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HomeMy WebLinkAbout901155(01) After Recording Return To: FIRST BANK OF IDAHO, FSB D/B/A FIRST BA1N-K OF THE TETONS P.O BOX 12860 901 155 BOOK RECEIVED I_II~,ICOL, N cot.,~r,l-rY CLERK JACKSON, WY 83002 DEFINITIONS [SPace Above This Line For Recording Data] MORTGAGE GUEAR LOAN #: 494013071 MtN: 100174102000012197 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 rules regarding the usage of words used in this docmnent are also provided iu Section 16. '(A) "Security Instrument" means this docmnent, which is dated JULY 13, 2004 together with all Riders to this d0cume nt. (B) "Borrower" is DONALD HENRY GUEAR AND CHRISTY FAYE GUEAR, HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is it~e 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 BANK OF IDAHO, FSB, DBA FIRST BANK OF THE TETONS Lender is a CORPORATION organized and existing under the laws of IDAHO . Lender's address is p .O. BOX 12860 / 170 E BROADWAY JACKSON, WY 83002 (E) "Note" means the promissory note signed by Borrower and dated JULY 13, 2 0 04 The Note states that Borrower owes Lender ONE FCtJNDRED TWENTY-SIX THOUSAND FOUR H!JIN-DRED AND 00/100 Dollars (U.S. $ 126,400. O0 ) plus interest. Borrower has prmmsed to pay this debt in regular Periodic Payments and to pay the debt in full not later than AUGUST 1, 2 03 4 (F) "Property" means the property that is described below under the beading "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 Instalment, plus interest. WYOMING- Single Family - Fan,fie MadFreddie Mac'UNIFORM INSTRUMENT DOCU~WY't (Page ] of 13) Form 3051 1/01 494013071 (H) "Riders" means all Riders to this Secm'ity Instrument that are executed by Borrower The fbllo~ving Riders are to be executed by Borrower [check box as applicable]: [] Adjustable Rate Rider [] Condominium Rider [] Second Ilome Rider [] Balloon Rider [] Plam~ed Unit Development Rider [] Biweekly Payment Rider [] 1-4 Family Rider [] Other(s) [specify] (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules aud orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Conmrunity Association Dues, Fees, anti Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Propmxy by a condommiun] association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of fimds, other than a transaction originated by check, draft, or similar paper mstruxnent, which is initiated through an electronic temhnal, telephonic instlmnent, computer, or magnetic tape so as to order, ~nstruct, or authorize a finaocial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transacnons, transfers m~tiated by telephone, wire transfers, and automated clearinghouse u'ansfers. (L) "Escrow Items" means those items that are described in Sect/on 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any ttfird party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other takiug of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations ot~ or onussions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (0 principal and interest under the 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. §2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended fi'om time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Secnrity Instrument, "RESPA" refers to all requkements and restrictions that are imposed ill regard to a "federally related mortgage loan" even if the Loan does not qnalify as a "federally related mortgage loan" under RESPA. (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Insn~ment secnres 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 and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nonfinee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, and Lender's successors and assigns, with power of sale, the following described property located m the COUNTY of LINCOLN : (Type of Recording Jurisdiction) (Name of Recording Jurisdiction) SEE ATTACHED EXHIBIT A WYOMING - Single Family- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCUI~W¥2 (Page ? of l 3) DOCUk%~Y~. VTX 06/08/2004 -- Form 3051 1/01 wlfich currently has the address of FAIRVIEW [City] 525 FAIRVIEW SOUTH ROAD [Street] , Wyonfing 8 3119 [Zip Code] 494013071 ("Propexxy Address"). TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security lnsm~mem as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests g~-anted by Borrower in tlfis Security instrument, but, if necessary to cmnply with law or custom, MERS (as nominee tot Lender and Lender's successors and assigns) has the fight: to exercise auy or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to' releasing and canceling this Security lnstrmnent. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the fight to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record Borrower warrants and will defend generally the title to the Property against all clanns and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-unifomr covenants with linfited variations by jurisdiction to constitute a unifom~ security msn-ument covenng real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Itenrs, 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. Bon-ower shall also pay funds fox' Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or tins Secnrity Instalment ~s returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following tbrxns, 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 npon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other locanon as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender nmy accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse snch payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such pa)qnents are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied fimds. Lender may hold such unapplied funds until Borrower makes payment to briug the Loan cnn-ent. 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 tinder the Note immediately prior to foreclosure. No offset or claim which Bon'ower nfight have now or in the future against Lender shall relieve Borrower from making payments due under the 'Note and this Security lnstnnnent or performing the covenants and agreements secured by this Security instrument. 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 lbllowing order of priurity: (a) interest due under the Note; (b) principal due under the Note; (c) anrounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in wtfich it became due. Any remaining amonnts shall be applied first to late charges, secopd to any other amounts due under this Security lnstrmnent, and then to reduce the primcipal balance of WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 DOCU~WY3 (Page 3 of l 3) 494013071 If Lender receives a payment fi-om Borrower for a delinquent Periodic Payment which incfudes a sufficient amount to pay any late charge due, the payment may be applied to the de]inqnent payment and the ]ate charge. If more than one Periodic Payment is outstanding, Lendei may apply any payment received fi'om Borrower to the repaymem of the Periodic Payments if, and. to the e×tenl that, each payment call be paid ill full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Volttntal~, prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds.to principal due under the Note shall not extend or postpone the due date, or change the amotmt, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on 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 arno]mis due for: (a) taxes and assessments and other items which can attain priority over this Security Insn-ument as a lien or encunabrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance prenfiums, if any, or any suns payable by Borrower to Lender in lieu of the payment of Mortgage hlsurance prmmums in accordance with the provisions of Section 10. These items are called "Escrow hems." 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 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 fol' any or all Escrow items. Lender may waive Borrower's obligation to pay to Lender Funds for auy or all Escrow Items at any time. Any such xvaiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due fol- any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such pa3qnent within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security hlstrument, as the plu-ase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items 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 amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borroxver shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender nmy, at any time, collect and hold Funds in an amount (a) sufficient to pernut Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender call require under RESPA. Lender shall estimate the amount of Funds doe ou the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Baltic. Lender shall apply the Funds to pay tile Escrow Items no later thau the time spekified under RESPA. Lender shall not charge Borrower fol' holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law pmmits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires iuterest 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 Fnnds 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 ill 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 Pd~SPA, 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 pasqnent in full of all sums secured by this Security instrument, Lender shall promptly refund to Borrower any Funds held by Lender. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 DOCtnCWY4 (Page 4 oil3) D0 CUKWY4.1Tlr 06/08/2004 494013071 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and in]positions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Propelxy, if any, and Cotmnunity Association Dues, Fees, and Assessments, if any. To the extent that these itenm are Escrow Items, Borrower sha 11 pay tlrem in the maimer provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security lnstmmeut uuless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a maturer acceptable to Lender, but only so long as Borrower is perfornfing such agreement; (b) contests the lien in good thith by, or defends against enforcement of the lien in, legal proceedings which m Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures fi-om the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender deternfines that airy 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 lieu. Within 10 days of the date on which that notice is given, Borrower shall satisfy tile lien or take olde or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-tune charge foL' a rea] 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 Propen3' insured against loss by fire, hazards included within the lerm "exlended coverage," and auy other hazards including, but not limited to, earthquakes and floods, for which Lender requires msurauce. This insurance shall be maintained in the amounts (including deductible levels) and lot' the peliods that Lender reqmres. What Lender requires pursuant to the preceding sentences 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 right shall not be exercised nnreasonably. Lender may require Borrower to pay, in connecuon with this Loan, either: (a) a one-time charge for flood zone deterrnination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the revmw of auy flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurauce coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any pmlicular type or amouut of coverage. Therefore, such coverage shall cover Lender, but might or nught not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower aclomwledges that the cost of the insurance coverage so obtained rmght significantly exceed the cost of insurance that Borrower could have obtained Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note ~'ate fi-om the date of disbursement and shall be payable, with such interest, upon notLce fi~om Lender to Borrower requesting payment All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall 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 certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of Insurance coverage, not otherwise required by Lender, for damage to, or desu'uction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt nonce to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower othelwvise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the 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 inspection shall be undertaken promptly. Lender may WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 nocurwy5 (Page 5 of 13) ~ocnm~.wx 0~/0~/~00~ 494013071 disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. U~fless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds Fees for public adjusters, or other third parties, .retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or'repair is not econonfically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secmed by this Security Instrmnent, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Bolxower abandons the Property, Lender ma y file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice fi-om Lender that the insurance career 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 acqmres the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amonnt not to exceed the amounts unpaid under the Note or this Security Insmunent, and (b) any other of Borrower's rights (other than the right to any refund of unearned 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 the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Propmly as Borrower's principal residence wittfin 60 days after the execution of this Security h~strument and sball continue to occupy the Property as Borrower's principal residence for at least one year arier the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating ch-cumstances exist which are beyond Borrower's control. 7. PreserVation, Maintenance and Protection oI the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain 'the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is detemfined pursuaot to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repah' the Property if damaged to avoid further deterioration or damage. If insurance or condenmation proceeds are paid in connection 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 restoration in a single payment or iu 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 is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Properly. If it has reasonable cause, Lender may inspect the interior of the improvements on the Propmly. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default ii; during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Bon'ower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender With material infom~ation) in copmection with the Loan. Ivlaterial representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agremnents contained in this Secm'ity Instrmnent, (b) there is a legal proceeding that nfight significantly affect Lender's interest in the Property and/or rights under this Security Instrmnei~t (such as a proceeding in bmdcruptcy, probate, for conde~rmation or forfeiture, Ibr enforcement of a lien which may attain priority over this Security Instrument or to mfforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for 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 Properly, and securing and/or repairing the Property. Lender's actions can include, but are not linuted to: (a) paying any sums secured 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 the Property and/or rights under this Security Instrument, including its secured position in a ba~dcruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water fi-om pipes, elinfinate building or other code WYOMING - Single Family - Fa,hie MaedFreddie Mac UNIFORM INSTRUMENT Form 3051 1/01 DOCUKWY6 (Page 6 of J3) DOCUIOdY6. VTX 06/08/2001t o04 494013071 violations or dangerous conditions, and have utilities t~lmed on or o££ Although Lender may take action nnder 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 incm's no liability for not taking any or all actions authorized trader this Section 9. Any amounts disbursed by Lender under this Sectiou 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall beat interest at the Note rate from the date of disbursement and shall be payable, with such tnterest, upon notice fi'om Lender [o Borrower requesting pa3qnent. If this Security Instrument is on a leasehold, Borrower shall comply with all the provmions of tile lease. Borrower shall not surrender the leasehold estate and interests hereto conveyed or terminate 02' cancel the ground lease: Borrower shall not, without the express written consent of Lender, alter or amend the ground lease. If Borrower acquires fee title to tire Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger m writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making tile Loan, Borrower shall pay the prennums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to bt: available from tile mmtgage insurer that previously provided such insurance and Borrower was requh-ed to make separately designated payments toward the premiums for Mortgage Insurance, Bon-ower 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, fi'om an alternate mortgage 2nsm-er selected by Lender. If substantially equivalent Mortgage h~surance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that ~vere due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve tn lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, uot~vithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower ally interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the prenfiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mmtgage Insurance, Borrower shall pay the premiums required to rnaintain Mortgage Insurance in effect, 02- to provide a non-relhndable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until tennmation is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that pu,-chases tile Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to tile Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force fi:om time to time, and nmy enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer nmy have available (which may include fimds obtained I¥om Mortgage Insurance prenfiurnS). 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 from (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 in exchange for a share of the premiums paid to tile insurer, the arrangement is often termed "Captive reinsurance." Further: (a) Any such agreements will not affect tile anmunts that Borrower has agreed to pay Ior Mortgage Insnrance, or any other terms of the Loan. Such agreements will not increase tile amount 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 any other la~v. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage insurance terminated autom:~tically, and/or to receive a refund of any Mortgage Insurance prenfiums that were unearned at the time of such cancellation or termination. WYOMING - Single Fam/ly - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCIJKWY7 (Page 7 oil3) DO C'IJlCl,~7. xPI'X 06/08/2004 Form 3051 1/01 305 494013071 Il. Assignment of lV[iseellaneou$ Proceeds; For[eiture. All IVliscellan¢ous Proceeds arc hereby assigned to and shall be paid 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 Lender's security is not lessened. Durhlg such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure tile work has been completed to Lender's satisthcuon, provided that such inspection shall be undertaken prolnptly. Lender may pay for the repairs and restoranon m a single disbursement or in a serms of progress payments as tile work is completed Unless an agreement is made m 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 Miscellaueous Ploceeds. If 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 filcu due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrumeut, whether or not then due, with the excess, if any, paid to Borrower. Ii1 the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of tile Property immediately before tile partial taking, destruction, or loss in value Is equal to or greater than the amount of the stuns secured by this Security Instrument innnediately before the partial taking, destruction, 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 multiplied by tile following fraction: (a) the total amount of the sums seem'ed irrmlediately before the partial takingi' destruction, or loss io value divided by (b) tile fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrowel' 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 iu value is less than the amount of the sunts secured immediately before the partial taking, desta'uction, 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 sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that tile Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for danmges, Borrower lhils to respond to Lender within 30 days after the date the notice is given, Leuder is authorized to collect and apply tile Miscellaneous Proceeds either to restoration or repair of the Property or to tile 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 whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Propeay or rights under this Security Instrument. Borrower can cure such a dethult and, if acceleration has OCCUlTed, reinstate as provided ii1 Section 19, by causing the action or proceeding to be dismissed with a rifling that, in Lender's judgment, precludes forfeiture of tile Property or other material impairment of Lender's interest in the Property or'rights under this Security Instrument. Tile proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time tbr payment or modification of amortization 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 Borrower. Lender shall not be required to connnence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or othmwvise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance 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 Bon'ower or h~ amotmts less thau the amotmt flien due, shall not be a wa iver of or preclude the exercise of any right or remedy. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 DOCO~WW (Page 8 of l 3) DOCUKWY~ .VTX off/o 8/200aa 494013071 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Bon'ower covenants and agrees that Bo~xower's obligations and liability shall be joint and several. However, any Borrower who co- signs this Secnnty Instrument but does .not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mo;tgage, grant and convey the co-s~gner's interest in the Property under the terms of this Security Instrument; (b) ~s not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, tbrbear or make any acco~Tmmdations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor iu Interest of Borrower who assumes Borrower's obligations under this Security Instalment in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Bon-ower's obligations and liability under this Security Instrument unless Lender agrees to such release in ~witing. The covenants and agreements of this Security Instrument shall bind (except as provided m Section 20) and benefit the successors and assigns of Lender. 14. Loan Cbarges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest m the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. Iix regard to any other fees, the absence of express authority in tlfis Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prolfibited by this Security Instrument or by Applicable La~v. If the Loan is subject to a law Milch sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted li~mts, then: (a) any such loan charge shall be reduced by the amonnt necessary to reduce the charge to the permitted linfit; and (b) any sums already collected fi'om Borrower which exceeded pemfitted 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. Ifa refund reduces principal, the reduction ~vill be n-eated as a partial prepayment without any prepay~nent charge (whether or not a prepayment charge is provided for tinder the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will coustimte 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 comlection with this Security Instrument must be in writing. Any notice to Borrower in connection w/th 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 bas designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borro~ver's change of address, then Borrower shall only report a change of address tln'ough that specified procedure. There may be only one designated notice address under this Security Insta-ument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class nmil to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in commction with this Security hlsn-ument 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, the Applicable Law requirement will satisfy the corresponding requirement nnder this Security instrmnent. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be goverued by federal 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 and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the pal,ties to agree by contract or it nfight be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts 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 Instrument: (a) words of the masculine gender shall mean and inclnde corresponding neuter words or words of the feminine gender; (b) words in the singular shall ~nean and include the plural and vice versa; and (c) the Word "may" gives sole discretion xvithont any obligation to take any action. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT r)ocurwv9 (Page 9 of 13) uocuxmr~.v,x 0~/0~/20o~ Form 3051 1/01 3,07 494013071 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Securily Instrument. 18. Transfer of tile Property or a Benelicial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest m the Propet~y, including, but not limited m, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contTact or escrow agreenlent, 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 natural person and a beneficial interest in Borrower is sold or transfe~xed) without Lender's prior written consent, Lender may require immediate payment in full of all sunu secured by this Security Instn~ment. However, this option Shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the dale the notice is given in accordance with Section 15 within which Borrower nmst pay all. sums secured by this Security Insmnnent. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies pemfftted by Ibis Security Insmnnent without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certaiu conditions, Borrower shall have the right to have enforcement of this Security l,'lstTument discontinued at any 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 ternfination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrunaent. Those couditions are that Borrower: (a) pays Lender all sums Milch th en would be due under this Security Instrument and the Note as if no acceleration had occun'ed; (b) cures any default of any other covenants or agreements; (c) pays all expenses inct,rred in enforcing tiffs Security Instrument, including, but not limited to, reasonable attorneys' lees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender ~nay reasonably require to assn,-e that Lender's interest in the Property aud rights under tiffs Security Insn'muent, and Borrower's obligation to pay the sums secured by this Security Instrument, 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) 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 federal agency, instrumentality or eutity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Sect, rity 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 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 lhe "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrument and perfumes off,er mortgage loan servicing obligations under the Note, tiffs Secnrity Instrument, 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 the new Loan Servicer, the address to Which payments should be made and any other information RESPA requires in colmection 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 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 coxnmence, 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 pmsuant 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 such notice given in compliance with the requirements of Section 15) of such alleged breacl! 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 nmst elapse before certain action can be taken, that time period will be deemed to be reasonable for pm-poses 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 the notice and opportunity to take corrective action provisions of this Section 20. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 oocu~cwvlo (Page lO of 13) ~oc~w~,,.vzx o~/o~/~oo~ 494013071 21. Hazardous Substances. As used in this Section 2l~ (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and following substances~ gasoline, kerosene, other flantmab]e or toxic petroleum produc~s, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, 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 Cleauup" includes any response action, remedial action, or removal action, as defined in Environmental [_aw; and (d) an "Enviro~m~ental Condition" means a condition that can cause, contribute to, or otherwise trigge,' an Environmental Cleanup. Bon'ower shall not cause or pem~_it the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or m the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is iu violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding ~wo senteuces 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 nmintenance of the Propetxy (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) auy invesngation, claim, demand, lawsuit or other action by any govelmnental or regulatory agency or private pan3/ involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of auy Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance ~vhich adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private parry, that any removal or other remediation of any Hazardous Substance affecth~g the Property is necessary, Borrower shall promptly take all uecessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obliganon on Leuder for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender fi.n-{her covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Bor,'ower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable La,v provides odle,'wise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less titan 30 days from the date the notice is given to Borrower, by which the default must be cured; aud (d) that tailure to cure the default on or before the {late specified in the notice may result in ,'lcceleratio, of the stuns secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court actiou to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the delhult 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 demand and may revoke the power of sale and any other remedies pernfitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, inchlding, but not limited to, reasonable attorneys' lees and costs of title evidence. It' Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Bo,'rower and to the person in possession of the Property, if different, m accorda,ce 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, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the followiug order: (a) to all 'expenses of the sale, including, but not limited to, reasonable attorneys' tees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Seem'try Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Leuder may charge Borrower a fee for releasing this Security Instrument, but oIfly if the fee is paid to a third party fol- services rendered and the charging of the fee is permitted under Applicable Law. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCUKWYII (Page 11 of 13) D 0 CUk'3,~'B. VTX 0~/08/200'~ Form 3051 l/0l ~194013071 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. BY SIGNING BELOW, Borrower accepts and agrees to the tm'nm and covenants contained in tiffs Instrument and in any Rider executed by Borrower and recorded xvith it WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT DOCOKWYi2 (Page 12 of 13) DOCUKWYC. VTX 06/08/2004 Form 3051 1/01 494013071 COUNTY OF [Space Below This Line For Ac 'knowledgment] The foregoing instrument was ackno3vledged before me by this /~/5'~ay o~ Y~Ty/, Wimess my hand and official seal. Notary Public My Conunisslon Expires: Teton ~ Wyoming ! ~'~ ~ ~r~lss[on ~iras Fob. 20, 2~ WYOMING - Single Fanfily - Fannie Mae/Freddie Mac UNIFORM INSTRUM£NT DOCUrW¥'I3 (Page 13 of 13) Docunm).wx o6/o~/~oo~ Form 3051 1/01 0 01i54 EXHIBIT A That parr of the SE1/4NE1/4 of Section 9 and that part of the SW1/4NW1/4 of Section 10, T31N, R119W of the 6m P.M., Lincoln County, Wyoming, being part of that tract of record itl the Office of the Clerk of Lincoln County in Book 323 P.R. on Page 364, described as follows: Beginning at the Northeast corner of said SE1/4NE1/4, found as described in the Corner Record filed in said Office; thence S 89°38.2, W, 435.00 feet, along the North line of said SEI/4NEI/4 to a spike; thence S 00°25.0, W, 258.04 feet to a point; thence S 89-°34.0, E, 500.98 feet to a point on the East line of said nrac~ of record; thence N 00026.0, E, 264.48 feet, along said East line, to a spike on the North line of said SW1/4NW1/4; 'thence N 89054.3' W, 66.10 feet, along said North line, to the Point of Beginning. ADJUSTABLE RATE RIDER (6-Month LIBOR Index - Rate Caps) (Assumable during Life of Loan) (First Business Da), of Preceding Month Lookback) GUEAR LOAN #: 494013071 MIN: 100174102000012197 THIS ADJUSTABLE RATE RIDER is made this 13 TH day of JULY, 2004 and IS incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the tmdersigned (the "Borrower") to secure the Borrower's Adjustable Rate Note (the"Note") to FIRST BA_N'K OF IDA. HO, FSB, DBA FIRST BANK OF THE TETONS (the "Lender") of the same date and covering the properly described m the Security Instrument and located at: 525 FAIRVlEW SOUTH ROAD FAIRVlEW, WY 83119 [Properly Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAY~IENT. THE NOTE LIMITS THE A_MOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM I~TE THE BO1GROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEILEST R_ATE AND MONTHLY PAYMENT CtIANGES The Note provides for aninitial Interest rate of 8. 750 %. The Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the firsl day of AUGUST, 2 0 0 6 and may change on that day every sixth month thereafter. Each date on which my interest rate Could change is called a "Change Date." MULTISTATE ADJUSTABLE I~ATE RIDER 6-Month LIBOR ludex (Assumable duriug Lite of Loan) (First Business Day Lookback) Single Family--Freddie Mac UNIFORM INSTRUMENT DOCUAIII Page I of 3 DOCU~ZII .VTX Form 5120 03/04 (B) The Index 494013071 Beginning with the first Change Date, my interest rate will be based on an Iudex. The "Index" is the six month London Interbank Oflbred Rate ("LIBOR") which is the average of interbank offered rates for six-month U.S. dollar-denominated deposits in the London market, as published in The }fall Street Journal. The most recent Index figure available as of the firs't business day of the month immediately preceding the month in which the Change Date occurs is called the "Cun'ent Index." If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable information. The Note Holder will give me nonce of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding EIGHT AND 95/100 percentage point(s) ( 8.9 5 0 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be nay new interest rate until the next Change Date. The Note Holder will then deternfine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I ain expected to owe at the Change Date in fidl on the maturity date at my new interest rate in substantially equal payments. The result of tiffs calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date wilt not be greater than 2.0.2 5 0 % or less than 8. ? 5 0 %. Thereafter, nay interest rate will never be increased or decreased on any single Change Date by more than ONE ~ ONE-I-I~LF percentage point(s) ( 2.. 5 0 0 %) from the rate of interest I have been paying for the preceding six months. My interest rate will never be greater than 15.7 5 0 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. [ will pay the amount of my new monthly payment beginning on the first monthly paymem date after the Change Date until the amount of nay monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail amount of my monthly payment before the information required by law to be given to me will answer any question I nmy have regarding to me a notic: of any changes in my interest rate aud the effective date of any change. The notice will include and also the title aud telephone number of a person who the notice. TIL4NSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Section 18 of the Security Instrument is amended to read as follows: Transfer of the Property or a Benefici;d Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not linfited to, those beneficial interests transferred m a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the ~ntent 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 hiterest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Bon'ower is sold or transferred) without Lender's prior written consent, Lender may require hnmediate paymem in full 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. Lender also shall not exercise this option if: (a) Borrower causes to be subnfitted to Lender information required by Lender to evalnate the intended transferee as if a new · loan were being made to the transferee; and (b) Lender reasonably detemfines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. MULTISTATE ADJUSTABLE RATE RIDER 6-Month LIBOR Index (As5umahle during Life of Loan) (First Business Day Lookback) Single Family--Freddie Mac UNIFORM INSTRtlMENT DOCUAII2 Page 2 of 3 DOCUAiI2 .VTX 04/16/2004 Form 5120 03/04 494013071 To the extent pem~itted by Applicable Law, Lender nmy charge a reasonable fee as a condition to Lender's consent to the loan assumptxon. Lender may also requi~e the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the pronfises and agreements made in the Note and in this Security Instrument. Bon'ower will continue to be obligated Under the Note and this Security Instrument unless Lender releases Borrower m writing. If Lender exercises the opnon to require munediate payment m fidl, Lender shall give Borrower nonce 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 Instalment without fi~rther notice or demand on Bon'ower. to the terms aud covenants contained in this Adjustable ~--~RROWER - DONALD .-' -" EAR - DA-T--~- --- BORRO~gR ~ CHRISTY ~Y~ G~R - D~Tg / MULTISTATE ADJUSTABLE RATE RIDER 6-Month LIBOR Index (Assumable during Life of Loan) (First Business Day Lookback) Single Family--Freddie Mac UNIFORM INSTRUMENT DOCUAI[3 Page 3 of 3 D0CUAiI3 .VTX 04/16/2004 Form 5120 03/04 [Space Above Tiffs Line For Recording Date ] PREPAYMENT RIDER ~uE~ LOkN #: 494013071 MIN: 100174102000012197 THIS PREPAYMENT RIDER is made this 13TH day of JULY, 2 0 04 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Securi~ Deed (the "Security Instrument") of the same date g~ven by the nnde,'signed (the "Borrower") to secure the Borrower's Note (the "Note")to FIRST BI~NI'K OF IDA3IO, FSB, DBA FIRST BA.,NrK OF THE TETONS (the"Lender) ofthesamedateandcoveringtheproperw described intheSecuritylnsWumentandlocatedat: 525 FAIRVIEW SOUTH ROAD FAIRVIEW, WY 83119 ADDITIONAL COVENANTS. In addition to the covenauts and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: Except as provided below, Borrower may nmke a full prepayment or a partial prepayment of principal at any time without paying any charge. However, if within the fu-st TWENTY-FOUR month(s) after the date Borrower executes the Note, Borrower will pay a prepayment penalty in the amount of THREE month's advance interest on the amount by which the aggregate prepayments (including prepayments occurring as a result of the acceleration of the maturity of the Note) nude within any consecutive twelve month period exceed TWENTY percent ( 2 0.0 0 0 %) of the original principal amount. No prepayment penalty will be assessed for any prepa3qnent made after the Penalty Period or if the prepayment is concurrent with the sale of the property securing this Note. The Note holder's failure to collect a prepayment penalty at the time a prepayment is received shall not be deemed a waiver of st, ch penalty and any such penalty calculated in accordance with this section shall be payable on demand. DOC1APP41 Page 1 ot'2 DOCUPP41. VTX 12/15/2003 · .494013071 Do not sign this Prepayment Rider before you read it. This Prepaymem Rider prowdes for the payment of a charge if you wish to repay the loan prior to the date provided lbr repayment, ...,..-~ BY SIGNING BELOW, Borrower accepts and agrees to tile temzs and covenants contained in this ffep~ynflentRid/~////~// , ' ' ' . --BORROWER - DONA~//i-IENRY GUEAR - DATE - DOCUPP42 Page 2 of 2 DOCUVV42.VTX X~/XS/2003