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HomeMy WebLinkAbout900723ReturnTo: Major Mortgage 6101 Yellowslone Rd LL17 Cheyenne, WY 82009 888-589-9500 Prepared By: 6101 Yellowstone Rd LL17 Cheyenne, WY 82009 888-589-9500 900723 RECEIVED LINCOL?,t OOUt'.,!TY CLERK [Space Above This Line For Recordi.g l)atal MORTGAGE 0001604243 DEF'[NIT1ON S Words used in multiple sections of this document are defined below m~d other words are defined in Sections 3, 11, 13, 18, 20 a,d 21. Certain rules regarding the usage of words used in this document are also provided in Seclion 16. (A) "Security Instrument" means Il]is document, which is dated July l sr, together with all Riders to thi) document. (B) "Bo rrower" is Daniel L. [~annell Jr. and Kerri M. Pannell, Wife 2004 Husband and Borrower is the mortgagor tamer this Security Instrument. (C) "Lender" is MaSor Mortgage Lender is a Wyoming Corporau:ion organized and existing tinder '[he laws of The StaEe of Wy_omlng WYOMING-Single Family-Fannie ~ae/Freddie Mac UNIFORM INSTRUMENT VMP MORTGAGE FORMS - (800)521-¢291 I:orm 3051 1101 Lender's address is 6101 Yellowstone Rd LL17, Cheyenne, WY 82009 646 Lender is the mortgagee under ~his Seyurity Instrument. (Dp "Note" means the promissory note signed by Borrower and dated July 1st, 2004 The Note states that Borrower owes L'ender One Hundred Twenty Thousand and no/100. Dollars (U.S. $ 120,000.00 ) ph!s interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in f~ll not later than duly 1st, 2034 (E) "Property" means the property that is described below under the beading "Transfer of Rights in the Property." (Fy "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sinus due under this Security Instrument, plus interest. (G) "Riders" means all Riders to thi~ Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrowei' [check box as applicable]: I--I Adjustable Rate rdder [-3 Condominium Rider ~--I Second Home Rider ~ Balloon Rider ~] Plan~ed Unit Development Rider ~] 1-4 Fancily Rider ~ VA Rider F~ Biweekly Payment Rider [~ Other(s) [specifyl Tax Exempt Financing Rider (It) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative ?Hies and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinion,s. (I) "Cmnmunity Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on,Borrower or the Property by a condominium association, homeowners association or similar organization. (ap "Electronic Funds Transfer" 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 magdetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such teetH incl,]des, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfei's initiated by telephone, wire transfers, and automated clearinghouse transfers. (Ky "Escrow Items" means thcseitems tbat are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid uuder the coverages described in Section 5) for: (i) damage to, or destruction or; the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property'. (My "Mortgage Insurance" m~ans insurance protecting Lender against the nonpay~nent of, or default on, the Loan. (Ny "Periodic Payment" mean; the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Sec'.ion 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they ~night be amended from time to time, or any additional or succ.~ssor legislation or regulation that governs the stone subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortga~.e loan" even if the Loan does not qualit? as a "federally related mortgage loan" under P, ESPA. (WY) (o00s) ~ t o~ ~ s Form 3051 1101 (P) "Successor in Interest of Borrower" means any party tbat has taken title to the Property, whether or not that party has assumed Borrower. s obligations under tbe Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; anti (ii) the performance of Borrower's covenants and agreements under this Security lnstrmnent and the Note. FOr this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the following described property located in the Linco l'n of Count y [Type of Recordir g Jurisd!ction] [Name of Recording Jurisdiction] Lot 62 of Star Valley Randh Plat 14, Lincoln County, Wyoming as described on ~he official plat therof. Parcel ID Number: which currently has the address of 757 Alta Drive [Street] Thayne [Cibq , Wyoming 83127 [ZipCode] ("Property Address!'): TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, anti 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 ts referred to in this Security Instrument as the "Property.' BORROWER COVENANTS that Borrower is lawfully seised et' the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that tile Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally tile title to the Property against all claims mid demands, subject tq, ~y encumbrances of record. THIS SECURITY INST-~UMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a unitbrm security instrument covering real property. UNIFORM COVENAN'['S. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow I/ems, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note mid any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payme~ts due nnder the Note and this Security Instrument shall be made in U.S. currency. However, if any chezk or o,+her instrument received by Lender as payment trader the Note or this (~-6(WY) (ooo~) Page ~ et ts C~7~ Form :3051 1/01 .-648 Security Instrun~ent is returned to Lender unpaid, Lender may require that any or all subsequent payments due under tile Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon ail institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Paymen[s are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payme,~t or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may ~ccept 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 Lender is not obligated to apply such payments at the time such paymems are accepted. If each Periodic Pa?ment is'applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower loes net do so within a reasonable period of time, Lender shall either apply such funds or return them to B)rrowm If not applied earlier, such funds will be applied to the outstm~ding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or perfbrming the covenants and agreements secured by this Security Instrument. 2. Application of Payn ents or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due. tinder the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payinent in the order in which it became due. Any remaining amounts shall be applied first to late ch'xrges, second to any other mnounts due under this Security Instrument, m~d then to reduce the principal balance of the Note. If Lender receives a payment fi'om Borrower for a delinquent Periodic Payment which includes a sufficient mnount to pay any lite charge due, the payment may be applied to the delinquent payment mid the late charge. If more than o{,e Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repaymeat of the Periodic Payments if, and to the extent that, each payment can be paid iu fidl. To the extent that'any excess exists after tile payment is applied to the fu!l payment of one or more Periodic Payments, such ~xcess 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 tile Note shall not extend or postpone the due date, or change the mnount, of the Periodic. Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on tile 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 and other items which can attain priority over ~his Security Instrument as a lien or encmnbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any stuns payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with tile provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly ft, rnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds lbr Escrow ltems unless Lender waives Borrower's obligation to pay'the Fuhds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver. Borrower shall pay directly, when and where payable, the amounts (!~d~ (w ¥)iooo~ Paga4o115 ..~9 Form 3051 110t · (": 649 due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receil ts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement ;ontained in this Security Instrument, as the phrase "covenant and agreement" is I~sed in Section 9. If Borrower is obligated to pay Escrow Items directly, pursnant to a waiver, and Borrower fails to pay the am,sunt dti'e for m~ Escrow Item, Lender may exercise its rights under Section 9 and pay such amount ,'md Borrower ' shall then be obligated tinder Section 9 to repay to Lender any such anmunt. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upton sucb revocation, Borrower shall pay to Lender all Funds, and in such amounts,, that are then required t~nder 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 time specified under RESPA, mid (b) not to exceed the maximum amount a lender can require tinder RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be. held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (incLuding Lender, if 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 tinder RESPA. Lencler sha!l not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law p~',rmits Lender to make such a charge. Unless mi agreement is made in writing or Applicable Law requires i~terest to be paid on the Funds, Lender sball not be required tO pay Borrower m~y interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus o(; Funds held in escrow, as defined under RESPA, Lender shall account to -Borrower for the excess fi. lnd'~ 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 amount necessary,lo make' up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 ~nonthly payments. Upon payment in full o.~ all stuns Secured by this Security Instrument, Lender shall promptly retired to Borrower any Funds held I::y Leuder. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if rely. To the extent that these items are Escrow ltems, Borrower shall pay the,n in the manner provided in Section 3. Borrower shall promptl'!, discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien ill a mariner acceptable to Lender, but only so long ~ s Borrower is performing such agreement; (b) contests the lien in good thith 'by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures 'from the holder of the lien an agreement satisfactory to Lender subordinating tile lien to this Security Instrument. If Lender deternfines that any part of the Property is subject to a lien which can attain priority over this S¢'curity Instrument, Lender may give Borrower a notice identifying the I~-6 (WY) Page 5 of 15 inilial~:~_ Form 3051 1101 oBg 'TZ3 -.. 6 5 0 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 at'ove in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvemenls now existing or hereafter erected on the Property insured against less by fire, ha?ards included within the term "extended coverage," and any other hazards including, but n)t limited to, earthquakes ,and floods, for which Lender reqmres insurance. This insurance shall be maintained iii the amounts (including deductible levels) and fol' the periods that Lender requires. What Lender; requires pursuant to the preceding sentences can change during tile 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 connection with this Loan, either: (ap a one-time charge for flood zone determination, certification and tracking services; or (bp a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by th,i~ Federal Emergency Management Agency in connection with the review of any flood zone determination 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 and Borrower's expense. Lender is under no obligation to purchase any particular type or an~ount of coverage. Thereibre, 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 tnight provide greater or lesser coverage than was previously in effect. Borrower aclamwledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any aniounts 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 of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be. subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall nmne Lender as mortgagee and/or as an additi6nal los; payee. Lender shall have the right to hold the policies and renewal certificates, if Lender requires, Borro:wer shall promptly give to Lender all receipts'of paid pre~nitnns and renewal notices. If Borrower 9brains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction'of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/er as an additional loss payee. In the event of loss, Bor!'ower shall give prompt notice to the insurance carrier and Lender. Lender may ~nake proof of loss if not.made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proc,:eds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or reF. a'ir of fl~e Property, if the restoration or repair is economically feasible and Lender's security is not lessem~d. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds hntil Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly· Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the w()rk 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 proceeds. Fees for public adjusters, or other 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 sums.secured by this Security Instrument, whether or not then due, with (~)~-6 (WY) (ooos) lailials~ Page e, of 1§ Form 305t 11Ol 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 Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered t:o settle a claitn, then Lender may negotiate arid settle the claim The 30-day period will begin when the lotice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an mnount not to exceed the mnounts unpaid lmdcr the Note or this Security lnstrmnent, arid (b) any other of Borrower's rights (other than the right to any retired 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. Len'}ler may use tire insurance proceeds either to repair or restore the Property or to pay amounts unpaid under l:l~e Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrow"~r shali occupy, establish, and use the Property as Borrower's principal residence within 60 days afte' the execution of this Security lnstrunlent and shall continue to occupy the Property as Borrower's princiCal, 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 extenualing circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of lhe Property; Inspections. Borrower shall not destroy, damage or impair !:lie Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Bo:rower js residing in the Property, Borrower shall maintain the Property in order to prevent the Property from ueteriorating or decreasing tn value due to ~ts condition. Unless it is determined pursuant to Sectitm 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with dmnage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proce:ds for the repairs and restoration in a single payment or in a series of progress payments as the work is cotnpleted. If the insurance or condemnation proceeds are not sufficieut to repair or restore the Prope;'ty, 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 inspec, 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 Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, nfisleading, or inaccurate information or statements to Lender (or tailed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as.Borrower's principal, residence. 9. Protection of Lender's Interest in lhe Property and Ritlhts Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might sigr~ificantly 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 has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to' protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, mid 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 Securi'ty Instrument; (b) appearing in court; and (c) paying reasonable (~l~-6(WY),(0o05) page?oil, r~,~{~) Form 3051 1/01 652 atxorneys' fees to protect its interest ir the Property and/or rights under this Security Instrument, inch]ding its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender ma), take ~ction under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability /'or not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security lnstru*nent. These an~ounts shall bear interest at the Note rate from the date of disbursement and shall be payable, ~;ith such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall co~nply with all the provisions of the lease. If Borrower acquires fee. title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage lnsurance.'lf Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums 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 premimns for Mertgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in.effect, at a cost substantially equivalent to the cost to Borr~)wer Of the Mortgage Insurance previously in effect, fi'om an alternate mortgage insurer selected by Lende[. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated pay~nents that were due when the insurance :overage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fi~ct that the Loan is ultimately paid in full, and Lender shall not be required to Pay Borrower any i,nterest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insuran:e coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Leuder requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of m~&ing the Loan and Borrower was required to make separately designated payments toward the pre~nium~ tbr Mortgage lnsuran6e, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Instaance ends in accordance with any written agreement between Borrower and Lender providing for such tern3'inati0n or until termination is required by Applicable. Law. Nothing in this Section 10 affects Borrower's oaligation to pay interest at the rate provided in the Note. Mortgage Insurance reiml;urses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluat: their total risk on all such insurance in force frotn time to time, and may enter into agreemems with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage inst ret may have available (which may include funds obtained frmn Mortgage Insurance premiums), i 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~otmts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in excl!ange for sharing or modiSying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of L~nder takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrap, gement is often termed "caplive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund, Initiate (~-6(WY) 1ooo5} Page a o~ Is , Fo~:m 305t 1101 ':' '.'.'" 'i'i;',.';!'i; : ',.' ".-".;. ' -' ,: (b) Any such agreement's will ~ot affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the ltomeowners Protection Act of 1998 or any other law, These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurauce premiums that were unearned at tile time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lende,'. If the Property is damage'd, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lenrler's security is not lessened. During such repair and restoranon period, Lender shall have the right to hold'such Miscellaneous Proceeds until Lender has bad an opportunity ~o inspect such Property to ensure the work has been completed to Lender' s'satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay {br the repairs mM restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on sucb Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, tile lVliscellaneous 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 for in Section 2. In the event of a total taking, destruction, or loss in value of tile Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borr 3wer. In the event of a partial taking, destruction, or loss in value of tile Property in which the fair market value of the Property unmediately before the partial taking, destruction, or loss m value is equal to or grealer than tbe an~ount of thc sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in~value, unless Borrower and Lender otherwise agree in writing, the sums secured by tbis Security lnst'mnent shall be reduced by the anmunt of the Miscellaneous Proceeds multiplied by the following fi'action:' (a) the total amount of the sums secured inunediately before tl~e 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 Pair market value of the Property immediftely before the partial taking, destruction, or loss in value is less than the amount of the sums secured i nmedit.tely before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwis*s agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security lnstrmnent whether or not the sums are then due. If the Property is abanconed by Borrower, or 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 dmnages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Misct.llaneot.:s Proceeds either to restoration or repair of the Property or to the stuns secured by this Security I astrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Pr3ceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in defimlt if aay action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rigl'.ts under this Security Instrument. Borrower can cure sucb a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be disinissed with a ruling that, in Lender's judgment, precludes fbrfeiture of the Property or other ~naterial impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for danlages 'that are attributable to the impairment of Lender' s interest in the Property are hereby assigned and shall b'~ paid to Lender. All Miscellm~eous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided tbr in Section 2. (~-6 (W Y). Page 9 of 15 Form 3051 1101 12. Borrower Not Relea.;ed; Forbearance By Lender Not a Waiver. Extensmn of the ti~ne for payment or modification of tune rtization oftbe sums secured by this Security Instrument granted by Lender to Borrower or any Successor i:~ Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of 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 secured by this; Security lnstrmnent by reason of any demand made by the original Borrower or any Successors in ~nterest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, .Lender's acceptm~ce of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount tbeu due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Li;~bility; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations t.nd liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but .Joes not execute the Note (a "co-signer"): (al is co-signing this Security Instrmnent only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security lnstrume~lt; (bi is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, ntodify, tbrbear or make any accommodations whh regard to the terms of this Security Instrument or the Note without the co-signer' s consent. Subject to the provisiom of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under ti is Secuiity Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and beaefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument nnless Lender agrees to such release in writing. The covenants and agreemems of this Security htstrument sball bind (except as provided in Section 20) and benefit the succ :ssors and assigns of Lender. 14. Loan Charges. Lender 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, the absence of express authority in this Security Instrument to charge a specific tee to Borrower shall not be construed as a prohibition on the charging of such tee. 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 connectiou with the Loan exceed the permitted limits, then: (al any such loan charge shall be _~educed by the amount necessary to reduce the charge to the permitted limit; and (bi ar~y sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refi~nd 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 prepaymem charge (whether or not a prepayment charge is provided:fbr unoer the Note). Borrower's acceptance of any such rel'und made by direct payment to Borrower wili constit,~te a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice ",o 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 other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated.a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at tu~y one time. Any notice to Lender shall be giver', by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender las desi3nated 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 req'riremen, will satisfy the corresponding requirement under this Security Instrument. i' , Inilials: ~.~ (0005) ,, Page i0 o~ ~5 ~j/~g Form 3051 1101 655 1.6. Governing Law; Severabil;ty; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which lhe Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable L~.w might: explicitly or implicitly allow the parties to agree by contract or it nfight be silent, but such silem e shall r)ot be construed as a prohibition against agree~nent by contract. In the event that any provision or clause of this Secnrity Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provismns of this Security Instrument or the Note which can be given effect without the conflicJng provision. As used in this Secarity Instrument: (a) words of the masculine gender shall mean m~d include corresponding neuter words ot words 3f the feminine gender; (b) words in the singular shall mean and include the plural and vice verm; and (c) the word "may" gives sole discretiou without any obligation to take any action. 17. Borrower's Copy. Bc rr6wer z hall be given one copy of the Note and of this Security Instrument 18. Transfer of the Pro:t~erty or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property meats any legal or beneficial interest in tide Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or 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 pay~nent in full of all sums secured by this Security Instrument. However, this op:ion shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this cption, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not ~ess than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right ta 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 specify for tide termination of Borrower's right to reinstate; or (c) entry of a iudgment enforcing this Security Instrument. Those conditions are that Borrower: (a) paya Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any ddhult of any olher covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrumeot, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other tees incurred for the purpose of protecting Lender's interest in the Property todd rights under this Security Instrmnent; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instr'_~ment, and Borrower's obligation to pay the sums secured by this Security lnstrmnent, shall continue unchanged. Lender may require that Borrower pay such reinstatement stuns and expenses in one or more of tke tbllowing 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 insnrcd by a federal agency, instrumentality or entity;, or (d) Electronic Funds Transfer. Upon reinstattment by Borrower, this Security Instrulnent and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to r~instate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security lnstn~ment) can be sold one or more 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 a,~d performs other mortgage loan servicing obligations under thc Note, tiffs Security Instrument, m~d Applicable Law. There also might be one or more changes of the Lorn ServLzer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be giv,m written notice of the change which will state the name mid address of the new Loan Servicer, the address to which payments should be made and any other information RESPA (~-6(WY) (ooo~) Pag~ 11 of 15 Inilials: .~ Form 3051 1101 requires in connection with a notice o~' transfer Of servicing. If tile Note is sold trod thereafter the Loan is serviced by a Loan Servicer other thar the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with tt,e Lear: Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser imless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the meml.,er 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 with the requirements of Section 15) of such alleged breach and aflbrded the other party hereto a reasonab'e peri,vd after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall:be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or l-.azardo is substances, pollutants, or was~es by Environmental Law mid the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials;. (b) "Enviromnental Law' means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or envi~!onmen:al protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall no~ cause 6r permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to releas, e any Hazardous Substances, on or iii the Property. Borrower shall not do, nor allow anyone else to do, ar. ything affecting the Property (a) that is in violation of any Environmental Law, (b) which Cremes at] Envir'onmental Condition, or (c) which, due to tile presence, use, or release of a Haz~dous Substance, cremes a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substatlces that are generally recognized to be approprime to normal'residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by at~y govermvental o~ regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including bul not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulat:ory autqority, or m~y private party, that any removal or other remediation of any Hazardons Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with [~nvirotunental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. (~j}_.-6(WY)(ooo~) va~o~ Form 3051 1/01 657 NON-UNIFORM COVENANTS. Borrower m~d Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in tbis Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, uot less than 30 days froln tile date the notice is given to Borrower, by which the default must be cared; aud (d) that failure to care the default on or before the date specified ill the notice may result in acceleration of the sums secured by this Security Instrument 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 defense of Borrower to acceleration and sale. If tile default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment iu full of all sums secured by this Security Iustrument without further demand and may invoke the power of sale and any other remedies permilted by Applicable Law. Leuder shall be entitled to collect all expenses incurred in pursuing the relnedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs t,f title evidence. If Lender invokes tile power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed lly Applicable Law. Lender or its designee may purchase the Property at ally sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, iucluding, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Iustrument; and (c) ally 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 shall pay any recordation costs. Lender may cb~ge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third pmty for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under trod by virtue of the homestead exemption laws of Wyoming. (~-~ (WY) Page E3 of 15 f.~.[;') Form 3051 1101 6,58 BY SIGNING BELOW, ~orro~er accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: Daniel L. Pannell Jr. -Borrower -- KeX~r] M. Pannell - X-Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (~J~6 (WY).(ooos) Page 14 of 1§ Form 3051 1101 659 STATE OF WYOMING, Lincoln The foregoing instrument was acknowledged before me this by Daniel L. Pannell Jr. and Kerri M. Pannell July lst~ County ss: 2004 ~/~otary ?ubhc Form 3051 1/01 0900"?Z3 .... 6. 0 PLANNED UNIT DEVELOPMENT RiDER OOO16O4243 Tills PLANNED UNIT DEVELOPMENT RIDER is made this 1 st day of duly 2004 , and is incorporated into and shall be deeme'd 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 Ma3or Mortgage (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 757 Alta Drive, Thayne, WY 83127 [Property Address] The Property includes, but is net limited to, a parcel of hind improved with a dwelling, together with other such parcels and certain conmmn areas and facilities, as described in Star Valley Ranch Association, (the "Declaration"). The Property, is a part of a planned unit development known as Star Valley Ranch LName of Planned Unit'Develo pment] (the "PUD"). The Property alse includes Borrower's interest in the homeowners association or equivalent entity owning or managing the common areas and t:acilities of the PUD (the "Owners Association") and the uses, benefits and proceeds of Borrow~'~.r' s interest. PUD COVENANTS. In z.ddition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. PUD Obligations. B)rrower 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 or any equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or rt:gulations of the Owners Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. MULTISTATEPUD RIDER- Single i2'amily- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Aorm 3150 1101 Page 1 of 3 Initials:.~).~ (~;7 R. (0008) "VMP 'VIORTGAGE FORMS-(800)521-7291 ~[~ B. Property Insurance. So l'ong as the Owners Association maintains, with a generally accepted insurance carrier, a "master" o~ "blanket" policy insuring the Property which is satisfactory to Lender and which provides insurance coverage in the an~ounts (including deductible levels), for the periods, and 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, then: (i) Lender waives the prowsion in Section 3 for the Periodic Payment to Lender of the yearly premium installments for properW insurance cn the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. What Lender requires as a condition of this waiver can change during l he term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. In tile event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to copm'~on areas m~d facilities of the PUD, m~y proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply the proceeds to the sums secured by the SecuriW Instrument, whether o~ not then due, with the excess, if any, paid to Borrower. C, Public Liability lnsurauce. 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. Condemnation. The proceeds of any award or clailn for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property or tile common areas and facilities of the PUD, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to tile su[ns secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abm~domnent or termination of the PUD, excep~ for abandomnent or termination required by law in the case of sabstantial destruction by fire or other casualty ~r in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provisicn of tl~e "Constituent Documents" if the provision is for the express bene fit of Lender; (iii) termination of profess.onal management and assumption of self-management of the Owners Association; or (iv) any actio~ which would have the effect of rendering the public liability insurance coverage maintained by the Owners Aasociation unacceptable to Lender. F. Remedies. If Borrower does not pay PUD dues mad assessments when due, then Lender may pay them. Amy amounts disbursed bY Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lencer to Borrower requesting payment. (0008) Page2 of 3 ~__ Form 3150 ilO1 BY SIGNING BELOW, Borrower accepts and agrees m the terms and provisions contained in this PUD Rider. Daniel L. Pannell Or. -Borrower · Ke~ M. Pannell -Borrowe[ (Seal) (Seal) -Borrower -Borrower __ __ (Seal) -Borrower (Seal) -Borrower __ (Seal) (Seal) -Borrower -Borrower ~7 R (000§) Page 3 of 3 Form 3150 1101 0001604243 "' ' O ~ O,~1'~;~,~ MORTGAGE ADDENDUM The following is an Add.~ndum to the Mortgage. The addendum shall be incorporated into, and reco~fded with the Mortgage. TAX EXEMPT FINANCING RIDER This Tax-Exempt Fiqancing Rider is incorporated into and shall be deemed to amend the terms of the Mo,'tgage to which it is attached. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lende~ further covenant and agree as follows: Lender, or such of its successors or assigns as may, by separate instrument, assume responsibility for assuring compliance by the Borrower with the provisions of this Tax Exempt Financing Rider, may require immediate payment in full of all sums secured by this Security Instrument if: a) All or part of the Property is sold or otherwise transferred (other than by devise, descent or operation of law) by Borrower to a purchaser or other transl:eree: i) Who cannot reasonably be expected to occupy the property as a prin.;ipa residence within a reasonable time after the sale or transfer, ¢.1 as provided in Section 143(c) and (i) (2) of the Inte,'nal Re. venue Code; or ii) Who has had a present ownership interest in a principal residence during any part of the three year period ending on the dat( of the sale or transfer, all as provided in Section 143(d) and (i) (2) of the Internal Revenue Code; or iii) At an acquisition cost which is greater than 90 percent of the average area purchase price (greater than 110 percent for targeted area residences), all as provided in Section 143(e) and (i) (2) of the Internal Revenue Code; or iv) Whose family income exceeds applicable income limits as provided iq Section 143(0 and (i) (2) of the Internal Revenue Coce. b) Borrower fails to occupy the property described in the Security Instrument without prior written consent of the lender or its successors and assigns Described at the beginning of this Tax Exempt Financing Rider, or c) Borrower omits cr misrepresents a fact that is material with respecl to the provisions o': Section 143 of the Internal Revenue Code in an application.for the loan secured by this Security Instrument. References are to the Internal Revenue Code as amended, in effect on the date of execution of the Security In,.~trument and are deemed to include the implementing regulations. BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions in this Tax Exempt Financing Rider. Borrower MPP 210-B (Revised 12/95)