Loading...
HomeMy WebLinkAbout900709900-I89 RECEIVED LII',ICOLd COI!hlTY WHEN RECORDED, MAIL TO: Bank of Jackson Hole PO Box 7000 Jacksun, WYOMING 83002 This Instrument was prepared by: Bank of Jackson Hole PO Box 7000 Jackson, WYOMING 83002 307-734-8111 MIN: 100015700036104509 Loan Number: 59175201 Order Number: nOOK __ (Space Above This Line For Recording Data). MORTGAGE DEFINITIONS Words used in multiple sections of this dOculnent are defined below and other words are define6 in Sections 3, I 1, 13, 18, 20 and 21 Certair! rules regarding the usage of words used in this documem are also provided m Section 16. (A) "Security Instrument" means this d ?~cmnem, which is dated Jnne 28,200-1, together with all Riders to Ibis document. (B) "BorroWer" is Cecil O. Topp and Denise S. l'opp, as husband and wife, as tenants by bte e,~th'eties . Bon'ower is the mo rtgagor under this Security Instrument. (C) "Lender" is Bank of Jackson Hole, organized and existing under the laws of WYOMING. Lender's address is PO Box 7000, Jacks6n, WYOMING 83002. Lender is Ihe mortgagee under this Security Instru,nent (D) "Note" means the promissory note signed by BOrrower and dated June 28, 200'4. The Note sta res that Borrower owes Lender TWO HUNDRED TWENTY-NINE THOUSAND ONE HUNDRED FIFTY and oo/100 Dollars (.U.S. $229,15{I.00) pitts inlerest. Bun'ower bas promised to pay this debt in regular Periodic Payments and to pay the debt in fidl no~ later than July 1, 2034. (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means tile debt evidenced by the Note~ plus interest, any prepayment charges and late charges due under the Note, and all stuns due under this Security Instnune,~t, plus interest. (G) "Riders" means all Riders to dfis Security h~strument that are executed by Borrower. Thc following Riders are to be executed by Borrower (check box as applicable): [] Adjustable Rate Rider [] Condominium Rider [] Second Home Rider [] Balloon Rider f--j Pla~med Unit Develop~nem Rider [] VA Rider [] 1-4 Family Rider [] Biweekly Payment Rider [] Other (Specit~,) - (Il) "Applicable Law" means all con trolling applicable federal, state and local stawtes, regulations, ordinances and adnfinistrauve rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions (1) "Community Association Dues, Fees, aud Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominimn association, homeowners assocmtion o,' similar orgamzation. (J) "Electronic Funds Transfer" meana any Ire nsfer of funds, other than a transacuon originated by check, draft, o,-similar paper instrument, which is initiated dxrongh an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, inslruct, or authorize a financial institution to debit or credit an accouut. Such term includes, bt|{ is not limited to, point-of-sale transfers, automated teller lnachine transactious, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Ilems" means those items that are described in.Section 3. (L) "Miscellaneous Proceeds" means an7 compehsation, settlement, award of damages, or proceeds paid by any third party (other than iosurance proceeds paid trader the coverag ~s described in Section 5) tbr: (i) damage to, or destruction ol} the Properly; (ii) condcmnalion or other taking of alt or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissious as to, the value and/or condition of the Property. (M)'"Mortgage Insurance" means insun~nce pro,ecting Lender against lhe nonpayment ut; or default on, tile Loan. (N) "Periodic Payment" tneans the regularly schzduled amount due for (i) priocipal and interest trader the Note, plus (ii) any amounts trader Section 3 of this Security Instrume~t. : WYOMING - single Family - Fannie Mae/Fred¢;ie Mac UNIFORM INSTRUMENT Form 3051 1/01 IDS, Inc. - (800) 554-18~2 Page 1 of 8 Initials* d' ~-- '5 Borrower(s) _ __. ('~___ (O) "RESPA" means the Real Estate Sett5.ement Procedures Act (12 U.S.C. § 2601 et seq.) and ils implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended fr0nl time to time, or any additional or successor legislation or regulation thai governs tile same subject nratter. As used iii this Security Instrm~er~t, "RESPA" refers to all requirements aod restt-ictions that are imposed m regard lo a "federally related mortgage loan" even if tile Loan does not qualify as a "federally related mortgage loan" under RESPA. (P) "Successor in Interest of Borrower" means any party thai has taken title to tile Property, whether or nol that party has assumed Borrower's obligations under (he Note anil/or this Security Instrumem TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: ti) the r'epayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the perfomlance of Borrower's covenants and agreements under this Security Instrtuuent and tile Note. For this propose, Bo,'rowet docs hereby mortgage, grant and co,ivey to Lender ant[ Lender's successors and assigns, with power of sale, thc fullowmg described property located in the Comity of Lincoln: Lot 104 of Nordic Rauches Division No. 7, Lincoht County, Wyoming, according to tltat plat filed May 8, 1996, Instrunlent No. 819461, Plat No. 3lIE Parcel Identification Number: which currently bas the address of: 1132 Saddle Drive Etna, WYOMING 83118 ("Property Address"): TOGETHER WITtl all tile imprc ve~nents now or hereafter erected on the property, and all easements, appm'tenances, 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 In ;trument as the "Property." BOIl_ROWER COVENANTS that Bm'rower is lawfidly seized of the estate hereby conveyed and has the right to morlgage, grant and convey the Property and that the Property Is tmencumbered, except for encumbrances of record. Borrower wan'ants and will defend generally the title to the Property against all claims and demands, subject to airy encmnbtances of record. THIS SECURITY INSTRUMENT combines uniform covenants tbr national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrmnent covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Bm'rower shall pay when clue tile principal of, and interest on, the debt evidenced by tile Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Fscrow Items pur',:uant to Section 3. Payments due tinder the Note and this Security lnstrmnent shall be made ill U.S. currency. However, if any check or t~ther inst,-ument received by Lender as payment under the Note or Iht s Security lnstrunient is returned to Lender unpaid, Lender may require tha any or all subsequent paymems due under the Note and this Security btstrument be made in one or more of the following forms, as selected by Lender; (a) cash; (b) money order; {~c) certified check, bank check, treasm'er's check or cashier's check, provided any such check is drawn upon an institutioo whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic* Funds Transfer. Payments are deemed received b3 Lender when received at the location designated in tile Note or at such other location as may be designated by Lender ill accordance with :'he notice provisions in Section 15 Lender may return any payment or partial paymem if the payment or partial payments are insufficieat to bring Ihe Loan current. Lender may accept any payment or partial paynrent insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments ill future, but Lender is not obligated to apply~snch pay:,aents at the time such paymeots are accepted. If each Periodic Paymem is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Bon-ower makes pay~nent to bring the Loan current, lfBorrpwer does not do so within a reasonable period of tilne, Lender shall either apply such funds or return them to Bm-rower. If not applied earlier, such t:unds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claret which Borrower might have now or in the fulure against Lender shall relieve Borrower from making payments due under tile Note arid this Security Instrt!ment or pertbnning the covenants aod agreements secured by this Security Instrument 2. Application of Payments or 1: roceeds. 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 Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment io the order in which it becanm due. Any remaining amonnts shall be applied first to late charges, second to airy other amounts due under this Security lnstrunient, and then to reduce the principal balance of the Note. If Lender receives a payment fi'om Borrower tbr a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied tc the delinqueut payment arid the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received titan Borrower to tile repayment 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 payment is applied to the full payntent of one or more Periodic Payments, such excess may be applied to any late charges due. Vohmtary prepayments shall be applied th-st to any prepayment charges and dieu as described ill the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under tile Note shall not extend or postpone the due date, or change the ainot;nt, of thc Periodic Payments. 3. Funds for Escrow Items. Borrower shad pay to Lender on the day Periodic Paynrents are due under Ihe Nole, nntil the Note is paid in full, a suni (tiLe "Funds") to provide lbr payment of amounts due for: (a) taxes and assessments and other items which can attain WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 2 of 8 IDS. Inc. - (800) 554-1872 Borrower(s) Inilials Form 3051.1~01 priority over this Security Instrument as r lien or encumbrance on the Property; (b) leasehold payments or ground rents on tile Property, if any; (c) premiums for any and all insurance require~l 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 ~n accordance witb the provismns of Section 10 These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may requn'e that Commnmty Association Dues, Fees, and Assessments_ if any, be escrowed by Bon'ower, and such dues,/~ees and assessments shall be an Escrow Itcnr. Borrower shall promptly filrnish to Leod,:r all notices o[amonnts to be paid nnder diis Section. Borrower shall pay Lender thc Fuods fm Escrow Items nnless Lender waives Borrower's obligation lo pay the Funds for any or all Escrow Items. Lender.may waive Borrower's obligation to pay to Lender Funds for an" or all Escrow Items at any time. Any such waiver may only be in writing In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due tbr any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall fimtish to Lender receipts evidencing such paymeot wilhin such time period as Lcoder ,nay reqmre. Borrower's obligation to make :~uch payments and to provide receipts shall for all proposes be deemed to be a covenam and agreement contained in this Security Instrument, a~, the phrase "coveoant and agreement" is user, in Section 9. Il'Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, ai~d Borrower ['ails to pay the amoun! doe for'an Escrow Item, Lender may exerc,se ,ts rights under Section 9 and pay such arno,mt and Borrower shall then be obligated uncle,' Section 9 to repay to Leader any such amouot. Lender may revoke the waiver as to any or all Escrow Items at aoy time by a nonce given in accordance with Section 15 and, upon such ,'evocation, 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 m an amotmt (a) su[ficient to pernm Lender to apply tire Fnnds at tl~e time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA Lender shall estimate the amount ut'Funds due on the basis of current data ~,nd reasonable estimates of expenditures of future Escrow Items or otherwise iii accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or emily (including Lender, if Lender is an institution whose deposits ard so insm'ed) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the rune specified .trader RESPA. Lender sball not charge Borrower for hohling and applying the Fonds, annually analyzing the escrow accouut, o. verifying the Escrow ltems, urdess Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable [.aw reqmres interest to be paid on the Funds, Lender shall not be required to pz'y Borrower any interest or earnings on the Funds. Borrower and Lender can agree in wining, however, that interest shall be paid on the Funds Lender shall give to Borrower, without charge, an annual accoummg of/lie Fuuds as required by RESPA If there is a surplus of Funds hel'l ~n escrow, as defined under RESPA, Lender shall account to Borrower for the excess fimds in accordance with RESPA. If there is a shortage ofFnnds hekl ir, escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower sball pay to Lender the amount necessary to make np the shnrlage in accordance with RESPA, but in no more dran 12 monthly payments. If there is a c:eficiency of Funds held in escrow, as de fined umler RESPA, Lender shall notify Bo,'rower as required by RESPA, and Borrower shall l:,ay to Leqder the amonm necessary to make up the deficiency in accordance with RESPA, but in no more ,ha, 12 montbly payments. Upon payment in fi, Il of all sums'secured b}, this Security InStrument. Lender shall promptly reftmd to Borrower any Fuu'ds held by Lender. 4. Charges; Liens. BotTower shall pay al, taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrmnent, leasehold payments or ground rents on the Proper~y, if any, and Co,mn,miry Association Dues, Fees, aud Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them iii the manure provided in Section 3. Borrower shall promptly discharge any lien which bas priority over this Security Instrument nnless Borrower: (a) agrees in writing to the payment of the obliganon secured py the lien m a manner acceptable to Lender, but only so long as Borrower ts performing such agreement; (b) contests the lien in good faith by, or defends against entbrcement of the lien in, legal proceedings which in Lender's opm,on operate to prevent the enforcement of/Ire lien whil,.· those proceedings are pending, but only until such proceedings are coucluded; or (c) secures from the holder of the lien an a:greement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain lmority over this Security Instrument, Leoder may g,ve Borrower a notice identifying the lien. W:thin 10 d~'~ys of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above irt Ibis Section 4 Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting se~x, ice used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existiog or hereafter erected on tbe 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, Gr which Lender requires insurahce. This insurance shall be maintained in th~: amounts (including deductible levels) and for the periods that Lender reqcdres. What Lender requites pursuant to the preceding sentences can change during the term of the Loan. 'Fbe insurance carrier providing the insurance shall be chosen by Borrower subject to Leader's r,ght to disapprove Borrower's choice, wbicb right shall not be exercised unreasonably. Leuder may require Borrower to pay, in connection wilh dfis Loan, either: (a) a ooe rune charge for flood zone determination, certifi.catioa and tracking servmes; or (b) a one-time charge for flood zone determination and certilicatton services and subsequent charges e~ch time renrappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible tbr the pay m~:nt of any fees imposed by the Federal Emeigency Managemeut Agency in comrection with the review of any flood zone determination resulting l¥om an ob iection by Borrower. IfBotTower th,Is to maintain any of tire coverages described above, Lender may obtain iusurance coverage, at Lender's option and Borrower's expense. Lender is under no cbligadon to purchase any particular type or amount of coverage. Theretbre, such coverage shall cover Lender, but might or might not protect Borrowe~, Borrower's equity m the Property, or the contents of the Property, agaiust any risk, hazard or liability aud nfight provide greater or lesser coverage than was previously m elTcct. Borrower acknowledges that the cost of the WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 3 of 8 iDS, Inc. - (B00) 554-1872 Form 3051 1101 Borrower(s) h-dtials . er. ~ insnrauce coverage so obtained might significantly exceed the cost ofinsurauce that Borrower could have obtained Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Secu,'ity Instrument. These amounts shall bear interest at the Note rate from the date of disbnrsmnent and shall be payable, with such interest, ripen notice fi'om Lender to Borrower requesting payment. All insurance policies required bY Lendel and renewals of such policies shall be sul~ject to Lender's right to disapprove st,ch policies, shall include a standard mortgagz clause, and shall name Lender as mortgagee arid/or as an additional loss payee, fender shall have the right to bold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all recto pis of paid premnuns and renewal notices [fBon'owcr obtains any form of insurance coverage, not otherwise reqoired by Lender, for damage to, or destruction of, the Property, such policy shall iuciude a standard mortgage clanse and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower sh',ll give pr?rapt notice to the insurance carrier aud Lender. Lender may make proof of loss il'not made promptly by Borrower. [Juless Leader and Borrower otherwise agree m wridng, any insurance proceeds, whether or nor the underlying insurance was required by Dmder, sim'Il be applied to restoration or repair of tile Property, if Ihe restoratiou or repan' ts economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the righl 1o hold such insurance proceeds until Lender has lad an opportunity to inspect such Property to cusure the work has been cmnpletcd to Leuder's satisfaction, provided that such iuspection'shall be undertaken promptly. Lender may disburse proceeds for the repairs aud restoranon tn a single payment or in a series of progress i' ayments as the work is completed. Unless an agreement is made in writing or Applicable Law requires imerest to be paid on such insurance proceeds, Lender shall not be reqt, ired to pay Borrowel any interest o,' earnings on such proceeds. Fees for public adjusters, or othcr third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the .roms secured by this Security Instrument, whether or not then dne, with the excess, if any, paid to Borrower. Such insurance proceeds shall ~3e applied in the order provided for iu Sectioo 2. If Borrower abandons the Prope"ty, Lender may file, negotiate and settle any available insurance claim and related maners. If Borrower does not respond within 30 days to a notice fi'om Lender ti'tat the insurance carrier has offered to settle u claim, then Lender may negotiate and settle the claim. The 30-da) period w~ll begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Bon'ower hereby assigns to Lender la) Borrower's rights to any insurance proceeds in an amount uot to exceed the amounts onpaid under the Note or this Security Instrmnel~t, and (b) any other of Borrower's rights (other than tile right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofiu' as such rights are applicable to the coverage of the Property. Lender may rise the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security [ustrmnent, whe*her or uot then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Sectu'ity Instrument and shall continue to occnpy the Property as Borrower's p,'inci pal ,'esideoce lbr al least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Bo"tower's 9outrol. 7. Preservation, Maintenance and Protection of the Property; Inspections, Borrower shall not destroy, damage or m~pair tile Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maimatn the P,'operty in order to prevent the ?roperty fi'om deteriorating or decreasing in value due to its condition. Uoless it ~s determined pursuant to Section 5 that repair or restoration is not econmnically feasible, Borrower shall promptly repair the Property if damaged to avoid fia'ther deterioration or damage. It-insurance or condemnation proceeds are paid m conuection with damage tu, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Prope,-ty only if Leader has ~released proceeds tbr such pa,poses. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the wa rk is completed. If the insurance or condemxmtion proceeds are not sufficieut to repair or restore the Property, Borrowe~ is not relieved of Bon'ower's obligation fei' 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 inspect lhe interior of the improvements 9n the Property. Lender shall give Bo,-rowet nodce at the time of or prior to such an interior inspection specifying such reasonable cai.se 8. Borrower's I,oan Applicatio~ ~. Borrowe: shall be in defanlt if; during the Loan application process, B. orrower or any perseus or entities acting at the direction of Borrow:r or with Bon'ower's knowledge or consent gave materially false, misleading, or inaccurate in/bnnation or statements to Lender (et riffled to provide Lender with material information) m cunnection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Bon-ower's prmc~ pal residence. 9. Protection of Lender's Interest iu the Property and Rights Under rids Security Instrument. If(a) Borrower fails to perfimn the covenants and agreements contained ii' this Security Inst,'ument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights und~:r this Security Instrument (such as a proceeding m bankruptcy, probate, for condcnmation or forfeiture, for enforcement of a lien whch may attain priority over this Security Instrument erie enforce laws or regulations), or (c) Bon'ower has abandoned the Property, ,hen Lende ' may do and pay for whatever is reasonable or app,'opriate to protect Lender's iuterest in the Property and rights under this Sect, rity Instrument, including protecting and/or assessing the value of the Property, and secmmg and/or repairing the Property. Lender's ac'ions can include, but are not limited to: (a) paying any sums secured by a ben which has priority over this Security Instrument; (b) appearir g m court; and (c) paying reasonable attorneys' fees to protect its interest m the Property and/or rights under this Security Instrument, including ns secured position in a bankruptcy proceedi~,g. Securing tile Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board tip dr}ors and windows, dram water fi'om pipes, elmfiuate buikling or olher code violations or dangerous couditions, and have utilities turned on or off. Although Lender may take action under this WYOMING - Single Family - Fannie Mae/Fred !le Mac UNIFORM INSTRUMENT Page 4 et 8 IDS, Inc. - (80~) 554-1872 ~; Borrower(s) Inilials __ Form 3051 1/01 Section 9, Lender does not have to do so 2 nd is not under any duty or obligation to do so. It is ~tgreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lepder under, this Section 9 shall become additional debt of Borrowe! seem'ed by ibis Security Instrumenl These amot, nts shall bear interest at the Note rate l¥om the date ofdisbursemem and shall be payable, wilh such interesl, upon notice fi'om Lende,' to Borrower requesnbg payment. If this Security Instrument is afl a leasehold, Borrower shall comply with all the provmions of the lease Borrower shall not surrender the leasehold estate and interestz herein conveyed or terminate or c~mcel ,be grouud lease. Borrower shall not, without the express written consent of Lender, aller or ainend the ground lease. I f Borrower acqm res fee lille to the Property, the leaselmld and Il'lc fee lille shall not merge unless Lender agrees to the merger m writing. 10. Mortgage Insurance. If Leander reqn';red Mortgage Insm'auce as a condition of making Ihe Loan. Baa'ewer shall pay the required to maiotain the Mortg.tge Insurance in eft'ecl. Il; for any reason, the Mortgage/nsura~.~ce coverage required by Lender ceases to be available fi'om the mortgage ~nsurer that previously provided such insurance and Borrower was required to make sc para,ely designated payments toward the prema.'ms for Mortgage Insurance, Borrower shall pay the premimns required to obtain coverage substantially equivalent re the Mortgage Insurance previously itl effect, at a cost substaulially eqnivalenl to the cost to Borrower of the Mortgage Insurance previously in effect.' fi'om an alternate mortgage insurer selected by Lcmler. If substantially equivalent Ivlortg~tge Insurance coverage is not available, Borr(.wer shall continue to pay to Lender the amount of the sepa,alely designated payments lhat were due when the insurance coverage ceased to be in eft'ecl, gender will accept, use and relaiu these payments as a non-rcfi, mdablc loss reserve m lien of Mortgage Insurance. Su ch loss ~eserve shall be non-refimdable, notwithstanding the ['act Ihat the Loan is ultimately paid in fidl, Lender shall not be required to pay Baa'ewer any interest or earnings on such loss reserve. Lender can ,m longer require loss reserve paymeuts iflVlortgage Insurance coveragt 0n the an',onnt and lb,' lhe period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage lnsm-ance If Lender required Mortgage Insurance as a ~;mdition of making the Loau and Borrower was required 1o make separately designalcd payments toward the premiulns for Mortgage lnstm.nce, Borrower shall pay the premmms required to maintain Mortgage Insurance m et'feet, or Io provide a non-refimdable loss reserve, ual.il Lender's requirement for Mortgage Insurance ends in accordance with any writtcu agreement between Borrower and Lender providing f'n' such termination or until termination is required by Applicable Law. Nolbing in this Section I 0 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that pm'chases thc Note') fur certain losses it may recur if Borrower does not repay the Loan as agreed. Baa'ewer is nor a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force fi'om time to time, and may enter rote agreemems with other parties that share or modify their risk, or reduce losses. These agreements are on terms and couditions that are satisl'actory ~o the morlgage insurer and the olher party {.or padies) to these agreements. These agreements ,nay require the mortgage insurer to make payments using any source of fi, nds tbat the mortgage insurer ,nay have available (which ,nay include fimds oblained Ii'on] Mortgage Insurance premiums). As a result of these agreements, Lender, an./purchaser of the Note, a aether insurer, any reinsurer, an y other entity, or any affiliate of any of the foregoing, may receive (dire{:tly or indi--ectly) amounts that derive fi'om (or Might be characterized as) a portion al'Borrower's payments for Mortgage Insurance, in exchaoge 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 sbare of the premiums paid [o the insurer, the arrangement is often termed "captive reinsurance." Fnrther: (a) Any such agreements will n6t affect tile ama,mrs that Borrower has agreed to pay fin' Mortgage Insurance, or any other ~erms of the Loan. Such agreements w!li not increase the amount Borrower will owe for Mortgage Insurance, and they will aa, entitle Borrower to any rebind. (b) Any such agreements will not affect the rights Borrower has if any - with respect to the Mmlgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may ioclude the right to receive certain disclosures, re request and obtain cancellation of the Mortgage h~snrance. To have lite Mortgage Insurance terminated automatict, lly, ',md/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such caucellation or termination. 11. Assignment of Miscellanemjs Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such ~vliscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Ler-der's security is not lessened. During such repair and restoration period, Lender shall [lave the rigid to hold such Miscellaneous Proceeds until Lender bas had an opportunity to inspect such Property to ensure Ihe work has been completed to Lender's satisfaction, pray ded lhat Such inspection shall be undcrtakeu promptly. Lender may pay for the repau's and restoration itl a single disbursement or m a series ofwogress payments as tl~e work is completed Unless an agreement is made in writing or Applicable Law requires interest to be pat3 on such Miscellaneous Proceeds. Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds.' If the restoration or repair is not ecouomically feasible or Lender's security would be lessened, thc Miscellaneous Proceeds shall be appli'ed to the s'hms secured by this Security Instrument, whether or not then due, with the excess, if any, paid re Borrower. Such Miscellaneo,,s Proceeds shall be applied in the order provided for iii Section 2. In the evenl of a total taking, des!ruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the stuns secured by Ihis Security Instrument. whetimr or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property m which the fair market value of tile Property 'inunediately before the partial taking, destruction, al' loss invalue is equal to or greater than tile amount of the sums secured by this Security Instrument i~nmedialely before the partial ;aking, destruction, or loss in value, unless Borrower aud Lender otherwise agree in wining, the sums secured by this Security Instrmnen'. shall be reduced by the amount of the Miscellaneous Proceeds multiplied by rite following fraction: (a) the total amount of the sttnls secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before th~ partial takiug, destruction, or loss iu value Any balance shall be paid ~o Borrower. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM ~NSTRUMENT Page 5 of 8 leS, lac, - ($00) 554-t 872 Form 305~ Borrower(s) Inilials "~ C'¢~' . _ In the event of a partial taking, destructkm, or loss in value of the Property m which the fair market vah|e of the Property immediately before the partial taking, dest'uction, or loss in value is less than the amount of Ibc stuns secured immediately before the partial taking, destruction, or loss itl valoe, unless Borrower and Lender otherwise agree in wriung, the Miscellaneot,s Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by 17 orrower, 7~r if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Leqder within 30 days after tile date the notice ts given, Lender is authorized to collect an'd apply the Miscellaneous Proceeds either to restorali~,n or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Bm'rower has a right of action m regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or chnlinal, is begun ihat, in kende,"s judgment, could resull in £orfeitt,re of tbe Property or other material impairment of` Lender's interest in the }h-operty or rights under this Sect|rity Instrument. Borrower can cnre such a default and, if acceleration, has occurred, reinstate as provided m Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes for£eimre of the P,'operty or odmr material m~pairment of kendeFs interest in the Property or rights under this Security h~strument. The proceeds of any award or claim for dmnages that are am-ihutable to impairment of Lender's ioterest in the Pre;perry are 'hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. llorrower Not Released; Fo,'bearance By Lender Not a Waiver. Extension of the time for payment or modification amornzation of the sums secm'ed by this Security Instrument granted by Lender to Borrower or any Successor ill Interest 0£Borrower shall not operate to release the liability of Bor'ower o~ any Successors in Interest of' Borrower Lender shall not be required to commence proceedings against any Successor in Inter~st of Borrower or to refuse to extend time fbr payment or otherwise modify amornzation of the sums secured by this Security lnstrnmen; by reason of any demand made by tbe original Borrower or any Successors in Interest of Borrower. Any tbrbearance by Lender in t xercising any right or remedy including, without limitation, Lender's acceptance or'payments fi-om third persons, entities or Successors ~q hlterest of Borrower or in amounts less than the amount then due, shall not he a waiYer of or preclude the exercise of any right or reinedy. 13. Joint and Several Liability; Co-signers; Successors attd Assigns Bouod. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and ,':everal. However, any Borrower who co-signs this Security lnstrnmenl but does not execute the Note (a "co-signer"): (a) is co-s~gning this gecurity Instrument on ly to mortgage, grant and convey tile co-signer's intc~ est in the Property under the terms of this Security lnsmnner ~*; (b) is not personally obligated to pay the sums secured by this Security Inslrunlent; and (c) agrees tbat Lender and any other Borrowe, can agree to extend, modify, £orbcar or make any accommodations with regard to thc ten ns of this Security Instrument or the Note withc:tt the co-/;igner's consent. Subject m the prowsions of Section 18, any Successor in Interest of Borrower who assumes BorroweFs obligations nnder this Secm'ity h}strument in writing, and is approved by Lender, shall obtain all ofBon'ower's ,'tghts and benefits under this Security Instrnnmnt. Borrower shall not be released fi'om Boivov'er's oblig)ltions and liability under this Security lnsmnncnt unless [.ender agrees to such release in writing. The covenants and agreements of this Security htstrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges Lender may charge Borrower fees for services pe,'f`ormed in commcuon with Borrower's default, for Ihe puqmse of protecting Lender's interest m ~he Property and rights under this Security Instrument, including, but not limited to, attorneys' Ices, property inspection and vahtation fe.,}s, ht regard to any other fees, the absence of express andmrity in this Secnmy inshmnent to charge a specific lee to Borrower shall not be constnted as a prohibition on the charging of such fee. Lender may not charge tees that are expressly prohibited by this Security Instr'~ment or by Applicable Law. I£the Loan is subject to a law whi,:h sets maximmn loan charges, and that law is final ly intelpreted so that the interest or other loan charges collected or to be collected in coonsction with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the cha ge to the permitted limit; and (b) any stuns ah-eady collected from Borrower which exceeded permitted limits will be rethnded to Borrower. Lende-- may choose to make this retired by reducing tile principal owed under the Note or hy making a direct payment to Borrower. If ', refund reduces principal, the reduction will be t~eated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided tbr under tbe Note). Borrower's acceptance of`any such retired made by direct payment to Borrower will constitute a waix~'er of any right of action Borrower might have arising out of such overcharge 15. Notices. All notices giveo by Borrower 6r Lender in connection with this Security lnstrnment must be in writing. Any notice to Borrower in connecnon with this Security [nstrumen': 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 other means. Notice to any one Borrower shall eonstilnte notice to all Borrowers nnless Applicable Law expressJy require~; otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by l~otice to L'ender. Borrower shall promptly notify I.ender of Borrower's change of add~ess. Il' Lender specifies a procedure for reporting Bon'ower':.; change of address, then Borrower shall only report a change of address tbrottgb that specified procedure. There may be only onc designated notice address under this Security Instruntent 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 herein unless Lender bas designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given Io Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law require~nent will satisfy the con'espbnding requirement under this Security instrmner~t 16. Governing Law/Severability; Rules of Construction. This Security Instrument shall be governed by federal law and tile law of the jurisdiction in which the Property is located. All rights and obligations contained in dfis Security Instrument are subject to any reqmrements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it VVYOMING - Single Family - Fannie Mae/Fredd:e Mac UNIFORM INSTRUMENT Page 6 of 8 IDS. Inc. - (8001 554-1872 might be silent, but such silence shall not be constr~led as a prohibition against agreement by contract. In the event that any provismn or clause of(bis Secority Instrument or the N')te conflicts with Applicable Law, such conflict shall not affect other provisions of dos Security Instrunaent or the Note which can be giw-a effect without the conflicting provision. As nsed in this Seem'try lnstrnna:nt: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words i:: the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discreuon without any obligation to take any actio~.~. 17. Borrower's Copy. Borrower shall be :given one copy of the Note and of this Security Inslrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in lhe Property" means any legal or beneticial interest ill the Property, including, but not limited to, those beneficial iutei'ests transferred m a bond i~'or deed, contract for deed, instalhnent sales contract or escrow agrc:ement, the intent of which is the Ii'ansl~r of title by Borrower at a fim~re date ~o a pnrchaser. If'all or any part of the Property 9r any Interest iii the Property is sold or transferred (ar 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 paymeut m of all stuns 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, L~:nder shaF give Borrower notice of acceleration The notice shall provide a period of not less than 30 days fram the date the notice is given m accordar ce with Section 15 within which Borrower must pay all sums secnred by this Security Instrmnent. If Borrower fails to pay these stuns pridr to the expiration of this period, Lender may iuvoke auy remedies permitted by this Secnrity lnsn'ument without f~rther no(icc or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower simll have the right to have enforcement of this Security hlstrnment disconti,med at any time prior to the earliest of: (a) five days before sale of the Property pnrsuant to any power of sale contained in this Security h~strument; (b) such other period tls Applicable Law might specify {'or the termination of' Borrower's right to reinstate; or (c) entry of a judgment eut'orcing this Security Instrnment Those conditions are that Borrower: (a) pays Lender all sums which ~hen would be due nnder this Security Instrument and the Note as if no acceleration had occun'ed; (b) cures any defimlt of any other covenams or agreements; (c) pays all expenses incurred m enforcing this Security Instrument, including, but not linfited to, reasonable attorneys' f(}es, property inspectmn and valuation fees, and other l~ees incurrt;.d ibr the purpose ot'prolecting Lender's interest in the Property and righls under this Secm-ity Instrument; and (d) takes such action tls Lender may reasonably requ (re to ,~lssure that Lender's interest in the Property and rights under this Security lnstrumenl, and Borrower's obligation to pay the sums secm'ed by this Security Instrument, shall continue unchanged Lender may requ ire that Borrower pay snch reinstatement stuns and expenses iii one or more of the following forms, as selected b5 Lender: (a) cash; (b) money order; (c) ce~lificd check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by ;t federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security lnstnunenl and obligations secured hereby shall lemaiu eft'cc(ire as if no acceleration had occurred. However, this right to reinstate shall not apply in (lie case of acceleration tinder Section 18 20. Sale of Note; Change of Lo.an Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or m~u'e times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations trader the Note, this 3ecru'try Iustrument and Applicable Law There also might be one or more c'hanges of the Loan Serwcer nm'elated to a sale of the Note. If here is a 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, die address to which payments should b~ made and any other in formatiou I~,ESPA reqnires in connection with a notice of transfer of servicing, lftbe Note is sold and therea t'lcr the Loan is serviced by a Loan Servicer olher than the purchaser of the Note, the mortgage loan se:'vicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by ',lie Note purchaser unless otherwise provided hy the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial ac(imf (as either an individual litigant o,' thc member of a class) that arises fi'om the o:her party's actions pursuant to this Security Iustrnment or that alleges that the other party has breached any provision of, or any duty o¥'ed by realson or; this Security h)strnment, tullil such Borrower or Lender has notified ihe other party (with such notice given in compliant e with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period alter the giving of such notice to take corrective action. If Applicable Law provides a time l)eriod which must elapse before certain action can be taken, that 'time periSd will be deemed to be reasonable fin' purposes of this paragraph. Thc notice of · acceleration and opportunity to cure given, to Borrower pursuant to Section 22 anti the notice of acceleration given to Borrower pnrsuant to Section 18 shall be deemed to satisi~, the,notice and opporturfity to take corrective action povisions of this Section 20. 21. Hazardons Substances. As used in this Section 21: (a) "tlazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other tlammable or toxic pelrolemn prodncts, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive matel 'als; (b) 'Environmental Law" means l'ederal lhws and laws nfthe jurisdiction where Ibc Property is located that relate to health, safety o' environmental prolection; (c) "Environmental Clpanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Envirohmental Condition" means a condition that can caose, contribute to, or otherwise trigger an Environmental Cleanup. Bon'ower shall not cause or permit the prqsence, use~, disposal, storage, or release of any llaza,'dons Suhstances, of threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyoi e e se to do, anything ,'al'fcc(lng (lie Ih operty (a) that is in violation of any Environmental LaTM, (b) which creates an Environmental Condition~ or (c) which, dn¢ to the presence, use, or release ora ttazardous Substance, creates ,'l conditio!~ that adversely affects the wdue of the Property. The preceding two sentences shall not apply to the presence, ose, or storage on.the Property of small quantities of Hazarctotis Snbslances that are generally recognized to be WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1101 lOS. Inc. - (800) 554-1872 Page 7 of 8 Borrower(s) Initials 614 appropriate to normal residential uses aud 'to rnaintenance of the Property (including, bdt dot limited to, hazardous sobstaoces in consumer products). Borrower shall promptly give Lende~ Written notice of (a) any investigation, claiuh demand, lawsuit or other action by any governmental or regulatory agency or pri~ate party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Ehvironmental Condition, including but not limited to, any spilling, leaking, discharge, release or . threat of release of any Hazardous Substauce, and (c) any condition caused by the presence, use or release ora Hazardous Sobslance which adversely affects the value of the Propert5. If Bori'ower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediatic:n ofan~' Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordroce with Eovironmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanop. NON-UNIFORM COVENANT~"L Borrower aud Lender flirther covenant anti agree as follows: 22. Acceleration; Remedies. Let;der shvll give uotice tO Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security 1 astrument (but not prior lo acceleration nnder Section 18 uuless Applicable Law provides otherwise). The notice shall specify: (a) tile delh',lt; (b) the action required to cure/he 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 core the default on or before the date specified in the notice may result ill acceler:ttion of the stuns secured by this Security Instrumentand sale of the Property. The notice shall further inform Borrower of the rigilt to reinstate after acceleration and the right to bring a court action to assert the non-existence ora default or ally other d.ffense 0fBorrower to acceleration :md sale. If the default is not cured on or before the date specified in the nntice, Lender at its optiun may ?equire immediate payment in full of all sums secured by this Security Instrument without further demand and may invok.~, tile power of sale and any other remedies permitted by Applicable Law. Lender sh'.dl be entitled to collect all expenses iocurre~i in pm'suing tile remedies provided in this Section 22, inclndiug, but not Ibnited to, reasonable attorueys' lees and costs of title evidence. If Lender iuvokes the power o!' sale, Leuder sball give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall pm)lish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may pvrchase tile Property .'it any sale. The proceeds uf tile sale sh:dl be applied in the following order: (a) to all expenses of the sale, htcluding, but not limited to, reasouable attorneys' fees; (b) Itl all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all stuns secored by this Security Instrument, Lender shall release this Secority Iuslrnment. Bon'ower shall pay any recordation costs. 'Lender may charge Borrower a fee for releasing this Security Instrument, but only if the lee is paid to a third party lbr servtces rendered and the charging of the fee is pemfitted uuder Applicable Law 24. Waivers. Borrower releases and waives all rights tinder and by virtue of the homestead exemption laws of Wyoming. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenauts contained in this Secority lnstrmnent aud in any Rider executed by Borrower and recorded with it. Witnesses: Cecil O. Topp STATE OF WYOMING, T~{'-OF~ County ss: Tile foregoing instrmnent was acknowledged befo:'e me this oQg4'&' day of -~"'[Drh e Topp, and Denise S. Topp. Witness my hand and official seal. My Conmfission Expires: (Seal (Seal) -Borrower (Seal) -Borrower NoraW Public , o~)L{ by Cecil O. WYOMING - Sin§le Family - Fannie Mae/Fredd 3 Mac UHIFORM INSTRUMENT Page 8 of 8 lOS. Inc. - (fl00) 554-1872 Form 3051 1101 M/N.' 100015700036104509 Loan Nmnber: 59175201 ADJISSTABLE RATE RIDER (LIBOR Six-Mo~tb Index (As Published In The Wall Street Journal) - Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 281h day of June, 2004, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust o,- Security Deed (tile "Secu,-ity Instrument") Of the same date gi,/en by the undersigned ("Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to Bank of Jackson Hole ("Lender") of the same date and covering the property described in tile Security hlstrnment and located at: 1'132 Saddle Drive Etna, WYOMING 83118 (Property Address) THE NOTE CONTAINS I"ROVISIONS ALLOWING FOR CHANGES IN TIlE INTEREST RATE AND THE MONTHLY PAYMEN'I: THE NOTE LIMITS TItE AMOUNT THE BORROWER'S INTEREST RATE CAN CltANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY, ADDITIONAL COVENANTS. In addition to the covenants and agreemenls made in tile Security Instrmnent, BorroWer and Lender lhrther covenant and agree as lbllows: A. INTEREST RATE AND MONTHLY PAYMENT CIIANGES The Note provides for an'initial interest rate of 8.125%. The Note provides for changes in the interesl rate and the monthly payments, as tbllows'. 4. INTEREST RATE AND MONT}II3.~ PAYMENT CHANGES (A) Change Dates The interest ra~'e I will pay may change on the 1st day of July, 2007, and Oil that day every SIXth month thereafter. Each date on which [ny interest i-ate could change is called a "Change Date." (B) Tile Index Begnming with tile first Change .Date, my interest rate will be based on an Index. The "Index" is the average of interbank offered ra es lbr six-month U.S. dollar-denominated deposits in ihe London market ("LIBOR"), as published in The ~atl Street Journal The most recent Index figure available as o1' the first business day of the month immediately preczding the month in which the Change Date occurs is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new Index that is based upon comparable information. The Note Holder will give me. notice of' this choice. MULTISTATE ADJUSTABLE RATE RIDER - LIBOR SIX-MONTH INDEX (AS PUBLISHED IN THE WALL STREET JOURNAL)- Single Family -Fannie Mae Uniform tn.~ lrument Page 1 o1' 3 Form 3138__,,,,1/.I)1 ~o~,ow~(~) ,.~,ia,~-_C~.~ ~ lOS, Inc., (800)554-1872 -616 MIN.'lO0015700036104509 Loan Nmnber 59175201 (C) Calculatio,~ of Changes Before each Change Date, tile Note Holder will calculate my new interest rate by adding EIGIIT AND SEVEN TWENTIETHS percentage point(s) (8.350%) to the Current Index The Note ltolder will then round the result of this addition to the nearest one-eighth of one percentage point lO. 125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then detemm~e the amount of the monthly payment that would be sufficieot to repay the unpaid principal that I am expected ~o owe at the Change Date in fidl on the Maturity Date at my new interest rate in substantially equal paymen,s The result of this calculation will be the new amount of my monthly payment. (D) Litnits on Interest Rate Changes TILe interest rate I am required to pay at the first Change Date will aot be greater than 9.625% or less than 8.350%. Thereafter, my interest r:ite will never be increased or decreased on any single Change Date by more than ONE AND ONE HALF percentai~e poil~t(s) (1.500%) fi'om the rate of interest t have been paying tbr the preceding SIX months. My interest rate will never be greater than 15.125%. (E) Effective Date of Changes My new interest rate wid bect, me effective oil each Change Date. I will pay the amount of my new monthly payment beginning on me first monthly paymenl date al'tel the Chauge Date until the amount o1' my monthly payment changes again. (F) Notice of Changes Tile Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment belbre the e:l'ective date of any change. The notice will include in[bnnation required by law to be given to me and also the tilde and telephone number of a persoo who will answer any question I may have regarding the notice. TRANSFER OF THE P'IOPERTY OR A BENEFICIAL INTEl,tEST IN BORROWER Uniform Covenant 18 of the S ~ct, rity Instrument is amended to read as lbllows: Transfer of the Properq or a Beneficial Interest in Borrower. As used in Section iff, "Interest in the Properly" ~neans auy legal or beneficial interest in the Properly, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreemem, the intent of which is the transfer of title by Borrower at a future date to a purchaser. ]f all or any part of the Property or any Interest in the Property is sold or transferred (or il' Borrower is not a natural person and a beneficial interest in Bon'ower ts sold or transferred) without Lender's pl~or written consent, Lender may require immediate payment in l'ull of all stuns secu,'ed by dfis Security lnstrtm~ent. llowever, this option shall not be exercised by Lender if exercise is prohibited by Applicable Law. Lender also shall not such 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 reasonably detemfines thai Leqder's security will not be impaired by Ibc loan assumption and that the risk of' a breach or any covenant or agree]heat in this Security lnstrmnent is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a conditiou to Lender's consent to tire loan assmnption. Lender also may require tile transferee to sign an assumption agreement that is acceptable to Lender and that obligates the hansl'eree to keep all the promises and agreements lnade in tl'le Note MULTISTATE ADJUSTABLE RATE R~DER - ,_IBOR SIX-MONTH INDEX (as PUBLISHED IN THE WALL STREET JOURNAL)- Single Family - Fannie Mae Uniform Instrume['t Page 2 el~ 3 Fo,r~m.,_~138 110:1. : Borrower(s) Initials ~' IDS, Inc., (800)554-1§72 kilN: 100015700036104509 Lotto Number: 59175201 and in tiffs Security Instrnment. Borrower will continue to be obligated under the Note and this Security lnstrnment unless Lender releases Bmlower in writing. If Lender exercises the option to require immediate payment in lidl, Lender shall give Borrower notice of acceleration. The nolice shall provide a period of not less than 30 days Ii'om the date the notice ~s given in accordance with Section 15 within which Borrower must pay all sums seem-ed by this Security Instrument If Borrower fifils to pay these sums prior to ll~e expiratmn of this p~riod, Lender may revoke any remedies permitled by this Security Ins~rumeni without fi~rther notice or demand on Borrower. BY SIGNING BELOW, Bowower accepts and agrees to the terms ami covenants contained in this i Cecil O. Topp -Borrower ~Denis; S. Tupp -Bon-ower MULTISTATE ADJUSTABLE RATE RIDER - LIBOR SIX-MONTH INDEX (AS PUBLISHED IN THE WALL STREET JOURNAL)- Single Family - Fannie Mae Uniform Instrument Page 3 of 3 Form 3138 1/01 IDS. Inc., (B001554-11t72