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HomeMy WebLinkAbout900547Return To' Prepared By: Kris Schneiter [Space Above Tiffs Line For Recording Data] MORTGAGE MIN 1000492-0001599503-5 DEFINITIONS Words used in lnultiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 ami 21. Certain rules regarding the usage of words used in this document are also provided ii1 Section 16. (A) "Security Instrument" mc. ars this document, wlfich is dated June 22, 2004 together with all Riders to this document. (B) I'Borrower" is Gerald Gasperetti and Connie Gasperetti. Husband and Wife Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Eh.ct:onic Registration Systems, Inc. MERS is a separate corporation thai is acting solely as a. nominee fi~r Lender mid Lender's successors and assigns. INTERS is the mortgagee under this Security Instrumeat. MERS is organized and existing trader the laws of Delaware, attd has an address and telephone number :ff P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. GASPERETTI. G AF 1599503 WYOMING-Single Family-Fannie Nlae/Freddle Mac UNIFORM INSTRUMENT WITH MERS (~®-6A{WY) Iooo,~.o~ ~i~ Page 1 glr 15 MW 05/00.01 Initials: '~ VMP MORTGAGE FORMS - (800)521-7;~91 0 Form 3051 1101 (D) "Lender" is Major Iiortgage Lender is a A Wyoming CoY, porati on organized and existing under the laws of Lender's address is 6101 ¥,e]]owstone Road Wyoming LL17, Cheyenne. WY 82009 (E) "Note" means the promissory note signed by Borrower and dated June 22. 2004 The Note states that Borrowex' ~wes Lender Eighty ThoLlsat3d and no/100 Dollars (U.S. $ 80,000.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt !..2 full not later than July 1. 2019 (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 prepayment charges mid late charges due under the Note, and all sums due under this Security Instrulnent, plus interest. (H) "Riders" means all Ride.'.'/; to this Security Instrument that are executed by Borrower. The following Riders are to be executed by ['.orrower [check box as applicable]: [~ Adjustable Rate Rider [~] Balloon Rider F'--] VA Rider ~__] Condominium Rider [~] Second Home Rider [,~ Planned Unit Development Rider ~ 1-4 Fanfily Rider [..-~ Biweekly Payment Rider [~ Other(s) [specifyl (l) "Applicable Law" memm all controlling applicable federal, state and local statutes, regulations, ordinances and adnfinistrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinioas. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed' or, Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Trmsfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magr:etic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means these items that are described in Section 3. (M) "Miscellaneous Proeee&}!' means any compensation, settlement, award of damages, or proceeds paid by any third paxty (other than' insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of the Property; (ii) condenmation or other taking of all or any part of the Property; (iii) conveyance in lieu of condenmation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" m~ans insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" mea:~s the regularly scheduled amonnt due for (i) principal and interest under the Note, plus (ii) any amounts m~der Section 3 of this Security Instrument. (P) "I~JgSPA" means the Rea! Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Re~:ulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or suc ;essor legislation or regulation that governs the same subject matter. As used in this Security lnstrmnent, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortg~::[:,,e loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. GASPEREI-FI .G AF .. 1599503 · 0 ~-6A{WY) 10005),0~ ~ Page 2 gl 15 Form 3051 1/01 (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN TIlE PROPERTY This Security Instrument secures [o Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; aad (ii) the performance of Borrower's covenants and agreements under this Security Instrument and ~1~ Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nomim~e: for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the lbllowing described property located in the Count:y of Li riCO1 n [Type or' Recor~h g Jurisdiction[ [Name of Recording Jurisdiction] Lot 135 of Star Valley Ranch Plat 18. Lincoln County. Wyoming as described on the official plat thereof. Parcel ID Nmnber: 3418051302107.00 336 Porto Road Thayne ("Property Address"): which currently has the address of [$treetl [city[ , Wyoming 83127 lZip Codel TOGETHER WITH .all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Pr~)perty." Borrower understm~ds and agrees that MERS holds only legal title · to the:interests granted by Bm'rower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee rer Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, incl ~ding, but not linfited to, the right to foreclose and sell the Property; and to take any action required 0t' Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENi~NTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant'a'nd convey the Property and that the Property is unencumbered, except for encumbranoes of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject ,'~ any encumbrances of record. THIS SECURITY INST?,UMENT combines unitbrm covenants for national use and non-unitbnn covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. GASPEREI-[I, G AF (~-6A(WY) ¢ooo5}.91 1599503 Page :3 ot 1 § 0 (~-6A(WY) (O005L01 UNIFORM COVENANT(;.. Borrower and Lender covenant and agree as follows: 1. Payment of Principr~, Interest, Escrow Items, Prepayment Charges, and La/e Charges. Borrower shall pay when due '~he principal of, and interest on, the debt evidenced by thc Note and any prepayment charges and late c~-arges due under the Note. Borrower shall also pay funds for Escrow Items pursuanl to Section 3. Paymer. ts 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 Security Instrument is returned~to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and thins !;ecurity Instrument be made in one or more of the following forms, as selected by Lender: (a) cusip; (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. Payments are deemed received by Lender when received at the location designated in the Note or at such otber location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any paymec.} 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~rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lea'der is not obligated to apply such payments at the time such payments are accepted. If each Periodic PaYment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Le:~der may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower [roes not do so within a reasonable period of time, Lender shall either apply such funds or return them to Bcrrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the futme against Lender shall relieve Borrower from making payments due under the Note and this Security Inst.~'m~ent or performing the covenants and agreements secured by this Security Ins trument. 2. Application of Payncents or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied, by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) princ,?al 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 became due. Any remaining amounts shall be applied first to late ch.:~rges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a.pay~aent from Borrower for a deli,~quent 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 ore Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayme:xt of the Periodic Payrnents if, and to the extent that, each payment can be paid in full. To the extent that .any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or po ;tpone the due date, or change thc mnount, of the Periodic Payments. 3.' Funds for Escrow Items. Borrower shall pay to Lender on the day' Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments ,nd other items which can attain priority over this Security Instrument as a lien or encumbrance on the Pr ~perty; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accorciance with the provisions of Sectiou 10. These items are called "Escrow Items." At origination or at m~y time during the term of the Loan, Lender may require that Community Association Dues, Fees, and .,'~ssessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds lbr Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In tlie event of sucl: waiver, Borrower shall pay directly, when and where payable, the amounts GASPERETTI. GAF 1599503 0 Initials~ Paoe4o~ 1,5 Form 3051 1/01 due for any Escrow Items for Which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipt,s evidencing such payment within such time period as Lender may require. Borrower's obligation to m',d.:e such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" Is used in Section 9. If Bor-ower is obligated to pay Escrow Items directly, pursuant to a waiver, mid Borrower fails to pay the amoant due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Bt,rrower shall then be obligated under Section 9 to repay to Lender any such mnount. Lender may revoke the waiver as to any or all Escrow hems at any time by a notice given in accordance with Section 15 :md, 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 time,' collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the ti.me specified under RESPA, and (b) not to exceed the maximum anmunt a lender can require under RESPA. Lende? shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Iteins or otherwise in accordance with Applicable Law. The Funds shall be h. eld in an institution whose deposits are insured by a federal agency, i.nstrumentality, or entity (inc..lijding Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually m~alyzing the escrow account',.or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds mid Applicable Law pn'mits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires i:~[erest to be paid on the Funds, Lender sh',dl not be required to pay Borrower any interest or earnings on th,: Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. k. ender shall give to Borrower, without charge, an mmual accounting of the Funds as required by RESPA,., If there is a surplus el Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the an~ount necessaryl to make up the shortage in accordance with RESPA, but in no more than 12 nmnthly payments. If there is ii deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordanzc with RESPA, but in no more than 12 monthly payments. Upon payment in full cf. all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held :)y Lender. 4. Charges; Liens. Bo'rower shall pay alt taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items ar¢i Escrow Items, Borrower shall pay them in the manner provided iii Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writi-tg to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long t.,i Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against entbrcement of the lien in, legal proceediugs which in Lender's opinion operate to prevent the enforcement of toe lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien mr agreement satisfactory to Lender subordinating the lien to this Security lnstm~nent. If Lender determines that any part of the Property is subject to a lien which can attain priority over'this Security Instrument, Lender may give Borrower a notice identifying the GASPERETTI .G AF I1~ -fiA(WY) iooo~}m ® 1599503 0 Page 5 of 15 Form 3051 1/01 lien. Within 10 days of the dat,':~ on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth al:i~)ve in this Section 4. Lender may require B0r~:ower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lende. r in com~ection with this Loan. 5. Property Insurance. Borrower shall keep the improvements uow existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, fOr which Lender requires insurance. This insurance shall be maint:,jned~: in the amounts (including deductible levels) and for the periods that Lender requires. What Lender cequires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower ~s choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in ':'onnection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time relnappings or similar changes occur which reasonably ~night affect such .!etermination 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 zone deten,~dnation resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option ,md Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might p:ovide greater or lesser coverage than was previously.in effect. Borrower acknowledges that the cost of lhe insurance coverage so obtained nfight significantly exceed the cost of insurance that Borrower could .~:~ave obtained. Any mnounts disbursed by Lender under this Section' 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date cf disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting ,payxnent All insurance policies req~:ired by Lender and renewals of such policies shall be subject to Lender's right to disapprove such polic~ies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additiorlal loss payee. Lender shall have the right to hold the policies and renewal certificates. It' Lender requires/Borrower shall promptly give to kender all receipts of paid premiums and renewal notices. If Borrower olbtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction t.)f, the Property, such policy shall include a standard mortgage clause and shall nmne Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrcwer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not !.nade proxnptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance procexds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repi,'ir of the Property, if the restoration or repair is economically feasible and Lender's security is not lessene:i. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds t'util Lender has had an opportunity to inspect such Property to ensure the wm'k has been completed to .Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for dm repairs and restoration ii1 a single payment or in a series of progress payments as the wozk is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on sUch insurance proceeds, Lender shall not be required to pay Borrower any 'interest or earnings on such )roceeds. Fees Ibr public adjusters, or other third parties, retaiued by Borrower shall not be paid out ~f the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not cc. onomically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to th~:isums secured by tiffs Security Instrument, whether or not then due, with GASPERETTI. G AF ' 1599503 0 (~-6A(WY) 100051.01 , P.ge 5 oi 15 Form 3051 1/01 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If I~orrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered tt settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the n~fice is given. In either event, or if Lender acquires the Property under Section 22 or 'otherwise, Bmrgwer 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 rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lende~ may use the insurance proceeds either to repair or restore the Property or to pay mnounts unpaid under tl'.e Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrowe'.: :shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execntion of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are bejond Borrower's control. 7. Preservation, Maintenance ami Protection of the Property; Inspections. Borrower shall not destroy, d,'nnage or impair ti'e. Property, 'allow the Property to deteriorate or commit waste on the Property. Whether or not Bon'ower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property fram deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Sectio~.,~ 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property .if damaged to avoid fimher deterioration or damage. If insurance or condenmation proceeds are paid' in com~ection with dmnage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property ouly il' 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 condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may, make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may i~ispect 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 Al?plication. Borrower shall be in default if, during the Loan application process, Borrower or any pe~sgns or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave.maierially false, misleading, or inaccnrate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but' are' not linfited to, representations concerning Borrower's occupancy of the Property as Borrower's princip,d residence. 9. Protection of Lender'~ Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fidis to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such aS a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower h~s 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 protecting and/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 Security Instrument; (b) appearing in court; and (c) paying reasonable GASPERETTI, G AF 1599503 0 laitials:~)F (~-6A(WY) {ooo51.Ol Pa0e ? o* ~5 Form 3051 1/01 attonreys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bank'-uptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make 'epairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not.have to do so and is not under any duty or obligation lo do so. It is agreed that Lender recurs no liability for not taking any or all actions authorized under this'5~cction 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrmnent. These amounts shall bear iuterest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrumcr;t is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires lee title to the Property, the leasehold and the tee title shall not merge unless Lender agrees to the merger ir ~vriting. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premmms required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiulns for M;}rtgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equiva ent 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), ,Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amoum of the separately designated payments that were due when the insurance, coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstandi'ng 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 MortgageI !nsurance coverage (in the amount and for the period that Lender requires) provided by an insurer select, cd by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of raaking 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 Insuranc(: in effect, or to provide a non-refundable loss reserve, until Lender's requirement lrbr Mortgage Ins.urance ends in accordance with any written agreement between Borrower and Lender providing for such ter: r~ination 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. reir~burses Lender (or any entity that purchases the Note) for certain losses it may incur if Bon'ower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. " Mortgage insurers evalu,.te their total risk on 'all such insurance in force from time to time, and may enter into agreements with o'tl'er parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions tl4.t are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreer~ents may require the mortgage insurer to make payments using any source of funds that the mortgage in:}t,rer may have available (which may include funds obtained from Mortgage Insurance premiums). - As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) an~ounts that derive from (or might be cha?acterized as) a portion of Borrower's payments 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 premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or anyI other terms of the Loan. Such agreements will not increase the amomd Borrower will owe for Mortt~age Insurance, and they will not entitle Borrower to any refund. GASPERETTI. G AF 1599503 0 tt~-6A{WY) (O00§L01 ,, Page ~ al ~s Form 3051 1/01 0)) Any such agreements: will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act oF 1998 or any other law. These rights may include the right to re:eive certain disclosures, to request and obtain cancellation of thc Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of' such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeitore. All Miscellaneous Proceeds are hereby assigned to and shall be paid to .~ender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is econonfically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to bold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undcrtake,~ promptly. Lender may pay for the repairs mid restoration in a ,single disbursement or in a series of progress payments as the work is completed. Unless an agreeme'at is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, LenCer shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or I,ender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided f:)r 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 tl!e.sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Boriower. In the event of a partial t-:Lking, destruction, or loss in value of the Property in which the fair market value of the Property iImnedi'it,cty before the partial taking, destruction, or loss in value is equal to or greater than the amount of th~. sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in xalue, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by die amount of the Miscellaneous Proceeds multiplied by the following 1?action: (a) the total amount of the sums secured inmaediately before the partial taking, destruction, or '.loss in value divided by (b) the fair market value of the Property immediately before the partial ':aking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immedi~tcly before the partial taking, destruction, or loss in value is less thm~ the amount of the sums secured im.'.nediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds sball be applied to the sram secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in die next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lm~ler within 30 days afler the date the notice is given, Lender is authorized to collect and apply the Misccllmeous Proceeds either to restoration or repair of the Property or to the sums secured by this Security h~;trument, wbether or not then due. "Opposing Party" means the third party that owes Borrower Miscellanteo.,s Proceeds or the party against whom Borrower has a rigbt of action in regard to Miscellaneous Proceed'.'. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could rest. It in forfeiture of the Property or other material impairment of Lender's interest iii the Property or rights under this Security Instrumeut. Borrower can cure such a default and, if acceleration has occurred, reinst4te as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest ;n the Property or rights under this Security Instrument. The proceeds of any award or claim for damages ~hat are attributable to the impairment of Lender's interest in the Property are hereby assigued and shall bc paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. GASPERETTI. GAF (~I~-6A(WY) Iooo~).o~ 1599503 0 Page9 al 15 Form 3051 1/01 12. Borrower Not Relelaged; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of an crtization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor ii~ Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest ol' Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of~Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secur.e~ by this Security Instrument by reason of any demand made by the original Borrower or any Successors ir interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrov',er or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any hight or remedy. 13. Joint and Several Ii(-~bility; Co-signers; Successors and Assigns Bom}d. Borrower covenants and agrees that Borrower's ob!igations and liability shall be joint and several. However, any Borrower who co-signs this Security lnstrume:nt but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to moctgage} grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sulns secured by this Security Instrmnent: and (c) agrees th::t Lender and any other Borrower can agree to extend, modify, tbrbear or make any accommodations witli regard to the terms of this Security lnstrulnent or the Note without the co-signer s consent. :. : Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under t[is Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and I:'enefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lei:der may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, tht~ absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be Construed as a prohibition on the charging of such lee. Lender may not charge fees that are expressly prohibited by this Security instrument or by Applicable Law. If the Loan is subject to a !aw which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan ,charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) an.,, such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; ,md (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Bqnower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as ~a partial prepayment without any prepayment charge (whether or not a prepay~nent charge is provide:l for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower w 1; constitute a waiver of any right of action Borrower might have arising out of such overcharge. 151 Notices. Al! notices~'given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notici? to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by othe~ ~neans. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expre:;sly requires otherwise. The notice address shall be the Property Address unless Borrower has designatid a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address throug.h that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be give~, by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender las designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any not:ce required by this Security Instrument is also required under Applicable Law, the Applicable Law resl)irement will satisfy the corresponding requirement under this Security Instrument. GASPERETTI. GAF 1599503 ,.,.,a,~:.~.¢/'"/ 0 ~-6AIWY) (ooo§}.m Page lO of ~s (&~[J- Form 3051 1/01 16. Governing Law; Severability; Rules of Construction. 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 L;iw might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silcn6e shMl not be construed as a prohibition against agreement by contract. In the event that any provision, o? clause of this Security Instrument or the Note conflicts with Applicable Law, such contlict shall not affect other provisions of this Security Instrument or tile Note which can be given effect without the contlic]'.ing provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words o~. words of the feminine gender; (b) words in the singular shall mean and include the plural and vice vlur;a; and (c) tile word "may" gives sole discretion without any obligaHon to take any action. 17. Borrower's Copy. 8crrower shall be g~ven one copy of tile Note and of this Security Instrumenl. 18. 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 tn the Property, including, but not limited to, those beneficial interests 'ransferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment m full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this Option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from tile date the notice is given in accordance with Section 15 within which Borrower musil pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the exp, liration of this period, Lender may invoke any remedies pernfitted 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) such other period as Applicable Law might spccil~, for the termination of Borrower's right to reinstate; or (c) entry of a judgment enlbrcing this Security Instrument. Those conditions are that BorroweF:,(a) pays Lender all sums which then would be due under this Security instrument and the Note as it' n~ acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fet.s, property inspection and valuntion fees, and other fees incurred for the puq)ose of protecting Lendei"s interest in the Property and rigllts under this Security Instrument; and (d) t~es such action as Lender may reasonably require to assure that Lender's interest in tile Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Iustrument, shall continue uncl;~anged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a)cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. UPon reinstate~ment by Borrower, this Security Instrument and obligations secured hereby shall remain fidly effective ::s if no acceleration had occurred. Itowever, this right to reinstate shall not apply in the case of accelerati'o~ under Section 18. 20. Sale of Note; Chmtge of Loan Servicer; Notice of Grievance. Tile Note or a partial interest in tile Note (together with this Security Instrument) can be sold one or inore times without prior notice to Borrower. A sale might resd:., in a change in tile entity (known as the "Loan Servicer") that collects Periodic Payments due under the Nole and this Security Instrument and perfomls other mortgage loan servicing obligations under t.~e. Note, this Security Instrument, and Applicable Law. There also ~night be one or more changes of the Lorn Servicer unrelated to a sale of tile Note. If there is a change of the Loan Servicer, Borrower will be g vch written notice of tile change which will state tile name and address of tile new Loan Servicer, the add 'ess to which payments should be nmde and any other-information RESPA GASPERETTI. GAF 1599503 0 Initials:.~ (~-6A(WY) (ooosLo~ , P~. ~ o~ ~ Form 3051 1101 requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer oth:~.r than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser t nless otherwise provided by the Note purchaser. Neither Borrower nor Lender may comanence, join. or be joined to any judicial action (as either an individual litigant or the men,~ber of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security InstrUment, until such Borrower or Lender has notified the other party (with such notice given in compliance wi~h. the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonal4e period after the giving of such notice to take corrective action. If Applicable Law provides a tinge' period which must elapse before certain action can be taken, that time period will be deemed to be !-easonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to gorrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section i8 shall be deemed to satisfy the notice ,and opportunity to take corrective action provisions of this Sectim~ 20. 21, Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or h~zardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline? i~erosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvent.;,: materials containing asbestos or formaldehyde, and radioactive materials; (b) "Enviromnental Law" meant Tederal laws and laws of the jurisdiction where the Property is located that relate to health, safety or enviromnental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or remo)al action, as defined in Enviromnental Law; and (d) all "Enviromnental Condition" means a condition, ihat can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or pernfit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to relea:e any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, m}ything affecting the Property (a) that is in violation of any Enviro~maental Law, (b) which creates an Envi~onnrental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a~ condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardons Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly ~ive Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governm?tal or regulatory agency or private party involving the Property and any Hazardous Substance or Env-ronmental Law of which Borrower has actual knowledge, (b) any Enviromnental Condition, incluaing but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Subs'alce, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adxersely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or otber remediation of any Hazardous Substance afft'cting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing bereiu shall create any obligation on Lender for an Enviroim~ental Clzanup. GASPERETTI .G AF (~-6AIWY) IooosLo~ 1599503 0 Pa0e~2ofl§ Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Leader fl~rthcr covenant and agree as Ibllows: 22. Acceleration; Remetties. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (lint not prior to acceleration under Section 13 t~nless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a (late, 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 resnlt in acceleration of the sums secured by this Security Instrmneut and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defenie of Borrower to acceleration and sale. If the default is not cured on or before the date specified in thenotice, Lender at its option may require immediate payment in hall of all sams secured by this Seimrity Instrument without further de,nand and may invoke the power of sale and any other remedies permitted by Applicable Law Lender shall be entitled to collect all expenses incurred in pursuirg die remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and ~osts of title evidence. If Lender invoices the po~¢er of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, il' different, in accordance with Applicable Law. Lender shall give notice of lhe sale to Borrower in the manner provided in Section 15. Lender shall publish tbe notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but no! limited to, reasonable attorneys' fees; (~) to all sums seem-ed by this Security Instrument; and (c} any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument. Lender shall release this Security Instrument. Borrower :;hall 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 Ibr services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrowe3' releases and waives all rights under and by virtue of the hmnestead exemption laws of Wyoming. GASPERETTI. G AF ~'6A(WY) Iooo5}.m 1599503 '"'"~"//~ d 0 Page13ol~§ Form 3051 1101 BY SIGNING BELOW,~ Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in an2;' Rider executed by Borrower and recorded with it. Witnesses: d Gasperetti (Seal) -Borrower C~n-n~ 6' Ga sp~tt-i- (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower GASPEREI~I. GAF ~}~6A(WYI 1599503 0 Page 14 of 15 Form 3051 1/01 !,33 STATE OF WYOMING, The foregoing instrument was acknowledged before me this byGerald Gasperetti and Connie Gasperetti County My Commission Expires: ./ Nomr;¢ublic - GASPERETTI, GAF (~.-6AIWYI iooo5xm 1599503 Paoe 15 of 115 InilialsT~ Form 3051 0 1/Ol PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNIT DEVELOPMENT RIDER is made this 22nd day of dune 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 Note to Major Mortgage. A Wyoming Corporation (the "Lender") of the santo date an~:. covering the Property described in the Security Instrument and located at: 336 Porto Road.Thayne,WY 83127 [Property Address] The Property includes, but is not limited to, a parcel of land improved with a dwelling, together with other such parcels and certain comm6n areas and facilities, as described in The Covenants. Condit3ons & Restrictqons of Record (the "Declaration"). Tim l~roperty is a part of a plam~ed Unit development known as [Name Of Planned Unit Development] (the "PUD"). The Property also includes BorrOwer's interest in Ille homeowners association or equivalent entity owning or managing the Lommon areas and facilities of the PUD (the "Owners Association") and the uses, benefits and proceeds of Borrower's interest. PUD COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further c6venant and agree as follows: A. PUD Obligations. Eo:rower shall perform all of Borrower's obligations under the PUD's Constituent Documents. The "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation, trust instrument'o~' any equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or regulations of the Owners Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. GASPERETTI. G AF 1599503 0 MULTISTATE PUD RIDER - Single,Family - Fannie Mae/Freddiepage 1 of 3Mac UNIFORM INSTRUMENTinitials: .,/~o,r.m /3150 1/01 (~7R (0008) MW 08/00.01 VMP MORTGAGE FORMS - (800)521-7291 B. Property Insurance So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or "blm~et" policy insuring the Property which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for the periods, and against loss by fire, hazards ir~cluded within the term "extended coverage," and any other hazards, including, but not limited to, earthquakes and floods, for which Lender requires insurance, then: (i) Lender waives the provision in Section 3 for the Periodic Payment to Lender of the yearly premium installments for property inscrance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property ~nsurance coverage on the Property is deemed satisfied to the extent that the required coverage ts provided by the Owrers Association policy. What Lender requires as a (ondition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or bhmket policy. In the event of a distribul.ian of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to corr~non areas and facilities of the PUD any proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply the proceeds to the sums secured by the Security Instrument, whether er not then due, with the excess, if atty, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. D. Condenmation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower m cotmectic, n with any condemnation or other taking of all or any part of the Property or the common areas and facillties of the PUD, or for any conveyance in lieu of conde~m~ation, are hereby assigned and shall be paid to I.ender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided..in Section 11. E. Lender's Prior ComeLt. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either pa:tition or subdivide the Property or consent to: (i) the abandomnem or termination of the PUD, exce[.t i'or abandonment or ternfination required by law in the case or' substantial destruction by fire or other casualty or in the case of a taking by condemnation or enfinent do~nain; (ii) any amend~nent to any provision of the "Constituent Docu~nents" if the provision is for the express benefit of Lender; (iii) termination of professional management and assumption of selfqnanagc[nent of the Owners Association; or (iv) any action which would have the effect o1' rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F. Remedies. If Borrower does not pay PUD dues and assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instru,ncnt. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interesl from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. GASPERE-FI-I. GAF 1599503 / 0 (~)_-7R (0008) Page 2 of 3 Form 3150 1/01 BY SIGNING BELOW, Born)wer accepts and agrees to the terms and prowsions contained in this PUD Rider. (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower GASPERETTI. G AF 1599503 0 (~7R (0008) Page 3 of 3 Form 3150 1/O1