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HomeMy WebLinkAbout90106830860 (04) After Recording Return To: FIRST NATIONAL BANK-WEST PO BOX 3110, 100 GREYS RIVER ROAD ALPINE, WYOMING 83128 90lOg8 RECE ',/ED LINCOLN C©tfr,,I-/'( CLERK DEFINITIONS [Space Above This Line For Recording Datal MORTGAGE Loan Number 59641123 }vi ERS Number 100015700039134750 Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain roles regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this documen[, which is dated JULY 12, 2004, together with all Riders to this document. (B) "Borrower" is DAVID R. SP[JRLOCK and MARCIA A. SPURLOCK, HUSBAND And WIFE AS JOINT TENANTS WITH RIGIIT OF SURVIVORSHIP. Borrower is the mortgagor nnder this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS ~s at separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. (D) "Lender" is FIRST NATIONAl, BANK-WEST. Lender is a CORPORATION organized and existing under thc laws of WYOMING. Lender's address is PO BOX 3110, 100 GREYS RIVER ROAD, ALPINE, WYOIYHNG 83128. (E) "Note" means the promissory note signed by Borrower and dated JULY 12, 2004. The Note states that Borrower owes Lender FIVE HUNDRED TWENTY-FIVE TItOUSAND AND 00/100tbs Dollars (U.S.$525,000.00) plus interest. Borrower has pronfised to pay this debt in regular Periodic Payments and to pay the debt in full not later than AUGUST 1, 2034. (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security h~strument, plus interest (H) "Riders" means all Riders to this Security Instrument 1hat are executed by Borrower. The/bllowing Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider [] Condomimum Rider [] Second Home Rider [] Balloon Rider ~ Planned Unit Development Rider [] Other [Specify} [] 1-4 Family Rider [] Biweekly Payment Rider $~F~OMING--Single Family-~Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Borrower 'ni£ials _ ~ Form 3051 1/01 (page 1 of ll pages) (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions (J) "Community Association Dues, Fees, and Assessments" means all clues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means valy transfer of funds, other tban a transaction originated by check, draft, or similar paper instrument, 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 accouut. Such term includes, but is uot limited to, point-o/:sale transfers, antomated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any tl{ird party (other than insurmlce proceeds paid under the coverages described in Section 5) for: (i)danage to, or destn, ction of, the Property; (ii) condemnation or other taking of all or m~y part of tile Property; (iii) conveyance ill lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or defatflt on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) priucipal and interest under the Note, plus (ii) any an~ounts under Section 3 of this Security Instrument. (P) "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 from time to time, or any additional or successor legislation or regulation that governs the stone subject matter. As used in this Security Instrument, "RESPA" refers to all requirements restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage lomb" under RESPA. (Q) "Successor in Interest of BorroWer" means any party that has taken title to the Property, whether or not that party bas assumed Borrower's obligations under the Note ~d/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument aud the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors md assigns) va~d to the successors and assigns of MERS, with power of sale, the lbllowing described property located in the County of LINCOLN - [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] LOT 25, TRAIL CREEK SUBDIVISION, LINCOLN COUNTY, WYOMING, ACCOPd)ING TO TilAT ?LAT FILED APRIL 3, 2002 IN TI]~ OFFICE OF THE LINCOLN COUNTY CLEI~,7~ AS PLAT q'O. 196F. dlich currently has the address of 224 ASHLEY DRIVE , Wyoming 83118 [city] [Zip Code] [Street] C Property Address"): i"YOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Borrower hlJlials Form 3051 1/O1 O>age 2 uf l I pages) TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, gud fixtures now or hereafter a part of the prope~y. All ~eplacements ~d additions shall also be covered by this Security lustrumem. All of the foregoing is referred to in this Security Instmmem as the "Property.' Borrower understands and agrees that MERS holds only legal title to the interests'granted by Borrower in this Security Instrument, bul, if necessary ~o comply with law or custom, MERS (~ nominee l~r Lender m~d Lender's successors ~d assigus} has the right: to exercise any or all of those interests, including, but no~ limited to, the right to foreclose and sell the Property; ired to t~e any action required of Lender including, but not li~ted to, releasing ~d c~ccling this Security h~strument. BORROWER COVENANTS that Borrower is lawRdl] seised of ~he estate hereby conveyed and has the right to mortgage, gr~t ~d convey the Property and that the Property is unencumbered, except for enctm~brances of record. Borrower wammts and will det~nd generally the title ~o the Propert~ against all claims m~d demm~ds, subject to any encumbrances of reco~d. THIS SECURITY INSTRUMENT combines unifom~ covenants ~br national use ~d non-unit~m~ covenm~ts with limited variatious by .jurisdiction to constitute a uniform security inst~ment covering real property. UNIFORM COVENANTS. Bogower ~d Lender coven~t and agree as lbllows: 1. Payment of ISincipal, Interest, ~serow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, m~d interest on, the debt evidenced by the Note and any prepayment charges and late charges due under ~he Note. Borrower shall also pay ~nds for Escrow Items pursum~t to Section 3. Payments due under the Note m~cl this Security Instrument shall be made in U.S. cugency. However, if ~y check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that m~y or all subsequent payments due under the Note ~d this Security Instrument be made in one or more of the tBllowing tbrms, as selected by Lender: (a) cash; (b) money order; (c) certified check, b~ check, treasurer's check or cashier's check, provided any such Check is drawn upon an institution whose deposits are insured by a tEderal agency, instrumentality, or entity; or (d) Electronic Funds TranslEr. Payments are deemed received by Lender when received at the location desiguatcd in the Note or at such other location as may be designated by Lender in accord~ce with the notice provisions in Section t5. Lender may return any payment or partial payment if the payment or pani~ payments ~e insufficient to bring thc Loan current. Lender may accept any payment or partial payment insufficient to bring the Lo~ current, without waiver of any rights hereunder or prejudice to its rights to refl~se such payment or partifl payments in the ~ture, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled duc date, then Lender need not pay interest on unapplied ~nds. Lender may hold such unapplied ~nds until Borrower m~es payment to bring the Loan cugent, if Borrower does not do so within a reasonable period of time, Lender shall either apply such fimds or return them to Borrower. If not applied earlier, such ~nds will be applied to the outst~ding principal balance under the Note inmmdiately prior to foreclosure. No offset or claim which Borrower ~ght have now or in the fi~ture against Lender shall relieve Borrower fi'om making payments due under the Note and this Security Instrument or perfornfing the covcnauts and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as othe~ise 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) mounts due under Section 3. Such payments shall be applied to each Periodic Payment iu the order in which it becme due. Any remaining amounts shall be applied first to late charges, second to ~my other mnounts due under this Security Instrument, m~d then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay m~y late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outst~ding, Lender may apply m~y payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in ~11. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to m~y late charges due. Voluntary prepayments shall be applied first to ~y prepayment charges and then as described in the Note. Any application of payments, insurmme proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the ~ount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the clay Periodic Payments are due under the Note, until the Note is paid in ~11, a sum (the "Funds") to provide fbr payment of amounts duc Ibr: (a) taxes and assessments m~d other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for ~y and all insuraucc required by Lender under Scclion 5; and (d) Mortgage Insurm~ce premiums, if any, or any stuns payable by Borrower to Leudcr 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 Community Association Dues, Fees, and Assessments, if any, be YVYOM]NG--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 31}5i 1/0l (page 3 o]'11 pttses) 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 obligation to pay the Funds for any or all Escro;v Itmns. 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 writiug. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due tbr any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furuish to Lender receipts evidencing such payment within such time p~riod as Lender may require. Borrower's obligation to make such payments and to provide receipts shall l:br all purposes be deemed to be a covenant and agreement contaitied in this Security instrument, as the phrase "covenmtt and agreement" is used in Section 9. If Borrower is obligated to pay Escrow hems directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amouut. Lender may revoke tile waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such axnounts, that are then required under this Section 3. Lender may, at any time, collect mid hold Funds in mr amoma (a) sufficient to perufit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum anlount a lender can require under RESPA. Lender shall estimate the mnount of Funds due on the basis of current data and reasonable estiruates of expenditures of fim~re Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bmhk. Leuder shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower tbr holding and~ applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Fnnds mid Applicable Law permits Lender to make such a charge. Unless an agreement is made iu writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held iu escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instnunent, 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 Coxnnmnity Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge m~y lien which has priority over this Security Instrument unless Borrower. (a) agrees in writing to the payment of the obligation secured by the lien in a 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 opinion, operate to prevent the enforcement ot' the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures l¥om the holder of the lien mi agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the aktions set forth above in this Section 4. Lender may require Borrower to pay a one4ime charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the 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 includiug, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall bc maintained in the amounts (including ]eductible levels) and for the periods that Lender requires. What Lender requires pursuant to the precediug senteuces can ~'hange during the term of the Loan. The insm'ance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised nnreasonably. Lender may require Borrower NYOMING--Single Family--Fannie MaefFreddie Mac UN[FORM INSTRUMENT Borrower Inilials ~ _ _~ Form 3051 1/01 (page 4 oj"ll pages) :o pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking ;ervices; or (b) a one4i~ne charge for flood zone determination and certification services and subsequent charges each time :emappings or similar changes occur which reasonably nfight affect such determination or certification. Borrower shall also be :esponsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review >f any flood zone determination resulting from mi objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's ~ption and Borrower's expense. Lender is under no obligation to .purchase any particular type or an~ount of coverage. Dmrefore, such coverage shall cover Lender, but nfight or might not protect Borrower, Borrower's equity in the Property, or the ;ontents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in ;ffect. Borrower ac~mwledges 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 Lender nnder this Section 5 shall become additional :lebt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of Jisbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting paymeut. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such ¢olicies, shall include a standard mortgage elapse, and shall nmne Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid pre~niums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise :equired by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and ;hall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier mid Lender. Lender may make proof of loss :f not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or :~ot the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration )r repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall ~ave the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work :las been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse )roceeds for the repairs and restoration in a single payment or in a series of progress l)ayments as the work is completed. Unless ~n agreement is made in writing or Applicable Law requires interest to be paid ou such insurance proceeds, Lender shall not be :equired to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by 3orrower shall not be paid out of the insurance proceeds and Shall be the sole obligation of Borrower. If the restoration or :epair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums ~ecured by this Security Instrument, whether or not then due, with the excess, if anY, paid to Borrower. Such insurance )roceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insur,'mce claim and related matters. '.f Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender requires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance )roceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b)any other of gorrower's rights (other than the right to any refund of unearned prem/ums paid by Borrower)under all insurance policies :overing the Property, insofar as such rights are applicable to the coverage of thc Property. Lender may use the insurance )roceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security fusmunent, whether or ~ot then 'due. 6. Occupancy. Borrower shall occuPy, establish, and use the Property as Borrower's principal residence within 60 days ifler the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at .east one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably ;vithheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or repair the Property, allow the Property to deteriorate or con-unit waste on the Property. Whether or'not Borrower is residing irt :he Property, Borrower shall maintain the Property in_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 econonfically feasible, Borrower ;hall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds ire paid irt connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring he Property only if Lender has released proceeds for such purposes, Lender may disburse proceeds ibr the repairs and -estoration in a single paymeut or in a series of progress payments as the work is completed. If the insurance or condenmation )roceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion )f such repair or restoration. Borrower Initials ¢V¥O~'llNO--Single Family--Fannie Mae/Freddie Mac UNIFORLM INSTRUMENT Form 3051 1/01 (page 5 of l! pages) Lender or its agent may make reasonable entries upon and inspections of tile Property. If it has reasouable cause, Lender may inspect the interior of the improvemeuts on the Property. Lender shall give Borrower notice at tile time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or emities actiug at the directmn 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 infbrmatioi~)in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's pnncipal residence. 9: Protection of Lender's Interest in tile Property and Rights tinder this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest tn the Property and/or rights under this Security instrument (such as a proceeding m bankruptcy, probate, for condemnation or forfeiture, tbr entbrcement of a lien which may attain priority over this gecnrity Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay tbr whatever 'is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actious can include, but are not limited to: (a) paying any sums secnred by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in tile Property and/or rights under this Security Instrument, including its secured )osition in a bm~kruptcy proceeding. Seem'lng the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board tip doors and windows, drain water I¥om pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking ,any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to lhe Property, tile leasehold and lhe fee title shall not merge unless Lender agrees to the merger in writing. 10. M[ortgage Insurance. If Lender required Mortgage Insurance as a condition or' making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurmlce and Borrower was required to make separately designated payments toward the prenfimns 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 the Mortgage Insurance: previously in effect, l¥om an alternate mortgage insurer selected by Lender. If substfmtially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the an~ount of the separately designated payments that were due wheu the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of/Vlortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is uhimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender cml no longer require loss reserve.payments if Mortgage Insurance coverage (in the an~ount and for the period that Lender requires) provided by an insurer selected by Lender ;tgain becomes available, is obtainedl and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition or' making the Loan and Borrower was required to make ;eparately designated payments toward the premiums tbr Mortgage Insurance, Borrower shall pay the prenfiums required to :naintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement l-bt Mortgage '.nsurance ends in accordance with any written agreement between Borrower and Lender providing for such ternfinatiou or until ermination is required by Applicable Law. Nothing itl this Section 10 affects Borrower's obligation to pay interest at the rate )rovided in the Note. Mortgage fusurance reimburses Lender (or any entity that purchases the Note) lbr certain losses it may incur if Borrower Ioes not repay the Loan as agreed. Borrower is not a party to the Mortgage insurance. Mortgage insurers evaluate their total risk on all such insurance ii1 force froln time to time, and may enter into agreements vith other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are atisfactory to the mortgage insurer and the other party (or parties)to these agreements. These agreements may require the nortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include unds obtained from Mortgage Insurance premiums). V¥OM[NG--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Borrowerh'mials ~ _ '~/~ Form 3051 1/01 (/>age 6 of ll pages) As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive front (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk m exchange for a share of the premiums paid to tile insurer, the arrangement is often termed "captive rciusurance." Further: (a) Any such agreements will no~ affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the ~mount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or ally other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage lnsm'ance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance preminrus that were unearned at the time of such cancellation or eermination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property restoration or repair Lender shall have the ensure the work has is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the is economi'cally feasible and Lender's security is not lessened. During such repair and restoration period, right to hold such Miscellaneous Proceeds until Lender bas had an opportunity to inspect such Property to been completed to Lender's satisfaction, provided that such iuspectiou shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. !f the restoration or repair 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 Sectiou 2. In the event of a total taking, destruction, or lo~s in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrmnent, whether or not then due, with thc excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the mnount of the sums secured by this Security Instrument immediately before the partial taking, destmctiou, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds nmltiplied by the following fraction: (a) the total amount of tile sums secured irmnediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of thc 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 fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the stuns secured mnnediately before the partial taking, destruction, or loss in value, 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 stuns are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond ~o Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply tile Miscellaneous Proceeds either to restoration or repair ofthe 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 whOln Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in delhult if any action or proceeding, whether civil or criminal, is Begun Ihat, in Lender's judgment, could result in Ibrfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided iu 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 impairment of Lender's interest in the Property or rights nnder this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lend~:r's iuterest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 'WYOMING--Single Family -Fannie Mae/Fredclie Mac UNIFORM INSTRUMENT Bo,-rower Initials __~ff ~/~ l?orm 305l 1/01 (page 7of11 pages) 12. Borrower Not Released; Forbearance By Lender Not a Waiver. ExtensJon of the time for payment or modificam)n of an:tortization of the sums secured by this Security Instrument granted hy Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors ill luterest of Borrower Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the stuns secured by this Security lnstnnnent by reason of any demand made b'y the original Borrower or any Successors in Interest of Borrower. Any forbearance by keuder m exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, ennt~cs or Successors in Interest of Borrower or m 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 Botmd. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, may Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Seem'try iustrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, furbear or make any accormnodations with regard to the terms of this Security Instrument or thc Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security'Instrument in writing, and is approved by Leuder, shall obtain all of Borrower's rights aud benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants mad agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed itl connecnon with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security hastrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express audlority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on thc charging of such tee. Lender xnay not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, mad that law is finally interpreted so that the iuterest or other loan charges collected or to be collected in connection with the Lo,'m exceed the pem~tted limits, then: (a) any such loan charge shall be rednced by the amount necessary to reduce th~ charge to thc permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this retired by reducing the principal owed under the Note or by making a direct payment to Borrower. If a reft:md reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower'S acceptance of any such retired made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Leudcr. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Bon-ower shall 0nly 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 givcu by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice itl connectiou with this Security Instrun~ent shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, thc Applicable Law requirement will satisfy the corresponding requirement under this Seci_trity Instrument. 16. Governing Law; Severability; Rules of Constroction. This Security Instrument shall be governed by t'ederal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements mad 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 agreement by contract. Ill the event that any provision or clause of this Security Instrument or the Note conllicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security lnstrmnent: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean aud 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. Borrower shall be given one copy of the Note and of this Security hastrument. Borrower Initials~ W¥ONIINO--Single Family--Fannie Mae/Freddie Mac L~IFORM INSTRUMENT Form 3051 1/01 Omge 8 of Il pagex) 18. Transfer of tire Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legM or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond /'or deed, contract Ibr deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natttral person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in rill 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 Lendei' exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within Which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have thc right to have enforcement of this Security Instrument discontinued at m~y time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrmnent, including, but not limited to, reasonable attorneys' tees, property inspection and wduation fees, and other fees incurred Ibr tile purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action 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 Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement stuns and expenses in one or more of the tbllowing lbnns, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a lkderal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security instrument and obligations secured hereby shall remain fidly effective as if no accelera, tion had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale nfight result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due uuder the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security lustrmnent, 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 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 tile purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan SerVicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may coimnence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) ihat arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with suct~ 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 paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy thc notice and opportunity to take corrective action provisions of this Section 20. 21. }t[azardons Substances. As used itl this Section 2l: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law aud the t'ollowing substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or tbrmaldehyde, and radioactive materials; (b) 'Environmental Law" means federal laws and laws of the jurisdiction 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; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower Initials ¢ ~ WYONIING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/tH (pttge 9 of 11 pages) Borrower shall not cause or permit the presence, use. disposal, storage, or release of any Hazardous Substmmes, or threaten to release any Hazardous Substances, on or in the Property. Borrower shldl not do, nor allow anyone else to do, anytlfing affecting the Property (a) that is in violation of any Environmental Law, (b) which creates ,'m Environmental Condition, or (c) which, due to the presence, use, or release'of a H~ardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small qt, autities 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 c0nsmner 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 aud any Hazardous Substance or Environmental [.aw of which Borrower has actual kmowledge, (b) any Environmental Condition, iucluding but not limited to, any spilling, leaking, discharge, release or threat of release o'f any Hazardous Substance, ~d (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or 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 necessary remedial actions in accordance witl~ Euvironmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior ~o accelerntion following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleratiou under Section 18 unless Applicable L'aw provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) n date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure tbe default on or before the date specified iu the nolice may ,'esult in accelerntion of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reiustate after acceleration anti the right to bring a court action to assert the nou-existence of n default or nny other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demnnd and may invoke the power of sale nnd nny other remedies permitted by Applicable Law. Lender shall be entitled to collect all ~xpenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable ~ttorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intern lo foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, anti the Property shall be sold iu :he manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. Tile proceeds of :he sale shall be applied in the following order: (a) to all expenses of the sale,' including, but not limited to, reasonable tttorneys' fees; (b) to all stuns secured by this Security Instrument; and (c) any excess to the person or persons legally mtitled to it. 23. Release. Upon payment of all sums secured by this Secm-ity Insmm'~ent, Lender shall release this Security Instnnnent. ]orrower shall pay any recordation costs. Lender may charge Borrower a fee ~br releasing this Security Instrument, but only if he fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of tile homestead exemption laws of Wyoming. VYOMING-~Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Borrower Initials Form 3051 1/01 (page 10 ~'11 pagex) BY S BEL~(SW, Borrower accepts and agrees to the temps and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. DAVID R. SI'UR'~LOCI~ ~ ':'~~-~'"~'~'~--~'~-~"~ . (Seal) NIARCIA A. SPURLOCK -Bo,o,ver by DAVID R. SPURLOCK ns Attorney in fact (Seal) -Borrower (Seal) -Borrower [Space Below This Line For Acknowledgment] State of WYOMING ) ss County of LINCOLN ) (Seal) The tbregoing instrument was acknowledged before me by DAVID R. Si'URI~OCK this 12TH day of JULY, 2004. Witness my hand m~d official seal. tVly Conmfission Expires: .5>_./J~- O~7 (Print or type name) WYOMING--Single Family--Falmie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/0l (page I1 of I1 pages) STATE OF WYOMING COUNTY OF LINCOLN ) ) The foregoing instrument was acknowledged before me by DAVID R. SPURLOCK, as Attorney-in-Fact on behalf of MARCIA A. SPURLOCK, ItUSBAND And WiFE AS JOINT TENANTS WITH RIGHT OF SURVIVORSItlP this 12TH day of JULY, 2004. , MY C°mmissi°n expires: ,./~.~.7