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HomeMy WebLinkAbout901508Return To: NEW CENTURY MORTGAGE CORPORATION 18408 VON KARMAN, SUITE 1000 I"VI"E, CA ~2'12 9 0 I ,5 0 8 Prepared By: NEW CENTURY MORTGAGE CORPORATION RECEIVED LINCOLI"! CO~,'I~ CLERK JL/-,,,- ', ::. .oo~ ...... ~'~< P~,c,~ 411 [Space Above This Line For Recording Data] MORTGAGE DEFINITIONS 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 document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated J u I y together with all Riders to this document. (B) "Borrower" is KATHY PEDERSON AND DON JOERRES, AS JOINT TENANTS 28, 2004 Borrower is the mortgagor tinder this Security Instrument. (C)"Lender"is NEW CENIURY MflRIfiAfiE C0RPORAIION Lender isa CORPORATION organized and existing under the laws of CALl FORNIA WYOMING-Single Family-Fannie Mae/Freddie M~c UNIFORM INSTRUMENT ~®-6(WY) (ooo5) ..~ Page 1 ol 15 Inilials VMP MORTGAGE FORMS-(8OO)5 -~1 0001753406 Form 3051 1/01 Lender's address is 18400 VON KARHAN, SUITE 1000 IRVINE, GA 92612 Lender is tile mortgagee under this Security Instrument. (1)) "Note" means the promissory note signed by Borrower and dated Ju I y 28, 2004 The Note smtes that Bon'ower owes Lender One Itundred 8i×t¥-8ix lhousand, Two Hundred Fifty and No/10fl .................. Dollars (U.S. $ 1 § §, 25 fl. Q 0 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than Au§ust 1, 2034 (E) "Property" me,ms the property that is described below under the heading "Transfer of Rights iii the Property." (F) "Loan" me~s the debt evidenced by the Note, plus interest, auy prepayment charges and late charges title under the Note, and all sums due under this Security Instrument, i)lus interest. (G) "Riders" means all Riders [o this Security Instrument that arc executed by Borrowe~. The following Riders are to be executed by Borrower [ct~eck box as applicable]: ~] Adjustable Rate Rider [~ Condominium Rider ~] Second Home Rider [~ Balloon Rider [~ Planned Unit Development Rider [~ 1-4 Family Rider [] VA Rider [~ Biweekly Payment Rider [~ Other(s) [specify] Prepayment Rider (1t) "Applicable Law" means all controlling applicable federal, state and local smlutes, regulations. ordinances and administrative rules and orders (that have the efl'ec~ of law) as well as all applicable final, non-appealable judicial opinions. (I) "Com~nunity Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a lransaction originated by check, draft, or similar paper instrument, which is initiated through ,'iii elecu'onic terminal, telephonic instrument, computer, or magnetic rope so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes; but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" me,ms any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid tinder the coverages described 'iii Section 5) for: (i) &unage to, or destruction of, the Property; (ii) conde~nnafion or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or del:ault on, the Loan. (N) "Periodic Payment" means the regularly scheduled anlount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrunlent. (O) "RESPA" metals the Real Esuite Settlement Procedures Act (12 U.S.C. Section 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 govcrns the stone subject matter. As used in this gecurity Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if file Loan does not qualify as a "federally related mortgage loan" under RESPA. I..i.~:~ 0001753406 (~)~-6(WY) (ooo5) Page 2 of 15 Form' 3051 1/01 (P) "Successor in Interest of Borrower" means any party that has taken title to rite Property, whether or not that party has assumed Borrower's obligauons under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN TIlE 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 and the Note. For this purpose, Borrower does hereby mortgage, grant mid convey to Lender and Lender's successors and assigns, with power of sale, the following described property located in file COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording lurisdictionl SEE LEGAL DESCRIPTION ATTACHED IJERETO AND HADE A PART HEREOF. Parcel ID Number: 12-34192440028800 which currently has tile address of 536 KODIAK CIRCLE , THAYNE [Street] ICi~yl , Wyoming 83127 [zip Codel ("Property Address"): TOGETHER WITIt all the improvements now or hereafter erected on the property, and all easements, appurtenances and fixtures now or hereafter a part of file property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has file right to mortgage, grant and convey the Property and that the Property is unencumbered, except ['or encumbrances of record. Borrower warrants and will defend generally file title to file Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Pt-epayment Charges, .and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and ~my prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be ruade in U,S. currency. However, if any check or other instrument received by Lender as payment under the Note or this ~,~i~i~~- 0001753406 (~-6(W¥) (ODDS) Page3ol t5 Form 3051 1/01 414 Security Instrument ts 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 forms, as selected. by Lender: (a) cash; (b) lnoney 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 ins[ired 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 location as may be designated by Lender tn accordance \villi the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial pay merits are insufficient to bring the Loan current. Lender may accept any payment or pm'tial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rigl~ts to refuse such payment or partial payments in the future, but Lender is noi obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender ueed not pay interest on unapplied fimds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such ftmds or return them to Borrower. If not applied earlier,'such funds will be applied to tile outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due tinder the Note and this Security Instrument or performing the covenants mid agreements secured by this Security Instrument. 2. Application of Payments m' Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment l¥om Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to tire extent that, each payment can be paid in 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 chzu-ges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the No~e. 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, el' the Periodic Payments. 3. Fnnds for Escrow Items. Borrower shall pay to Lender on tile day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for paytnent of amounts due for: (a) taxes and assessments and Other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents ou the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums,'if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiunts in accordance with the provisions of Section 10. These items are ealled "Escrow Items." At origination or at any time during die term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if,'my, 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 for any or 'all Escrow Items'. Lender may w,'five Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, die amounts due lbr any Escrow Items for which payment of inaials~O O0 1 7534015 (~-6(WY) (ooos) Page4 ol r5 Form 3051 1/01 Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment 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 agreemeut contained m this Security Instrument, as the phrase "covenant and agreement" is used m Section 9 Il' 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 anti pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Leuder ma), revoke the waiver as to any or ali Escrow Items at any time by a nohce given in accordance with Sechon 15 and, upon such revocanon, Borrower shall pay to Lender 'all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an mnount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount n lender can require under RESPA. Lender shall estimate the amouut of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or othe,'wise in accordance with Applicable Law. Th e Funds shall be held in an institution whose deposits are instn'ed by a federal agency, instrumenlality, or entity (including Lender, if Lender is an institution whose deposits zu-e so insured) or m any Federal lfome Loan Bank. Lender shall apply the Funds to pay the Escrow hems no later than the thne specified under RESPA. Lender shall not charge Borrower for holding and applying fide Funds, annually analyzing the escrow account, or verifying the'Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earmngs on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on file 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 m escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pity [o Lender the amount necessary to make up the shortage m 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 [o Lender the mnount necessary lo make up the deficieucy in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all stuns secured by this Security Insu'umeut, Leuder 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 file Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in tile manner provided in Section 3. Borrower shall promptly discharge any 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 rammer acceptable to Lender, but only so long as Borrower :s performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which m Lender's opiniou operate lo prevent the enforcement of the lied] while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from file holder of the lien an agreement satisfacto,5 to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Proi)erty is subject lo a lien which can atmm priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 ,,,,a~(~ 0001753406 {~)~6(WY) (ooo5) Page 5 ol ~5 Form 3051 1/01 *,;t,'.." :: :- ':' ,-;:i;(!' ....1...,) '; days of the date on which fl~at notice is given, Borrower shall satisfy the lien or Udce one or more of tile actions set forth above in this Section 4. Lender may require Borrower to pay a one-tiine charge for a real estate tax verificalion and/or rel)ortiug service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvemeuts now existing or hereafter erected on the Property insured against loss by fire, hazards included within thc term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen b5 Borrower subject to Lender's righl to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-dine charge for flood zone determination, 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 ~fect 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 review of any flood zone determination resulting from m~ objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's opdon and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in file Property, or file contems of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously iu effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Ally amounts disbursed by Lender under dfis Section 5 shall become additional debt of Borrower secured by this Security Instru,nent. These amounts shall bear interest at the Noterate from the date of disbursement and shall be payable, with such interest, upon notice £rom Lender to Borrower requesting payment. All insurance policies required by Lender and renewals ot' 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 all additional loss payee. Lender shall have tile right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premimns and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise 'required by Lender, for damage to, or destruction 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 notice to die insurance carrier and Lender. Lender may make proof of loss if not made prolnpfly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of file Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repah' 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 iusl)eCfion shall be underutken promptly. Lender may disburse proceeds for the repaks and restoration ill a single payment 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 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 ,marl shall be the sole obligation of Borrower. If file restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to inilial /~¢--~-.~ 000175340§ 6(WY) (ooo5) Page 6 of ~5 ~ Form 3051 1t01 the sums secured by this Security Instrument, whether or not then clue, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file,, negouate and settle any available insurance clann and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, [lien 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 r~gt/ts to any insurance proceeds m an amount not to exceed the amounts unpaid under the Note or this Security lnsmm~ent, ,and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under ~1 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, ,'md use the ProPerty as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall contmue to occupy the Property as Borrower's principal residence for at least one year al'ter the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating c~rcumsmnces exist which ,m-e beyond Borrower's control. 7, Preservation, Maintenance and Protection of the Prnperty; 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 tn order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property il' damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid m connectton 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 in a sertes 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 iuspecnons of the Property. If it has reasonable cause, Lender may respect the interior of the nnprovemeuts on Hie Property. Lender shall give Borrower notice at the thne of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in defattlt if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements go Lender (or failed to provide Lender with material information) in connecnon with the Loan. Material rei)resentations include, but are not limited to, representations concerning Borrower's occupant) 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 agreements conmiucd in this Security Instrument. (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this S¢ctn-ity Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may tlo and pay for whatever is reasonable or appropriate to protect Lender's interest m the Property and rights under this Security Instrument, including protecting and/or assessing the value of die Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any Sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable I,~itial& 000175340§ (2~-6(WY) (ooo5) Page 7 of ls Form 3051 1/01 attorneys' fees to protect its interest m rile Property and/or rights umler this Security Instrument, includiug its secured position in a bankruptcy proceeding. Securing the Property includes, but is not lin'tiled to, entering file Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditiou~, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do st) and ,s not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not raking any or all acttons 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 bern' interest at the Note rate t'rom the date et' disbursement and shall be payable, with such interest, upon nouce from Lender to Borrower requesting payment. If this Security Instrument ts on a leasehold, Borrower shall comply with all the provisions of lhe lease. If Borrower acquires fee fide to the Property, the leasehoM and thc fee title shall not merge unless Lender agrees to the merger in writing, 10. Mortgage Insurance. If Lender required Mortgage lusurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Iusurance in effect. If, for any reason. the Mortgage Insurance coverage required by Lender ceases [o he available from [he mortgage insurer that previously provided such insurance and Borrower was required to make sepm-ately designated payments toward the premiums for Mortgage Insurance, Borrower shall [)a~ tile premmms required to obtain coverage substantially equivalent to the Mortgage Insurance previously in elTect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in et'feet, from an 'alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall conhnue to pay to Lender the amount of the separately designated payments that were due when file insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-rcfimdable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or eamiugs 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 premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making die Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage lusurance, Borrower shall pay the pre,niums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, unhl Lender's requirement for Mortgage Insurance end3 m accordance with arty written agreentent between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligauon to pay interest at the rate provided m the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) [or certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to [tie Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance m force from time to rune, aud ,nay 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 tile other party (or parties) to these agreements. These agreements ,nay require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtitined from Mortgage Insurance premiums). 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 (direcdy 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 file insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "caphve reinsurance." Further: (a) Any such agreements will not affect tile amounls that Borrower has agreed to pay l'or Mortgage Insurance, or any other terms of the Loan. Soch agreements will not increase the amot, nt Borrower will owe for Mortgage Insurance, and they will not enlitle Borrower to any refund. 0001753406 Form 3051 Cb) Any such agreements will not affect the rights Borrower has - it' any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 ()r any olher law. These rights may include the right to receive certain disclosures, to requesl and nbtain cancellation o!' the Mortgage Insurance, tu have the Mortgage Insurance terminated automalically, and/or to receive a rel'uud o1' any Mortgage Insurance premiums that were unearned at the time or such cancellation or termination. 11. Assignment o1' Miscellaneous Proceeds; Forfeiture. All lvliscellaneous Proceeds are 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. During 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 Lhe work has been completed to Lender's satisfaction, provided d~at such inspection shall be undertaken promptly. Lender may pay for the repairs and restorauon in a single disbursement or in a series of progress payments as the work is completed. Uuless an agreement is made in wriung or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any inte rest or e~nings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's securtty would be lessened, the M~scellaneous Proceeds shall be applied to the sums secured by this Security Instrument. whether or not then clue, with die excess, il' any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total raking, destruction, or loss in value of the Property, the Miscell~eous Proceeds shall be applied to the sums secured by this Security Instrumeut, whether or not [hen due, wid~ the excess, it' any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fat' market value of the Property immediately before the pardal taking, destructiou, or loss in value is equal to or greater than the mnount of the stuns secured by this Security Instrument immediately before die partial utking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by [his Security Instrument shall be reduced by the amonnt of the Miscell~meous Proceeds multiplied by the following fraction: Ca) the total amount of the stuns secured immediately before the partial takiug, destruction, or loss in value divided by Cb) die fair market value of die Property immediately, before the partial raking, destruction, or loss in value. Any balance shall be paid to Borrower. In Ore event of a partial taking, destruction, or loss in value of the Property in which die fair market value of the Property im,nediately before the partial raking, destruction, or loss in value is less than the amount of fire sums secured immediately before the partial raking, destruction, or loss in value, unless Borrower mid Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to Ore stuns secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after nottce by Lender to Borrower that dre Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice ~s gsven, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repatr of thc Property or to the sums secured by this Secm-ity Instrument, whether or not men due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or [he 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 od~er material nnpairment of Lender's interest in the Property or rights under this Security Instrument. Borrower eau cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the acuon or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of d~e Property or other material impairment of Lender's interest in the Property or rights under dtis Security Instrument. The proceeds of any award or claim for damages that are attribulable to die impairment of Lender's interest m the Property are hereby assigned mid 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 ~'or in Section 2. irlitialS~ O 001753406 (~-6(WY) (ooo5) Page 9 of ~5 Form 3051 1/01 12. llorrower Not Released; Forbearance By Lender Nol a Waiver. Extension of the time for payment or modification of amortization of ~he sums secured by this Security Instrument granted by Lender [o 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 comlnence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortiza,on of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors m Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or S,ccessors m Interest of Borrower or in amounts less than the an~ount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrmnent 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 tile terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender ,'md ,'my other Borrower can agree to extend, modify, forbear or m,~e any accommodations with regard to the terms of this Security Insl~'umcnt or the 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 Instrmnent in writing, and is apt)roved by Lender, shall obtain all of Borrower's rights and 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 and 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 in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. tn regard to any other fees, the absence of express authority in this 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 prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loall exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce file chin-ge to the 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 reft,nd by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund 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 refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower nfight have arising out of such overcharge. 15. Notices. All notices ~iven by Borrower or Lender in conneclion with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrmnent 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 Lender. Borrower shall promplly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given tO Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement wilt satisfy the corresponding req~hirement under this Security Instrument. ,,i.~~? 0001 753406 (~-6(WY) (ooos) Page ~ool ~5 Form 3051 1/01 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law m~d the law of the jurisdiction in which the Property ,s located. All rights and obligauons contained in this Security Instrument are subject to any requirements ,and li,nitations of Applicable Law. Applicable Law might explicitly or implicitly 'allow the pa?ties to agree by contract or it might 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 cooflict shall no[ affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provtsion. As used in this Security Instrument: (a) words of the inasculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean m~d 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 Ihe Note and of this Security Insmnnent. 18. Transfer of the Property or a Beneficial Interesl iii Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest m the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a ft|lnre 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 ~s not a natural person and a beneficial interest m Borrower is sold or Lranst~'.rred) without.Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise ~s prohibited by Applicable Law. If Lender exercises this option, Lender shall gwe Borrower nouce of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given iii accordance with Section 15 within which Borrower must pay all sums secured by this Securit> [nslrument. 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 the right to have enlbrcement of this Security Instrument 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 Otis Security Instrument; (b) such other period as Applicable Law might specify for the terminauon of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrulnent. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note tis if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection ,'md valuation fees, and other fees incurred for the purpose of protecting Lemler's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably requn-e to assure that Lender's interest in the Property and rights tinder dfis 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 sums anti expenses ill one or more of the lollowmg 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 instimtiou whose deposits are insnred by a federal agency, mstrument~flity or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest m the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loau Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security 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 anti address of the new Loan Servicer, the address to which payments should be made mid any other inform;aion RESPA requires in connection with a Inili~ 0001753406 (~-6(WY) (ooo5) Page ~ of ~5 Form 3051 1/01 notice of transfer of servicing. If fife Note is sold and thereafter thc Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obliganons to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and m'e not assumed by the Note pnrchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's acnons pursuant to this Security Instrmnent or that alleges [hat 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 pm'ty (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded [he other party hereto a reasonable period after file giving of such nonce to take corrective acnon. If Applicable Law provides a time period which mist 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 the notice and opportunity to take corrective action provisions of this Section 20. 21. ttazardous Snbstances. As used in this Section 21: (a) 'Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental [.aw and file following substances: gasoline, kerosene, other flammable or toxic petroleum products: toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) Environmental Law" means federal laws and laws of file jurisdiction where the Property is located that relate to he~flth, safety or enwronmental protection; (c) "Environmental Clean,up" 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 ~n~ Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in file Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation ot' any Environmental Law, (b) which creates an Enviromnental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of file Property. The preceding two sentences shall not. apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited'to, hazardous substances in consmner 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 tile Property and any Hazardous Substance or Environmental Law of which Borrower has actual kuowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (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, [hat any removal or other remedialiou of any Hazardous Substance affecting the Property is necessary, Borrower shall prompdy take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleannp. in,i,~~O 001753408 (~)~6(Wy) (0005) Page 12 OI i5 Form 3051 1/0i NON-UNIFORM COVENANTS. Borrower and Lender further covenant anti agree as follows: 22. Acceleration; ]Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Secu,-ity Instrument (lint not prior to acceleration under Section 18 unless Applicable Law provides otberwise). The notice shall specify: (a) the delhnlt; (b) the action required to cm'e the default; (c) a date, no! less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) thai failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security lustrument and sale ol' the Property. The notice shall fn,'tber inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existeuce of a default or any other defense of Borrower to acceleration m,d sale. If the default is not cured ou or before the date specified in the notice, Lender at its option may ,'equire innnediate payment in full of all sums secured by this Security Instrument without filrtber demaud and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limiled to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, i~l acco,'dance with Applic;lble Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Leuder shall publish the notice of sale, aud the Property shall be sold iii the manner prescribed by Applicable Law. Lender m' its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonahle attorneys' fees; (b) to all sums secured by this Security Inst,'b,ment; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower sh,'dl pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for serwces rendered and the charging of the fee xs permitted under Applicable Law 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyombng. ~-6(W¥) (ooo5> Page ~3 of ~5 Inilials~ 0001753406 Form 3051 1/01 424 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Wimesses: (Seal) -Borlower (Seal) (Seal) -Borrower -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (~6(WY) (ooo5) 000175340§ Page 14 of 15 Form 3051 1/01 STATE OF WYOMING, The forgoing instrumen~t was acknowledged before by ~ My Commission Expires: me Ods ~4 ff County ssy~ Notary Public (~)~-6(WY) (0005) Page 15ol 15 0001753406 Form 3051 1/01 LEGAL DESCRIPTION Lot 12 of the Bear Hollow Twin Homes Subdivision, Lincoln County, Wyoming as described on the official plat thereof filed June 20, 2000 as Instrument No. 866585 of the records of the Lincoln County Clerk. ADJUSTABLE RATE RII)ER (LIBOR Six-Month Index (As Published In Thc ~Vall Street Journal) - Rate Caps) 3 YEAR RATE LOCK THIS ADJUSTABLE RATE RIDER is made this 28th 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 undersigned ("Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to NEW CENTURY HORTGAGE CORPORATION '("Lender") of the same date and covering the property described m the Security Instrument and located at: 536 KODIAK CIRCLE , THAYNE, WY 83127 (Property Address) THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants aud agreements made in the Security Instrument, Borrower and Lender fi~rther covenant and agree as follows: A, INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 9. 7000~ The Note provides tbr 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 first day of August 2007 and on the same day of every 6th month thereafter. Each date on which my interest rate could change is called an "Interest Rate Change Date." (B) The Index Beginning with the first Interest Rate Change Date, my interest rate will be based on an Index plus a margin. The "Index" is the average of interbank offered rates for six month dollar deposits in the London market ("LIBOR"), as published in The Wall Street Journal "Money Rates" Table The most recent Index figure available as of the first business day of the month immediately preceding tile month in which the Change Date occurs is called the "Currem Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information The Note Holder will give me notice o'f this choice NCMC 3/27 Six Month IJBOR Adjustable Rate Rider RE-411 (l 11803) Page I of 3 0001753406 RE411P1 ifd k rr 01040,t (C) Calculation of Changes At each Interest Rate Change Date, the Note Holder will calculate my new interest rate by adding F i v e a uti F i f t ¥- F ive H u n d r e d t h s percentage points ( 5.55 O 0 %) to the Cnrrent Index The Note Holder will then round this figure to the nearest one-eighth of one percentage point (0. 125 %). Subject to tile limit stated in Section 4(D) below, this rounded amount will be my new mteresl rate nntil the next Interest Rate Change Date. (i) Interest-Only Period. The "Interest-only Period" is the period from the date of this Note through Au[lust 1, 2007 For the Interest-only Period, the Note Holder will calculate the amount of the nmnthly payment to be one-twel/th (l/12th) of one (l) year's interest at 9. 7000 % per annum. The result of this calculation wilt be the amount of my monthly payment until the Interest Rate Change Date. (ii) Amortization Period. The "Amortization Period" is the period alter the Interest-only Period and contimfing until the Maturity Date. During the Amortization Period, after calculating my new interest rate as provided in Section 4(C) above, the Note Holder will then calculate the amount of the monthly payment that would be sufficient to fully repay the remaining unpaid principal in equal monthly payments by the Maturity Date, assuming, for purposes of each calculation, that the interest rate remained unchanged during that period. The result of this calculation will be the new amount of my monthly payment. (D) Limit on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 11. 2000 % or less than 9. 7000 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than one and one half percentage points (1.5 %) from the rate of interest I have been paying for the preceding month. My interest rate will never be greater than 1 fi. 7000 % nor less Ihan 9.7000 %. (E) Effective Date of Changes My new interest rate will become effective on each Interest Rate Change Date. I will pay the amount of my new monthly payment beginning on the first monthly pay ment date after the Interest Rate Change Date until the amount of my monthly payment changes agai,. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment at least 25 days before the effective date of any change. The notice will include information required by law to be given me and also the title and telephone number of a person who will answer any qnestions I may have regarding the notice. NCMC 3/27 Six Month 1JBOR Adjustable Rate Rider RE-411 (111803) Page 2 of 3 0001753406 RE411P2ifq krr 1104£ .x !.;i?!i~i{.' ' :.: .:!5:!;::.:- :' ?" ",:ii:..:i q.x:51;;" ' .~.? ,.. ~ - .'..;,:.~:~ ;, .. ,.'Fi;NL'..'. . 11. GOVERNING LAW - SECURED NOTE The Note is governed by federal law and the law of the jurisdiction in which lhe property encumbered by the Security Instrument (as defined below) is located. In addition to the protections given to the Note Holder under the Note, vt Mortgage, Deed of Trust or Security Deed (the "Security Instrument"), dated the same date as the Note protects the Note Holder from possible losses which might result if I do noi keep the promises which I make in the Note That Security Instrument describes how and tinder what conditions I may be required to make i~rm~ediate payment in full of all amounts I owe under the Note. Some of those conditions are described as tbllows: Transfer of the Property or a Beneficial Interest in Borrower. If all or auy part of the Property or any interest in it is sold or transferred (or if a beneficial interest m Borrower is sold or transferred and Borrower ~s not a natural person) without Lender's prior wrttten consent, Lender may, at ~ts option, require immediate payment in full of all sums secured by this Security Iustmn~ent. However. this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. If Lender exercises this option, Lender shall give Borrower nottcc of acceleration The re)rice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrumeut. If Borrower Pails 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. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. /k/ATH Y/1~ 6E R~ON -- '--'"~igrro wet Borrower - Borrower - Borrower - Borrower - Borrower (Sign Original Only) - Borrower - Borrower NCMC 3127 Six Month LIBOR Adjustable Rate Rider RE-411 (1 11803) Page 3 of 3 0001753406 RE41 lp3.ifd krr 010404 Loan Numbe~0O01753406 PREPAYMENT RIDER ADJUSTABLE RATE LOAN This Prepayment Rider is made this 28th day of July 2004 and is incorporated into and shall be deemed to amend and supplement the Promissory Note (the "Note") and Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure repayment of Borrower's Note to NEW CENTURY MORTGAGE CORPORATION (the"Lender"). To the extent that the provisions of this Prepayment Rider are inconsistent with the provisions of the Note and/or Security Instrument, the provisions of this rider shall prevail over and shall supersede any such inconsistent provisions of the Note and/or Security Instrument. In addition to the covenants and agreements made in the Note and Security htstmment, the Borrower and Lender further covenant and agree as follows: 5. BORROWERS RIGHT TO PREPAY I have the right to make prepayments of principal any time before they are due. A payment of principal only is known as a "ln'epayment''. When I make a prepayment, I will tell the Note Holder in writing I am doing so. The Note Holder will use all of my prepayments to reduce the amount of principal that I owe under this Note. If I make a partial prepayment, there will be no changes in the due dates of my monthly payments unless: the Note Holder agrees in writing to those changes. My partial prepayment may reduce the amount of my monthly payments after the first Change Date following my partial prepayment. If within 3 year(s) from the date of execution of the Security Instrument, I make a full prepayment or, in certain cases a partial prepayment, and the total of such prepayment(s) in any 12-month period exceeds TWENTY PERCENT (20%) of the original principal amount of this loan, I will pay a prepayment charge in an amount equal to the payment of 6 months advance interest on the amount by which the total of my prepayment(s) within that 12-month period exceeds TWENTY PERCENT (20%) of the original principal amount of the loan. BY SIGNING BELOW, Borrower accepts contained in this Prepay~nent Rider. and agrees to the terms and covenants NCMC Generic Prepayment Rider RE 103 Revised (020800) RE-lO3 JP 0fi 702