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HomeMy WebLinkAbout90091030745 (ol) PreparedbyandWhenRecordedReturuTo: PENNY GONES FIRST NATION/LB BANK ~IEST PO BOX 3110 ALPINE, WY 83128 9O0910 RECEIVED 'LINCOLN COUNTY CLERK Ot~ ,,I!.R - 9 ["~t !2:0 5 ..................................... [Space Above This Line Fol- Recording Data] ............................... LOAN NO. 59-012-520844366 MORTGAGE DEFINITION S Words osed in multiple sections of this ¢locument are defined bel0xv and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules re'gm-ding the usage o'f words used in this docuxnent are also provided in Section 16. (A) "Security Instrument" mem{s this document, which is dated together with all Riders to this document. (B) "Borrower" is KIP R. SAWDY, A SINGLE MAN JULY 7, 2004 Borrower is the mortgagor nnder this Security lnstrnment. (C) "Lender" is .FIRST NATIONAL BANK -- WEST (ALPINE BRANCH) Lender is a A NATIONAL BANKING ASSOCIATION tinder the laws of THE UNITED STATES OF AMERICA Lender' s address is 100 GREYS RIVER ROAD ALPINE, WY 83128 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory 'note signed by Borrower and dated The Note states that Borrower owe~; Lender ONE HUNDRED THIRTY2ONF, TIIOUSAND AND 00/100 organized and existing JULY 7, 2004 Dollars (U.S. $ 131,000.00 ) plus interest. Borrower has promised to pay this debt io regular Periodic Payments and to pay the debt in full not later than AUGUST 1, 2034 (E) '[Property" means tile property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all st,ns due t;nder 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 Borrower [check box as applicable]: Adjusiable Rate Ride,- [~ Condominium Rider [~ ,-4 Family l:tider [~] Seco,,dltomeRider Balloon ~der ;~ Other(s)[speciG,] Tax Exempt Planned Unit l)evelopment Rider Biweekly Payment Rider W~I'OI~IlNG- Single Family - Fannie ~'lae/Ft'eddie l~'lac tJNlFOItb4 INSTRUMENT Page I of 12 Form 3051 (01/01) ,-. 0 36G (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulation's, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dr;es, Fees and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or Ihe Property by a condominium association, homeowners association or similar organization. (J) Electr:m~c Funds Transfer" means any transfer o£ flmds, other than a transaction originated by check, draft, or similar paper instrume'lt, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point<if-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, aud automated clearinghouse transfers. 0() "Escrow Items" mean those items that are described in Section 3. (L) "Miscellaneons Proceeds" n:eans any compensation, settlement, award of dmnages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condenmation or other taking of all or any part of the Property; (iii) conveyance in lieu of Condemnation; or (iv)~ misrepresentations of, or omissions as to, the value and/or condition of the Property. ¢'I) "Mortgage Insurance" means insurance protecting Lender against the nonpayment o£, or default on, the Loan. ON) "Periodic Payment" means die regularly scheduled amoont due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended fi'om time to time, or any additional or successor legislation or regulation that governs the same subject matter. As user/: in this Secnrity Instrument, "RESPA" tel'ers to all requirements and restrictions that are imposed in regard to a "Federally related mortgage loan" even il' the Loan does not qualify as a "f'ederally related mortgage loan" under RESPA. (P) "Successor in Interest of Bo,rrower" means any part), that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN Tlti~ PROPERTY This Security Instrument secnre~4 to Lender: (i) the repayment Of the Loan, and all renewals, extensions and modifications of the Note; and (i!) the performance of Borrower' s covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender' s successors and assigns, with power of sale, the following described propert)~ located in the TOlglxl OF ALPINE · [l'ype of Recording Jurisdictiop] of LINCOLN COUNTY : [Name ol'Recordmg Jurisdiclion] UNIT A-1 OF THE PALISAADES IIIGIITS TOWNNItOUSES, A CONDOMINIUM ADDITION TO THE TOWN OF ALPINE, LINCOLN COUNTY, WYOMING, ACCORDING TO THAT PI~\T FILED IN THE OFFICE OF TIlE COUNTY CLERK ON OCTOBER 8, 1993 AS INSTRUMENT NO. 772750, PLAT NO. 249-A. , WS:'OMING - Single Family - Fannie M~le/Freddie Mac UNIFOI~M t NSTRLJMENT Page 2 of 12 Form 3051 (01/01) Initial~ Initials 367 which currently has tile address of 186 Morning Star Drive A-l, Alpine , [S~rmtl [City} Wyoming 83128 (" Pr0perty Address"): [zip Code] TOGETHER WITI1 all the improvements now or hereat'ter erected on tile property, and all easements, appurtenances, and fixtures now cr hereafter a part of the property. All replacements and additions shall also be covered by this .Security Inst,'ument. All of the [oregoing is refcrred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has tile right to mortgage, grant and convey the Property and that the 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 ofreco,'d. THIS SECURITY INSTRUMENT combines uniform covenants for national use and nou-uniform covenants with linlited variations by jurisdiction to constitute a unilbrm security instrument covering real property. UNIFORM COVENANTS. '~rrower and Lender covenant and agree as follo;vs! 1. Payment of Principal, I~terest, Escrow Items, Prepayment Charges, anil Late Charges. Borrower shall pay when due the principal r f, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shah also pay funds for Escrow 7tems pursuant to Section 3. Payments due uuder the Note and this Security Instrument shall be made in U.S. currency, ltowever, if any check or other iustrument receiver, by Lender. as payment under the Note or this Secu:-ity Instrument is returned to Lender nnpaid, Lender may require that any or all subseqnent payments due under the Note and this Security Instrnment he made in one or moi'e of the following forms, as selected by Lender: (it) cash; Cb) money order; Cc) certified check, bank check, treasurer's check or cashier's check, provided any st,ch check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or Cd) Electronic Funds Transfer. . Payments are deemed received by Lender ~vhen received at the location designated in the Note or at such other location as may be designaled by Lender in accordance wilh the notice'provisions in Section 15. Lender ~nay return any payment{s) or partial payment(s) if the payment(s) or partial payment:; are insufficient to bring the Loan current. Lender may accept any payment(s) or part!al payment(s) insufficier;t to bring the Loan curreut, without waiver of any rights here'dnder or prejudice to its rights to refuse sucl) payment(s) or partial payments in tile future, but Lender is not obli (ated to apply such payments at tile time such pay>ments are accepted. If each Periodic Payment is applied as ol its scheduled clue (late, then Lender need not pay interest on unapplied rituals. Lender may hold such unapplied ?unds until Borrower makes payment(s) to bring thc Loan current. If Borrower does not do so withiu a reasonable' period of time, Lender shall either apply such funds or return them to Borrower. Il' not applied earlier, ' such funds will be applied'to tile outstaudmg principal balance un(let the Note immedia[ely prior to foreclosure. No offset or claim whicll Borrower might have now or in the future against Lender shall relieve Borrower fi'om making payments due under the Note and this Security Instrument or perfo!ming tile covenants and agreements secu!'ed by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and al)plied by Lender shall be applied in the following order of priority: Ca) interest due under the Note; Cb) principal due under tile Note; Cc) mnonnts due under Section 3. Such pay~nents shall be applied to each Periodic Payment in the o,-der ir. which it became due. Any remaining amounts 3hall be applied first to late charges, second to any other"amounts clue under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a paymen~ fi'om Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied ~o the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received Ii'om Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To tile extent that WYOMING - Single Family - Fannie M,~.etFreddie blac UNIFORM INSTRUMENT Page 3 of 12 Form 3051 (01/01) ,. ("i..368 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 chargss due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the 'Note. Any application of payments; insurance proceeds, or lVliscellaneous Proceeds to principal due under tile Note shall not ex,cud or postpone the due date, or change the amount, of the Periodic Payments. 3. Fnnds for Escrow Items. Borrower shall pay to Lender on the clay Periodic Payments are dne under the Note, until the Note is paid in fui!, a sum (the "Funds") to provide Ibc payment of amounts Glue for: Ca) taxes and assessments and other items which can attain priority over this Secnrity lnstrnment as a lien or encumbrance on the Property; Cb) leasehold pay~nents or ground rents on the Property, if any; Cc) premiums for any and all insurance required by Lender under Section 5; and Cd) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lie,, of tile payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "iEscrow Items." At origination or at any time during tile term of the Loan, Lender may reqnire that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of mnounts to be paid un, der this Section. Borrower shall pay Lender the Fcmds for Escrow Items unless I,ender waives Borrower's obligation to pay the Funds fl)r any or all Escrow ltems. Lender may waive Borrower's obligation to pay to'~Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. Iu the event of such waiver, Borrower shall pay directly, when and where payable, the amouuts due for any Escrow ltm~s for which payment of Funds has been waivc, d by Lender aud, if Lender requires, shall furnish to Lender 'eceipts evidencing such payment within such time period as l,ender may require. Borrower's obligation to make sach payments and to provide receipts shall for all: purposes'be deemed to be a covenant and agreement contained itl this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pnrsuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Sectior, 9 ,and pay snch amount and Borrower shall then be obligatec' under 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 w=ith Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that'm'e then required under this Section 3. Lender may, at any time, ct)llect and hold Funds in an amonnt Ca) snfficient to permit Lender to apply tile Funds at the time specified unde~- RESPA, and Cb) not to exceed tile maximum amount a lender can require under RESPA. Lender shall estimate the amount of FUnds due on the basis of cnrrent da:a and reasonable estimates of expenditures Of future Escrow It(ms or otherwise in accordance xvith Applicable i~aw. The Funds shall be held in an institution whose deposits are insui'ed by a federal agency, instrumentality, or entity (including Lender, if Lenoer is an institutiou whose deposits are so insured) or in any Federal Ilo,ne Loan Bank. Lender shall apply the Funds to pay tile Escrow Items no later than the iime specified under RESPA. Lender shall not charge Borrowe}~ for holding and applying the Funds, annnally anajyzing the escroxv account, or verifying tile Escrow Items, un!ess Lender pays Borrower interest on tile Fundsland Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds; Lender shall ~.ot be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be pfiid on the Funds. Lender shall give to Borrower, without charge, art annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall acconnt to Borro~ver for the excess funds in accordance with R_ESPA. IF there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amonnt necessary to make up the shortage in accordance with RESPA, but in no more than twelve monthly payments. If there is a Cleficiency of Fnnds held in escrow, as defined under RESPA, Lender sha',l notify Borrower as required by RESPA, and Borrower shall pay to Lender tile amount necessary to make up theldeficiency in accordance with R.ESPA, but in no more than twelve monthly payments. Upon paymeht in full of a'_l sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds hekl by Lender. 4. Charges; Liens. Borrower shall pa)' all taxes, assessments, charges, fines, and impositions attributable to tile P,'operty which can attain priority over this Security Instrument, leasehold payments or ground rents on the WYOMING - Single Family - Fannie 55~e/Freddie Mac UNII~OIISI INSTRUMENT Page ,4 of 12 Initials _ Initials Property, if any, and Comrnnnity Association Dnes, Fees, and Assessments, if any. To the extent that these ~tenrs are Escrow Items, [ku-rower shaK pa)' them in tile manner provided in Section 3. Borrower shall promptly discharge any lieu which has priority over this Security Instrument unless 13orrower: (a) agrees in writing to the payment of tile obligation secured by tile lien in a manner acceptable to Lender, but only so long as Borrower is perfi~rming such agreement; (b) contests tile lien in good faith by, or defends against enforcement of the ie~ in, legal proceedings which in Lender's opinion operate to prevent the enforcemenl of the lien while those proceedings are pending, but only until such proceedings are conc Uded; or (c) secures from the holder of the ten an agreement satisfactory to l,ender st, bordinating the lien to this Security Instrument. If Lender determines that any part.of the Property is subject to a ien which can attain priority over this Security lnstrumeut, Leuder may give B(rrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the ien or tuke one or more of the actions set forth above in this Section 4. Lender may reqnire Borrm, xer to pay a one4ime charge for a real estate tax verification and/or reporting serv'ce used by Lender in connecuon with this Loan. 5. Property Insurance. ~;orrower shall keep the improvements now existing or hereafter erected on the Property insured against }oss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limi'ted to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in tile amaunts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the msnrance shal be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably Lender may require Borrower to pay, in connection ~vith this Loan, eithe:: (a) a ouc4ime charge for flood zone determinahon, certification and tracking services; oi' (b) a one-time charge for tlood zone determination and certification services and subsequent charges each time remappings or similar~ changes occur which reasonably might affect such determination or certification. Borrower shall also be respo, nsible for tile payment of any fees imposed by tile Federal Emergency Management Agency in connection with tile review of any flood zone determination resulting from an objection by 13orrower. If Borrower fat s to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type o,' amount of coverage. Therefore such coverage shall cover Lendar, but might or might not protect Borrower, Borrower's eqnity n the Property, or the 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 obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Leuder under this Section 5 shall become additional debt of Borrower secured by this Security Instrument These amounts shall bear interest at the Note rate fi'om the date of disbursement and shall I.m~ payable,, ~vith such interest, upon notice fi'om Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender' s right to disapprove such policies, shall ir;clude a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss pa)ee. Lend,:r shall have the right to hold the policies and renewal certificates. If Lender reqnires, Borrower shall prompt y give to Lender al receipts of paid premiums and renewal notices. If Bor,'ower obtains any form of insurance cc.verage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clat,se and shall name Lender as mortgagee and/or as an additional loss pa) ee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherxvise agree in writing, any insurance proceeds, whethe: 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 economically feasible and Lender" s security is not lessenecl. Dm'ing such repair and restorauon period, Lender shal have the! right to hold such insurance proceeds unlil Lender has had a;; opportunity to respect such Property to ensure th;~ work has been completed to Lender' s satisfaction, provided that such inspection shall be undertaken promptly_ Lender may disburse proceeds for the repairs and restoration q a single payment or m a series of progress payments as the work is completed. Unless an agreement is made ;n xvriting or Applicable Law requires interest t':> be paid on such insurance proceeds, Lender shall not be retiuircd to pay Borrower anv interest or earnin=os on such proceeds. Fees for public adjusters, or other third parties, i'etained by Borrower shall not be paid out of the iusurance proceeds and shall be' WYOMING - Single Family - Fannie Mae/Freddie Mac IIN1FORM INSTRIJIMENT Page 5 of 12 Form 3051 (01/01) Initials ' ~' / Initials__ the sole obligation of ~rrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to ~rrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the I?operty, Lemler may fi[e, negotiate and settle any available insurance claim and re[ated matters. If Borrower do,es not respond witifin 30 days to a notice fi'om Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insnrance proceeds in an amount not to exceed the amounts unpaid nnder the Note or this Se,rarity Instrument, and (b) any other of Borrower' s rights {other than the right to any refund of unearned premiums paid by Borrower) nnder all insurance policies covering the Property, insofi~r as such rights are applicable to the coverage of the Property. Lender may use the insm'ance proceeds either to repair or restore the Property or to pay. amounts nnpaid under the Note or this Security Instrument, wh~ther or not then due. 6. Occupancy. Borrower shall occnpy, establish, and use the Property as [~orrower's principal residence within sixty days after the execution of this Security Instrument and shall conthme to occupy lhe Prol!erty as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall no~ be unreasonably wiflflmld, or unless extennating drcumstances exist which are beyond ~rrower' s control. 9. Preservation, Maintenance and Protection of the Properly; Inspections.: Borrower shall not destroy, dmrmge or hnpair 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 Property fi'om deteriorating or decreasing in value due to its condition. Unless it is determiued pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condenmation proceeds are paid in 6onnection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender bas released proceeds i~r such pnrposes. Lender may disburse proceeds [k~r the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condenmation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of 3orrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an in~erior inspection specifying such reasonable cause. g. Borrower's Loan Application. Borrower shah be in default ii~ 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 information or statements to Lende~ (or fhiled to provide Lender with material in[~rmation) in comection with the Loan. Material representations i~clude, but are not limited to, representations concerning l~rr¢'wer' s occupancy of the Property as Borrower's principal residence. 9. Protection nf Lender's Interest in the Property mul Rights Under this Security Instrument. If (a) Borrower fails to pertbrm the covenants and agreements contained in this Security [nstrument, (b) flmre is a legal proceeding that might significaatly affect Lender's interest in the Property and/or rights under this Security ~strnment (snch as a proceeding in bankrnptcy, probate, for condemnation or forfeiture, l~r enforcement of a lien which may attain priority over 'his Secnrity Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then ',cnder may do and pay for xvhatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, inc]nding protecting and/or assessing the value of the Property, and s.:cnring and/or repairing the Property. Lender's actions can inclnde, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrnmeni; (b) appearing in court; and (c) paying reasonable attorney's [kcs to protect its interest in the Property ami/or rights under this Security Instrnment, including i.s secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering thc Property to make repairs, change locks, replace or board up doors and windows, drain water fi'om pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under tiffs Section 9, Lender docs not have to do so and is not WYOMING: Single Family - Fannie Mae/Frethlie Mac UNII;"OIIM INSTRUMENT Page 6 o£ 12, Form 3051 (01/01) Initials Initials under any duty or obligation to do so. It is agreed that Lender recurs no liability fc.r not taking any or all actions authorized under this Section 9.. Any amounts disbursed by Lender under this Section 9 shall become additionai debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from. the date of disbnrsement and shall be payable, with such interfist, upon notice Ii'om Lender to 13orrower requesting payment. If th'is Security Instrumeut i~ on a leasehold, Borrower shall comply ~vith all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not nerge unless Lender agrees to the merger in wri'ting. 10. Mortgage Insurance., If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the lVlortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage re~!uired by Lender ceases to be available from the martgage insurer that previously pr0vJded such insurance and Borrower was required to make separately designated payxnents toward the premiums for Mortgage'Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of tile Mortgage insurance previously itl effect, fi'om an alternate mortgage insttrer selected by Lender. If substantially eqnJvalent IVlortgage Insurance c:,verage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payme~ ts that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payt:~ents as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in thll, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Let.der can no longer require loss reserve payments if Mortgage Iniurance coverage (in Ihe amount and for the period that Lender requires) provided by an insut'er selected by Lender again becomes available, is obtained, and Lender, requires separately designated pttyments toward the premiums far IVlortgage Insurance. If Lender reqt, ired Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower ~hall pay the premiums required to maintain Mortgage Insurance in effect, or to p,-ovide a non-refundable loss re)eryc, until the Lender's requirement for IVlortgagc Insurance ends itl accordance with any ~vritten agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Ni]thing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimbu(ses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the L,oan as agreed, k:k)rrower is ]lot a party to the Mortgage Insurance. Mortgage insurers evaluate tmir total risk on all such insurance in force froln time to time, and may enter into agreements with other parties tba't share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisl:actory tc, the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (whic!~ may include fuuds obtained from Mortgage Insurance premiums). As a result of these agreememts, Lender, any purchaser of the Note, another insurer, any reinsurer, any othe~r entity, or any affiliate of m~y of the foregoing, may receive (directly or indirectly) amounts that derive fi-om (or might be characterized as) a portion of Borrower' s payments for Mortgage Insurance, in exchange for sharing or modifki'ng the mortgage insnrer's risk, or reducing losses. If such agreement prov!iides that an affiliate of Lender takes a share of the insurer' s risk in exchange for a share of tile premiums paid to .the insurer, the arrangement is often termed "captive reinsurance." Further: (at Any such agreements will not affect tile amomlts that Borrower has'agreed to pay for Mortgage Insnrance, or any other terms' of tile Loan. Such agreements will ]lot increase the amount Borrower will owe for Mortgage Insurance, a~d they will not entitle Borrower to any refnnd. (bt Any such agreements will not arrcct tile rights Borrower has - if any -!with respect to the Mortgage Insurance nnder the tlomeowners Protection Act of 1998 or anyother law. These rights may include the right to receive certain disclosnres, to request and obtain cancellation of tile Mortgage Insurance, to have the IVlortgage lnsnrance terminated antomatically, and/or to receive a refund of any Mortgage Insurance premimns that were nnearned at the time of snch cancellafioo or termination. 1 1. Assignment of Miscellaneous Proceeds; Forfeiture. Ail iVlisccllaneous Proceeds are hereby assigned to and shall be paid to Lender. ~VYOMING - Single Family -Fannie Mae/Freddie Mac UNIFOIIM INSTRUMENT Page 7 of 12 Initials_ -- Initials_ -- If the Property is damaged, Snch Miscellaneous Proceeds shall be applied to restoration or repmr of the Property, if the restoration or repair is economically feasible and Lender' s security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportmlity to inspect such Property to ensure the work has been completed to Lender's satisl~ction, provided that such inspection shall be tmdertaken promptly. Lender may pay for tie repairs and restoration in a single disbursement or in a series of progress payments as the work is completed, k*nless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous fXroceeds, Lender shall not be required to pay Borrower any ipterest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, tile Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2.' In the event of a total takin3, destruction, or loss in value 0f the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to }:.~ fro wet. ' Inthe event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately befor: the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by his Security Instrument immediately before the pat'.iai taking, destruction, or loss in valne, unless Borrower aud !:,ender otherwise agree in writing, the sums secnred by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amonnt of the sums secured inunediately before the partial taking, destruction, or I.)ss in value divided by (b) the fair market value of the Property immediately belbre tile partial taking, destrnction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial tak:;ng, destruction, nr loss in value of the Property in which the fair market wdne of tile Property immediately befor~ the partial taking~ destruction, or loss in value is less tlian the amount of the snms secured inmmdiately befo.re the partial taking, destruction, or loss in valuel unless Borrower and Lender Otherwise agree in writing, the Miscellaneous Proceeds shall be apPlied to the sums secured by this Security Instrument whether or not the st'ms are then due. If the Property is abandoned by Borrower, or ii; after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) ot't'ers to make an axvard to settle a claim for damages, Borrower fails to respond to Leoder within 30 days after tile date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either ~:o 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 the party against wi:0m Borrower has a right of action in regard to/Vliscellaneous Proceeds. Borrower shall be in defaul~ if any action or proceeding, whether civil or criminal, is begun that, in Lender's }udgment cOuld result in forfeiture ol' the Property or other material impairment of Lender's interest in tile Property or rights under this Security Instrument. Borrower can cnre such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing tile action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes for['eitnre of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds o[' any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All IVliscellaneous Proceeds that are not applied to restoration or repair of the :~roperty shall be applied in order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a~¥aiver. Extension ofthe time for pay~nentor modification of amortization of the sums secnred b) this Security Instrument graffted by Lender to Borrower or any Successor in Interest of BOrrower shall not operate to release tile liability of '.~,orrower or any Successors in Interest of I~)rrower. Lender shall Jiot be reqnired to commence proceedings agaihst an), Successor in Interest of Borrower or to refuse to extent', time for payment or otherxvise modify amortization of the sums secured by this Secnrity Instrument by reason of any demand made by the original Borrower o[ any Successors in Interest of l:k*rrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments fi'om third persons, entities or Successors in Interest nf Bc.rrower or in ammmts less than the amount then due, shall not [;e a waiver o[' or preclude tile exercise o1' any right or remedy. 113. Joint and Several Liability; C0-siguers; Successors ami Assigns Bor, nd.. Borroxver covenants and WVOMING ~ Single Family - Famde blae/Freddie [Mac UNIFORM INSTRUMENT Page 8 of 12 Form 3051 (01/01) Initials Initials - 073 O:glOO" - . agrees that~l~o'~ger' s obligations and liability shall be joint and several. However, any ~orrowe, who co-signs this Secnrity hmtrumen[ but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgag6, grant and convey the co-signer's interest in the Property unde? the terms ()¢ this Security Instrument; (b) is not personally obligated to pay thc sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower c; n agree to extend, modify, [brbear or make any accommodations with regard to the terms oFthis Securi'ty Instrument or thc Note ;vithout th~ co-signer' s consent. Subject to the provisions o[ Section lg, any Successor in Interest oF Borrower who assumes Borrower's obligations under this Security ln..;trunmnt in writing, and is approved by l. ender, shall obtain all o[ Borrower's rights and benefits under this Sec-lrity lnstrnmcnt. Borrower shall not be released fi'om Borrower's obligations and liability under this Security l:~stru nent nuless Lender agrees to such release in writing. The covenants and agreements of this Security Instrtn.mnt shall bind (except as provided in Section 20) ahd benefit the successors and assigns of Lender. 14. Loan Charges. Lender nay charge ~rrower fees for services performed in connection with Borrower's default, [Ur the purpose nf protecting Lender' s interest in the Property and rights nnder this Security Instrument, including, but not limited to, attorneys fees, property inspection and valuation fees. In'regard to any other fees, the absence of express authority in this Security [nstrumeut to charge a specific [be to Borrower shall not be construed as a prohibition on the charging of snch I~e. Lender may not charge fees that are expressly prohibited by this Securi[y 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 collected in connection with the Loan exceed tbe permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums ah'eady sollected fi'om Borrower which exceeded permitted limits will be ret~mded to Borrower. Lender may choose to make this retired by reducing the principal oxved under the Note or by making a direct payment to l~rrower. Ifa retired reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (~,hethcr or not a prepayment charge is provided for under the Note). Borrower's acceptance of any sncb retired mffde by direct payment to Borrower will constitute a waiver of any right of action ~rrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in ~w'iting. Any notice to Borro~yer in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or xvhen actually delivered to Bor'.'ower~ s notice address if sent by other means. Notice to an~ one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The, notice address shall be the Property Address unless Borrower has designated a substitute notice address by noticz to Lender. Borrower shall promptly notify LenJer. of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of addr(;ss, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument ~t any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's ~.tddress stated herein unless Lender has designated: another address by notice to ~)rr0wer. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by ~.,ender. If any notice required by this Security lnst-ument is also required under Applicable Law, the Applicable I~,a~v requiremeut will satisfy the corresponding recuirement under this Security lnstrnnlellt. 16. Governing Law; Severebili~,; Rules o[ Consh'uction. This Secnrity Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rigqts anti obligations contained in this Secnrity Instrument are suaject to any requirements aud limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but snch silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security lustrument or the Note conflicts with Applicable Law, such conllict shall not affect other provisions of this Secnrity Instrument or the NOte which can bc given effect without thc conflicting provision. As used in this Security lnstr'nnent: (a) words of the mascnline gender shall mere and include corresponding neuter words or xvords of the feminine gender; (b) words in the 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. Bor:0wer shall be given one copy o1' the Note and of th,s Security Instrument. WYOMING - Single Family - Fannie M2e/Freddic Mac UN1FORIM INSTRUMENT Page 9 of 12 Form 3051 (01/01) '"74 18. T,'ans'fer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but rot limited to, those beneficial interests transferred in a bond 1or deed, contract l'or deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of':itle by Borroxver at a fntnre date to a purchaser. If all or any part of the Prol:erty or any Interest in tim Property is sold or transi'erred (or if Borrower is not a natural person and a beneficial iuterest in Borrower is sold' or transl'erred) without Liender' s prior written consent, Lender may require immediate i:,ayment ia filll o1' all stuns secured by this Security lnstrnment. However, this option shall not be exercised by Lender it' such exercise is prohibited by Applicable I.aw. If Lender exercises this optign, Lender shall give Borrower notice of acceleration. The notice shall provide a period of slot less thml 30 days Ii-om the date the notice is given in accordance With Section 15 within which Borroxver must pay all sums sect red by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lende) may invoke any remedies permitted by this Securi~ty lnstrumeni without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After' Acceleration. If Borrower meets! certain conditions, Borrower shall have the right to have enfo.'-cement of this Secnrity Instrument discontinned at any time prior to the earliest of: Ca) five clays before sale of the Property pnrsuant to any power of sale contained in this Security Instrument; Cb) such other period as Applicable [,aw might specify for the termination of Borro>ver's 'right to reinstate; or Cc) entry ol' a juclgment enforcing this Security Instrnment. Those conditions are that Borrower: Ca) pays Lender all snms which then would be due under this Security Instrument and the Note as if no acceleration had occurred; Cb) cures any del~ault of any off'mr covenants or agreements; Cc) pays all expenses incurred in entbrcing this Security lnstrnment, including, bnt not limited to, reasonable attorneys' l`ees, property inspection and valuation tees, and other Ides incurred for the purpose of protecting Lender' s interest iii the Property and rights under this Security Instrument; and Cd) takes such action as Lender may reasonably require to assure that Lender's interest in the F'roperty and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue nnchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: Ca) cash; Cb) money order; Cc) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or Cd) Electronic Funds Transfer. Upon reinstatement b,, Borrower, this Security Instrument and obligations secured hereby shall remain lidly effective as if no acceleration had occurred, lfowever, this right to reinstate shall not apply in the case of acceleration nnder Section 18. 20. Sale of Note; Change.,of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security 'Instrnment) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that c, llects Periodic Payments due under the Note and this Secnrit7 Instrument and perl`orms other mortgage loan sdrvicing obligations under the Note, this Security Instrnment, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given w,'itten notice of the change which will state the name and address of the new Loan S.irvicer, the address to which payments should be made and ahy other inlbrmation RESPA requires in connection with a notice of' transfer of servicing. If the Note is sold ar.d thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borroxver will remain w;th the Loan Servicer or be transferred to a snccessor Loan Servicer(s) and arc not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be jnined lo any }udicial. action (as either an individual litigant or the member of a class) that arises Ii'om the other party' s actions pursuant to this Security Instrument or that alleges that the other party"has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with st, ch notice given in compliance xvith the requi'~'ements o1' Section 15)~'of such alleged breach and alt'orded the other party hereto a reasonable period after tile giving of such notice t.~ take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to. Borrower pnrsuant to Section 18 shall be decried to satisfy the notice and WYOMING -Single Family- Fannie Mae/Freddie Mac UNIFOI~,M INSTRUMENT Page 10 of 12 Form 3051 (01/01) Initials opportunity to take corrective action provismns of this Section 20. 21. Hazardous Substauces. As osed in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or ;vastes by Environmeptal Law and tile folloxving substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive n aterials; (b) "Environmental Law" means federal laws and laws of tile jurisdiction where the Property is located lhat relate to health, safety or environmental protection; (c) "En¢ironnmntal Cleanup" includes any response action', remedial action, or removal action, as defined in Environmental Law; and (d) au "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger} an Enviromnental Cleanup. Borrower shall not cause o" permit the presence, use, disposal, storage, or release of any HaZardous Substances, or threaten to release; any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting tile Property (a) that is in violation of an)' Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition tha',_ adversely affects tile value of tile Property. The preceding two sentences shall not apply to the presence, use, o.r storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in-consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, clalm, deinand, lawsuit or other action by any governmental or ~egulatory agency or private party involving tile Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Cbndition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition (;;aused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Sobstance affecting the Property is necessary, Borrower shall promp'!ly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and ag'ee as follows: 22. Acceleration; Remediei'. Lender shall give notice to Borrower prio- to acceleratiou following Borrower's breach of any covenant or ag,'eement in this Securily Instrument (but not prior to acceleratiou rattier Section 118 unless Applicai~le Law provides otherwise). The notice shall specify: (a) tbe default; (b) the action required to cure the delimit; (c) a dale, not less. tbau 30 days from the date' the notice is given to Borrower, by which the default must be cured; and (d) tbat failure to cure the default on or before the date specified in the notice may result in acceleration of the su~ns secured by Ibis Sec:,'ity Instrument and sale of the Property. The notice shall further inform Borrower of the right to ,'einstate after acceleration ami the right to briug a court actiou t6 assert the nou-existeuce of a defaolt or any olber defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lemler at its option may requir~ immediate payment in full of all sums secored by this Security Instrument without furlher demand and may invoke the power of sale aud any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided io this Sectioo 22, including, bnt not liiuited to, red, sortable attorneys' fees and costs of title evidence. If Lender invokes the power of sale? Lender shall give notice of intent to f~}reclose to Borrower and to tile person in possession of the Property, if different, in accordance wilh Applic.able Law. Lemler shall give notice of the sale to Borrower in the m anoer provided in Section 15. Lender sin. II publish tbe nolice of sale, ami tbe Property shall be sold~iiu tbe ~nanner prescribed by applicable law. Lender or its designee may purclmse/lie Property at any stile. The proceeds of the sale shall be applied iu tile following order: (a) to expenses of the sale, includi.g, but not limited to, reasonable attorneys' fees; (b) to all sums secured bytbis SecUrity Instrument; and (c) an~ excess lo the person or persons legally entitled ~o it. 23. Release. Upon payment 6fall sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay,any recordation costs. Lender may. charge Borrower a fee for releasing this Security Instrument, but only if t[~e fee is paid to a third party for services rendered and the cbarging of the fee is WYOMING - Single Family - Fannie M;'te/Freddie Mac UNIFORM INSTRUMENT Page I1 of 12 Form 3051 (01/01) Initials permitted under Appticable Law. 24. I, Vaivers_ Plorrokver relehses and waives all rights under and by virtue of the homestead exemption laws of Wyoming. BY SIGNING BELOW. Bcrroxver accepts and agrees to the terms and covenants contained in this Sect, rity Instrument and in any rider(s) executed by Borrower and r~corded with it. Social Security Nu,nber (Seal) Social Security Number (Seal) Social Security Number (Seal) Uon'owet (Seal) - Borrower Social Security Number .............................. {Space Below This Line For Acknowledgmenq ................................. STATE OF WYOMING ) ) SS: COUNTY OF I .-~=i~;1~'~ ~ ~'- 7:5/tb ) The foregoing instrument was acknowledged before me, a Notary Public, on by: KIP R. SAWDY, A SINGLE MAN Persoc (s) Ackno~vledgi ng In WITNESS WIIER.EOF, I have hereunto set my hand and official seal. JULY 7, 2004 Date County of g~.~ ,,s, t~t__e ,o_f._ My Con, mission expires: Notar~ Public WYOMING - Single Family - Irannie Mac/Freddie Mac LINIFORh, I INSTRUMENT Fora, 3051 101/0t} }'age 12 of 12 {~O0,~,,ID MORTGAGE ADDENDUM - .. The following is an Addendum to the Mortgage. The addendum shall be incorporated into, and recorded with, the Mortgage. TAX EXEMPT FINANCING RIDER This Tax-Exempt Financing Rider is inc9rporated into and shall be deemed to amend the terms of the Mortgage to ~vhich it is attached. In addition to the covenants and agreements made in the Security instrument, Borrower and Lender further covenant and agree as l-ollows: Lender, or such of its successors or assigns as may, by separate instrument, assume responsikility roi' assuring compliance hy the Borrower with the provisions of this Tax Exempt Financing Rider, may require immediate payment in full of all sums secured by this Security Instrument if: a) All of part of the Property sold or otherwise transferred (other than by devise, descent or operation of law} by Borrower to a purchaser or other transferee: Who cannot reasonably be expected to occupy the property as a principal resident within a reasonable time after the sale or transfer, all as provided in Section 143(c} and (i} (2) of the Internal Revenue Code; or b) ii) Who has had a present ownership interes: in a principal residence during any part of the three year pe~4od ending on the date of the sale or transfer, all as provided in Section 143[d} and (i) {2} of the Internal Revenue Code; or iii} At an acquisition cost which is greater than 90 percent of the .*~verage area purchase price (greater than 110 percent for argeted area residences}, all as provided in Section 143(e) and (i) (2) of the Internal Revenne Code; or iv) Whose family income exceeds applicable income limits as provided in Section 143(I) and {i} {2} of the I.hternal Revenue Code. Borrower fails to occupy the property described in the Security Instru'nent without prior written consent of the lender or its successors or assigns described at the beginning of this Tax Exempt Financing Rider, or c) Borrower omits or misrepresents a fact that io material ~vith respect to the provisions of Section 143 of the Internal Revenue Code in an application for the loan secured by this Security Instrument. References are to ;'he Internal Revenue Code as amended, in effect on the date of execution of the Security Instrument and are deemed to include the implementing regu;lations. BY SIGNING BELQW, Borrower accepts and agrees to tile terms and provisions in this Tax-Exempt Financing Rider. Borrower Borrower. ~-------IVIP~-B (Revised 12/95) 0900D10 CONDOMINIUM RIDER LOAN NO. 59-012-5208447166 THIS CONDOMINIUM PdDER is made this 7TH day of JULY, 2004 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trusl, or Security Deed (the "Security Instrument") of the same date given by tile undersigned (tile "Borrower") to secure Borrower's Note to FIRST NATIONAL BANK - WEST (ALPINE BRANCH) A NATIONAL BANKING ASSOCI (the "Lender") of the salne date and covering tile Property described in tile Security Instrument and located at: 186 Morning Star Drive A-1 /-alpine, WY 83128 [Properly Address] The Property includes a nnit in, Iogether with an nndivided interest in tile colnmon elements of, a comlominium project known as: PALISADES HEIGHTS TOWNHOUSES [Name of Condominium Project] (tire "Condominium Project"). If the owners association or other entity which acts for tile Condominium Project (tile "Owners Association") holds title to property for thc bone[it or use of its ~nembers or shareholde,'s, the Property also includes Borrow'er's interest in the Owners Association and the uses, proceeds and benefits of Borrower's interest. CONDOMINIUM COVENANTS. In addition to tile covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. Condominimn Obligations. Borrower shall perforln all of Borrower's obligations under the Condominiuln Project's Constiluent Docunrents. The "Constituenl Documents" are the ri) Declaration or ally other document which creates the Condominium Project; (ii) by-laws; (iii) code or regulations; and (iv) other equivalent documeuts. Borrower shall promptly pay, when duc, all dues and assessments imposed pursuant to the Constituent Documents. B. Property Insurance. So long as the Owuers Association maimains, with a generally accepted insurance carrier, a "nmster" or "blanket'' policy o~ the Condominium Projcc~ xvhich is satisfactory to Lender and which provides insurance c~overage iu the amounts (including deductible levels), for the periods, and against loss by fire, hazards included within tile term "extended coverage," and any other hazards, includiug, but not limited to, earthquakes and floods, from which Lender requires insurmlce, then: ri) Lender waives the provision in Section 3 for the Pmiodic Payment to !.encler of thc yearly premium ins~alhncnts for property insurance o~a the Property; MULTISTATE CONDOMINIIJM RIDER Single Family Fannie Mae/Iii'eddie Mac UN1FOPdM INSTRUMENT FNMA3140 {10/00) Page 1 of 2 FORM 3140 1/01 Initials_ -- and (ii) Borrower's obligation trader Section $ to maintain propclty insnrance coverage on the Property is deemed satisfied to the extent that the rdquired coverage is provided by thc Owners Association policy. What Lender reqnires as a condition of this waiver can change during thc term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. ]n thc event of a distribution of property insurance proceeds in lieu of restoration 'or repair follmving a loss to the Property, whether to the unit or to common elements, any proceeds payable to Borrower are hereby assigned anti shall be paid to Lender for application to the sums secured by thc Sccnrity Insmmmnt, whether or not then due, with the excess, if any, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure tt~at the Owners Association maintains j:a public liability insurance policy acceptable in form, mnonnt, and extent of coverage tO Lender. D. Condemnation. The W'oceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property, whether of the unit or of the common elements; or for any couveyance in lien of condemnation, ara hereby assigned and shall be paid to the Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section ]1. E. Lender's Prior Cnnscr~t. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition'or subdivide the Property or cousent to: (i) tl~e adandonment or termination of the Condominium ProjeCt, except for abandonment or termination required by law in the case of subsiantial destruction by fire or other casaalty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the Constitnent Documents if thc provision is for ~he express benefit of Lender; (iii) termination of professional management and assumption of self-management of the Owners Association; or (iv) any action which would ha('e the effect of rendering the public liability insurance coverage maintained by the O~vners Association unacceptable to Lender. F. Remedies. If Borrower. not ~oes pay condominium dues and assessments when clue, then Lender may pay them. Any amonnts disbursed,by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrulnent. Unless Borrower and Lender agree to other terms of pay~nent, these amounts shall bear interest fi'om the date of disbursement at the Note rate and shall be payable,. with interest, upon notice from l.ender to Borrower requesting payment. BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in tiffs Condominimn Rider. ~ (Seal) (Seal) KIP R. SAWDY -Borrmver -Borrower (Seal) -Borrower (Seal) -Borrower [Sign Original Only] MIJLTISTA~I~ CONDOMINIUM RI'DER FNMA3140 (10/00) Single Family Fannie Mae/Freddie Mac UN[FOI~M INffFRUMENT Page Z of 2 FORbl 3140 1/01