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HomeMy WebLinkAbout900842Remm To: FHHLC POST CLOSING MAIL ROOM .-.555 ,,,,,. ,',ALIT .ILL ".N. *'2009,,8 2 IRVING, TX 75038 Prepared By: FIRST HORIZON CORPORATION 3505 EAST OVERLAND DRIVE MERIDIAN, ID 83642 RECEIVE[) LiNCO! r! 'nl..lr,ll, (,LERI( [Space Above Tiffs Line For Recording MORTGAGE 0049446248 DEFINITIONS Words used in nmltiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21 Certain rules regarding the usage of words used in tiffs docmnent are also provided in Section 16. (A) "Security Instrt~ment" means this docmnent, wlfich is dated together with all Riders to fills doctanent. (B) "Borrower" is ROBERT C. STROTHER & VIRGINIA STROTHER , Husband & Wife July 2nd, 2004 Borrower is the mortgagor under ti]is Security Instrument. (C) "Lender" is FIRST HORI2ON HOME LOAN CORPORATION Lender is a CORPORATION organized and existing under the laws of THE STATE OF KANSAS WYOMING-Singlo Family-Fannie braeJFreddie (I~®-~(WY) (ooos) Mac UNIFORM INSTRUMENT Form 3051 1/01 Lender's address is 4000 Horlzor. Way, Irving, Texas 75063 Lender is the mortgagee under thk" Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated ,July 2nd, 2004 The Note states that Borrower owes Lender ONE HUNDRED FIFTY ONE THOUSAND TWO HUNDRED & 00/100 Dollars (U.S. $ 151,200.00 ) plus intei-est. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in fi,Il not later than Aug'us t "1 s t, 2 019 CE) "Property" means Om proparty that is described below under the beading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepaynlent charges mid late charges due m~der the Note, and all sums due under this Security lnstrmnent, plus interest. (G.) "Riders" means all Riders to Ods Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [---] Adjustable Rate Rider [-~-~1 Condominium Ride]' [] Second Home Rider l~ Balloon Rider ~} Plmmed U~fit Development Rider [] 1-4 F:mlily Rider {--I VA Rider WI Biwee~y Payment Rider ~] Other(s) [specify] (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulatimm, ordinances and ad,ninistrative rules and orders (that have the effect of law) as well as all applicable non-appealable judicial opinions. (1) "Community Association Dues, Fees, and Assessments" means }ill flues, fees; assessments and other charges that are i~nposed on Borrower or the Property by a condominium association, homeowners association or shnilar organization. (J) "Electronic Funds Transl'er" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an dectrmfic tennimd, telephonic instrument, ~zomputer, or magnetic tape so as tc order, instruct, or authorize a financial restitution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller macldne trmmactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. ~ 0Q "Escrow Items" means those items that are described in Sectiou 3. (L) "Miscellaneous Proceeds" metros any compertsation, settlement, award of damages, or proceeds paid by any ttfird party (other than insurm*ee proceeds paid under the coverages described in Section 5) tbr: (i) dmnage to, or destruction of, the Property; (ii) condem~mtion or other taking of all or any part of the Property; 0ii) conveyance in lieu of condemnation; or 0v) misrepresentations of, or omissions as to, tim wdue md/or condition of the Property. , (NI) "Mortgage Insurance" mean:; insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled mnount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrmnent. (O) "RESPA" means the Reel Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) a,d its implementing regulation, Regulation X (24 C.F.R. Part 3500), as fl~ey might be mnended fi-om time to time, or any additimml or successor legislation or regulation that governs d'~e same subject matter. As used in this Security h~strument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage lo;m" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. 0049446248 (~-~(wv) Page 2 of 1,5 Form 3051 1/01 (P) "Successor in Interest of'Borrower', means any party that has taken title to the Property whether or not tirol party has assmned Borrow~.r,slobligations under the Note and/or this Security Iustrmnent. TILANSFER OF RIGHTS IN THEi PROPERTY This Security Instrument secures to Lender: (i) the repayment of lhe Loan, aud all renewals, extensions and modifications of the Note; an~l (i~) the perfm-mance of Borrower's cove~muts and agreements under this Security Instrmnent aad the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns with power of sal~, the fi~llow_ing described property locate in th County ' IType ofRecc, rding/urlsdiction of hlncoln~O [Name of Recording Jurisdiction] All that tract or parcel of land as shown on Schedule "A" attached hereto which is incorporated herein and made a part hereof. Parcel ID Number: County: 12-3418-31-1-00_255 City: N/Avhich currently has the address of 1592 STRAWBERRY CREEK ROAD BEDFORD [Snee~l ("Property Address"): [City , Wyomin 83112 lZip Code TOGETHER WITH all the nnprovements now or hereafter erected on the property, and all easements, appurte]mnces, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrumen:. All of the foregoing is ret"crrcd to in fl~is Security fi~strument as the "Property." BORROWER. COVENANTS th~t Borrower is lawfi~lly seisefl of the estate hereby conveyed and has the right to mortgage, grant and aonvey the Property and that the Property is unencm-nbered, except encmnbrances of record. Borrowe: warrants and will defend gencralb the title to the Property against all claims and demands, subject to any encumbrances of record: TH1S SECURITY INSTRUMENT combines uniforn] covenants tbr national nsc and uon-tnnfonn covenants wJfl~ limited variations )y jurisdiction to constitute a urtifim~ security instrument coveriog real property. UNiFOI~I COVENANTS B )rfc a, er and Lender covemmt and agree ;-ts follows: 1. Payment of Principal, Inter, est, Escrow Items, Prepayment Charges, and Late Charges Borrower shall pay when due the prh,,cipal of, and interest on, the debt evidenced by fl're Note and any prepayment charges and late charges due under the Note. Borrower shall also pay ftmds /bt Escrow Items pursuant ~o Section 3. Payments due tinder the No[e and this Security Instrument shall be made in 'U.S cnn-ency. However, if any check or other insn-ument received by Lender .'ts payment under the Note or this 0049446248 Page 3 o,~ 15 ' Form 3051 1/0 0900847' Security Instrmnent is returned to Lender unpaid, Lender may require flint any or all subsequent payments due under the Note and this Security lnstrmnent be made in one or more of the tbllowing /brms, 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 tSrawn upon an institution whose deposits are insured by a federal agency instrumentality, or entity; or (d)' Ele~';tronic 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 .lesignated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may a~cept any payment or partial payment insufficient to bring tim Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments m the future, but Lender is not obligated to apply such payments at rise time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need slot pay interest on um~pplied- funds. Lender may hold such t'm~pplied funds until Borrower makes payment to bring the Loan curreat. If Borrower does not do so withiil a reasonable period of time, Lender shall either apply such funds 02- return them to Borrower. If not applier, earlier, such funds will be applied to the outstanding principal balance under the Note i~mnediately prior to foreclosure. No offset or claim which Borrower might have now or m future against Lender shall relieve Borrower from making payments due under file Note and this Security Instrument or performing the covermnts and agreements secured by fl~is Security Instrmnent. 2. Application of Payments or Proceeds. Except as ofl~erwise described iu this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under file Note; Co) principal due under the Note; (c) amounts due under Sectkm 3. Sttch payments shall be applied to each Periodic Payment in the or!let in which it became due. Any remaining amouats shall be applied first to late charges, second to any other'~h-nounts due under this Seem'icy Instrument, and then to reduce file principal balance of the Note. If Lender receives a payment from Borrower tbr a delinquent Periodic Paymem which includes a sufficient mnount to pay any late charge due, the payment may be aPl)lied to the delinquent payment and file late chin'ge, if more than one PeIiodic Payment is outstanding, Lender may apply any payment received fi'om Borrower to the repayment of ~e Periodic Payments if, and to file extent flint, each payment can be paid m full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess'may be applied to any late charges clue. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone'the due date, or change the amount, of the Periodic Payments 3. Funds ro,- Escrow Items. Bo:crower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a stun (the "Fuuds") to provide tbr payment of mnounts due for: (a) taxes m~d assessments and off,er items which can attain priority over this Security Instrmnent as a lien or encmnbrm~ce on the Property; (b) lem;ehold payments or ground rents on the Property, if any; (c) premiums for any and all Insurance required by ,Lender under Section 5; and (d) /Vlortgage Insurance premiums, it' any, or m~y sums payable by Borrower to Lender in lieu of the payment of iVlortgage Insurance prelniums m accordance with the provisions of Section 10. These items are called "Escrow Items." At origi~mtion or ac any time during the term of the Loan, ,Lender may require that Community Association Dues, Fees, Assessments. if any, be escrowed by Eorrower, and such dues, fees and assessments shall be an Escrow Item Borrower shall prompdy furnish to L:nder all notices of mnounts to be paid under this Section. Borrower sh',dl pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items Lender may waive Borrower's obligation to pay to Lender Funds /'or m~y or all Escrow Items at any thne. Any such waiver may only be iu writthg. In the event of such waiver, Borrower shall pay directly, when and where payable, the mnounts due for any Escrow Items for which payment of 0049446248 Page 4 o~ 15 Form 3051 1/01 o oo 4a Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender ]nay require. Borrower's obligation to make such payments and to provide receipts shall for all p'ulposes be deemed to be a cove]mm and agreement contained in fl~is Security h~strument, as the phrase "covemtnt and agreement" is used in Secdon 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a x%iver, and Borrower fails to pay the mnount due for an Escrow Item, Lender ]nay exercise its rights unlder ;Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender anY such mnount. Lender may revoke file waiver as to any or all Escrow Items at any time by a notice give i in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in su,~h amounts, that are then required under this Section 3. Lender may, at any time, co.lect and hold Funds in an mnount (;t) sufficient to peimit Lender to apply the Funds at the time specified ruder RESPA, and (b) lint to exceed fl~c maximmn amount a lender call require under RESPA. Lender shall tstimate the ~unount of Funds duc on the basis of current data and reasomtble esthnates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in af~ institution whose deposits are insured by a federal agency, instrmnentality, or entity (including Lender, if Lender ls an institution whose deposits :ire so insured) or in any Federal Home Loan BaltiC. Lender shall apply the Finds to pay the Escrow Items no litter than thc time specified uoder RESPA. Lender shall not charge Borrower for holding and applying the Fuuds, ammally analyzing the escrow account, or verifying the Ese:ow Items, unless Lender pays Borrower iuterest on lite Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made iii writing or Applicable Law requires interest to be paid o:~ the Funds, Lender shall not be required to pay Borrower any interest or eanfings on die Funds. Borrower and Lender can agree in writing, however, that interest shall be paid oil the Funds. Lender shall give to Borrower, without charge, an ammal accounting of the Funds as required by RESPA. If there is a surplus of Funds held iii escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender slmll notify Borrower as required by RESPA, and Borrower shall pay to Lender the mnount necessary to make up the shortage iii accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, :ts defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the mnount necessary to make up the deficiency in accordance with I~.ESPA, but in no more thau 12 monthly payments. Upon payment in full of all sums secured by this Security Instrunmtt, 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 rite Property which can attain priority over this Security Instrmnent, leasehold paymeuts or ground rents on the Property, if an:,, an.:l Con~rnunity Association Dues, Fees, and Assessments, il: any. To the extent that these items are Escrow Item?,, Borrower shall pay them in the mamler provided in Section 3. Borrower shall promptly dis:harge any lien which has priority over this Security Instrument unless Borrower: (a) agrees iii writing to Otc Payment of the obligation secured by the lieu in a rammer acceptable to Lender, but only so long as Borrower i'~ performing such agreement; (b) contests die lien in good faith by, or defends against enfbrcement of the hen in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those prc, ceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of lhe l!en an agreement satisfactory to Lender subordi~mtmg rile lien to fids Security lnstrmnent. If Lender der.ermines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may g~ve Borrower a nonce identifying rile lien. Within 10 0049446248 Form 3051 1/01 · !73 days of the date on which flint no~ce is ~fven, Borrower shall satisfy thc lien or take one or more of the actions set forfl~ above in tiffs Secfio~ 4. · Lender may require Borrower to pky a one-time cb'ar~e for a real estate tax vedficatiou and/or reportin~ service used by Lender in com~ectioa wfih fl~s Loau. ~. Property ln~ur~ce. Borrower shall keep fl~e improvements.now cxfsfin~ or hereafter erected on Property h~urcd a~afnst los~ by fi 'e, lfazards included wiflfin fl~e term "extended coverage," aM any hazards including, but not lhnfted to, earfl~quakes aM floods, [br wlfid~ Lender requires insurance. Tiffs h~urance shall be maintained in fl~e mnounts (includin~ deducfibJe l~vcls) aM ~br fl~e period~ ~at LeMcr requires· What Lender requkes pmsuar.t to rite precedin~ semence~ can chan~e dadn~ rite term of fl~ Loan. The insurance cagier providfn~ ~e insurm~ce shall be chosen by B~rrowcr subject to LeMer's right disapprove Borrower's choice, v,bfch right shall no~ be exercised m~asm~bly. Lender may require Borrower to pay, iu cmmection wiflt mis Loan. eider: (a) a one-thnc charge ~br flood zone detennmatmn, certification aM trac~n~ services, or ~) a rote-time charge for flood zone detcnni~tion aM certification ~rvices and subsequent char6es each time remappin~s or similar chan~s occur which reasonably might affect such determination or cerfi~cat;on. Borrower sl~all also be responsible for rite payment of any imposed by the Federal Emerger~y Mar~gement Agency in connection wifl~ fl~e re¥iew of any flood zone deterioration resulting from an objection by Borrower. If Borrower fails to maintah~ any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. LeMer is under no obligation to purchase any particular type or mnount of coverage Therefore, such coverage shall craver LeMer, but migi~t or might not protect Borrower, Borrower's equity in fl~e Property, or fl~e contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage titan '~vas previously in effect. Borrower ac~owlcdges fl~at fl~e cost of tl~e insurance coverage so obtained might significantly exceed fl~e cost of insurance fl~at Borrower could have obtained. Any t~ounts disbursed by Lender under fl~is Section 5 shall become additiomd debt of Borrower secured by fl~is Security Instrument. These tmmunts shall bear iutcrcst at fl~e Note rate from the date of disbursement aM shall be payable, wifll such interest, upon notice fi-om Lender to Borrower requesting payment. All insurance policies required hy LeMer aM renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall rune Lender as mortgagee and/or as an additio~ql loss payee. Lender shall have fl~c right to hold rite policies aM renewal certificates. If Lender requires, Borrower shall promptly give [o Lender all receipts of paid premiums and -renewal notices. If Borrower obtains any fomx of insurance coverage, not ofl~crwise required by LeMcr, for d~age to, or destruction of, fl~e Property, such policy shall include a staMard mortgage clause aM shall mine Lender as mortgagee aM/or as an additioml loss payee. In fl~e event of loss, Borrower ,:hall give prompt notice to fl~e insurance carrier and Lender. LeMcr may make proof of loss if not made promptly by Borrower. U~css LcMer aM Borrower o~erwisc agree in writing, any insurance proceeds, whefl~cr or not fl~e uMerlying insurance was required by Lender, shall be applied to restoration or repafl of fl~e Property, if ~e restoration or repmr is economically t~asiblc aM Lender's security is not lessened During such repmr aM restoration period, LeMer shall bare fl~e right to hold such insurance proceeds m.til Lender has had an opportm~ty to respect such Property to e~urc rite work has been completed to Lender's satisfhction, provided fl~at such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs aM restoration in a single payment or m a series of progress payments as fl~e work is corot leted. Unless an agreement ts ruade iu writing or Applicable Law requit'cs interest to be paid on such insurance proceeds, LeMer shall not be required to pay Borrower any interest or ear~ngs on such proceeds. Fees for public adjusters, or off, er flfird parties, retained by Borrower shall not be paid out of ~e insurance proceeds and shall be fl~e sole obligation of Borrower. If fl~e restoration or repair is not econon~cafly feasible or Lender's security would be lessened, rite insurance proceeds shall be applied to 0049446248 Pege 6 ol 15 Form 3051 1101 0 0084 ' <-:-!'74 tl~e stuns secured by this Security Instrument, whether or not then due, with tile excess, if any, paid to Borrower. Such insurance proceeds sliall be applied in the order provided lbr in Section 2. If Borrower abandons the prope, rty, Lender may file, negotiate mid settle any available insurance claim and related matters. If Borrower .does not respond within 30 days to a notice t'rom Lender that the instu'ance carrier has offered to settle a claim, fl~en Lender may negotiate and settle fl~e claim. The 30-day period will begin when the notice is given. In .e, ither event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns tb Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid 'under the Note or this Security Instrument, and (b) any other of Borrower's rights (other titan the right toany refund of unearned premiunts paid by Borrowe0 under all insurance policies covering file Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds ~ither to repair or restore the Pmpe,-ty or to pay mnounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupmmy. Borrower shall occupy, establish, and use the Property as Bon'owcr's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy thc Property as Borrower's principal residence for a~ least one year after the date of occupancy, mfless Lender otherwise agrees in writing, which, consent, sh~ll not be unreasmmbly withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, M'aintena'qce m-~d Protection of tile Property; Inspections. Borrower shall not destroy, damage or impair tl~e Property, allow the Property to deteriorate or commit waste on tile Property. Whether or not Borrower is residing i'u the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating o~ decreasing in value due m its condition. Unless it is determined pursuant to Section 5 that repair or restoration is rot economically tbasible, Borrower shall promptly repair the Property if dmnaged to avoid further deterioration or damage. If insurance or condmmmtion proceeds are paid in cmmection witi~ dmnage to, or the taking of, thc Property, Borrower shall be responsible lbr repairing or restoring tile Property only if Lender has released proceeds for such pm-poses. Lender may disburse proceeds for the .repairs and restoration i-~ a 'single payment or m a series of progress payments as the work Is completed. If thc insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Bon-ower's obligation tbr the completion of such repair or restoration. Lender or its agent nmy make reasmmble entries upon and inspecnons of the Property. If it has reasonable cause, Lender may inspect the interior of the ilnprovements on the Property Lender shall give Borrower notice at the time of or prior to such an interior inspectiou specifying such reasonable cause. 8. Borrower's Loan Applkation. Borrower shall be in dcfauh if, during the Loan application process, Borrower or any persons or entities acting at thc direction of Borrower or with Borrower's knowledge or consent gave materially false, m'sleading, or inaccurate information or statements to Lender (or failed to provide Lender with tnaterial information} in cmmection with the Loan. Material representations include, but are not limited to, representations con:ermng Borrower's occupancy of tile Property as Borrower's principal residence. 9. Protection of Lender's Inleres! in the Property mid Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained tu this Security Instrument, (b) there is a legal proceeding that migl~t sig~lificantly affect Lender's interest ill the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condcnmation or forfeiture, /'or entbrccment of a lien which may attain priority over this Security Instrument or to cnlbrce laws or regulations), or (c) Borrower has ab,rationed the Property, then Lender may do and pay tbr whatever is reasonable or appropriate m protec. Lender's interest in the Property and rights under this Security Instrmnent, including protecting and/or assessing the value of ~he Property, and securing and/or repairtng the Property. Lender's actions can, include, but are not limited to: (a) paying any stuns secured by a lien which has priority over this Security Nstrmncnt; (b) appearing iu court; and (c) paying rcasmmblc 0049446248 (~-6(WY) Page 7 o115 Form 3051 1/01 attorneys' tees to protect its interest in the Property and/or rights under this Security Instrument. including its seem-ed position ill a ba~d~ruptcy proceeding. Securing the Property inch.ides, but is riot 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. Althougll Lender may take actim under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. IE is f,greed that Lender incurs no liability for not taking any or all actions authorized tamer this Section 9. Any amounts disbursed [,y Lender under this Section 9 shall become addition'd debt of Borrower secured by this Security Instrmnent. These ,'mmunts shall bear interest at the Note rate from the (late of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. . If this Security hlStrument 'is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to fl-re Property, file leasehold attd the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage lnsm'ance. If L'ender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premitans .required to maintain the Mortgage lusurance in effect. If, for any reason, the Mortgage Insurance coverage re:quired by Lender ceases to be available from file mortgage insurer that previously provided such insurancel and Borrower was required to make separately designated payments toward the premiums for Mortgage Iilsurance Borrower shall pay thc premiums required to obtain coverage substantially equivalent to rile Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Bon-ower of the M~rtgage Insurance previously in effect, fi-om an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is uot available, Borrower shall continue to pay to Lender the amount: of the separately designated payments that were due when file insurance coverage ceased to be in effect. Lender will accept, use and 'retain these payments asa non-refundable loss reserve in lieu of Mortgage Insur. mce~ Such loss reserve shall be non-refimdable, notwithstanding the fitct that the Loan is ultimately paid iu fuli, an3 Lender sball not be required to pay Borrower any interest or earnings on such loss reserve. Lender carl:no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period tlwt Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately desig~mted payments toward fl~e premiums for Mortgage insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately desi'gmated payments toward the prelniunls for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any writtea agreement between Borrower and Lender providing for such tennimition or until tennimttion is required by Applicable Law. Noflling in this Section 10 a..?'fects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay ale Loan as agreed. Borrower is not a party to the Mortgage Imurance. Mortgage insurers evaluate 'their total risk on all such insurance in three from time to time, and may enter into agreemeuts with other l~arties that share or modil~, 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 ma~ require file 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 premimns). As a result of these agreements, Lender, any purchaser of the Nute, another insurer, any reinsurer, any other entity, or any affiliate of ~uly of ::the tbregoing, may receive (directly or indirectly) mnounts that derive from (or might be characterized as) a portion of Borrower's payments tbr Mortgage Insurance, in exchange for sharing or modifying rite mortgage; insurer's risk, or reducing losses. It' such agreement provides that au affiliate of Lender takes a share of th~ insurer's risk in exchange for a share of file premiums paid to the insurer, the arrangement is often terme ] "captive reinsurance." Further: (a) Any such agreements will not ~fft'ect 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 mD' refund. 0049446248 (~D~-~(w¥) (0005) Page 8 o[ 15 Form 3051 1/01 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or :my other law. These rights may include the right to receive certain disclosures, to request m~(I Obtain cancellation of the Mortgage Insurance, to have the Mortgage .insurance terminated antomatically, and/or to receive a refund or any Mortgage Insurance premitmts that were unearned at the time of such cancellation or termination. 11. Assignment of Miscelhmeous Proceeds; Forfeiture. All Ivliscetlaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is dmnaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the PropertY, if the restoration or repair ils economically feasible and Lender's security is not lessened. During such repair m~d restoration period', Lender shall have the right to bold such Miscellaneous Proceeds until Lender has had an opportmfity to ':ins['~ect such Property to ensure the work has been completed to Lender's satisfaction, provided flint such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursemert o? 'ina series of progress payments as the work is cmnpleted. Unless an agreement is made in writing or A,)plicable Law requires interest to be paid on such lvliscellaneous Proceeds, Lender sball not be required to pa), Borrower any interest or earmngs on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would bc lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security h]strument, whether or not then due, with the excess, if any, paid to BOrrower. 3uch Miscellaneous prOceeds shall be applied in the order provided tbr in Section 2. In the event of a total taking, destmcti0n, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrmnent, whether or not then due, ¢ith the excess, if arty, paid to Borrower. In the event of a partial takingj destruction, or loss in value of the Property irt which the lair market value of the Property inunediately before the partial taking, destructiou, or h)ss m value is equal to or greater than the mnount of the stuns secured by this Security Instrmnent immediately before the partial taking, destruction, or loss in v',due, unless Borrower and Lender Otherwise agree m writing, the stuns secured by this Security Instrument shall be reduced by the mnount of the lvliscellaneous Proceeds nmltiplied by the followifig fraction: (a) the tot',d mnount of the sums secured immediately before the partial taking, destructiou, or loss in value divided by (b) dole fair market value of the Property munediately before die partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In tile event of a partial taking; destruction, or loss in value of the Property in which the t:,tir market value of the Property imm4diate{y before the partial taking, destruction, or loss in value is less than the mnount of the sums, secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agrbe irt writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument Whether or not the stm~s are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a chdm tut damages, Borrower fails to respond to Lender within 30 days after d~e date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or'not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or rile p;,rty against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shail be in default if any action or proceeding, whether civil or crimimd, is begun that, in Lender's judgment, could result :,n tbrfeiture of the Property or other material i~npairment of Lender's interest in the Property or rights u~der do, is Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided irt Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgmimt,' precludes forfeiture of the Property or other material impaim~ent of Le~der's interest in the Property,or rights ruder ti]is Security Instrument. The proceeds of any award or claim for damages that are attributable: to 'the iinpainnent of Lender's interest in the Property are hereby assigned and shall be paid to Lender. Ail Miscellaneous Proceeds that are not applied to restoration or repair of ti~e Property shall be applied in the order provided for in Sect::on 2,. 0049446248 Page 9 ol lfi Form 3051 1/01 0 00S4;: 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time payment or modification of amor6zation of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Intel:est of Borrower shall not operate to release the liability of Borrower or' any Successors in Interest of Borrower. Lender shall not be required to conunence proceedings against any Successor in haerest of Borrower' or to refuse to extend time for payment or otherwise modify amortizatim~ of the sums secured by fl~is Security Instrument by reason of any demand made by the original Borrower or any Successors in interest of Bt~rroz, er. Any forbearance by Lender io exercising auy right or remedy iucluding, without limitation, Lenaer'iS acceptance of payments t¥om third persons, entities or Successors in Interest of Borrower or in amounts 16ss than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability;" Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute file Note (a "co-signer"): (a) is co-signing this Security Instrument tuffy to mortgage, graft and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not persotudly obligated to pay the sums secured by this Security Instrument; anti (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accormnodations with regard to ,he terms of this Security lnstrmncnt or the Note without file co-signer's consent. ' Subject to the provisions of ~ection 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security h~strUment in writing, and is approved by Lender, sh,'dl obtain all of Borrower's rights and benefits un6er this Security Instrument. Borrower shall not be released from Borrower's obligations and liability finder this Security Instnmlent unless kendcr agrees to such release in writing. The covenants and agreements of this Security lnstrmnent shall bind (except as provided in Section 20) and benefit the successors and ass!gus of Lender. ' 14. Loan Chm'ges, Lender may charge Borrower fees for services performed in cimnection with Borrower's default, for thc purpose of protecting Lender's interest iu the Property and rights under this Security Instrument, including,, but not limited to, attorneys' lees, property inspection :md valuation fees. In regard to any other fees, the absence of express authority in this Security fustrument to cbarge a specific .fee to Borrower shall not be construed a? a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Insmnnent or by Applicable Law. If the Loan is subject to a law x~,hich sets maximum loan charges, and that law is flintily interpreted so that the interest or other loan charges collected or to be collected in ctnmection with file Loan exceed the permitted limits, fitch: (a) any suca lo;'m charge shall be reduced by the amount necessary to reduce the charge to fl~e permitted limit; and (b) m~y sums already collected from Borrower wbich exceeded permitted limits will be refunded to Borrower. 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, file reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any rig.u of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender m connecmm with this Security lnstmntent nmst be icl writing. Any notice to Bor:ower m comaection with this Security Instrument shall be deemed to have been given to Borrower when n~ailed 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 Bo,-rowers unless Applicable Law expressly requires ,otherwise. The notice adth'ess shall be the Property Address unless Borrower has designated a subs,:itute notice address by notice to kcnder. Borrower shall promptly notify Lender of Borrower's cfiange of address, if Lender specifies a procedure for reporting Borrower's change Of address, then Borrower shall only, report a change of adth'ess through that specified procedure. There may be olay one designated notice addre,,:s under this Security lnstnm~ent 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 hereto unless Lender has designated another address by notice to Borrower. Any notice in cmmection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also r'~qui:ed under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under .:las Security Instrmnent. 0049446248 (~-6(WY) (oooa) Page 10 of 15 Form 3051 1/01 O900842, 16. Governing Law; Severability; Rules of Constrnction. This Security Instrument shall be governed by federal law and the law of the jurisdiction iu which the Property is located. All hghts and obligations contained in this Security Insirtm]ent are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly o~' implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In die event that any provision or clause of figs Security~ Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Nute which can be given effect without the conflicting provision. As used in this Security Inmument: (a) words of the masculiHe gender shall meau and include corresponding neuter words or' words of the tEminine gender; (b) words in tile singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any. obligation to take any action. 17. Borrower's Copy. Borrox~;er shall be given one copy of tile Note and of this Security InstFmnent. 18. Trm~sfer of the Property or a Beneficial Interest in Bo,'rower. As used in this Section 18, "Interest in the Property" means an3) legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond tbr deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of tl~e Prbperry or any Interest in the Proper~y is sold or transferred (or if Borrower is not a ' rural person and a benefi4al interest in Borrower is sold or transferred) without Lender's prior written n~ i ~ consent, Lender may require hrmediate payment in full of all sun-~s secured by this Security h~strmnent. However, this option shall not be. exercised by Lender it' such exercise is prohibited by Applicable Law. If Lender exercises this optio~, Leuder shall give Borrower notice of acceleration. The notice shall provide a period of not less tha~i 30 days from the date the notice is given in accordance with Section t5 within w!~ich Borrower must pay' all 'stnns secured by this. 'Seizurity Instrument. If Borrower fails to 'pay these sums prior to the expiration ofl. this period, Lender may invoke any remedies permitted by this Security Instrument without further notice ,)r demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security lnstFt~,nent discontinued at any time p?ior to the earliest of: (a) five days before sale of the Property pursuant to ally power of sale contained iu this Security Instrm~]ent; (b) such other period as Applicable Law might specify Ibr file termination of Borrower's right to reinstate; or (c) entry of a jadgment enforcing this Security Instrumeut. Those conditions are that Borrower: (a) pays Lender all sums which theu would be due under this Security lnstrtnnent and the Note as if no acceleration had occurred; (b) cures any default of any other core,rants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but ,~ot limited to, reasot~d)le atton~eys' fees, property inspection and valuation fees, and other fees recurred tut fl~e puq~ose of protecting Lex~der's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasol-mbly require to assure that Lender's interest in the Property and rights under this Security Instnanent, and Borrower's obligation to pay the stm~s secured by this Security lnstrumeHt, shall continue uncbanged. Lender may require that Borrower pay such reiustfltement sums and expenses m one or more of thc tbllowing tbrms, as selected by Lende): (a) cash' (b) money order; (c) certified chcc k, bank check, treasurer's check or cashier's check, provided aoy such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrmnent and obligations secured hereby shall remain fully effective as if no acceleratiou bad occurred. However, this right to reinst~,~te shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change or Loan Servicer; Notice oI' G,'ievance. Thc Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times withou[ prior notice to Borrower. A sale might result in a change in the entity ('known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligat,ons under the Note, this Security h~strument, and Applicable Law. There also might be due or more changes of the Loan Servicer mn'elated to a sale of the Note. If there is a change of thc Loan Servicer, Borrower will be given written notice of the change which will state the ruune and address of the new Loan Servicer, the address to which payinents should be tirade and any other information RESPA requires n~ connection with a 0049446248 (~Di?(wY) (ooo~) Form 3051 1/01 notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, thc mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a shccessor Loan Servicer and are not assumed by the Note purchaser mfless otherwise provided by the Note purchaser. Neither Borrower nor Lender: may comlnence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pnrsuant to this Security Instrmnent or that alleges that the other party has breached any provision of, or arty duty owed by reason of, this Security Instrmnent, until such'Borrower or Lender has notified rite other party (with such notice given in compliance with the requirements of Si~-ction 15) of such alleged breach and afforded the other party hereto a reasmmble period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certaih action can be taken, that time period will be deemed to be reasmmble for purposes of this paragraph. The notice of acceleration m~d opportunity to cure given to Borrower pursuant to Section 22, and fl~e notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to s,'itisfy the notice and opportu,~ity to take corrective action provisions of this Section 20. · 21. Hazardons Substances~ As used in this Section 21: (a) "tlazardous Substances" are those substanCes defined as toxic or hazar6ous substances, pollutants, or wastes by Enviromnental Law and the following substances: gasoline, kerosene, other fl,'unmable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materialT~ containing asbestos or fore, aldehyde, 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 environment~'-I protection; (c)"Environlfiental Cleanup" includes any response action, remedial action, or removal action, as defined in Enviromnental Law; and (d) an "Enviromnental Condition" means a condition that can cause, ~on(ribute to, or otherwise trigger an Enviromnental Cleanup· Borrower shall ~mt cause or pemfit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to releasc'ani/ H,'czardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, ,'mjthii~g affecting the Property (a) fl~at is in violation of any Environmental Law, 03) which creates an Envir,3nmental Condition, or (c).whicb, due to the presence, use, or release of a Hazardous Substance, creates a Condition that adversely affects the wdue of the Property. The preceding two sentences shall not apply to the Presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to nonnal residential uses and to maintenance of the Property (including, but not iinfited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) arty investigation, claim, demand, lawsuit or other action by any governmental 0r regulatory agency or private party involving the Property and any Hazardous Substance or Env:romnental Law of which Borrower has actual ka~owledge, (b) any Enviromnental Cond~ition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by rite 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 regmlatory authority, or any private party, that any removal or other rernediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Enviromnental Law. Nothing herein shall create any obligation on Lender for an Enviromnental Cleanup. 0049446248 Page 12 o( 15 Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further cove~mnt and agree as follows: 22. Acceleration; Remedks. Lender shrill give notice to Borrower p,'ior to acceleration following Borrower's breach of any covemint or agreement in this Security Instrument (but not prior to acceleratian under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the defanlt; (b) the action required to cm'e the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, bY wlficb the default must be cored; and (d) tbat failm'e to cure the default on or before the date Specified in the notice may result in acceleration of tile sums secured by this Secm'ity Instrument ami /;Me of the Property. The notice shall fos'ther 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 0f Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option ]nay require immediate payment in full of all sums secured by this Security Instrument without furtber demand and may invoke the power or' sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, iucluding, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Lmv. Lender shall give notice of tile sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Froperty shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purch,'tse the Property at any sale. The proceeds of the'sale shall be applied in the following order: (a) tO all expenses of the sale, including, but not limited to, re:tsonable attorneys' fees; (b) to all sums secured by this Security lnstrumeut; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon paymem of 'all stuns secured by fl~iS Security lnstnnnent. Lender shall release this Security h~stnnnent. Borrower shall pay any recordation costs. Lender lnay charge Borrower a fee tbr releasing this Security Instrument, but only if fl~e fee is paid to a flm-d party for services rendered anti fl~e charging of file fee is permitted under Applicable Law. 24. Waivers. Borrower releases:and waives all rights under and by virtue of fl~e homestead exemption laws of Wyoming. 0049446248 (~-6(WY) (ooos) Page '13 of 15 Form 3051 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and cove~mnts contained in this Security Instrument and in an3' Rider executed by Borrower and recorded with it. Witnesses: ROBERT C. STROTHER (Seal) -Borrower VIRGI~ STROTHE~ ' [ (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -BmTower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower 0049446248 (!~)~(wv) (ooos) Page 14 o115 Form 3051 1101 oBO08 STATE OF WYOMING, The foregoing instrument was 'acknowledged before me this by ROBERT C. STROTHER & VIRGINIA STROTHER Lincoln 6th day of County ss: July, 2004 My Cormnission Expires: February 2, 2006 ~t[:LLL~f ~ · NOTA,qY PUG'JC 0049446248 (~-6(WY) (ooos) Page 15o| 15 Form 3051 1/01 EXHIBIT "A" 0049446248 Portions of the SW¼NE¼ ard die SE¼NW¼ of Section 31, T34N RllSW of the 6th P.M., Lincoln County, Wyoming located South of the centerline of the Strawberry Creek County Road No. 12-126 and 'being more p'art'icularly described as follows: BEGINNING at the Center Quart'er Corner of said Section 31 and running thence N 34°10'59 W, 618.99 feet, more or less, to the begimlmg of a curve to the right iii the centerline of said County Road and having a radius of 1909.859 feet; thence running Southeasterly, along said curve through a central angle of 20026, an arc distance of 681.111 feet to a taltgent line; thenceS63o '05" 45 E, along last said tangent line, 202.64 feet to the beginning of a 19° curve to the left having a radius of 301.56 feet; thence running along last said curve through a central angle of 20°16'05,, an arc distance of 106.674 feet to a point 'on said curve; thence leaving said centerline and running South, 208.45 feet, more or less, to a point in South line of said SW ¼NE¼, said point being 728.00 feet N 89°44'53, W from the Southeast corner of said SW ¼ NE ¼; thence N 89044'53'. W, 587.0~: feet to the POINT Ob' BEGINNING.