl sales contract or escrow agreement, the intent of which is the transfer of title by Borrower al a future date to a purchaser. Loan Number: 0058759598- 9503 610-2 (Rev 1/01) Page 2 of 3 06/16/2004 11:34:17 AM If all or anY 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) without Lender's prior writt~c 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 prohibit6d by federal law. Lender also shall not exercise this option if: (a) Borrower causes to be sJbmitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines theft Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's cons'~r t to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises ar d agreements made in the Note and in thiS Security Instrument. Borrower will continue to b'a obligated under the Note and this Security Instrument unless Lender releases Borrower in writing.. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower hotice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice Is given in accordance with Section 15 within which Borrower must pay all surns, secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without fdrther notice or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider.' B~7~ower LISA M. SP,~LfI-DIN(~ - (Seal) (Seal) Borrower Borrower (Seal) Loan Number: 00587595!38-'9503 610-3 (Rev 1/01) Page 3 of 3 06/16/2004 11:34:17 AM