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HomeMy WebLinkAbout900759tt30700 (02) Return To: THE 3ACKSON STATE BANK & TRUST ]12 CENTER ST.. P O'BOX ]788. JACKSON. WY 83001 Prepared By: Lorene Carter 900759 aG0,-, ,. 776 BOOK ~.~_~PR PAGE' Rr_ ¢clVED LINCOLN (.';C'~UNTY 6LERK [Space Above This Line For Recordi~g Dalai MORTGAGE DEFINITIONS Words used in multiple sections of this docmnent are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certaiu rules regarding thc usage of words used m this document are also provided in Section 16. (A) "Security Instrument" means tiffs document, which is dated Iogether with all Riders to this document. (B) "Borrower"isHartin P Aroian and Dianne L. Lowry. June 28. 2004 Husband and Wife Borrower is the mortgagor under tiffs Security lnslmment. (C) "Lender" is THE JACKSON STATE BANK & ]-RUST Lender is a State Bank organized and existing under the laws of THE STATE OF WYOMING ARO I AN / LOWRY 58907360 :WYOMING-Single Family-Fanni~ Mae/Freddie Mac UNIFORM INSTRUMENT ~®-6(WY) Iooos~ Page 1 ot 15 MW O5/O0.01 Initials: VMP MORTGAGE FORMS - (8OO}52~-7291 Form 3051 1/O1 ODOO .... 777 Lender's address is 112 CEIqTER ST.. P 0 BOX 1788. ,JACKSON, WY 83001 Lender is the mortgagee undei- this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated c~une 28. 2004 The Note states that Borrowe' owes Lender One Hur~dred Fi fry Two Thousand tight Hur~dred and no/100 Dollars (U.S $ ]_52,800.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in fidl not later than ,Jul3/ 1 2034 (E) "Property" means the pr, cperty that is described below under the heading "Transfer of Rights in the Property. ' (F) "Loan" means the debt eT-denced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest: (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by 3orrower [check box as applicable]: ~1Adjuslable Rate Rider !~ Condomininm Rider [~ Second Home Rider 1---] BalLoon Rider [_~--~ Planned Unit Development Rider I~] 1-4 Family Rider [---] VA Rider [_-2 Biweekly Payment Rider [~ Other(s) [specify] (H) "Applicable Law" means all controlling applicable federal, state mid local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opiniors, s. (1) "Community Associntiop, Dues, Fees, and Assess~nents" means all dues, fees, assessments and other charges that are iml)osed on Borrower or the Property by a condominium association, homeowners association or siinilar organizaiion. (J) "Electronic Funds Trat?sfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magr,etic tape so as to order, instruct, or anthorize a financial institution to debit or credit an account. Snch term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfeys initiated by telephone, wire transfers, and automated clearinghouse transfers. : (K) "Escrow Items" means liiose items that are' described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages,' or proceeds paid by any third party (other than insurance proceeds paid nnder dm coverages described in Section 5) for: (i) damage to, or destruction of, tile Property; (ii) condenmation or other taking of all or any part Of the Property; (iii) conveyance in lieu of condenmation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" ~neans insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" me~'ns the regularly scheduled amouut title for (i) principal and interest nnder the Note, plus (ii) any amounts uader Section 3 of this Security lustrmnent. (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 might be amended froln time to time, or any additional or sutcessor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restric4ions that are imposed in regard to a "federally related mortg4ge loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. AROIAN/LOWRY 58907360 0 initials: (~)~-6(WY) {ooo5} Paoe 2 o¢ 15 Form 3051 1/01 .... 778 (P) "Successor in lnteresl cf Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Nme and/or this SecuritY Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument sec,ires to Lender: (i) the repayinent of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements nnder this Security lnstrnment and the 'N~te. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's success, ors and assigns, with power of sale, the following described property located in tile County of ki ncol n : [Type of Recording Jurisdictionl INa,ne of Recording Jurisdiction] Legal description attacl~ed hereto and made a part thereof. Parcel 1D N~mber: 260 Redwood Road Thayne ("Property Address"): which currently has the address of [strceq ICity] ,Wyomtng 83127 [Zip Codel TOGETHER WITH all the improvements no'o/ or hereafter erected on the property, and all easements, appurtenances, ~md 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 riffs Security Instrument as tile "l:'roperty." BORROWER COVENANTS that Borrower is lawfully scised of tile estate hereby conveyed and has the right to mortgage, grant and convey tile Property and that tile Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY I.NSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a unilbrm security instrument covering real property. UNIFORM COVENA~,ITs. Borrower and Lender covenant and agree as folloxvs: 1. Payment of Principhl, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the No~e and any prepayment charges and late. charges due under the Note. Borrower shall also pay fimds for Escrow Items pursuant to Section 3. Payn,'_ents due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this AROIAN/LOWRY 58907360 0 hfitials: 6(WY) 4ooo5) Paue 3,~t ~5 Form 3051 1/01 Security Instrument is returned to Lender nnpaid, Lender may rcqt. re that any or all subsequent paymeots due under the Note and this Security Instrumeut be made in one or more of tile 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 upou an iustmnion whose deposits are insured by a federal agency, instrumental. Py, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender i,l accorda,lce with the notice proVisious in Section 15. Lender may return any paynlent or partial payment if the payment or partial payments are iosufficient to bring the Loan current. Lender may accept any payment or pa,-tial paymeut insufficient to bring the Loan current, without waiver of m~y, 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 payments are accepled. If each Periodic Fayment 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 BorroweFdoes not do so within a reasonable period of time, Lender shall either al)ply such funds or return them to 3orrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the ~qote inunediately prior to foreclosure. No offset or claim which Borrower might have now or in the fu'ure against Lender shall relieve Borrower from lnaking payments due uuder the Note and this Security Instrument or performiug the covenants and agreements secured by this Security Instrument. 2. Application of Paynlents or Proceeds. Except as otherwise described in this Section 2, all payments accepted and appli,~d by Lender shall be applied in the following order of t)riority: (a) interest due under the Note; (b) privcipal due under the Note; (c) amounts due under Section 3. Such payments' shall be applied to each Periodic Payment in the order in which it became due. Any remaining mr~ounts shall be applied first to late charges, second to any other amounts due under this Security Instrnment, and then to reduce the principal b,flance of the Note. If Lender receives a pFyinent from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pa~ any. late charge due, the payment may be applied to the delinquent payment and tile late charge. If more than ooe Periodic Payment is outstanding, Lender may apply any payment received' from Borrower to tile repayn:'ent of the Periodic Payments if, and to the extent that, each payment can be paid in full. 'Fo the extent th;:.t any excess exists after the payment is applied to the full paymeot of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in tile Note. Any application of paynqents, insurance proceeds, or Miscellaneous Proceeds to principal due nmler the Note shall not exteod or pQstpone the due date, or change die amount, of the Periodic Payments. 3. Fuuds for Escrow items. Bon'ower shah pay to Lender ou the day Periodic Payments are due under the Note, until the Note is paid in full, a suni (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or eucumbrance on the Property; (b) leasehold payments or ground reuts ou the Property, if any; (c) premiums for :my and all insurance required by Lender under Section 5; and (d) Nlortgage Insurance premiums, if aoy, or any stuns payable by Borrower to Leuder ill lieu of the payment of Mortgage Insurance premiums ill accocdance with the provisions of Section 10. These items are called "Escrow hems." At origination or at any time during the tern~ of the Loan, Leoder may require thai Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrcw Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Eorrower shall pay Lender the Fuuds for Escrow Items unless Lender waives Borrower's obligation to pay the Fnnds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Fnnds for any or all Escrow Items ;it any time. Any such waiver may only be in writing. Iii the event of su~ch waiver, Borrower shall pay directly, when and where payable, thc amounts AROIAN/I_OWRY 58907360 0 (~-6(WYI (ooos Inidals: Form 3051 1/01 7GO due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment widfin such ti~ne 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 anti agreement contained in this Security Instrument, as tile phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow hems directly, pursuant to a waiver, and Borrower fails to pay tile amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay ~uch mnount and Borrower shall then be obligated uuder Section 9 to repay to Lender any such amount. 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, upon such revocation, Borrower shall pay to Lender all Fnnds, and in such mnounts, that are then required under this Section 3. Lender inay, at any time, collect and hold Funds in an amount (a) sufficient to pernfit Lender to apply tile Funds at lhe time specified under RESPA, and (b) not to exceed tile maximum amount a lender can require under RESPA. Lender shall esti~nate the amount of Funds due on the basis of currcm data aud 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 (in :lading I.ender, if Lender is an i,~stimtion whose deposits are so insured) or ill any Federal Home Loan Bank. Lender shall apply tile Funds to pay the Escrow Items no laler Iban the time specified under RESPA. Lender shall not charge Borrower for holding anti applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law l:'ermits Lender to make such a charge. Uuless an agreement is made in writing or Applicable Law 'requires !,nterest to be paid on tile Funds, keuder shall not be required to pay Borrower any interest or earnings on ,~he Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, widLont charge, an annual accountiug of the Funds as required by RESP,a~,. If there is a surplus o[ Funds held in escrow, as defiucd under RESPA, Lender shall account to Borrower for tile excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as reqlmed by RESPA; and Borrower shall pay to Lender the amount uecessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there i~ a deficiency of Funds held in escrow, as deft,led 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 accordar,ce with RESPA, but in no inore than 12 monthly payments. Upon payment in lull cf all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 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 paymeuts or ground reuts on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly 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 in a rammer acceptable to Leuder, but only so long as Borrower is perfurming such agreement; (b) contests the lien in good faith by, or defends against enforbement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lieu while those proceedings are pcuding, but only until such proceedings are concluded; or (c) secures trom the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender dcternfines that auy part of the Property is subject to a lien which can attain priority over this Security lnstrmnent, Lender may give Borrower a notice ideutifying the AROIAN/LOWRY i~-6(WY) Iooos} 58907360 0 Initials: Page 5 o[ 1!5 Form 3051 1/01 0.90U ?a lien. Within 10 days of the di~t;e on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth .t.bove in this Section 4. Lender may require.Bo/rower to pay a one-time charge lbr a real estate tax verification and/or reporting service used by Lender in connection with this koan. 5. Property Insnrance. Borrower shall keep the iml)rovcments now existing or hereafter erected ou the Property insured against'loss by fire, hazards included within thc term "extended coverage," and any other hazards including, but. not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be mawr tamed in the amounts (including deductible levels) and for the periods that I..ender requires· What Lendt r~ requires pursuant to the preceding sentences can change during the tern~ of the Loan. The insurance car;let 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, iv coxmection with this Loan, either: (a) a one4ime charge for flood zone detemfination, certificalion ~nd tracking services; or (b) a one-time charge for tlood zone determination and certificatiou services and subsequent charges each time remappings or similar changes occur which reasonably might affect sucL.determination or certification. Borrower shall also be responsible for the payment of m~y fees imposad by the Federal Emergency Management Agency in connection with the .review of any flood zone determination resulting from an objectiou by Borrower. If Borrower /'ails to mfiintain any of the coverages described above, Lender may obtain insurance coverage, at Leuder's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of' coverage. There/ore, such coverage shall cover Lender, but might or nfight not protect Borrower, Borrower's equity in the Property, or thc contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtaiued might significandy exceed the cost of insurance that Borrower couli::l have obtained. Any an-~ounts disbm'sed by Lender under this Section 5 shall become additional debt of Berrower secured by this Secnrity Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payahle, with such interest, upon notice from Lender to Borrower requestin, g payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such p01.icies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an addit.onal loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender require, s, Bm-rower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for dainage to, or destructio~ of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if nct made prompdy by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance pro'ceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is econonfically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds.' uutil Lender has had an opportunity to inspect such Property to ensure the work has been completed t,o Lender's satisfiiction, provided that such inspectiou shall be undertaken promptly. Lender may disbu:'se proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on sucl[ proceeds. Fees for public adjusters, or other dfird parties, retained 'hy Borrower shall not be paid o,.u of the insm'ance proceeds anti shall be the sole obligation of Borrower. It' the restoration or repair is net economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to .:he sums secured by this Security Instrument, whether or not then due, with AROIAN/LOWP, Y ,, 58907360 0 (~-6(WY) lO005l , Page 6 ol ~5 Form 3051 1/01 7~ '~ the excess, if any, paid to B~)~rower. Such insurance proceeds shall be applied in the order provided lbr in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related maners. If Borrower does not respond within 30 days to a.notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. Tbe 30-day period will begin when the notice is given. In either event, or il' Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an an~ount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any retired of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to die coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid unde: the Note or this Security lnsmuncnt, whether or not then due. 6. Occupancy. BorroWer shall occupy, establish, and usc the Property as Borrower's principal residence within 60 days after the execution of this Security lnstnnnent and shall continue to occupy tbe Property as Borrower's prin;ipal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably wittflield, or unless extenuatiug circumstances exist which ar'~ beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Properly from deteriorating or decreasing m value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not econonfically feasible, Borrower shall promptly repair the Property it' dmnaged to avoid further deterioration or damage. Il' insurance or condenmation proceeds are paid in connection with damage to, or the raking 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 proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condcnmation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion such repair or restoration. Lender or its agent ina)' make reasonable entries upou and inspections of the Property. If it bas reasonable cause, Lender may inspect the interior of the improvmnents 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 Atlpl!cation. Borrower shall be ill defauh 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, misleading, or inaccurate iufonnation or statements to Leuder (or failed to provide Leander with material reformation) in connection with tbe 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 Lend.~':r's Interest in the Property mid Rights Under this Security Instrnment. If (a) Borrower fails to perform !.he covenants' and agreemeuts contained in this Security Instrument, (t0 there is a legal proceeding that might significantly affect Lender's iuterest in the Property and/or rights under this Security Instrument (such as a proceeding in baJlkruptcy, prol)ate, for condemnation or Ibrfciture, for enforcement of a lien which may attain priority over this Security lnstrmnent or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay tbr whatever is reasonable or appropriate t3 protect Lender's interest in the Property and rights under this Security Instrument, including protechng mid/or assessing the value of thc Property, and securing and/or repairing the Property. Lender's actions can include, but are not litnited to: (a) paying any sums secured by a lien which has priority over th:s Security Instrument; (b) apl)caring in court; and (c) paying reasonable AROIAN/LOWRY 58907360 0 Initials: (~6(WY) 1ooo5} Page 7 ol ~s Form 3051 1101 78 attorneys' fees to protect its interest in the Property m~d/or rights under this Security Instrument, including tis secured position in a bankruptcy proceeding. Securing the Property inclndes, 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 may take action under this Section 9, Lender does not have to do so aud ~s not under any duty or obligation'to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security lnstrtm~ent. These amounts shall bear interes~ at the Note rate from the date of disbursement and shall be pay:able, with such interest, upon no,ce fi'om Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower sball comply with all the provisions of the lease. If Borrower acquires tee title to the Property, the leasehold and thc tee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premi.tms required to maintain the IMortgage Insurance in eft'ecl. If. tbr any reason, the Mortgage lnsm'ance cove'age 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 premiums tbr Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equiv,:lent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Berrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall cor~tinue to pay to Lender the amount of the separately designated payments lhat were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundab2e loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full. and Lender shall not be required to pay Borrower an~ interest or earnings on such loss reserve. Lender cau no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the 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 lbr Mortgage Insurance. If Lender required Mortgage h'tsurance as a condition of $'naking the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-rcl\mdable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such te:nfination or until ternfination ts required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance rei-nburses Lender (or any entity that purchases the Note) lbr certain losses it may iucur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with ot'.~cr parties that share or modify their risk, or reduce losses. These agreements are on ternrs and conditions that are satisfactory to the mortgage iusurer 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 insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, mty other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or ~mght be'characterized as) a portion of Borrower's payments lbr Mortgage Insurance, in exchange for sharing or' mofifYing the mortgage insurer's risk, or reducing losses. If snch agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the preminms paid to the insurer, the arrangemeut is often termed "captive reinsurance." Further: (at Any such agreements will not affect the ammmts 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 Insnrance, and they will not entitle Borrower to any refund. AROIAN/LOWRY 58907360 0 (~-6(WY) 100051 paoeso* ~5 Form 3051 1/01 (b) Any such agreemcn:s will not affect tile rights Borrower has - if any - with respect to tile Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may iuclude the right to receive certain disclosures, to ,'equest and obtain cancellation of the Mortgage Insurance, to lmvfi the Mortgage lnsnrance terminated automatically, and/or to receive a refund of any Mortgage Insurance prenfiums thai we,'e m~earned at the time of st~ch cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damzged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and resteration period, Lender shall have tile right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satishction, provided that such inspection shall be undertaken promptly: Lender may pay for the repairs and restoration in a single disbnrsement or in a series of progress payments as the work is completed. Unless an agreemeat is made in wrmng or Applicable Law requires interes~ to be paid on soch Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on soch Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to tile sums secured by this Secority Instrument, whether or not then due, wi'h the excess, if m~y, paid to Borrowe,'. 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 the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrumeut, whether or not then due, with the excess, if any, paid to Bc;rrower. In the event of a partia~ taking, destruction, or loss in value of the Property in which the t'air market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security l,~stru,nent innnediately before the partial taking, destruction, or loss..in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security lfmtrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured inm~ediately before the partial taking, destruction, Or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partita taking, destruction, or loss in wdue of d~e Property in which the fair market value of the Property innne'diately before the partial taking, destruction, or loss in value is less than the mnount of the soms secure~ i,nnnediately before the partial taking, desm, ction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to tbe sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after'notice by Lender to Borrower that the Opposing Party (as defined !,n the uext sentence) offers to make au award to settle a claim /'or damages, Borrower fails to respond lo Lender within B0 days after the date tile notice is given, Lender is authorized to collect and apply the Mi:;cdlaneous Proceeds either to restoration 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 tile party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judg~nent, could result m forfeiture of tile Property or other material impairment of Lender's interest in the Property or rigl:ts under this Security Instrument. Borrower can ct, re such a del:ault and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a riding that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's inte:est in the Property or rights under this Security Instrument. The proceeds of any award or claim tbr damages that are attributable to the impairlnent of Lender's interest in the Property 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 ti)r in Section 2. AROIAN/LOWRY (~-6(WY) (0005) 58907360 0 Initials: Page 9 ot ~5 Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security lustrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in luterest 'of Borrower. Leuder shall not be required to conm~ence proceedings against any Successor in Interest of' [~orrower or to refuse to extend time for payment Or otherwise modify amortization of the sums secu!'-ed by this Security Instrument by reason of any demand made by the original Borrower or any Successors in l~nterest of Borrower. Any tbrbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any rigl'4 or relnedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joiut and several, ltoweYer, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to ~,:.'ortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrunqe~;t; (b) is not personally obligalcd to pay the stuns secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modil~, fi)rbear or make any acconunodations witt: regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions Of Section 18, any Successor in Interest of Borrower who assmnes Borrower's obligations under this Security lnstrulnent in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrun~cnt unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrun~ent shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower tees fin' services performed in cormection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, incltiding, but uot limited to, attorneys' fees, property inspection and valuation fees. In regard to any other tees, thee absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the cl'mrging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collecled in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the pemfitted limit; ,and (b) any sums already collected from Borrower which exceeded pemfitted limits will be refunded to Bc~'rrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as'.a partial prepayment without auy prepayment charge (whether or not a prepayment charge is provided ~[br under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower w, ill constitute a waiver of an), 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 fustrument must be in writing. Any notice to Borrower in colmection with dfis 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 dcsignar~d a substitute notice address by uotice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifics 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 desigm, ted notice address under this Security Instrument at any one time. Any notice to Lender shall be given, by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security ,Instrument shall not be deemed to have been giveu to Lender until actually received by Lender. If any n.)tice required by this Security h~strument is also required nnder Applicable Law, the Applicable Law reqn.irement will satisfy the corrcspoudiug requirement under, dfis Security Instrument. AROIAN/LOWRY } 58907360 0 Initials: ~6{WY} Iooo5~ vaoo ~o of ~s Form 3051 1/01 .,.. '22? ':' -786 16. Governing Law; Severahility; Rules of Construction. This Security Instrument shall be governed by federal law and,the law of the jurisdiction in which die Property is located. All rights and obligations contained in this Security Instnnnent are subject to any requirements and liuritations of Applicable Law. Applicable Law might explicitly or implicitly allow tile parties to agree by contract or it might be silent, but such silehce shall not be construed as a prohibition against agreement by contract. In the event that any provision or ~clanse of this Security lnstrulnent or the Note contlicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which call be given effect without the conflictihg provision. As used in dfis Security lustrmnent: (a) words of Ibc masculine gender shall ~nean aud include corresponding neuter words or words of the felninine gender; (b) xvords in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion withoot any obligation to take any action. 17. Borrower's Copy. t;or:rower shall be given one copy uf the Note and of this Security Instrument. 18. Transfer of the Pr.3perty or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" ~nehns.m~y legal or beneficial interest in the Property, including, but not limited to, those beneficial interests t:ansferred in a bond tbr 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 2roperty 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 m' transferred) without Lender's prior written consent, Lender may require ilmnediate payment in full of all sums secured by this Security Instrument. ltowever, this option shall not' be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less titan 30 days from tl~e date thc notice is given in accordauce with Section 15 within which Borrower must pay all sums secured by this Security lnstrnnlent. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security lnstrnment without fitrther notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the rigb[ to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) fiv, e 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 the ternfination of Borrower's right to reinstate; or (c) entry of a judgment eutbrcing Ibis Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which thou would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any od~er covenants or agreements; (c) pays all exper]ses incurred in entbrcing this Security lnstrmnent, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incm'red for the puq)ose of protecting Lender's interest in the Property and rights under this Security lnstnm~ent; and (d) takes such action as Lender may reasonably require to assure that keuder's interest iu the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instnnnent, shall continue un::hanged. Lender may require tllal Borrower pay such reinstatement sums and expenses in one or more of !lie t'ollowing lbrms, as selected by kcnder: (a) cash; (b) lnoney order; (c) certified check, bank check, tceasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, i,~strmnentalitY or entity; or (d) Electronic Funds Trm~sfer. Upon reinsta'elp, ent by Borrower, this Security Instrument and obligatious secured hereby shall remain fully effective as il' no acceleration had occurred, ltowever, this right to reinstate shall not apply in the case of acceleratit,n nnder Section 18. 20. Sale of Note; Change )f Loan Servicer; Notice of Grievance. Tbe Note or a partial interest in the Note (together with this Security lnstrumen0 can be sold one or more times without prior notice to Borrower. A sale nfight resnh in a change ill the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security lnsmmlent and perlbnns other mortgage loan servicing obligations under tke Note, tMs Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of tile Note. If tbere is a change of tile Loan Servicer, Borrower will be gi'~en written notice of the change which will state the name and address of the new Loan Servicer, the address to whicb payments sbould be made and any other information RESPA ARO IAN/LOhlRY 58907360 0 lailiala: (~,~,-6(WY) 1ooo51 Page ]~ ol ~5 Form 3051 1101 requires m connection with a notice of transfer of servicing. Il' the Note is sold and thereafter the Loan ~s serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be [ransfcrred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender lnay co~mnence, join, or be.joined to any judicial action (as either an individual litigant or the me.tuber of a class) that arises froln thc other party's actions pursuant to this Security Instrmnent or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security lnstru~nen[, until such Borrower or Lender has notified thc other party (with such notice given in compliance With the requirmnents of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a tin!~e period which nmst 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 28 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Sectior 20. 21. Hazardous Substances. As used in this Section 21' (a) "ltazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Enviromnental Law and the following substances: gasolin?,.kerosene, other flammable or ioxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or fo~maklchyde, and radioactive materials; (b) "Environmental Law" me'..ans federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or enviconmental protection; (c) "Environmeutal Cleanup" includes any response action, remedial action, or re:noval action, as defined in Environmemal Law; and (d) an "Environmental Condition" means a conditic'n that can cause, contribute to, or otherwise trigger an Environmental Cleanup. . Borrower shall not cause or pernfit the presence, use, disposal, storage, or release of any Hazardous St,bstances, or threaten to releate any Hazardous Substances, on 02' in the Property. Borrower shall not do, nor allow anyone else to do, mything affecting the Property (a) that is in violation of any Environmeutal Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not appl~ to the presence, use, or storage on the Property of small quantities of Ilazardous Substances that are generally recognized to be appropriate to nom~al 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 any govem?ental or regulatory agency or private party involving the Property and any Hazardous Substance 02' Environmental Law of which Borrower has actual knowledge, (b) any Environmental Conditiou, inc*uding but not limited to, any spilliug, 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 govenm~ental or regulatory authority, or any private party, that any removal or mher remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Euvironmental Law. Nothiug herein shall create any obligation on Lender for an Environmental Cleanup. AROIAN/LOWRY 58907360 0 Initial~i: ~}--6(WY) 1o005} i Paoe ~2 ol ~5 Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender fimher covenant mid agree as follows: 22. Acceleration; Remedi~es. Leuder shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this .qecurity Instrument (but not prior to accelerat ion under Section 18 unless Applicable Law provides otberwise). The notice shall specify: (a) the default; (b) tbe action required to cure the default; lc) a date, not less titan 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure tbe default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall furti~er infm'm Borrower of the rigbt to reinstate after acceleration and the right to bring a com't action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Secmity Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender sball be eutitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not Ibnited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes tile ;~ower of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of tile Property, if different, in accordance with Applicable Law. Lender shall give notice of tile sale to Borrower in the nmnuer provided iu Sectiou 15. Lender shall publish the notice of said, :md the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purcbase tile lh'operty at any sale. Tbe proceeds of the sale slmll be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; tb} to all sums secured by this Security Instrument; and (c) any excess to tbe person or persons legally entitled to it. 23. Release. Upon paymeqt of all sums secured by this Security Instrument, Lender shall release this Security lnstrament. Borrower shall pay any recordation costs. Lender may charge Borrower a lee for releasing tiffs Security Instru:nent, but only if the lee is paid to a third party for servmes rendered and the charging of the fee is permiw,:d under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. AROIAN/LOWRY 58907360 0 Initials: II~6(WY) (ooo5) · Page ~3 ol ~s Form 3051 1/01 BY SIGNING BELOW, 'Borrower accepts and agrees to tile terms and covenants contained in this Security Instrument m~d in any Rider executed by Borrower and recorded will] it. Witnesses: ~"~/ (Seal) :Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower AROIAN/LOWRY (~6(WY) (ooos) 58907360 Page 14 gl 15 Form 3051 0 1/01 790 The l"orego~ng iustrument was acknowledged before me tills Jurle 2~. 2004 byMartin P. Ar'oian aqd Dianne L. Lowry Husbdnd and Wi.fe M y Conxnission AROIAN/LOWRY 58907360 0 Inilial$: (~-6(WY) 10005) P~*ge 15 o115 Form 3051 1/01 791 LEGAL DESCRIPTION Part of Lots 73 and 74 of the Star Valley Ranch Plat 7, Lincoll~ County, Wyoming being more particularly described as follows: BEGINNING at a point which is located S 0°16'45" E, 34.00 feet from the original.Southeast corner of said Lot 73; thence S 65°20'02'' W, 207.67 feet; thence S 35o16'50" W, 73.00 fe~t; thence northwesterly, 63.53 feet, along a 140 foot radius curve to the left having a central angle of 26 degrees and a chord length of 62.99 feet; thence N 26° E, 269.80 feet; thence East 160.90 feet; thence S 0°16'45" E, 135.87 fee' to the point of beginning. INITIAL PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNIT'DEVELOPMENT RIDER is [nadc this 28th day of dune 2004 , and is incorporated into and shall be deemed to mnend and supFlement 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 THE OACKSON STATE BANK & 1-RUST (the "Lender" of the same date and covering the Property described in the Security Instrument and located at: 260 Redwood Road.Thayne,WY 83127 [Property Address] The Property includes, but is aot limited to, a parcel of land improved with a dwelling, together with other such parcels and certain comnion areas and facilities, as described in Covenants. conditions and restrictions. (the "Declaration"). The Property is a part of a plalmed unit development known as Star Valley Ranch [Name of Planned Unil Devclopmem] (the "PUD"). The Property a~so includes Borrower's interest iu the homeowners association or equivalent entity owning or managing the colnmon areas and facilities of the PUD (the "Owners Association") and the uses, benefits and proceeds of Borrower's interest. PUD COVENANTS. In addition to the covenants and agreements made in the Security Instrument, BorrOwer and Lender further covenant and agree as tbllows: A. I'UI) Obligations. Borrower shall perform all of Borrower's obligations under the PUD's Constituent Documents. The "Constiluent Documents" are the (i) Declaration; (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Association; and (iii) any byqaws or other rules or regulations of the Owners Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. AROiAN/LOWRY 58907360 0 MULTISTATE PUD RIDER - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3150 1/01 Page 1 of 3 Initials: (~)-TR (0008) MW 08/00,01 VMP MORTGAGE FORMS - (800)521-7291 793 B. Property Insurance. So long as tile Owners Associalion maintains, with a generally accepted insurance carrier, a "master" cr "blm~ket" policy insuring the Property which is satisfactory to Lender mid which provides insurance covmage in the mnounts (including deductible levels), for II~e periods, and against loss by fire, hazard~ included within the tenn "extended coverage," mid any other hazards, iucluding, but not limited to~ earthquakes and floods, for which Lender requires insurance, then: (i) Lender waives the provision in Section 3 for tile Periodic Payment Id Lender of thc yearly prenfiurn installments /bt property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage oll the Property is deemed satisfied to the extent that lhe required coverage is provided by the Owners Association policy. What Lender requires as 'a condition of this waiver can change during tile term of the lo,'m. Borrower shall give Lerder prompt notice of any lapse in required property insurance coverage provided by tile master or blanket policy. In the event of a distribuiion of property insurance proceeds m lieu of restoration or repair following a loss to the Property, or to co~nmon areas and facilities of tile PUD, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply lhe proceeds to tile sums secured by the Secmity Instrument, whether or not then due, with tile excess, if any, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. · D. Condemnation. The proceeds of any award or claim lbr damages, direct or consequenti~d, payable to Borrower in connecTiou with any condenmation or other taking of all or auy part of tile Property or the conm'~on areas tu~d facil!tk:s of the PUD, or for m~y conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be al)plied by Leuder to the sums secured by tile Security Instrument as provide.1 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 abandoument or termination of the PUD, except for abandonment or termination required by law in the case of substantial destructiou by fire or oilier casualty or in the case of a taking by condemnation or eminent domain; (ii) any mnendment to any provisipn of the "Constituent Documents" if the m-ovision is for the express beoefit of Lender; (iii) termination of professional rnanagelnent and assumption of self-management of the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F. Remedies. If Borrower does not pay PUD dues and assessments when due, then Lender may pay them. Any mnounts disbursed ,by Lender under this paragraph F shall become additional debt of Borrower secured by tile Security Instrument. Unless Borrower and Lender agree to other terms of pay~nent, these amounts shall bear interest fi'om the date of disbursement at die Note rate and shall be payable, with interest, npon notice from Lender to Borrower requesting payment. AROIAN/LOWRY 58907360 0 Initials: (0008) Page 2 of 3 Form 3150 1/01 . . /~". . /'..." . BY SIGNING BELOW, Borrower accepts and agrees to the terms mtd"provtsmns c~ntatned m this PUD Rider. ,-' /' ,/ /..' ~// _ ..... Martin P. Kroian (Seal) (Seal) -Borrower -Bom) wer (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower AROIAN/LOWRY 58907360 0 (~c~7R 10008) Page 3 of 3 Form 3150 1/01 O.DOU 795 AP# AROIAN/LO~RY LN# 58907360 SECOND HOME RIDER THIS SECOND HOME RIDER is made on this 28tll day of,)une. 2004 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower" whether there are one or more persons undersigned) to secure Borrower's Note to T ~ E ,) A C K S 0 N S T A T E B A N K & TRUST , (the "Lender") of the same date and coveting the property described in the Security Instrument (the "Property"), which is located at: 260 Redwood Road. Thayne wY 83127 [Property Address] In addition to the covenants ,nd agreements made in the Security Instrumenl, Borrower and Lender further covenant and agree that Uniform Covenant 6 of the Security Instrument is deleted and is replaced by the following: 6. Occupancy and USe; Preservation, Maintenance and Protection of the Property;~ Borrower's Loan Application; Leaseholds. Borrower shall occupy, and shall only use, the Properly as Borrower's second home. Borrower shall keep the Property available for Borrower's exclusive use and enjoyment at all times, and shall not subject the Property to any limesharing or other shared ownership arrangement or to any rental pool or agreement that requires Borrower either to rent the Property or give a management firm or any other person any control over the occupancy or use of the Property. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture ol the Property or otherwise materially impair the lien created by this Security Iqstrument or Lender's security interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes forleiture of the Borrower's interest in the Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy and use of the Property as a second home. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasghold and the fee title shall not merge unless Lender agrees to the merger in writing. BY SIGNING BELOW, Borrower accepts and agrees Lo tile terms and provisions contained in this Second Home Rider. ' /' - / ' ,~-¢Z-~- u/c"","k{"..:'T,/.. ~,,/~ ~ (Seal)  _.~ ........... -Borrower -Borrower D] anne L . L y/' (Seal) -Borrower _(Seal) -Borrower MULTISTATE SECOND HOM~ RIDER--Single Family--FHLMC UNIFORM INSTRUMENT ISC/CRID**//0195/3890(0990)-,_ Page 1 of 1 Form 3890 9/90