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HomeMy WebLinkAbout900407After Recording Return To: WlvlC MORTGAGE CORP. 6320 CANOGA AVE 8TH FLOOR WOODLAND HILLS, CA 91367 serv ~:10968570 DEFINITIONS [Space Above Tiffs Line ForRecording Data] DE GRAW MORTGAGE Loan .: ~o96857o MIN: 100136300109685700 PIN #: 26120643114600 Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21 Certain rule.', regarding the osage of words used in this document are also provided in Section 16. (A) "Security Instrumenl" m~' ans this document, which is dated together with all Riders to this document. (B) "Borrower" is VAL R DEGRAW June 17, 2004 Bon'ower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Elet~'t,'onic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigus. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephoue nmnber of P.O. Box 2026, Flk.t.. MI 48501-2026, tel. (888) 679-MERS. (D) "Lender" is WlqC MORTGAGE CORP. Lender is a Corporation ~ organized and existing under the laws of CALIFORNIA . Lender's address is P.o. BOX 54089 LOS ANGELES, CA 90054-0089 (E) "Note" means the promissory note signed by Bon'ower and dated June 17, 2004 The Note states that Borrower o~'¢es Lender Ninety-Eight Thousand One Hundred Seventy-Five And 00/100 Dollars (U.S. $ 98,175.0O. ) plus interest. Borrower has promised to pay this debt in regular Periodic Paymeut's and to pay the debt in full not later than July 1, 2034 (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property," (G) "Loan" means the debt e~idenced by the Note, plus interest, any prepay,nent charges and late charges due under the Note, and all sums dte under this Security Instrument, plus interest. WYOMING - Single Fanfily - Fannk. M~,e/F,-eddie Mac UNIFORM INSTRUMENT Form 3051 1/01 uocu~w¥~ (Page I of l 3 page~9 DOCLIKW¥ 1 .VTX 10/17/2002 10968570 10968570 (H) "Riders" means all Riders t~ this Security Instrument that are executed by Borrower. The following Riders are to be executed by Bon'ower [cl':e~:k box as applicable]: [] Adjustable Rate Rider [] Condominium Rider [] Second Home Rider [] Balloon Rider [] Planned Unit Development Rider [] Biweekly Payment Rider [] 1-4 Family Rider · [] Other(s) [specify] (I) "Applicable Law" means all controlling applicable federal, state a,ld local statutes, regulations, ordinances aad administrative roles and orderz: (.that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Commnnity Association Dues, Fees, and Assess'me,zts" means all dues, tees, assessments and other charges that are imposed on Borrowe,- or the Property by a condominitm] association, homeowners association or similar organization. (K) "Electronic Ft, nds Transfey" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, whicb is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, 'n:~truct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated ~eller machine transactions, transfers initiated by telephone, wi,'e transfers, and ~:: ulomated cleari,~ghouse transfe,'s. (L) "Escrow Items" means thi:~se4te,ns that are described in Section 3. (M) "Miscellaneous Proceed:?' nneans any compensation, settlement, award of damages, or proceeds paid by aay third party (other than insurance proceeds paid under tile coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) zondemnation or other taking of all or any part of the Pn'opertY; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations at; or omissions as to, tile Value and/or condition of tbe Property. (N) "Mo,'tgage Insurance" msans insurance protecting Lender against tine nonpayment of; or de/heir on, the Loan. (O) "Periodic Payment" means tine regularly scheduled amouot due for (i) principal and interest under the Note, plus (ii) any amounts under Se :tion 3 of this Security Instrument. (P) "RESPA" means the Rea Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implemeuting regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to ti,ne, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Secnrity Ins,foment, "RESPA" refers to all 'requirements and restrictions that are in]posed in regard to a "federallY related mortgage loan" even if the Loan does no': qualify as a "federally related mortgage loan" under RESPA. (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 RIGIITS IN THE PROPERTY This Security Instrument seem'es to Lender: (i) the repayment of the Loan, and all renewals, extensk)ns and modifications of the Note; and (ii) tine performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lendtr'g successors and assigns) and to the successors and assigns of MERS, and Lender's successors and assigns, with power of sale, the following described property located in the COUNTY of LINCOLN (Type of Recording Jurisdictions) (Name of Recording Jurisdiction) · LOTS 5,6,7 AND 8 OF BLOCK 28 OF THE FIRST ADDITION TO THE TOWN OF LEBARGE, FORMERLY TULSA, LINCC, Lg COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF which currently has the ad&es, of 440 sOUTH OAK STREET LA BARGE ,Wyoming 83123 [City] [Zip Code] WYOMING - Single Fanfily. Fa,mie Mae/Freddie Mac UNIFORM INSTRUMENT DOCUKWY~ (Page 2 of 13 pages') ~ocu},~2. v,x [Street] . ("Property Address"). Form 3051 1/01 10968570 -. ~ 10968570 TOGETHER WITH all the imp(q, vements now Or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrunldnt. All of the foregoing is referred to in this Security Instrunaent as the "Property." Bon'ower understands and agre~:s~ that MERS holds only legal title to the interests,granted by Borrower 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 :ight: to exercise any or all of those interests, includhlg, but not limited to, the right to foreclose and sell the Propertf; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Inst~ ument. BORROWER COVEN.'ANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and co_ivey the Property and that the Property is unencmnbered, except roi- encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encmnbrances of'r,:cord. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-nniform covenants with limited variations by jnrisdiction to constitute a unifbrm security instrument covering real property. UN1FORM COVENANFS. Bon'ower and Lender covenant and agree as fullows: 1. Payment of Princlp~l, ln~erest, Escrow l'tems, Prepayment Charges, and Late Charges. Borrower shall pay when due the princip ~1 of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due nnder the Note. Borrower shall also pay fimds for Escrow Items pursuant to Section 3. Payments due nnder the Note arid this Security lnstrun~ent shall be made in U.S. cur,'eucy. However, if any check or other instrument received by Lmder as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require tha any or all subsequent payments dne under the Note and this Security Instrument be made in one or more of the roi;owing fbrms, as selected by Leoder: (a) cash; (b) m. oney order; (c) certified check, bank clieck, treasurer's check m cashier's check, provided any such check is drawn t,pon an institt,tion whose deposits are insured by a federa agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed .'eceived by Lender when received at the location designated in the Note or at such other location as may be designwed by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial.pu), ment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payme-~t or partial payment insufficient to bring tile Loan current, without waiver of any rights hereunder or prejudice to i~s rights to refuse such payment or pa,'tial paymeuts in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then L-:-.nder need not pay interest on unapplied funds. Lender may hold snch unapplied funds until Borrower makes p~yment to bring the Loan cra'rent. If Borrower does not do so within a reasonable period of ti~ne, Lender shall eit.mr apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstandi ~g principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might'ihhve now or in the futm'e against Lender shall relieve Borrower fi'om making payments dne under the Note a:~d this Security Instnnnent or pertbrming tile 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 by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Not{.:;':(c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which:..t became due. Any remaining amounts shall be applied first to late charges, secoud to any other amounts due under' this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a snfficient amount to pay any late charge it,e, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Pay~nent is outstanding, Lender may apply any payment received from Bor,'ower to the repaymem of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the pay~ncnt 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 auy prepayment charges and then as described in the Note. WYOMING - Single Family - Fannie' Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 DOCUKWY3 (Page 3 of 13 pages) ~ocum~-t~.v~x "' 71"5 10968570 10968570 Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due trader the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow 'terns. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid' in t'ull, a sum (the "Funds") to provide tbr payment of amounts due for: (a) taxes and assessments and other items wi kh can attain priority over this Secnrity lnstruinent as a lien or encumbrance on the Property; (b) leasehold payme~;ts' or ground rents on the Property, if any; (c) premitims for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any stnns payable by Borrower to Lender in lieu of :'he payment of Mortgage Insurauce premiums in accordance with the provisions of Section 10. These items are call~:d "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Comn'tu;)ity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessn.~eats shall be an Escrow Itein. Borrower shall pro~nptly furnish to Lende,' all notices of amounts to be paid under ti)is Section. Bon'ower shall pay Lender the Funds for Escrow ltems unless Lender waives Borrower's obligation.t6 pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Fro'ds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of st,ch waiver, Bo!T6wer shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Etmds has been waived by Lender and, if Leuder requires, shall furnish to Lender receipts evidencing such payment within such time period as Lende,' may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a coveuant and agreement-containedin this Security Instrument, as the Fhrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pm'st~ant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amotmt and Borrower shall then be obligated tinder Section 9 to repay to Lender a~.ty .such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given ill accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any ti[ne, 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. Lender shall estimate:t[,e amount of Funds due on the basis of current data and reasonable estimates of expenditures of furore Escrow ]tems or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Leander is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the F"~nds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for I..olding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lend/~r pays Borrower interest on the Ft,uds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Ftmds, Lender shall not be required to p~y Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interX~s~ shall be paid on the Funds. keuder shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus oi' Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in acco,'d:~nee with RESPA. If there is a sho,'tage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amotml necessary to make up the shortage in accordance with P, ESPA, but in no more than 12 monthly payments. Hhhere is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the mnount necessary lo make tip the deficiency in accordance with RESPA, but in no more than 15 monthly payments. Upon payment in full Of all sums sect, red by this Security Instrt,ment, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. B;)r,'ower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security lnstrt,ment, leasehold payments or grot,nd rents on the Property, if any, and Communit)t Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall, pay them in the manner provided in Section 3. Borrower shall prom'3tl, y discharge any lien which has priority over this Security lnstrun~ent unless Borrower: (a) agrees in writing io the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as [ orrower is performing such agreement; (b) contests the lien in good faith by, or WYOMING - Single Family - Fannie ~[ae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 Docu~wv4 (Page 4 of 13 pages/ DOCOKWY4 .VTX 10/17/2000 10968570 10968570 defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceediugs are co,~cluded; or (c) secures from the holder of' the lien an agreement satisfactory to Lender subordinatiug the lien to this Security Instrument. [f Lender determin~.-~ that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender' mt'y give Bo,Tower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower s rail satisfy the lien or take one or more of the actions set forth above in this Section Lender may require B/3rrower to pay a one-time ch.arge for a real estate tax verification and/or reporting service used by Lender in conm:ction with this Loan. 5. Property Insuranc~ Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss b) ifire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, et?tbquakes and floods, for which Lender requires irisurance. This insurance shall be maintained in the amounts (in~:i. uding deductible levels) and for' the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change dnriag the term of the Loan. The insm'ance carrier providing the insurance shall b~. chosen by Bor,'ower subject to Lender's right 'to disapprove Borrower's choice, which right shall not be exercisc~il unreasonably Lender may require BorroWer to pay, in connection with this Loan, either: (a) a one-time charge f~r flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone detennirz~tion, and certification services and subsequent charges each time remappings or similar changes occur which n~asonably might affect such determination or certification. Borrower shall also be responsible for the payment of any'fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zo;~e determination resulting fi'om an objection by Borrower. If Borrower fails to mzintain any of the coverages desc,ibed above, Lender may obtain insurance coverage, at Lender's option and Borrower.'s expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefbre, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in tile Property, o,' the c0~,~tents, of the Property, .against any risk, hazard or liability and might provide greater or lesser coverage than was pre viously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significhntly e~ceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under th's Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts sha I beat' interest at the Note rate fi'om the date of disbursement and shall be payable, with such interest, npon notice li om Lender to Borrower requesting payment. All insu,'ance poli~ies !'equired by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shat~ include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lende:".shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give toLender all receipts of paid premitnns and renewal notices. If Borrower obtains any form of insurance coverage, no~ 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 mortgagee and/or as an additional loss payee. In the event of loss, B('.,rrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, auy insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspe:t such Property to ensure the work }las been completed to Lender's satishction, provided that such inspection ~hall be nndertaken promptly. Lender may disburse proceeds for tbe repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any i~erest or earnings on such proceeds. Fees for' public adjusters, or other third parties, retained by Borrower shall ,lot be paid out of the insnrance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not e:ono,nically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums se~.Jred by this Security Instrument, whetber or not then due, with tbe excess, if any, paid to Borrower. Such insuram:~ proceeds shall be applied in the orde,' provided for in Section 2. If Borrower abandons .he Property, Lender may file, negotiate and settle any available insnrance claim and related matters. If Borrower does not respond within 30 days to a notice fi'om Lender that the insurance carrier has B'YOMING - Single Fanfily - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 l~ocu~w¥~ (Page .5 of 13 pages) ~ocu~s .wx ~o/~v/~oo~ 0 004{37 10968570 10968570 offered to settle a claim, then k~ender may negotiate and settle the clain]. The 30-day period will begin when the notice ~s given. In either event: or if Lender acqnires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insnrance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security)0strument, and (b) any other of Borrower's rights (other than the right to any reftmd of unearned premiums paid by BOrrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage ,ffthe Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts un[ aid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrow.er shall occupy, establish, and use the Property as Borrower's princ,pal residence within 60 days after the exe&ition of this Secm'ity Instrument and shall continue to occupy the Property as Bon'ower's pnncipal residence lbr at least one year after the date of occupancy, unless Lender othelwvise agrees in writing, which consent shall ,:ot be unreasouably withheld, or unless extenuating circumstances exist which are beyond Bon'ower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower sha}l not destroy, damage or impair the Property allow the Property to deteriorate or commit waste on the Property Whether or not Borrower is residiog in the Property, Borrower shall maintain the Property in order to prevent the Property fi'om deteriorating or decreasing in x flue dne to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Bor,'ower shall promptly repair the Property if damaged to avoid fimher deterioration or damage. If in-;urance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borro~er shall be responsible lbr repairing or restoring the Property only if Lender has released proceeds for such Pti'poses. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of prog'ess payments as the work is contpleted If the insurance or condelnnation proceeds are not sufficient to repair o, restore the Property, Borrower is not relieved of Borrower's obligation lbr the completion of such repair or re:;toration. Lender or its agent ma- make reasonable entries upon and inspecnons of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan ~pplication. Borrower shall be in default if, during the Loan application process, Borrower or any persons or ertities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, ~nisleadi~:g, or inaccurate information or statements to Lender (or failed to provide Lender with nmterial information) in :onnection with the Loan. Material representations include, but are no! limited to, representations concerning Botr0wer's occupancy of the Property as Borrower's principal residence. 9. Protection of Lemlt~'r's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perfoHn the ';ovenants and agreements contained ia this Security Instrument, (b) there is a legal proceeding that might signifizantly affect Lender's interest itt the Property and/o,' rights under this Secm'ity lnstrumen! (such as a proceeding in bankruptcy, probate, lbr condenmation or tbrfeitt, re, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulatious), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rig v_s under this Secm'ity lnstrtnnent, includiug protecting and/or assessing the value of the Property, and securing anw~r repairing the Property. Lender's actions can' iuclude, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing m court; and (c) paying reasonable attorneys' fi:es to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securiug the Property includes, but is not limited to, entering the Property to make :'epairs, change locks, replace or board tip doors and windows, drain water from pipes, eliminate building or ether code violations or daugerous conditions, and have utilities turned on or off. Although Lender may take acr'on under this Section 9, Lender does not have to do so and is not nnder any duty or obligation to do so. It is agreea,. ~,hat Lender incurs no liability lbr not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate fi'om the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this'Security Instrun;xent is on a leasehold, Borrower shall comply with all the provisions of the lease. Borrower shall not surrender th',~ leasehold estate and interests herein conveyed or terminate or cancel the ground lease. Borrower shall not, wifl~out the express written consent of Lender, alter or amend the ground lease. If Bon-ower acquires fee title to ':he Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. WYOMING - Single Family - Fanni~ Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 DOCUKWY6 (Page 6 of 13 pages7 DOCmOe~.V?X ~o/~*/eo0~ 10968570 ~ 10968570 10. Mortgage Insu.r,'i'~loe. If Lender required Mortgage Insurance as a condition of makiug the Loan, Borrower shall pay the premiq':n~ required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage req[fired by Lender ceases to be available fi'om the mortgage insurer that pi'eviously provided such insurance and Bc r[~wer was required to lnake separately designated payments toward the premiums for Mortgage Insurance, Bon-o~Ve,r shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previc~sly in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previouslp in effect, fi'om an allernate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Bor,'ower shall continue to pay to Lender the amount of the separately designated paymmts that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these pa/ments as a non-refundable loss rese,'ve in lieu o£ Mortgage Insurance. Such loss reserve shall be non-refundable, ~otwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage h~surance coverage (in the amount aud for the period that Lender requires) provided by an insurer selected by Lenderlagain becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender requi,'ed Mortgage Insurance as a condition of making the Loan and Borrowe: (vas 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 Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until temfin ation is required by Applicable Law Nothing in tliis Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur ifBon'ower does not: repal/t~he Loan as agreed. Borrower ,s not a party to the Mortgage Insurance. Mortgage insurers eva ur..te their total risk on all such insu,'ance in force from time to time, and may enter into agreements with other parti, e.': that share or modify their risk, or ,'educe losses. These agreemems are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require ~i~e mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Murtgage Insurance premiums). As a result of these agrtements, Lender, any purchaser of the Note, another ~nsurer, any reinsurer, any other entity, or any affiliate of m/of the foregoing, may receive (directty or iudirectly) amounts that derive from (or might be characterized as) a pc, trion of Bon'ower's pay~nents for Mortgage Insurance, in exchange for sharing or modifying 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 premiu,ns paid to the insurer, the arrangement is often termed "captive reinsuran,:e~" Further: (a) Any such agreem~.n~s will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms o'f the Loan. Such agreemeuts will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to tile Mortgage Insurance under the Homeowners Protection Act of 1998 or any othe,- law. These rights may include the right to receive cer't',~in disclosn,'es, to request and obtain cancellation of the Mortgage lusurance, to have the Mortgage Insnr~.nce terminated automatically, aud/or to receive a refund ol' any Mortgage Insurance premiums that were t nearned at the time of such cancellatio, or termination. 11. Assignment of Mi mellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or ,'epair of the Property, if the restoration or r,pair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lt:nder shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such ?roperty to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay fro' the repairs and res[oration 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 requi,'ed to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security weald be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by WYOMING - Single Family - Fa,rote iVhe/Freddie Mac UNIFORM INSTRUI%IENT Form 21051 1/tH Docu~w¥? (Page 7 of I 3 pttges) ,~ocu~,t~.v?x xo/~,/2oo2 10968570 ' , 10968570 this S¢cm'ity lnsll-ument, whet] ier 'or not then due, with the excess, if any, paid to Borrower. Such Miscella,]eons 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 applied to the sums secured ay !his Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the eveut ora parti~ 1 taking, destruction, or loss iu value of the Property in which the thir ,narket value of the Property i~nmediately b~t'o~"e the partial taking, destruction, or loss in value is equal to or g,'eater than the amount of the snms secured by [hi; Security Instrument immediately before the partial taking, destruction, or loss in value, unless Bon'ower and Lerde~' otherwise agree in writiug, the sums secured by this Security hmtmlnent shall be reduced by the amount of the Miscellaueous Proceeds multiplied by the following fi'action: (a) the total amount of the sums secured immediately oel0re the partial taking, destruction, or loss in wdue divided by (b) the fair market value of the Property immediately~betbre the partial taking, dest,'uction, or loss in wdue. Any balance shall bepaid to Borrower. ~ In the event of a pa,'tivl taking, destruction, or loss in value of the Property in which the fai,' market value of file Property immediately before the partial taking, destruction, or loss in value is less than the amount of tile sums secured immediately before the partial taking, destruction, or loss ill value, unless Bon'ower and Lender otherwise agree iu writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Sectu'ity Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sent'euce) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 d'slys 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 stuns secured by this Security' Instrument, whether or not thda due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against wnoln Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if ally action or proceeding, whether civil or criminal, is begun that, in Lender's jodgment, could restllt in, forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security' lnstrumeut. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided ill Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, preclud? torfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Seaurity Instrument. The proceeds of any award or claim for damages that are attributable to the impaimlent c.f [ender's interest ill the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Prc. ceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Re!eased; Forbearance By Lender Not :l Waiver. Extension of the time fei' payment or modification of amortizatio,' of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of B'onower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender s~hal] not be required to commence proceedings against any Successor in Interest of Bon'ower or to refuse to extepd time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason o? any dmnand made by the original Borrower or any Successors in Interest of Borrower~ Any forbearance b~ Lender h~ exercising any right or remedy including, without limitation, Lender's acceptance of payments fi'om.thhd persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Secnrity Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey th co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to F ay,the sums secured by this Security h~strument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make an), accommodations with regard to the terms of this Security Instrument or the Not{ without the co-signer's consent. Subject to the provisiom~ of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Securit) Instrument in 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 liability nnder this Security Instrument unless Lender agrees to such release in writing. The covenants and WYOMING - Single Family - F:mnie Mae/Freddie Mae UNIFORM INSTRUMENT Form 3051 1/01 rmcu~wYa (Pctge 8 of 13 pageO ~ocu~ts .wx ~o/~v/2ooo 10968570 · 10968570 agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. .~ 14. Loan Charges. L~nder may charge Borrower fees for services performed in connection with Borrower's default, fol' the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not l'mited to, attorneys' fees, property inspection and valuation fees. In regard to any other fi:es, the absence of expres'~; authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on :he charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by:Applicable Law. If the Loan is snbject t?a law which sets lnaximum loan charges, and that law is finally interpreted so that the interest or other loan charg?s collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) ally such loan cLarge shall be reduced by the amount necessary to reduce the charge to tile permitted limit; and (b) any sums ah-ead./; collected from Borrower which exceeded permitted limits will be refimded to Borrower. Lender may choose t~ make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. lf'a retired reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge' l~whether or not a prepayment cl!arge is provided for under the Note). Borrower's acceptance of any such refl~nd r~l:ade by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising ou; of such overcharge. 15. Notices. All notice~; given by Borrower or Lender in connection with this Security lnstnunent must be in writing. Any notice to Borrower in cmmection with this Security lnstrunaent shall be deemed to have been given to Borrower when mailed by fi~st class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Bo[rower shall constitule notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice ;-;ddress shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lemler. Borrower shall prmnptly notify Lender of Borrower's change of address. If Lender specifies a procedure fY' reporting Borrower's change of address, then Borrower shall only report a change of address through that specifie't procedure. There lnay be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herei~? unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security ilnstrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice require.'] by this Security Instrument is also required under Applicable Law, the Applicable Law require~nent will satisfy th~ :zm-responding requirement under this Security Instrument. 16. Governing Law; ~everability; Rnles of Constructiou. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition agairlst agree~nent 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 affect other provisions of this Security Instrument or the Note which cat~ be given effect without the conflicting provision. As used in this Secmity Insmunent: (a) words of the masculine gender shall mean and include corresponding neuter words or ',~ords of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) tlm word "may" gives sole discretion without any obligation tO take any action. 17. Borrower's Copy. Borrower shall be given one cop), of the Note and of this Security Instrument. 18. Transfer of the P~'c petty or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any lega! or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond fi>~ deed, contract for deed, instalhnent 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 auy part of the Froperty or any Interest i.n tile Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or traasferred) without Lender's prior written consent, Lender may require immediate' r>ayment in full of all sums secured by this Security Instrument. ttowever, this option shall not be exercised by' Lender if such exercise is prohibited by Applicable Law. If Lender exercises this. ~ption, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 dz)s from the date the notice is g~ven in accordance with Sectiou 15 within which Borrower must pay all snms sec~tred by this Security Instrument. If Bon'ower fails to pay these sums prior to the WYOMING - Single Family - Fannie h'lac/Freddie Mac UNIFORM INSTIHIMENT Doct~wv9 ., (Page 9 of 13 pages) DOCUJO~Y 9 .VTX 10/17/2002 Form 3051 1/01 10968570 0.t}00407 10968570 expiration of this period, Lende,; may invoke any remedies permitted by this Se&,rity Instrument without further notice or demand on Bon-ower. , 19. Borrower's Right to Reinstate After Acceleration. If Bo,-rower meets certain conditions, Borrower shall have the right to have enfc!rcement of this Security Instrument discontinued at any time prior to the earliest of(a) five days before sale of tl~e Property pursuant to any power of sale contained in this Security lnstrt, ment; (b) such other period as Applicable Law might specify tbr the termination of Bo,-rower's right to reinstate; or (c) entry of a judgment entbrcing this ~e:urity Inst,'ument. Those conditions are that Borrower: (a) pays Lender all stuns which then would be due unde: this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other cover, ants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not 'Ii:hi,ed to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the ptu:p!)se of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes suc}- action~ as Lender may reasonably require to assure that Lender's interest in the Property and rights under this. Security Instrument, and Borrower's obligation to pay the sums secured by this Security I,~strument, shall contia~.~e unchanged. Lender may require that Borrower pay st,ch reinstatement sums and expenses in one or more of the ifollowing 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 Insn'ument and obligations secured hereby shall ,'e,nain fully effective as if no acceleration had occun'ed. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale o£ Note; Ch;inge of Loan Servicer; Notice of Grievance. Tile Note ora partial interest in the Note (together with this Secur ty Instrument) can be sold one or more times without prior notice to Borrower. A sale ,night result in a change in the entity (known as the "Loau Service,"') that collects Periodic Payinents dne under the Note and this Security Instrument and performs other mo,'tgage loan servicing obligations under the Note, this Security Instrument, and Appli z~ble Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is ~' change of the Loan Servicer, Borrower will be given 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 reiquires in connection with a notice of transfer of servicing. If tile Note is sold and thereafter the Loan is'serviced ',)3' a Loan Servicer other than the purchaser of the Note, lhe mortgage loan se,-vicing obligations to Borrower will re,hain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purch ~ser unless otherwise provided by tile Note purchaser. Neither Borrower nor Lender ,nay commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrmnent or that alleges that ,tie other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified tile other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the givi:lg of such notice to take corrective actiou. If Applicable Law provides a time period which must elapse before certain.action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice o? acceleration and opportunity to cure given to Borrower purstiant to Section 22 and the notice of acceleration giw:n to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous s[.~bstances, pollutants, or wastes by Euvironmental Law and the following substances: gasolh~e, kerosene, other flamf~;ble or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or'formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdic:ion where the Property is locaied that relate to health, safety or environmental protection; (c) "Environmental :Cleanup" includes any response action, remedial action, or removal action, as defined in Envi,'onmental Law? and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Envi'i'cinnlental Cleanup. Bon'ower shall not c.mse or permit the presence, nsc, disposal, storage, or release of any Hazardous Substances, or threaten to release, any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything aff!~cting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condiqon, or (c) which, due to the presence, use, or release of a Hazardous Substance, WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INS'FRUMENT Form 3051 1/01 Docu~wYm (Page 10 of 13 pages) DOCUKWYA. VTX 10/17/2002 '. 10968§"/0 109685'70 creates a condition that adversei,y affects tile value of the Property. Tile preceding two sentences shall not apply to the presence, use, or storage 'i',n the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, bo! not limited to, hazardous substances ia consumer prodncts). Borrower shall prompll) give Lender written notice of (a) any investigation, claim, demand, lawsoit or other action by any governmenta, or regulatory agency or private party involving the Property and any Hazardous Sobstance or Enviromnental L;,.9~ of which Borrower has actual knowledge, (b) any Environmental Condition, including bat not limited to, ,my spilling, leaking, discharge, release or threat of release of any }tazardous Substance, and (c) any couditio[i caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Properts.. If Borrower'leams, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any ltazardot, s Substance affecting the Property is necessary, Borrower shall promlctly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any 0k4igati0n on Lender for ail Environmental Cleanup. NON-UNIFORM COVI~NANTS. Borrower and Lender timber covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any cov~e mot or agreement in this Security lustrument (but not prior to acceleration under Section 18 unless Applic~ ble Law provides otherwise). The notice shall specify: (a) the defimlt; (b) tbe action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default~must be cured; and (d) that failure to cure the default on or before the date specified in the notice may resu:lt in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shal "urtherinform Borrower of the right to reinstate after acceleration and the right to bring a court action-to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the de%ult is not cured on or before the date specified in the notice, Lender tit its option may require immediaie, payment in full of all sums secured by this Security lnstrumeot withont further demand and may invi~ke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to col'ect all expenses incurred in pursniug the remedies provided in this Section 22, includiug, but not limited to, r ~asonable attorneys' lees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the persou in possession office Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower m the manner provided in Section 15. Lender shall pnblish the notice of sale, and the Property shall be soid in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, includin[t, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) aay excess to the person or persons legally entitled to it. 23. Release. Upou pa,/ment of all sums secured by this Security Instrument, Lender shall release this Security Instrmnent. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security [nstrumeut, but only if toe fee is paid to a third party tbr services rendered and the charging of the fee is permitted under Applicable Lav~. 24. Waivers. Bo,-rower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. WYOMING - Sh~gle Family - Fannie g[aedFi-eddie M'ac UNIFORM INSTRUMENT DOCU~W¥~t (Page 11 of13 pagesJ I)OCUK~ti~. Va'X 1.0/~.712002 Form 3051 1/01 0 00407 10968570 10968570 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider excc.~ted by Borrower and recorded with it. - Borrower - VAL R 351 GRAW - Date - WYOMING - Single Fanfil5 - Fanni~ Mae/Freddie Mac 1.1NIFORM INSTRUMENT DOCUKW¥~2 (Page 12 of ~ 3 page~9 DOCUKWYC. VTX 10/17/2002 Form 3051 1/01 10968570 [Space Below This Line For Acknowledgment] STATE OF Wyom±ng COUNTY OFLincoln : The foregoing instrument was ackW3Wledged before me by Va1 R. De Graw this 17 th day of June Witness my hand and official seal. Notary Public / ) (JO j'' .~h My Commission~xpires' ]~) -~) 2004 WYOMING - Single Fanfily - Fannie M:,e/Freddie Mac UNIFORM INSTRUMENT Docu~4wYl~ (Page 13 of 13 pages') DOCUlqdYD. VTX 6/6,/2002 Form 3051 1/01 ADJUSTABLE RATE RIDER Serv #: 10968570 (LIBOR Index-Rate Caps) Loan #: 10968570 MIN: 100136300109685700 THIS ADJUSTABLE RATE RIDER is made this 17th clay of June, 2004 and is incorporated in~o and shgll be deemed to amend and supplement the Mortgage, Deed of Trust, or Deed dO Secure Debt (the "Security lnsf:t,ment") of the same date giveu by the undersigned (the "Borrower") to secure the Borrower's Note to WMC MORTGAGE CORP. (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 440 SOUTH OAK STREET, L% BARGE, WY 83123 [Property Address] THE NOTE CONI'AINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND TilE MONTIILY PAYMENT. TIlE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND TIlE MAXIMUM RATE TIiE BORROWER MUST PAY. ADDITIONAL COVEN,iNTS. In addition to the covenants and agreements made in tile Secm'ity Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CIIANGES The Note provides for an initial interest rate of 8. 250 %. The Note provides for changes m the interest rate and the monthly payments, as follows: 4. INTEREST RA3 E ~ND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I'will pay may change on the first day of July 2006 , and on that day every 6 month tbereafter. Each date on which my interest rate could chaagc is called a "Change Date." (B) The lndea Beginning with tt,e first Change Date, my interest ,'ate will be based on an Index. The "Index" is the averaLe ,of interbank offered rates for six-month U.S. dollar-denominated deposits hi the London n- arket ("LIBOR"), as published in The Wall Stree! Journal. The most recent Index figure avail-able as of the first business day of the month immediately preceding the month in which thc Change Date occurs is called the "Current Index." MULTISTATE ADJUSTABLE IL4'I E RIDER (LIBOR Index)--Single Family ooctm~n (page I of.? pages) DOCURE Jl .VTX 09/04/2003 10968570 ~'. 10968570 If the Index isno ior, ger available, the Note I-{older will choose a new index tliat is based upon comparable inforr~u;tion. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before 'each Chang) Date, the Note Holder will calculate my new interest ,'ate by adding Seven aha One-Eighth percentage points ( 7..I. 25 %) to the Current Index. The Note Holder will then round the result of this' addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits s.iated in Section 4(D) below, this rounded amount will be ,ny 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 u'a)aid principal that 1 am expected to owe at the Change Date in full on the maturity date army new interest rate in substantially equal,payments. The resolt of this calculation will be the ~te.~v amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am?equired to pay at the first Change Date will not be greater than 9. 750 % or :ess than 8. 250 %. Thereafter, my interest rate will never be increased or,decreased on any single Change Date by more than One percentage points from the rate of interest 1 have beefi payk;g for the preceding 6 months. My interest rate will never be greater than 14. 750 %, or less than 8. 250 %. (E) Effective l~'.ate of Changes My new interest ra elwill become effective on each Change Date. I will pay the amount of ~ny new monthly paym~r t beginning on the first mouthly payment date after the Change Date until the aniount of my monthly payment changes again. · (F) Notice of Changes The Note Holder ,aill deliver or mail to me a notice of any changes inmy interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information recu:red by law to be given to me and also the title and telephone nmnber of a person who will an:~weLany question 1 may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL iNTEREST IN BORROWER Uniform Covenant 18 cf the Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial lnterest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, inclu;fi:~g, but not limited to, those beueficial interests transferred in a bond for deed, court, act for deed, instalhnent sales contract or escrow agreement, the intent of Which is the transfer of title by Borrower at a furore date to. a purchaser. If all or any ~)ort of the Property or any Interest in the Property is sold or transferred (or if t', Borrower is not a natural person and a beneficial interest in Borrower is sold ;)r transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. HoWe./e~r, this option shall not be exercised by Lender if such exercise is prohibited by A.~Flicable Law. Lender also shall not exercise this option if: (a) Borrower causes to!be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender re~s0nably determines that Leuder's security will not be i~npaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Ins;.rument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates ~tke transferee to keep all the promises and agreements made in the Note and in this: Security Instrument. Borrower will continue to be obligated under the Note arid this Security Instrument unless Lender releases Borrower in writing. MULTISTATE ADJUSTABLE IL4.TE RIDER (LIBOR Index)--Single Family Docuaal*_ (page 2 of 3 page.O DOCOBE J2 .VTX 0~/04/2003 10968570 10968570 If Lender exer:ises the option to require immediate payment i,] full, Lender shall give Bon'owe, ~:otice of acceleration. The notice shall provide a period of not less than 30 days f om the date the notice is given in accordance with Section 15 within which Borrow'er must pay all sums secured by this Security Instrument. If Borrower fails to p.~y these sums prior to the expiration ol'this period, Lender ~nay invoke any re~nedils permitted by this Security Instrument without further notice or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. - Borrowe~ -'VAL R D]~ GRAW - Date - MULTISTATE ADJUSTABLE RAqE RIDER [LIBOR Index)--Single Famib' DOCtman (page $ oJ'3 pages) t~ocoa~a~.v*x o~/o~/zoo~