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HomeMy WebLinkAbout901017After Recording Remm To: COUNTRYWIDE HOME LOANS, INC. MS SV-79 DOCUMENT PROCESSING P.O.Box 10423 Van Nuys, CA 91410-0423 Prepped By: }lEATHER PETERSEN 901017 BOOK t~RP/',GL~ ..... RECEIVED ""i O, OUH-FY CLERK LINC [Space Ahove This Line For Recording Data] PERRIN [Escrow/Clos~ncj ti MORTGAGE MIN 1000157-0003897130-1 00006624242007004 [Doc I~D ~1 DEFiNITiONS Words used in multiple sections of this document are defined below ami other words ~e defined in Sections 3, 11, 13, 18, 20 and 21. Certain niles regarding the usage of word.~ used in this document are also provided in Section 16 (A) "Security Instrument" me,qms this document, which is dated JULY 08, with all Riders to this documen [. (B) "Borrower" is PETER S JEPHSON, AND HOLLY R JEPHSON, HUSBAND AND WIFE 2004 , together ,5 Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporal]on that is acdng solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee tinder fids Security lnstrume,t. MERS is organized and existing tinder thc laws of Delaware, mid has an address and telephone nmnber of P.O. Box 2026, Flint, MI 48501-2026, tel. (888~ 679-MFRS. (D) "Lender" is A/qERICA'S WHOLESALE LENDER Lender isa CORPORATION organized ,'md existing under the laws of NEB/ YORK Lender's address is P.O. Box 660694, Dallas, TX 75266-0694 0g) "Note" means tile promissory note si/~med by Borrower and dated JULY 08, 2004 The Note states that Borrower owes Lender ONE HUNDRED FORTY TWO THOUSAND FIVE HUNDRED and 00/100 Dollars(U.S. $ 142,500.00 ) pins interest Borrower has promised to pay this debt m regular Periodic Payments and to pay the debt in full not later thmt AUGUST 0 1, 2034 (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRU MEN T WITH MERS Page 1 of 11 ([~®-6A(WY) (0005) CHL (08/00)(d) VMP MORTGAGE FORMS - (80O1521-7291 CONV/VA Initials: ~30511/Ol *23991* * 06 6~4 2420000002 006A* DOC ID ~: 00006624242007004 (G) "Loan" means the debt evidenced by tile Note, plus interest, any prepayment charges and late charges due under the Note, and all snms due under this Security Instrument, plus interest. (1t) "Riders" means all Riders [o this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider [~] Balloon Rider [--] VA Rider ~ Condo~niniurn Rider ~-~ Second Home Rider ~-] Planned Unit Development Rider [-~ l-4 Family Rider [---] Biweekly Payment Rider [-~ Other(s) [specify] 0 (1) "Applicable Law" means 'all controlling applicable federal, state anti local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as ali applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees assessments and other charges that m'e imposed on Borrower or the Property by a condoniil~ium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrun~ent, which is initiated thro'ugh an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit mt account. Such term includes, but ~s not limited to, point-ol-sale trausfers, automated teller machine transactions, tr~msfers initiated by telephone, wire transfeis, and automated clearinghouse transfers. (L) "Escn)w Items" means those ~tems that are described in Section 3 tM) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: ti) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of tile Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, die value and/or condition of the Property. tN) "Mortgage Insurance" means insurance protecting Lender againsl the nonpayment of, or default on, the Loan. (0) "Periodic Payment" means the regularly scheduled amount duc for ti) principal and interest under tile Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 260l et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), tis they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" tinder RESPA. (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Bo~:rower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN TI{E PROPERTY This Security Instn,ment secures to Lender: ti) the repayment of the Loan, and all renewals, exlensions and modifications of the Note; and (ii) tile performance of Borrower's covenants and agreements under this Security instrument and the Note. For this puiPose, Bon'ower does hereby mortgage~ grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property located in the COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Nrane of Recording hrisdiction] LOT 45 OF STAR VALLEY RANCH PLAT 16, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. Parcel ID Number: Wyoming 8 312 7 [Zip Code] (~)®-6A(WY) (ooo5) 535 CEDAR CREEK DRIVE, [Street/City] ("Property Address"): CHL (08/00) Page 2 of 11 which currently has the address of THAYNE Initials :~m~ 1 1/Ol 77G 090101'2 ooc oooo : : :oo oo TOGETHER WITH all [he improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements arid additions shall also be covered by this Security Instrument. All of Ihe l'oregoing is referred to in this Security lnslrument as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instminent, but, if. necessary to comply with law or custoin, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; aud to take any action required of Lender including, but not limited to, releasing and canceling this Security h~slrtnnent. BO1LROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered except for encumbrances of record. Borrower warrants and will defend geuerally the title to the Property against all claims arid demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenlmts for national use and non-uniform covenants with limited wmations by jurisdiction to constitute a mfifonn secm'ity insmnnen~ covering real property. UNIFORM COVENANTS. Borrower aud Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges, Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security h~strument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender nnpaid, Lender may require that any or all subsequeut payments due tinder the Note and this Security Instrument be made in one or more ol' tl~e following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institutiou whose deposits ~e insured by a federal agency, iustrumez~tality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received a~ lhe location designated in the Note or at such other location as may be designated by Lender in accordance with the nonce provisions in Section 15. Lender may return any payment or parti~ payment if the payment or partial payments are insufficient to bring the Loan current. Leuder may accept any payment or pm:tiM payment insufficient to bring tile Lo~m current, without waiver of any rights hereunder or prejudice to its rights co rel'use such payment or partial payments in the future, but Leuder is not obligated to apply such payments at the tune such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender ueed not pay interest on unapplied funds. Lender may hold such uuapplied funds until Borrower makes payment to bhng the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or m the future against Lender shall relieve Borrower from making payments due cruder the Note and this Security Insn-ument or performing the covenants and agreements secured by this Security lnsu'nment. 2, Application of Payments or Proceeds, Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due uuder Sectiou 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amo~mts due under this Secud ty Instrument, and then to reduce the phncipal balance of the Note. if Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay troy late charge due, the payment may be applied to the delinquent payment and the late charge If more than one Periodic Payment is outstanding, Lender may apply any paymem received fi'om Borrower to the repayment of the Periodic Payments if, and to the extem dna, each payment can be paid in full To the extent that any excess exists 'after the payment is applied to tile full payment of one or more Pehodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscelhmeous Proceeds to principal due tinder the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower sh,'dl pay to Lender oz~ the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents ou the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Commuuity Associatiou Dues, Fees, and Assessmeuts, 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 amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligatiou to pay the Funds for any or all Escrow Items. Lender ruay waive Borrower's obligation It} pay to Lender l~unds for. t~y or. Escrow Initials :~:~-~ (~®~6A(WY) (0005) CHL (08/00) Page 3 of 11 ~I,~O,.i;m 3051 1/01 DOC ID ~:: 00006624242007004 Items at any time. Any such watver may only be m writing. In tile event of such waiver, Borrower shall pay directly, when and where payable, the ,'mmunts due for any Escrow hems for which payment of Funds has been waived by Lender and, if Lender reqmres, shall fimlish to Lender receipts evklenciug such payment within such time period as Lender may reqmre. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreemem contained in this Security Instrument, as the phrase "covenant and agreement" is used iu Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay lhe amoum due £or an Escrow Item, Lender may exercise its fights under Section 9 and pay such amoum and Borrower shall then be obligated 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 nouce given m accordance with Section 15 and upon such revocation, Borrower shall pay to Lender all Funds. and in.,such amounts, that are then required under this Section 3. Lender may, al any time, collect and hold ]:i'uilds in an amount (a) sufficient to permit Lender to apply the Fuuds at the ume specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall esumate the amount of Punds due on d~e basis of current data m~d reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, insmmlentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Fands to pay the Escrow hems no later than the time specified under RESPA. Lender shall nol charge Bon'ower for holding and applyiug the Funds, annually anMyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreen~e,lt is made in writing or Applicable Law reqmres interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or e~a-nings on the Funds. Borrower and Lender can agree m writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Fuuds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds m accordance with PdSSPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Bon'ower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, hut in no more titan 12' monthly payments. If there is a deficiency of Funds held in escrow, as defined raider RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up tile deficiency in accordance with RESPA, but m no more than 12 monthly payments. Upon payment in full of all sums secured by this Security hlstrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4, Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessmen ts, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided ill Section 3. Borrower shall promptly discharge any lien which has pr,urity over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation seem'ed by tile lien m a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opimon operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfi~ctory to Lender subordinating the lien to this Security Instrument. If Lender determines that any pm't of the Property is subject to a lien which can attain priority over this Security Insu'ument, Lender may give Borrower it notice identifying the lien. Within 10 days of the date on wMch that notice is given, Borrower shall satisfy lhe lic~n or take one or more of the acuons set forth above itl this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting sermce used by Lender in connection with this Loan 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for whicll Lender requires insurm~ce. This tnsurance shall be maintained in tile amounts (including deductible levels) and for the periods that Lender requires What Lender requires pursuant to the preceding semences can change during the term of the Loan The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which fight shall not be exercised unreasonably. Lender may reqmre Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zoue determination, certification and tracking services; or (b) a one-time charge for flood zone dete,'mination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for tile payment of any fees imposed by the Federal Emergency Management Agency in connection with tile review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under ilo obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall covet' Leuder, but might or ~night not protect Borrower, Borro wer's equity in the Property, or the contents of the Property, ag ain~ly ~r~lazard (~®-6A(WY) (0005) CHL (08/00) Page 4 of 11 [ Y.~p~m 3051 1/01 · DOC ID #: 00006624242007004 or li ability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of tile insurance coverage so obtained might significantly exceed Ire cos[ of insurance that Borrower could have obtained Any amounts disbursed by Lender under this Section 5 shall become additional debt of Bon'ower secured by this Securi[y Instrument. These amora/ts shall bear interest at the Note rate from the date of disbursement m~d shall be payable, with such interest, upon notice fi'om Lender to Borrower requesting payment. All insurance policies required by Lender ,'md renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal cerlificates If Lender requires. Borrower shall promptly give to Lender all receipts of paid p,'emimns and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, snob policy shall include a standard mortgage clause and shall nmne Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance c,'u-rier and Lender. Leuder may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repmr of tile Property, if the restoration or repair rs economically feasible and Leader's security is not lessened. During such repair and restoratio~l period, Lender shall have tile right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspectnm shall be undertaken promptly Lender may disburse proceeds for the repairs and restorauon in a ~s~ngle payment or in a series of progress payments as [he work is completed. Unless an agreement is made in writing or Applicable Law reqmres interest to be paid on such insarance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds mrd shall be the sole obligation of Borrower. If tire restoration or repmr is not economically feasible or Lender's security would be lessened, thc msm'ance proceeds shall be applied to the sums secured by dtis Security Instrument: whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in tile order provided for in Section 2. If Borrower ab;radons the Property, Lender may file, negouate and settle any available insurance clmm and related matters If Borrower does not respond within 30 days to a notice from Lender that the insurance cra'tier 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 acqoires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Ins/runlent, and (b) any other of Borrower's rights (other than the right to any refund of unemqmd premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use lhe insurance proceeds either to repair or restore the Property or to pay amomlts unpaid under the Note or tlris Security Instrument, whether or not then due. 6. Occupancy, Bon'ower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall coin~nue to occupy the Property as Bon'ower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withhehl, or unless extenuating circumstances exist which are beyond Borrower's control. 7, Preservation, Maintenance and Protection of the Property; Inspections, Borrower shall not destroy, d,'Lmage or nnpair 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 i,t order to prevent the Property from deteriorating or decreasing in value due [o its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair tile Property if damaged to avoid fitrther deterioration or damage. If insurance or condemnation proceeds are paid m commction with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoranon in a single payinent or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower as not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon :md inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on tile Property. Lender shall give Borrower notice at the time of or prior to such ,'m interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loau 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 Lender (or failed to provide Lender with material information) in connection with the [_oan. Material representations include, bat are not limited to, representations concerning Borrower's occupancy of tt!e Property as Borrower's principal residence. (~®-6A(WY) (0005) CHL (08/00) Page 5 of 11 Initia~ ~( ~.~rln 3051 1/01 0 O1.O1, DOC 1:D ~: 0000662z12~t2007004 9. Protection of Lender's In£erest in the Property and Righls Under tiffs Security Instrument. If (a) Borrower fails to perform the covenants ~ld agreemenm contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest m the Property anWor rights under this Securi~ Instrument (such as a proceeding m ban~uptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do ~d pay for whatever is reasonable or appropriate to protect Lender's interest m the Property and rights under this Security lnslrumenl, including protec6ng ~Wor assessing lhe value of the Property, and securing and/or repairing d~e Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Securi~ Ins~ment; (b) appearing m court; ~d (c) paying reasonable attorneys' fees to protect its interest in the Proper~ ancot rights under this Securi~ Instrument, including ~ts secured position in a ban~ptcy proceeding. Securing the Proper~ includes, but is not limited to, entering the Property to make repairs, change locks, replace or bo~d up doors and windows, dram water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Leuder does not have to do so aud is not under any duty or obligation to do so. It is agreed that Lender iucurs no liability for not taking any or all actio, s authorized under this Section 9. Any amounts disbursed by Lender under lhis Section 9 shall become additional debt of Borrower secured by this Security Ins~ment. These amounts shall be~ interest at [he Nole rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all tl~e provisions of lhe lease. If Borrower acquires fee title to the Propers, the leaseh61d and the fee title shall-nol merge unless Lender agrees to Ihe merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insm'ance as a condition of makiug the Loan, Borrower shall pay the pre,Mums required to maintain {he Mortgage lusurance in effect. If, for any reasou, Mortgage Insurance coverage required by Lender ceases to be available from the mortgage ins'umr that previously provided such insurance and Borrower was required ~o make separately desiguated payments towed the premiums for Mortgage Insurance, Borrower shall pay thc premiums required to obtain coverage substantially equivalenl to the Mortgage Insur~ce previously in effect, at a cost substan6:dly equiwdent cost to Borrower of the Mortgage Insurance previously in effect, fi'om an alleruate mortgage insurer selecled by Lender. If substantially equivalent Mortgage Insurance coverage ~s not available, Borrower shall continue to pay to Lender the mount of the sepm'alely designated paymenls ih;it were due when the insurance coverage ceased to be m effect. Lender will accept, use and retain these payments as a non-r~fundable loss reserve m lieu of Mortgage Insurance. Such loss reserve shall be non-reflmdable, notwifl~standing the fact that the Loan is ultimately paid in MI1, and Lender shall not be required to pay Borrower any interest or em~fings on such loss rese~we. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount ~d for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments towed the preminms lbr Mortgage lnsur~ce If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make sep~ately designated payments towed the premmms for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-r'e~ndable loss reserve, until Lender's requirement for Mortgage Insnrauce ends in accordance with any written agreement between Borrower and Leuder providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation lo pay in~erest at the rate provided in ll~e Note. Mortgage Insurance reimburses Lender (or any enti~ that purchases the Note) for certain losses it may incur if Box~ower does not repay the Loan as agreed. Borrower is not a par~ to the Mortgage Insurance. Mortgage insm'ers evaluate their total risk on all such insurance m force from time lo time, and may enter into agreements with other p~u'ties that shoe or modi~ their risk or reduce losses. These agreemeuts are on terms :md conditions that ~e satisfacto~ lo 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 flmds that the mortgage insurer may have available (which may include lucds obtmned from Mortgage Insurance premimns). As a result of these agreemenm, Lender, any purchaser of tl~e Nole, another insnrer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may recmve (dh'ectly or indirectly) amounts that derive from (or migh~ be characterized as) a portion of Borrower's payments for Mortgage Insurm~ce, in exchange for sh~ing or modi~ing the mortgage insurer's risk, or reducing losses, if such agreement provides {hat affiliate of Lender takes a sh:~e 0f the insurer's risk in exchange for a shoe of the premiums paid to the insurer, the ~rangement is often termed "captive reinsurance." Fmqher: (a) Any such agreements will not afl'ecl the amoun~ lhat Borrower has agreed to pay fl~r Mortgage lusurance, nr auy other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage lnsnrance, and they will nut entitle Borrower lu any retired. (~)®-6A(WY) (0005) CHL (08/00) Page 6 of 11 DOC ~D #: 0000662424200?004 (b) Any snch agreements will mit affect file rights Borrower has - if any - with respect 1o tile Mortgage Insurance under the Itomeowners Pro£ecfion Acl o1' 1998 nr any oilier law. These righls may include the righ£ to receive certain disclusures, to requesl and oblain cancellation uf the Mortgage Insurance, to have tile Morlgage Insurance terminated auloumlically, and/or lo receive a retired of any Morlgage Insurance premiums that were unearned al lhe lime or such cancdlalion or lerminatim~. ll, Assignment o1' Misfiellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be prod to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Leuder's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellan ~,ous Proceeds un til Lender has had an opportunity to inspect such Property to eusure the work hus been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for tile repairs and restoration m a siugle disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in wrmng or Applicable Law requires interest to be paid on such Miscellmteous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repan' is not economically feasible or Lender's security would be lessened, 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 Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In tile event of a total taking, destrnction, or loss in value of tl~e Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instr0ment, whedter or not then due, with the excess, if any, paid to Borrower. In the event of a partial Laking, destruction, or loss in value of the Property m which the fair market value of the Property immediately before tile partial taking, destruction or loss iu value is equal to or greater than the amount of tile sums secured by riffs Security Instrument immedi;tldy before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree m writing, the stuns secured by this Security instrument shall be reduced by the amonnt of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial laking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fifir market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree iu writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property ~s 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 claim for damages, Borrower fifils to respond to Lender within 30 days after the 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. "Opposiug Party mear~s the third party that owes Borrower Miscellaneous Proceeds or the pm'ty against whom Borrower has a fight of action m regard to Miscelhmeous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgmeut, could result in forfeiture of the Property or other material unpairment of Lender's intemsl in the Property or rights under this Security Instrument. Bon'ower can cure such a default and, if acceleration has occurred, reinstate as provided io Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impmrment of Lender's interest m the Property or rights under this Security Instmmenl The proceeds of any award or claim tier damages that are attributable to the impairment of Lender's interesl m d~e Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to res'toranon or repair of the Property shall be applied in the order provided for in Section 2. 12, Borrower Nul Released; Forbearance By Lender Nol a Waiver. Extension of the time for payment or modifi cation of amortizauon of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Bon'ower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to ex[end time for paylnent or otherwise modify mnortization of the sums secured by this Secority Instrument by reason of any demand made by tile original Borrower or any Successors in Interest of Borrower. Any forbem'ance by Lender m exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Bon-ower coveuants and agrees that Borrower's obligations aud liability shall be jotul and several. However, any Borrower who co-signs this Security h~strnment but does not execute the Note (a "co-signer"): (a) is co-signing this Security (~®-6A(WY) (0005) CHL (08/00) Paoe 7 of 11 DOC Ir) #: 00006624242007004 Instrnment only to mortgage, grant and convey the co-signer's interest iu the Property under the terms of this Security Instrmnent; (bi is not personally obligated to pay the sn,us secured bY this Security Iustrument; and (c) agrees that Lender and any other Borrower can agree to exteud, modify, forbear or make any accommodations with regard to the terms of this Security hlstrmnent or the Note without the co-signer's consent. Subject to the provisions of Sectiou 18, any Successor ii1 Interest of Borrower who assumes Borrower's obligations under this Security Instrument iii writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits trader this Security Instrument. Bon'ower shall not be released fi'om Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writiiig. The covenants arid agreements of this Security Instrument shrill bind (except as provided iu Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees fi)r services performed in connection with Borrower's default, for the purpose of protecting Lender's interest iii the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, properly inspection and valuation fees. lu regard to any other tees, the absence of express authority in this Security instrulnent to charge a specific fee to Borrower shall riot be construed as a' prohibition on the charging of such lee. Lender may not charge fees that are expressly prohibited by this Security Instn;ment or by Applicable Law. If die Loan is subject tO a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other lom~ charges collected or to be collected in connection, with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by tile amount necessary to reduce the charge to the permitted linfit; and (bi any sums already collected fi-om Borrower which 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 redtlces p,'iucipal, the reduction will be treated as a pm-tiM prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of auy such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising ()tit of such overcharge. 15. Notices. All notices given by Borrower or Lender iu connection with this Security Instrnment must be in writing. Any notice to Borrower in connection with this Security Instrunient shall be demned to have been given to Borrower when lnailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall pro~nptly noti~ Lender of Bon'ower's ch~mge of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Leuder has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Leuder until actually received by Lender. If any notice required by this Security instrument is also required uuder Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Securit-y Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law ,'aid the law of the jm'isdiction in which the Property .is located. All rights and obligations contained in tiffs Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly 'allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreelnent by contract. In tbe event that any provision or clause of this Security Instrmnent or the Note conflicts with Applicable Law, such conflict shall riot affect other provisions of this Security Instrument or the Note which can be given effect without tile conflicting provision. As used in this Security Instrument: (a) words of the masculiue gender shall mean and include corresponding neuter words or words of the feminine genderi (bi words iii the singular shall mean and include the plurM and vice versa; mid (c) tbe word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the PrOperty or a Beneficial Interest ill Borrower. As used iii this Section 18, "Interest in the Property" means any legal or'beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of tide by Borrower al a furore date to a purchaser. If all or any part of the Property or any hiterest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) wilhout Lender's prior written consent, Lender may require immediate payment in hill of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this optioii, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days fi'om the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security InsU~nment. If Bon'ower/'ails to pay these sums prior to the expiration of this. period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. Initial~ (~;)®-6A(WY) (0005) CHL (08/00) Page t~ of 11 1/01 DOC ID #: 0000662,1242007004 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have. enforcement of this Security histrt, ment discontiuued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contaiued in this Security Instrument; (b) such other pe~'iod as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security hlstrument. Those conditions are that Borrower: (a) pays Lender 'all sums which dmn would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covemmts or agreements; (c) pays all expenses incurred in enforcing this Security !nstrumeut, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights uuder this Security Instrument; and (d) takes such actiou as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrunient, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) casll; (b) money order; (c) certified check, bauk 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, insmnnentality or eutity; or (d) Electronic Funds Trm~sfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of accele,'ation under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial iuterest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as ire "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security h'~stmment, 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, Bon'ower will be given written notice of the change which will state the name and address of tile new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a 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, the mortgage loan se,'vicing obligations to Borrower will remain with die Loan Servicer or be transferred to a successor Loan Servicer mid are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or t!~at alleges that the other party has breached auy provision of, or any duty owed by reason of, this Security Instrmnent, until such Bon'ower or Lender has notified the other pm-ty (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this pm:agraph. The uotice of acceleration and opportt,nity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21, Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other fl:mnnable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive lnaterials; (b) "Environmental Law" means federal laws and laws of the jurisdictiou where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; anti (d) an "Environmental Condition" means a condition that cfm cause, contribute to, or otherwise trigger an Enviromnental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of mty Hazardous Substances, or threaten to release any Hazardous SUbstances, oil or in the Property. Borrower shall not do, nor allow anyoue else to do, anything affecting the Property (a) that is iu violation of any Environmental Law, (b) which creates all Environmental Condition, or (c) which, due to the preseuce, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. Tile 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 normal residential uses and to maintenance of the Property (including, but not limited tO, hazardous substances in consuiner products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Enviromnental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, ,'my spilling, leaking, discharge, televise or threat of release of any Hazm'dous Substance, and (c) any conditiou caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessmy remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. lnltials~ (~®-6A(WY) (ooos) CHL (08/00) P.§~ 9 ~f ll ~.o~m 3051 1/01 O:301.O L? ..... ,. ,. ?83 DOC ID #: 00006624242007004 NON-UNIFORM COVENANTS. Borrower and Lender fiJ,'ther covenant nnd agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Bm'rower prior to acceleration following Borrower's breach of any covenant or agreement in ibis Securily Instrmneut (but not prior to acceleration under Section 18 unless Applicahle Law provides olberwise). TILe notice shall specify: (a) the default; (b) ll~e action required to cure the del':mlt; (c) a dale, not less than 30 days from the date lhe notice is given to Borrower, by which the default must be cored; and (d) that failure to cure the default on or before tile date specified in the notice ~nay result in acceleration of tile sums secured by this Security lnstrmnen! and sale of the Property. Tile notice shall further inform Borrower of the right lo reinstate after acceleration aud the righl to bring a court aclitm lo assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If Ibc default is not cured on or before lhe date specilied in the notice, Lender at ils option may require immediate payment in full of all sums secured by this Security Instrument without liLrther dcm and and may invoke the power of sale and any oilier remedies permitled by Applicahle Law. Lender shall he thrilled lo collect all expenses incurred in pursuing the remedies provided in this Section 22, including, bul not limited to, reasonahle altorneys' tees and costs of title evidence. Il' Lender invokes file power of sale, Lender shall give ,mtice of inleut to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided iu Section 15. Lender shall publish notice of sale, and tile Property shall he sold in the manner pcescrihed by Applicable Law, Lender or its designee may purchase the Property at any sale. The proceeds of lhe sale shall be applied in tile following order: (a) to all expenses of the sale, including, bnl not limiled to, reasonable attorneys' fees; (b) to all sums secured by this Security lnstrmnent; and (c) any excess lo lhe person or persons legally entitled lo it. 23. Release. Upon payment of all sums secured by this Security Ii~strt,ment, Lender shall release this Security Instrument. Borrower shall pay any recordation cosls. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third pm'ty for services rendered and the charging of the fee is permitted under Applicable Law 24. Waivers. Borrower releases and waives ail rights under and by virtue of the homestead exemption laws of Wyoming. BY SIGNING' BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: (Seal) ~Borrower (Seal) -Borrower (Seal) (Seal) -Borrower , (~}®-§A(WY) (00o5) CHL (0ti/00) Page 10 of 11 Form 3051 1/01 STATE OF WYOMING, The foregoing instmmen[ was acknowledged before me this by DOC ID ~: 00006624242007004 7~--~'/f~"1 County ss: My Commission Expires: ,! JEREM,'¢ J. GOSIN~,I(I - NOTARY PUBLIC ~ Cot. nty of ,~¢~:~ State of ~ Teton '~ ~:~ Wyoming (~®-6A(WY) (ooo5) CHL (08/00) Page 11 of 11 Initials ~~--~ 3051/1/01 0:301.017 [Space Above Tlds Lh~e For Recording Data] PLANNED UNIT DEVELOPMENT RIDER AfterRecordingRetumTo: COUNTRYWIDE HOME LOANS, INC. MS SV 79 DOCUMENT PROCESSING P.O.Box 10423 Van Nuys, CA 91410-0423 PreparedBy; HEATHER PETERSEN PERRIN [Escrow/Clos*n9 #) 00006624242007004 [Doc ID #] THiS PLANNED UNIT DEVELOPMENT RIDER is made this EIGHTH day of JULY, 2004 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (tile "Security Instrument") of the same date, given by tile undersigned (the "Borrower") to secure Bon'ower's Note to AMERICA'S WHOLESALE LENDER 535 CEDAR CREEK DRIVE THAYNE, WY 83127 [Propeuy Address] MULTISTATE PUD RIDER. Single Fami y - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 1 of 3 I[~7R (0008),01 CHL (09/01}(d) VMP MORTGAGE FORMS - (800)521-7291 CONV/VA Initials~ For~ 3~50 1/01 *23991* * 066242420000002007R* DOC ID #: 0000662424200V004 parcelsandcertmncommonareasandfacilities, asdescfibedin THE COVENANTSt CONDITIONS, AND RESTRSCTIONS FILED OF RECORD THAT AFFECT THE PROPERTY (the"Declaration").TheProper~isapartofaplannedunitdevelolmmntknownas STAR VALLEY RANClt [Name of Planned Unit Developmentl (the "PUD"). The Property also includes Borrower's interest in the homeowners associanon or equivalent entity owning or managing the common areas and facilities of the PUD (the "Owners Association") and the uses, benefi ts and proceeds of Borrower's interest. PUD COVENANTS. In addition to the covenants and agreements made in the Security Instrmnent, Borrower and Lender flmher covenant and agree as fol]ows: A. PUD Obligations. Borrower shall perform all of Borrower's obligations under the PUD's Consmuen[ Documems. The "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation, trUSl instrument or any equivalenl doc'umenl which creates the Owners Association; and (iii) any by-laws or other rules or regulations of the Owners Association. Bon'ower shall promptly pay, when due, all dues and assessments imposed pursuaut [o the Constituent Documents. B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "nmster" or "blanket" policy insuring the Property which is satisfitctory to Lender and which provides insurance coverage in the mnounts (including deductible level,;), lbr the periods, and against loss by fire, hazards included within the term "extended coverage," and any other hazards, including, bnl not limited m, earthquakes and floods, for which Lender requires insurance, then: t~) Lender waives the provision in Section 3 for the Periodic Payment to Lender of the yearly premium installments for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage ou die Property is deemed satisfied to the exten, that the required coverage is provided by the Owners Association policy, What Lender reqnires as a condition of this waiver can change during the term of d~e loan. Borrower shall give. Lender prompt notice of any lapse in required property insurance coverage provided by tire master or blanket policy In the event of a distribution of property insurance proceeds in lieu of res[oration or repair fifllowing a loss to the Property, or to common areas and facilities of the PUD, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply tile proceeds lo the sums secured by the Security Instrument, whether or not then due, with the excess, if tiny, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure Ihat the Owners Association maintains a public liability insurance policy acceptable in form, amonnt, arid extent of coverage to Lender~ D, Condemnation. The proceeds of any award or claim for danmges, direct or consequential, payable to Borrower m connection with any condemnation or other taking of all or any pm't of the Property or the common areas and facilities of the PUD, or fo,' any conveyance in lieu of condemuation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to tile sums secured by the Security instrumem as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lemler's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the PUD, except for abandonment or termination required by law ill the case of substantial destruction by fire or other casualty or m the case of a taking by condemnation or emmeut domain; (ii) any amendment to any Initials:~ ' (~®-7R (0008).O1 gilL (09/01) Page 2 of 3 I~tm 3150 1/01 DOC ID #: 00006624242007004 of professional ~nanagement and assumption of self-management of the Owners Associanon; or (iv) any action which would have the effect of rendering the public liability instmmce coverage maintained by tile Ownem Association unacceptable to Lender. F. Remedies. If Borrower does not pay PUD dues m~d assessmems when due, titan Lender may pay them. Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other te,-ms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice fi'om Lender to Borrower requesting payment. BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this PUD Rider JEPHS~ - TER S. (Seal) - ~O[TOWtl (Seal) - Bolmwer (Seal) - Bon-owcr (Seal) - B orrowel (~®-7R (0008).01 CHL (09/01) Page 3 of 3 Form 3150 1/01 .... ADJUSTABLE RATE RIDER {LIBOR One Month Index Paymen~ Caps) AfterRecordingRetm~To: COUNTRYWIDE HOME LOANS, INC. MS SV-79 DOCUMENT PROCESSING P.O.Box 10423 Van Nuys, CA 91410-0423 Prep~edBy: HEATHER PETERSEN CONV · ARM PayOption Rider 1D729-US (07/02).01 (d) *23991 * PERRIN [Escrow/Closing 00006624242007004 [Doc ID ~] Page 1 of 7 * 06624 2420000001D729' DOC ID #: 0000662424200700,1 THiS ADJUSTABLE RATE R/DER is made this EIGHTH day of JULY, 2004 , and is incorporated into and shall bc deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (lite "Security l,~strt.nent") Of the same date given by the undersigned ("Borrower") to secure Borrower's Adjustable Rale Note (Ire "Note") to AMERICA'S WHOLESALE LENDER ("Lender") of the same date and covering the property described in the Security Insu'ument and located at: 535 CEDAR CREEK DRIVE THAYNE, WY 83127 [Propelty Address] THE NOTE CONTAINS PROVISIONS THAT WILL CIIANGE TILE. INTEREST RATE AND THE MONTHLY PAYMENT. THERE MAY lie A LIMIT ON TIlE AMOUNT TIIAT THE MONTHLY PAYMENT CAN INCREASE OR DECREASE. TItE PRINCIPAL AMOUNT TO REPAY COULD BE GREATER THAN TIlE AMOUNT ORIGINALLY BORROWED, BUT NOT MORE THAN THE LIMIT STATED IN THE NOTE. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower trod Lender timber covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CIIANGES The Note provides for changes in the interest rate and the montlfly payments, as follows: 2. INTEREST (A) Interest Rate Interest will be charged on nnpaid principal tmtil the fldl amount of Principal has been paid. I will pay interest at a yearly rote of 3.3'7 $ %. The interest rate I will pay may change. The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 7(B) of the Note. CONV · ARM PayOption Rider ~ D729-US (07/02) 01 Page 2 of 7 Initials~:~ DOC ID #: 0000662424200?004 (II) .Interest Rate Change Dates The interest rate I will pay may change on tile first day of SEPTEMBER, 2004 , and on that day every month thereafter. Each date on which my interest rate could change is called an "Interest Rate Change Date." The new rate of interest will become effective on each Interest Rate Change Date. (C) Index Beginning with the first Change Date, my adjustable inueresE raEe will be based on an Index. The "Index" is the average of interbank offered rates for one month U.S. dollar-denominaEed deposits in Ehe London market ("LIBOR"), as published in The Wall Street Journal. The mosu recenE Index figure available as of Ehe date 15 days before each Change Date is called the "Curren~ Index" If the Index Is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (D) Calculation of Interest Rate Changes Before each Interest Rate Change Date, the Note Holder will calculate my new interest rate by adding THREE & 65 / 100 percentage point(s) ( 3. 650 %) to tile Current Index. The Note Holder will then round tile result of tMs addition to the nem'est one-eighth of one percentage point (0.125%). This rounded amount will be my new interest rate until the next Interest Rate Ch[rage Date. My interest rote will never be g,'eater than 9. 950 %. CONV · ARM PayOption Rider 1D729-US (07/02).01 Page 3 of 7 Initials~ .._ ?,3 1 DOC rD #: 00006624242007004 3. PAYMENTS (A) Time and Place of Pay~nents I will pay principal and interest by making a payment every month. I will make my monthly payments on the 15' Z RS T day of each morlth beginning on September, 2004 . i will make these paymeuts every month until I have paid all the principM and interest and any other charges described below that I may owe under this Note Each monthly payment will be applied to interest before Principal. If, on AUGUST 01, 2034 , I still owe amounts under the Note, I will pay those amounts m full on thru date, which is called the "Maturity Date" 1 will make my monddy payments at P.O. Box 660694, Dallas, TX 75266 0694 or at a different place if required by the Note Holder. (B) A~nount of My Initial Monthly Payments Each of my initial monthly payments will be in the amount ol U.S $ 62 9. 99 . This amount may change. (C) Payment Change Dates My monthly payment may change as reqnired by Section 3(D) below beginning on tile firsE dayof SEPTEMBER, 2005 aud on that day every 12th month thereafter. Each of these dates is cMled a "Payment Change Date." My monthly payment also will change a~ any time Section 3(F) or 3(G) below requires me to pay a differem monthly paylnent. I will pay the amount of my new monthly payment each mon th beginning on each Payment Change Date or as provided in Section 3(F) or 3(G) below. (D) Calculation of Monthly Pay~nent Changes At least 30 days before each Payment Change Date, the Note Holder will calculate Ihe amount of the monthly payment that would be sufficient to repay the nnpaid principal thai I am expected to owe at the Payment Change Date m full on the maturity date in subst[mtmlly equal iustalhnents at the interest rate effective during the month preceding the Payment Change Dmc. The result of this calculation is called the "Puli Payment". The Note Holder will then calculate the amoun, of my monthly payment due the month preceding the Payment Change Date multiplied by the number 1.075. The resuh of this calculation is called the "Limited Payment." Unless Section 3(F) or 3(G) below requires me to pay a different amount, my new CONV ~ · ARM PayOption Rider Initial 1D729-US (07/02).0] Page 4 of 7 ':." ;:,'.:' i .:'..... · '.: : · .' · : '-::;'i. .. :'"'":':ii:i::'?" : : :.::5'.': "?:: .- ..... 7'.32 DOC ID #: 00006624242001004 required monlhly payment will be lesser of lhe Limited Paymenl and die Full Paymeut. I also have the option each month to pay more than the Lirnited Payment up to and includi~[g the Full Paymenl for [ny monthly payment. (E) Additions to My Unpaid Principal My monthly payment could be less than the amount of the interes~ portion of the monthly payment that would be sufficient to repay the unpaid principal I owe at the monthly paymeut date in fi~l} on the Maturity Date in substantially equal payments. If so, each month that my monthly payment is less than the interest pordon, the Note Holder will subtract tile amount of my monthly payment Ii'om the amoum of the interest portion and will add the difference to my unpaid principal. The Note ltolder also will add interest on the amount of this difference to my unpaid priucipal each month The iuterest rate on the interest added to Principal will be the rate required by Section 2 above. (F) Limit on My Unpaid Principal; Increased Monthly Paj ment My unpaid principal c,'m never exceed a maxmmm amount equal to ONE HUNDRED FIFTEEN percent( 1.15 %) of the Principal amonnt I originally borrowed. My unpaid principal could exceed that maximum amount due to the Limited Payments and interest rate increases. Ill thai event, oil the date that my paying my monthly payment would cause me to exceed that limit, I will instead pay a new monthly payment The new ntonthly payment will be in an amount that would be sufficient to repay my then unpaid principal iii fl,Il tm the Maturity Date in substantially equal (us(aliments al the current interest rate. (G) Required Full Payment On the fifth Payment Change Date and on each succeeding fifth Payment Change Date thereafter, I will begin paying the Full Payment as my monthly payment until my monthly paymenl changes again. I also will begin paying the Full Payment as my monthly payment on the final Pa yment Change Date. 4. NOTICE OF CHANGES The Note Holder will deliver or mail to me a notice of any changes in the arno(mt of my monthly payment before the effective date of any change. The notice will include reformation required by law to be given me and also the title and telephoue number of a persou who will answer any question I may have regm'ding the notice. CONV1D729-US 01 · ARM PayOptlon Rider Initials (07/02) Page 5 of 7 0 3010i':; .... 7:3 o DOC ID #: B. TRANSFER OF TItE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 18 of the Security Instmmei~t is amended to read tls follows: Transl'er of the Property or a Beneficial Interest in Burrower. As used in this Section 18, "Interest in the Property" me,'ms any legal or beneficial interest in the Property, including~ btll not limited to, those beneficial interests transferred in a bond fi)r deed, contract for deed, installment sales contract or escrow agreement the intent of which is die transfer of title by Borrower at a fmure date to a purchaser. If 'all or any part of the Property or any Interest m rile Property is sold or transferred (or if Borrower is not a natural person trod a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender [nay require nnmediate payment in full of all sums secured by this Securit-y Instrument. However, this option shall no~ be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exe,'c~se this option it': (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's secnrity will not be impaired by the loan assumption and that thc risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Leuder m:ty charge a reasonable fee as a condition to [.ender's consent to the loan assmnption. Lender also may require the transferee to sign an assumption agreement that is acceptable [o Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligaled under the Note and this Security Insmm~ent unless Lender releases Bon-ower in whting. If Lender exercises the option to require immediate pasment iu full, Lender shall give Borrower notice of acceleration. The notice shall provide a perit~d ~l' not less than 30 days from the date the notice is given in accordance with Section 15 wilhin which Borrower must pay all sums secm'ed by this Security Instrument. If Borrower filils to pay these sllBls prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instm,nent without furdmr not~ce or demand oil Borrower. CONV · ARM PayOptlon Rider 1D729-US (07/02).0] Page 6 of 7 Initials~ DOC ID ~: 00006624242007004 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. (Seal) -Borrower (Seal) ~Borrower (Seal) -Borrower (Seal) -Borrower CONV · ARM PayOptlon Rider 1D729-US (07/02).01 Page 7 of 7