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THE JACKSON STATE BANK &
TRUST
112 CENTER ST,, P 0 BOX
1788, JACKSON, NY 83001
PreparedBy:
Lorene Car'[er
RECEIVED
L NCOI._H t?F)!rtl-Y CLERK
563,,
I]OOK . PI{ P/~Ct:] ~ ~ ~'~
[Space Above This Line For Rece,'ding Data]
MORTGAGE
DEFINITIONS
Words used in nmltiple 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 documem are
also provided in Section 16.
(A) "Security Instrument" means this document, which is &ned
together with all Riders m this docmnent.
(B) "Borrower" is Thomas M. Saunders ana Hope N.
as tenants by tile entireties
July 27. 2004
Saunders. Husband and wife,
Borrower is the mortgagor under this Security Instrument
(C) "Lender" is THE JACKSON STATE BANK & TRUST
Lender is a State Bank
organized and existing under the laws of
THE STATE OF WYOMING
SAUNDERS. T&H 59481247
WYOMING-Single Family Fannie Mae/Freddie Mac UNIFORM INSTRUMENT
(~®-6(WY) (ooo5~
Pao. ~ ot ~ s MW 05/00 o~
VMP MORTGAGE FORMS - (8001521 7291
Form 3051 1/01
Lender's address is 112 CENTER ST P 0 BOX 1788. JACKSON WY 83001
Lender is the mortgagee under this Security Instrument
(D) "Note" means the promissory note signed by Bori-ower and dated Jul y 2_7. 2004
The Note states that Borrower owes Lender One Hundrecl Fi t'ty Seven ThousantJ Si x
Hundred and no/lO0 Dollars
(U.S. $ ]_57. 600.00 ) phis interest. Borrower has promised to pay this debt in regular Periodic
Payments and to pay the debt in full not hater than ALIgUS'[ ]. 2034
{E) "Property" means the property that is described below trader the heading "Transfer of Rights in the
Property."
{F) "Loan" means the debt evidenced by the Note, plus interest, any prepaymenl charges and late charges
due under the Note, and all sums due under this Security Instrument, plus inlerest.
(G) "Riders" means all Riders to this Security Instrument that arc executed by Borrower. The lbllowmg
Riders are to be executed by Borrower [check box as applicablel:
Adjustable Rate Rider [~] Condominium Rider ~_ Second Home Rider
Balloon Rider [~ Plmmed Unit Development Rider [_~ 1-4 Family Rider
VA Rider Y~ Biweekly Pay~nent Rider [~ Other(s) |specify]
(H) "Applicable Law" means all controlling applicable Fcdcr~d, state and local statutes, regnlalions,
ordinm~ces and administrative rules and orders (that have thc eFt'cci of law) as well as all applicab}c Final,
non-appealable judicial opinions.
(l) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other
charges that are imposed on Borrower or the Property by a ctmdominiun~ association, homcowuers
association or similar organization.
(J) "Electronic Funds TransFer" means any transfer of fuuds, other than a transaction origimded by
check, draft, or similar paper instruinent, which is initiated through an electronic terminal, telcl~lmnic
instrument, computer, or magnetic tape so as to order, instruct, or authorize a financia} institution to debit
or credit an account. Such term includes, but is not limited lo, point-of-sale transfers, automalcd lcller
machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse
transfers.
(K) "Escrow Items" means those items that are described in Section B.
(L) "Miscellaneous Proceeds" means any compensation, settlemcm, award of damages, or proceeds paid
by any third party (other than insurance proceeds paid under thc coverages described in Secdon 5) lbr: (i)
damage to, or destruction of, the Property; (ii) condenmation or other taking of all or any part of the
Property; (iii) conveyance in lieu of condemnation; or (iv) mi~rcprcsentalions of, or omissions as to, thc
Value and/or condition of the Property.
(M) "Mortgage Insurance" means insurance protecting Lender against Ihe nonpayment of, or defimlt on,
the Loan.
(N) "Periodic Payment" means the regularly scheduled amonnt due for (i) principal and interest umlcr thc
Note, plus (ii) any mnounts under Section 3 of this Security Instrument.
(O) "RESPA" means the Real. Estate Settlement Procedures Act (12 U.S.C. Section 2601 ct seq.) and its
implementing regulation, Regulation X (24 C.F.R. Part 3500), as they ~night be amended from time to
time, or any additional or successor legislation or regulation that governs the same subject matter. As used
in this Security Instrument, "RESPA" refers to all requirements alld restrictions that are imposed in regard
to a "federally related mortgage loan" even if the Loan does nOl qualit'y as a "federally related lnorlgage
loan" under RESPA.
SAUNDERS, T&H 59481247 ,,~,,,~,~:~;7~, tkO' 0
(~-6(WY) (0005} Page 2 ol ~ 5 Fom~ 3051 1/01
(P) "Successor in Interest of Borrower" means any party thai has taken title to the Property, whether or
not that party has assumed Borrower's obligations under the Note and/or riffs Security Instrument.
TRANSFER OF RIGHTS IN THE PROPERTY
This Security lnstm,nent secures to Lender: ti) tile repayment of the Loan, and all renewals, extensions and
modifications of the Note; and (ii) the performance of Borrower's covenants and agreemems under this
Security Instrument and the Nole. Fol' this purpose, Borrower dues hereby mortgage, gram anti convey to
Lender and Lender's successors mid assigns, with power of sale, the following described property located
in the County of L1 ncol n :
[Type of Recording Jurisdiction] LNamc of Recording Jurisdiction]
Lot 4, Palis Park Subdivision. according to the official plaL thereof.
being part of the N1/25E1/4 and the SW1/4NE1/4 of Section 29. T37k.
Rl18W 6th P.M. Wyoming.
Parcel ID Number: which currently has the address of
161 Parkway Drive lS,,~e,l
Alpine tc.y] Wyoming 83128
("Property Address"):
TOGETHER WITH all the improvements now or hereafter erected on the property, and all
easements, appurtenances, and fixtures now or hereafter a l')a,-t of the property. All replacements and
additions shall also be covered by this Security Instrnment. All of the foregoing is referred to in this
Security Instrument as the "Property.'
BORROWER COVENANTS that Borrower is lawfully sciscd of the estate hereby conveyed m~d has
the right to mortgage, grant anti convey the Properly and thal the Property is nnencumbered, except tbr
encumbrances of record Borrower warrants and will defend generally thc title to the Property against all
claims and demands, subject to any encmnbrances of record.
THIS SECUR1TY INSTRUNIENT combines uniform covenants for national use anti ,ion-uniform
covenants with limited variations by jurisdiction to constitute a unil~-)m~ securuy instrument covering real
property.
UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Principal, Interest, Escrow Items, l'repayment Charges, and L~,te Charges°
Borrower shall pay when due the principal of, mid interest on, mc debt evidenced by the Note aud any
prepayment charges mad late charges due tinder the Note. Borrower shall also pay funds for Escrow Items
pursuant to Section 3. Payments due under the Note mid this Sccurily Inm'ument shall be made in U.S.
currency. However, if any check or other instrmnent received by Lender as paylnent nnder the Note or this
SAUNDERS T&H 59481247 . ·/:,
· 0
i~6{WY) (ooos) P~,~ a ol ]5 Form 3051 1/01
Security Instrument is returned to Lender unpaid, Lender may require thal any or all subsequent payments
due under the Note and this Security Instrument be made m one or more of the fi)llowing titans, 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 insm'ed by a
federal agency, mstrmnentality, or entity; or (d) Electronic Fuuds Transfer.
Payments are deemed received by Lender when received a~ tile location designated in the Note or at
such other location as may be designated by Lender in accordance with the notice provisions m Section 15
Lender may return any payment or partial payment if the paymcut or partial payments are insufficient to
bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan
current, without waiver of any rights herennder or prejudice to its rights to refuse such payment or partial
payments in the future, but Lender is not obligated to apply such payments at the time such paymems are
accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay
interest on unapplied funds. Lender may hold such unapplied flmds until Borrower makes payment to bring
the Loan current. If Borrower does not do so within a reasonable period oi' time, Lender shall either apply
such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstamling
principal balance under the Note imanediately prior to forech~sure. No offset or claim which Bm'rower
might have now or in the fi~ture against Lender shall relieve Borrower from making payments title under
the Note and this Security Instrument or performing the covenants and agreements secured by this Security
Instrmnent.
2. Application of Payxnents or Proceeds. Except as otherwise described in this Section 2, all
payments accepted and applied by Lender shall be applied in thc tbllowing order of priority: (a) interest
due under the Note; (b) principal due under the Note; (c) anrouuts due under Section 3. Such payments
sliall be applied to each Periodic Payment in the order in which it became due. Any remaining anaotmts
shall be applied first to late charges, second to any other amouuts due under this Security Instrument, and
then to reduce the principal balance of the Note.
If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a
sufficient amount to pay any late charge due, tile payment nLay be applietl to the delinquent payment and
the late charge. If more than one Periodic Payment is outstanding, l.ender may apply any payment received
from Borrower to the repayment of the Periodic Payments il', and to tl~e extent that, each payment can be
paid in full. To the extent that any excess exists after the paymcut is applied to the full payment ut' one or
more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall
be applied first to any prepayment charges and then as described ill tile Note.
Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal duc under
the Note shall not extend or postpone the due date, or change the arnount, of the Periodic Payments.
3. Funds for Escrow Items. Borrower shall pay to Leudcr on the clay Periodic Payments are due'
under the Note, until the Note is paid in full, a sum (the "Ftmds") to provide For payment of amounts due
ibc: (a)taxes and assessments and other items which can attain priority over this Security Instrument as a
lien or encmnbrance on the Property; (b) leasehold paymeuts or ground rents on the Property, iF auy; (c)
premiums ibc any mid all insurance required by Lender under Section 5; and (d) Mortgage Insurance
premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage
Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow
Items." At origination or at any time during the term of the Loan, Lender may require that Cmnmnnity
Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, lacs and
assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all uotices of amoums to
be paid under Ihis Section. Borrower shall pay Leuder the Fuutls t'or Escrow ICe,ns unless Lender waives
Borrower's obligation to pay tile Funds for any or all Escrow Items. Lender may waive Borrower's
obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may ouly be
in writing. In the event of such waiver, Borrower shall pay dirccdy, when and where payable, thc amounts
SAUNDERS. 7&H 59481247 0
(~6(WY) Iooo5} Paoe4ol]5 Form 3051 1/01
due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires,
shall fitmish 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 agreement contained in this Security [nstrumeut, as the phrase."coveuant and agreement"
is used in Section 9. If Borrower is obligated to pay Escrow [toms directly, pursuant to a waiver, and
Borrower fails to pay tbe amount due Iht an Escrow Item, Lender lnay exercise its rigtxs under Section, 9
and pay such an~ount and Borrower shall then be obligated trader 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, 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 amount (a) sufficient to permit Lender to apply
the Funds at the time specified under RESPA, and (b) not io exceed the maximttm amount a lender can
require under RESPA. Lender shall estimate the amount of Funds due ou the basis of currem data and
reasonable estimates of expenditures of future Escrow Items or otherwtse in accordance with Applicable
Law.
The Funds shall be hel.d in an restitution whose deposits are insured by a federal agency,
instrumentality, or entity (inchtding Leuder, if Lender is an institution whose deposits are sc) insured) or in
any Federal Home Loan Bank. Lender shall apply the Funds to pity the Escrow Items no later than the time
specified under RESPA. Lender shall not charge Borrower ~br holding and applying the Funds, annually
analyzing the escrow account, or verifying the Escrow Items, tnlless Lender pays Borrower interesl on the
Funds and Applicable Law permits Lender to make such a charge Unless an agreement is made in writing
or Appl.icable Law requires interest to be paid ou the Funds, Lender shall not be required to pay Borrower
any interest or earnings on the Funds. Borrower and Lender can agree m writing, however, dial interest
shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the
Funds as required by RESPA.
If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to
Borrower for the excess funds in accordance with RESPA. If there is a shortage of Fnnds held in escrow,
as defined under RESPA, Lender shall notify Borrower as reqt,ircd by RESPA, and Borrower shall pay to
Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12
nmnthly payments. If there is a deficiency of Funds held.in escrow, as defined under RESPA, l.ender shall
notify Borrower as required by RESPA, and Borrower shall pay to Leuder the amount necessary to make
up the deficiency in accordance with RESPA, but tn no more man 12 monthly payments.
Upon payment in full of all sums secured by this Security lustrmneut, Lender shall promplly refund
to Borrower any Funds held by Lender.
4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and imposmons
attributable to the Property which can attain priority over this Sccurtty lustrument, leasehold payments or
ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, il' any. To
the extent that these hems are Escrow Items, Borrower shall pay them in the manner provided in Scctiou 3.
Borrower shall promptly discharge any lien which has priority over this Security htstrnment uuless
Borrower: (a) agrees in writing to the payment of the obligation secured by the lien iii a mauner acceptable
to Lender, but only so long as Borrower is performing such agreemeut; (b) contests the lien iu good laith
by, or defends against enforcemeln of the lien in, legal proceedings which in Lender's opinion operate ro
prevent the ent'orcement of the lien while those proceedings arc pending, but only nntil such proceediugs
are concluded; or (c) secures from the holder of the lien an ag,'eement satisfactory to Lender subordinating
the }ten to this Security Instrument. If Lender determines that any part of the Property is subject to a lien
which can attain priority over this Security Instrument, Lender may give Borrower a notice idemifying the
SAUNDER5. T&H 59481247 0
(~-6(WY) 100051 Page 5 ol ]5 Form 305] 1/01
lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or
more of the actions set forth above in this Section 4.
I.ender may require Borrower to pay a one-time charge for a real estate tax verification and/or
reporting service used by: Lender in connection with this Loan.
5. Property Insm'ance. Borrower shall keep the improvements now existing or hereafter erected ou
the Property insured against loss by fire, hazards included within thc term "extended coverage," and auy
other hazards including, but not limited to, earthquakes anti lloods, lbr which Lender requires insurance.
This insurance shall be maintained in the amounts (including deductible levels) and fi)r the periods that
Lender requires. What Lender requires pursuant to the preceding sentences can change during the tcrn~ 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 unreasonably. Lender may
require Borrower to pay, in connection with this Loan, either: (a) a one-time charge lbr flood zone
determination, certification and tracking services; or (b) a one-time charge for flood zone dcterminatiou
and certification services and subsequent charges each time rcmappings or similar changes occur which
reasonably might affect such deterinination or certification. Borrower shall also be respousible fo,' the
payment of any fees imposed by the Federal Emergeucy Management Agency in connection with the
review of any flood zone determinatiou resulting from an objcctiol~ by Bon-ower.
If Borrower hills to maintain any of the coverages d~:scribed above, Lender. may obtain insurance
coverage, at Lender's option and Borrower's expense. [.cudcr is under no obligation to purchase any
particular type or amount of coverage. Therefore, snch coverage shall cover Lender, but might or might
not protect Borrower, Borrower's equity in the Property, or thc coutents of the Property, against any risk,
hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower
acknowledges that the cost of the insurance coverage so obtained might sig,fificantly exceed the cost of
insurance that Borrower could have obtained. Any mnounts disbursed by Lender under ibis .Secdm~ 5 shall
become additional debt of Borrower secured by this Security h~strmnent. These mnotmts shall bear interest
at the Note rate from the.date of disbursement m~d shall be payable, with such interest, upon notice from
Lender to Borrower requesting payment.
All insurm~tce policies required by Lender and renewals of such policies shall be subject tO Lender's
right to disapprove such policies, shall include a standard morlgage clause, and shall name Lender as
mortgagee and/or as an additional loss payee. Lender shall haw:, 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 l.ender,
for damage'to, or destruction of, the Property, such policy shall include a standard mortgage chmse and
shall name Lender as ~nortgagee and/or as an additional loss payee.
In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. l.ender
may make proof of loss if not made prompdy by Borrower. Unless Lender and Borrower otherwise agree
in writing, any 'insurance proceeds, whether or not rite underlying insurance was requi,'ed by Leuder, shall
be applied to restoration or repair of the Property, if the restoration or repair is economically feasible aud
Lender's security is not lessened. During such repair and restoration period, Lender shall have ll~e right to
hold such insurance proceeds until Lender has had an opportunity Io inspect such Property to ensure the
work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken
promptly. Lender may disburse proceeds for the repairs and restoralion in a single payment or in a series
of progress payments as the work is completed. Unless an agrconcut is made in writing or Applicable Law
requires interest to be paid on snch insurance proceeds, Lender shall not be required to pay Borrower any
interest or earnings on such proceeds. Fees for public adjuslcrs, or other third parties, retaiued
Borrower shall not be paid out of the insurance proceeds and shall be thc sole obligation of Borrower. If
the restoration or repair is not economically feasible or Lender's security would be lesscued, the insurance
proceeds shall be applied to the sums secured by tiffs Security lustrumeut, whether or not then due, with
SAUNDERS. TSH 59481247 , 0
fi( Y) 100051 Page o ot ~5 Form 3051 1101
the excess, if m~y, paid to Borrower. Such insurance proceeds shall be applied in the order provided lbr in
Section 2.
If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance
claim and related matters. [f Borrower does not respond widlin 30 days to a notice froln Lender that the
insurance carrier has offered to settle a claim, then Lender may .egotmte and settle the claim. The 30-day
period will begin when the notice is given. In either event, or il' Lender acquires tile Property Ul'~der
Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insnrance
proceeds in an amount riot to exceed the amounts unpaid under tile Note or this Security Instrument, and
(b) any other of Borrower's rights (other than the right ~o :my refund of unearned premiums paid by
Borrower) nnder all insurance policies covering the Property, insofar as such righls are applicable to the
coverage of the Property. Lender may use the insurance procec-ds either to repair or restore the Property or
to pay amounts unpaid under the Note or this Security hmtrumcnt, whether or not then due.
6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's l)rmcipal
residence within 60 clays after the execution of this Security Instrument and shall continue to occupy lhe
Property as Borrower's principal residence for at least one year after the date of occupaucy, linlcss Lender
otherwise agrees in wrntng, which consent shall not be unreasormbly withheld, or unless extenuating
circumstances exist which are beyond Borrower's control.
7, Preservation, Maintenance and Protection of the i)roperty; Inspections. Borrower shall uot
destroy, danmge or impair the Property, allow the Properly ct) deteriorate or commit waste on the
Property. Whether or not Borrower is residing in the Property, Borrower shall lnaintain tl~e Property in
order to prevent the Property fi'om deteriorating or decreasing in value doe to its condition_ Unless it is
determined pursuant to Section 5 that repair or restoranon is no~ economically feasible, Borrower shall
promptly repair the Property if damaged to avoid furthel dctcriol'atiol~ or damage. If insurauce or
condenmation proceeds are paid iu connection with damage ct), or tile taking of, the Property, Borrower
shall be responsible for repairing or restoring the Property only il' Lender has released proceeds for such
purposes. Lender may disburse proceeds for tile repairs and ,-estoration in a single payment or ill a series of
progress payments as the work is completed. If the insurance or COl~delnnation proceeds are not sufficient
to repair or restore the Property, Borrower is not relieved of Btu-ruwer's obligalion tbr the COlnpledon of
such repair or restoration.
Lender or its agent may make reasonable entries upon and iuspections of tile Property. If it has
reasonable cause, Lender may inspect the interior of the improvements on lhe Property. l~encler shall give
Borrower notice at the tiine of or prior to such an interior inspt:ctitm specifying such reasonable cause.
8. Borrower's Loan Application. Borrower shall be in dcfauh il', dnring thc 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 statelnents to Lender
(or failed to provide Lender with material information) in connection with the Loan. lVlaterial
representations inclnde, but are not limited to, representations concerning Borrower's occupancy of the
Property as Borrower's principal residence.
9. Protection ol~ Lender's Interest in the P,'operty and Rights Under this Secn,ity hlstrument. If
(a) Borrower fails to perform the covenants and agreements coutaiued in ihis Secnrity h~strument, (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 condenmation or forfeiture, for
enforcement of a lien which may attain priority over this Secu,ity hmtrument or to enlbrce laws or
regulations), or (c) Bon'ower has abandoned the Property, then Lender may do and pay tbr whatever is
reasonable or appropriate to protect Lender's interest in thc Property and rights nnder this Scct, rity
Ii~strument, including protecting and/or assessing the value oF thc Property, and securing and/or repairing
the Property. Lender's actions cml 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
SAUNDERS. T&tt 59481247 0
~)~6(WY) 10005) Page 7 of ]5 Form 3051 1/01
attorneys' fees to protect its interest iu the Property and/or rights ut}der this Security Instrument, including
rts secured position in a bankruptcy proceeding. Securing thc ?roperty includes, but is not limited to,
entering the Property to make repairs, change locks, replace or board t,t) doors and windows, drain water
from pipes, eliminate building or other code violations or dangerous conditmns, and bare utilities turned
on or off. Although Lender may take action under this Section 9, [.ender does not have to do st) and is not
under any duty or obligation to do so. It is agreed that Lender incurs no liability for nol taking any or all
actions authorized under' this Section 9.
Any amounts disbursed by Lender nnder this Section 9 shall become additional debt of Borrower
secured by this Security Instrument. These an~ounts shall beat- imcrcst at the Note ]'ate from the date of
disbursement and shall be payable, with such interest, upon notice fi'om Lender to Borrower requesting
payment.
If this Security Instrument is on a leasehold, Borrower shall comply with all the prowsions of the
lease. It' Borrower acquires fee title to the Property, thc lcascl~tfld and the Icc title shall not ]nerge unless
Lender agrees to the merger in writing.
10. Mortgage Insurance. If Lender required Mortgage Iustu-ance as a cohdition of making thc Lozm
Borrower shall pay the premiums required to maintain tile Mortgage lusnrance in effect. If, for any reason,
tile Mortgage Insurance coverage required by Lender ceases to bc available from the mortgage iusurer that
previously provided such insurance aa~d Borrower was required to make separately designated payments
toward the premiulns Ibr Mortgage Insurance, Borrower shall pay the prcmntms required to obtain
coverage substantially equivalent to the Mortgage Insurance previously ill effect, at ~ cost substantially
equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, fi'om an alternate
mortgage insurer selected by Lender. If substantially equiv~tlcu~ Mortgage Insurance coverage is not
available, Borrower shall continue to pay to Lender thc amoun~ of the separately designated payments lhat
were due when the insurance coverage ceased to be in effect, l.ender will accept, use and retain these
payrneuts as a non-rel:undable loss reserve in lien of Mortgage Insurance Such loss reserve shall be
non-refi~ndable, notwithstanding the fact that the Loan is ultimately paid in fitll, and Lender shall not be
required to pay Borrower any interest or earnings on such loss reserve Lender can no longer require loss
reserve payments if Mortgage Insurance coverage (in the amount and for tile period that Lender requires)
provided by an insurer selected by Lender again becomes available is obtained, and Lender requires
separately designated payments toward the pi'enfiums for Morlgagc Insurance. Il' Lender required Morlgagc
Insurance as a condition of making the Loan and Borrower was required to make separately designated
payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to
maintain Mortgage Insurance in effect, or to provide a ntmq'el'undablc loss reserve, until Lender's
requirement for Mortgage Insurance ends in accordance wi~h any written agreement between Borrower and
Lender providiug for such termination or until termination is required by Applicable Law. Nothing in this
Section 10 affects Borrower's obligation to pay interest at thc rate provided in the Note.
Mortgage Insurance reimburses Lender (or any entity that lUu-chases tl~e Note) for certain losses il
may incur if Borrower' does not repay the Loan as agreed Borrower is not a I)arty to thc Mortgage
Insurance.
Mortgage insurers evaluate their total risk on all such insurance m force fi-om nme to dine, and may
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 inortgagc insurer and the other party (or parties) co
these agreements. These agreements may require the mortgage insurer to make paymcms using any source
of funds that the mortgage insurer may have available (which may include I:unds obtained from Mortgage
Insurance premiums).
As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer,
any other ennty, or any affiliate of any of the lbrcgoing, may receive (dirccdy or mdi,'ectly) amounts that
derive from (or might be characterized as) a portion of Borrower's I)ayments for Mortgage Insurance, in
exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. It' such agreement
provides that an affiliate of Lender takes a share of the insurer's risk in exchange fi)r a share of tile
premiums paid to the insurer, the arrangement is often termed "captive rcinsurauce." 17urther:
(a) Any such agreelnents will nnt affect the amounts that Borrower has agreed to pay for
Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount
Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund.
SAUNDERS. T&H 59481247 0
(~-6(WY) 1ooo5l Page 8 of ]5 Form 3051 1/01
(bi Any such agreements will not affect the rights Borrtiwer has - if any - with respect to tbe
Mortgage Insurance tinder the Homeowners Protection Act or' 1998 or any other law. TI,ese rights
may include the right to receive certain disclosures, to request and obtain cancellation of the
Mortgage Insurance, to have the Mortgage Insurance tcrntinated antonmtically, and/or to receive a
refund of any Mortgage Insurance premimns that were unearned at thc time of such cancellation or
termination.
11. Assignment of Miscellaneous Proceeds; Forfeiture All IVliscellaneous 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 thc right to hold such Miscell~meous Proceeds
until l~ender has had ,an opportunity to respect such Property ~o ensure the work has been compleled to
Lender's satisfacnon, provided thai such inspection shall be undcrtakeu promptly. Lender may pay for tl~e
repairs and restoration in a single disbursement or in a series of progress payments as the work is
completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such
Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such
Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would
be lessened, the Miscellaneous Proceeds shall be applied to thc st,ns secured by this Security Instrument,
whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be
applied in thc 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 h'~strument, whether or not then due, with
the excess, if any, paid to Borrower.
In the event of a partial taking, destruction, or loss in value o1: the Property in which thc fair market
value of the Property ixmnediately betbre the partial taking, destruction, or loss in value is eqaal to or
greater than the amount of the sums secured by this Security Instrument immediately bek)re dhe partial
taking, destruction, or loss in value, unless Borrower anti Lt:ndcr otherwise agree in writing, thc sums
secured by this Security Instrument shall be reduced by ~hc amom~t of the Miscellaneous Proceeds
multiplied by the tbllowing fraction: (a) the total amount of tile sums secured immediately bcl:ore Ihe
partial taking, destruction, or loss in value divided by (hi the fair markel value of the Property
immediately before the partial taking, destruction: or loss in value. Any bahmce shall be paid to Borrower.
In the event of a partial taking, destruction, or loss in value of the Property in which the fair market
value of the Property innnediately before the partial taking, destruction, or loss in value is less than the
amount of the sums secured inmaediately before the partial taking, destruction, or loss iq value, unless
Borrower mid Lender otherwise agree in writing, the Miscellaneous Proceeds shall bc applied to thc sums
secured by this Security lnstrmnent whether or nol the sums arc then due.
If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower dtat the
Opposing Party (as defined in the next sentence) offers to make au award to settle a claim lbr damages,
Borrower fails to respoud to Lender within 30 days after the date thc notice is given, Lender is authorized
to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to thc
stuns secured by this Security Instrument, whether or uot then due. "Opposing Party" means the third party
that owes Borrower Miscellaneous Proceeds or the party agai,ast whom Borrower has a right of action in
regard to Miscellaneous Proceeds.
Borrower shall be in default if m~y action or proceeding, whcfllcr civil or criminal, is begun that, in
Lender's judgment, could result in forfeiture of the Property or olhcr material impairment of kcnder's
interest in the Property or rights under this Security lnstrulnent. Borrower can cure such a defauh and, if
acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be
dismissed with a ruling that, in Lender's judgment, precludes R, rfeiture of the Property or other material
impairment of Lender's interest in the Property or rights under tliis Security Instrument. The 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.
SAUNDERS, T&H 59481247 0
Inilia~~
l~-fi(WY) (0005) Page 9 o* ~5 Form 3051 1t01
12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of ihe time
payment or modification of amortizauon of Ihe sums secured by this Security Instrument Startled by Lender
to Borrower or any Successor in Interest of Borrower shall not upcrate to release the liability of Borrower
or m~y Successors m Iuterest of Borrower. Lender shall not bc required ~o commence proceedings against
any Successor in Interest of Borrower or to re~se Io exlcnd time tbr payment or otherwise modi~
mnortization of the sums secured by this Security Instrument by reason of any demand made by fl~e original
Borrower or any Successors in Interest of Borrower. Any tbrbcarance by Lender in exercising any righ~ or
remedy including, without Ii,ration, Lender's acceptance of i);-~ymcnts fi-om third persons, entities or
Successors in Interest of Borrower or in mnounts less than the amount then due, shall not be a waiver of or
preclude the exercise of ~y right or remedy.
13. Joint and Several Liability; Co-signers; Snccessors and Assigns Bound. Borrower covenants
mid agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who
co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this
Security Instrument only to mortgage, grant ~d convey the co signer's inlerest in the Property under d~e
terms of this Security Instrument; (b) is not personally obligated 1o pay the sums secured by this Security
Instrument; and (c) agrees that Lender ~d any other Borrower can agree to extend, modify, tk~rbear or
m&e any accommodations 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 in Interest of Borrower who assnmes
Borrower's obligations under this Security Instrument in writings, and is al)proved by Lender, shall obtaiu
all of Borrower's rights and benefits under this Security h~strumcnt. Borrower shall nol be released horn
Borrower's obligations m~d liability under this Security Instrument unless Lender agrees to such release
writing. The covenants and agreements of this Security lnstrnmcnt shall bind (except as provided in
Section 20) and benefit the successors and assigns of Lender.
14. Loan Charges. Lender xnay charge Borrower lkes for services perforated in connection with
Borrower's default, tbr the puq)ose of protecting Lender's iutcrcst in the Property and rights under lhis
Security Instrument, including, but not limited to, attorneys' IL'cs, property inspection and valuation [kcs.
In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific
t~e to Borrower shall not be constn~ed as a prohibition on the charging of such fee. Lender may no~ charge
fees that are expressly prohibited by this Security Instnnnent or by Applicable Law.
If the Loan is snbject to a law which sets maximum loan charecs, and that law is finally interpreted so
that the interest or other loan charges collected or to be collcctcd~n connection with die Lom~ exceed the
permitted limits, then: (a) any snch loan charge shall be reduced by the amount necessary to reduce tl~e
charge to the pe~ittcd limit; and (b) any sums already colleclcd from Borrower which exceeded permitted
limits will be re~nded to Borrower. Lender may choose to make dfis rebind by reducing the principal
owed under the Note or by making a direct payment to Borruwer. If a retired reduces principal, the
reduction will be treated as a partial prepayment without auy prepayment charge (whether or not a
prepayment charge is pr6vided for under the Note). Borrower's acceptance of any such refund made by
direct payment to Borrower will constitute a waiver of m~y right or' action Borrower might have arising out
of such overcharge.
15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument
must be in writing. Auy notice to Borrower in conuection with this Security Instrument shall be deemed to
have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's
notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers
unless Applicable Law'expressly requires otherwise. The notice address shall be thc Property Address
unless Borrower has designated a snbstitute notice address by notice to Lender. Borrower shall promptly
noti~ Lender of Borrower's change of address. If Lender specifics a procedure for reporting Borrower's
change of address, then Borrower shall only report a change of address throngh that specified procednre.
There may be only one designated notice address under this Scct~rity h~strument 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 m~other address by notice to Borrower. Any notice in
connection with this Security lnstnnnent shall not be deemed lt~ have been given to Lender until actually
received by Lender. If any notice reqnired by this Security Instrtnnent is also required under Applicable
Law, the Applicable Law requirement will satisfy the corresponding requiremcnl nnder this Security
lnst~ment.
SAUNDERS. T&H 50481247 ~~ 0
6(WY} Iooo5) Pa~e lO ot ~5 Form 3051 1/01
16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be
governed by federal law and the law of the jurisdiction in wl~ich 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 parties to agree by contract or it
might be silent, but such silence shall not be construed as a l~rohibition 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 h~strument or the Note which can be
given effect withom the conflicnng prowsion.
As used in this Security Instrument: (a) words of the masculine gender shall mean and include
corresponding neuter words or words of the feu'finine gender; (b) words in the singular shall inean and
include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to
take any action.
17. Borrower's Copy'. Borrower shall be given one copy of the Note and of this Security Instrument.
18. Transfer of the Property or a Beneficial Interest in Borrower. As nsed in this Sectiou 18,
"Interest in the Property" means any legal or beneficial interest iu the Property, including, but no~ limited
to, those beneficial interests transferred in a bond for deed, contract l'or deed, instalhnent sales contract or
escrow agreement, the intent of which is the transfer of title by Borrower at a fulure date to a purchaser.
If all or any part of the Property or any Interest in the Property ts sold or transferred (or if Borrower
is not a natural person and a beneficial interest in Borrower is sold or transl'crrcd) without Lender's imor
written consent, Lender may reqmre inunediate payment mli. dl of all sums secured by this Securily
Instrument. 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 not~ce shall
provide a period of not less than 30 days from the date the notice is given in accordance wi~h Section 15
within which Borrower must pay all sums secured by this Security Instrnn~ent. If Borrower fails to pay
these sums prior to the expiration of this period, Lender may invoke any remedies pernfitted by this
Security Instrument without fimher 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 enforcement of this Security Instrument discontinued at any time
prior to the earliest of: (a) five days before sale of the Property lmrsuant to m~y power of sale contained in
this Security Instrument; (b) such other period as Applicable Law might specify for the terminatitm of
Borrower's right to reinstate; or (c) entry of a jndgment cnlin-cing this Security Instrument. Those
conditions are that Borrower: (a) pays Lender all sums which then wonld bc due under this Security
Instrument and the Note as if no acceleration had occurred; (b) cktres any del'auh or' any other covenants or
agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, bnt not limited
to, reasonable attorneys' fees, property inspection and valualion fees, and other fccs 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 may reasonably require to assure that Lender's interest in the Property and
rights under this Secmity Instrument, and Borrower's obligation to pay the sums secured by this Securily
Instrument, shall continue unchanged. Lender may require that Bt~rrowcr 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, bm~k check, treasurer's check or cashier's check, provided any such check is drawn upon
m~ institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic
Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby
shall remain fially effective as if no acceleration had occurred, l lowcver, 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 Grievunce. The Note or a partial interest in
the Note (together with this Security Instrument) can be sold one or more limes without prior notice to
Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects
Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan
servicing obligations under the Note, this Security Iustrun~el~t, and Applicable Law. There also might be
one or more changes of the Loa]~ 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 nmne and address of the
new Lom~ Servicer, the address to which payments should be made and any other infornmtion RESPA
SAUNDERS. T&H 59481247 0
tnitials~
(~-6(WY) 1ooo5) Page 11 o~ ~5 Form 3051 1/01
894
requires in connection with a notice of transfer of servtcing. Il' the Nole is sold and thereafter the Loan is
serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servtcing obligations
to Borrower will rematn with the Loan Servicer or be transferred to ~ successor Loan Servicer and are not
assumed by the Note purchaser unless otherwise provicled by the Note purchaser.
Neither Borrower nor Lender may co~mnence, join, or bc joined to any judicial action (as either an
individual litigant or the member of a class) that arises from the other party's actions pursuant to this
Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by
reason of, this Security Instnlment, until such Borrower or kcndt:r has notified the olher party (with such
notice given in compliance with the requirements of Section 15) of such alleged breach anti aftbrded the
other par:y hereto a reasonable period after the g]wng oi' such notice to take corrective actnm. If
Applicable Law provides a time period which must elapse before certain action can be taken, that tnne
period will be deemed to be reasonable tbr purposes of this 1)aragraph. The nonce o1: acceleration and
opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleralion g~vcn to
Borrower pursuant to Section 18 shall be deemed to satisfy the uotice aud opl)ortunity to take corrective
action provistons of this Section 20.
21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those
substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the
following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides
and herbicides, volatile solvents, materials containing asbestos m- formaldehyde, and radioactive materials;
(b) "Environmental Law" means federal laws and laws of the jm'isdiction where the Property is located that
relate to health, safety or enviromnental protection; (c) "Envi~onmcutal Cleannp" includes any response
action, remedial action, or removal action, as defined in Environmental Law; mid (d) an "Environmenlal
Condition" means a condition that carl cause, contribute to, or otherwise trigger an 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 lite 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 l)receding
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 (includirig, 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 the Property and any
llazardous Substm~ce or Environmental Law of which Borrower has actual knowledge, (b) any
Euvironmental Condition, including but not linrited to, any spilling, lt:akiug, 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, that any removal or other rcmediation
of any Hazardous Substance affecting the Property is necessary, B~nTower shall promptly take all necessary
remedial actions in accordance with Environntental Law. Nothing herein shall create any obligation ou
Lender for an Environmental Cleanup.
SAUNDERS. T&H
(~-6(WY) 1ooo5)
59481247 0
Page 12 of 15 : ' Form 3051 1/01
o°95
NON-UNIFORM COVENANTS. Borrower and Lender Furdler covenmit and 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 Security lnstrmnent (but not prior to
acceleration nuder Section 18 nnless Applicable Law provides otherwise). Tbe notice shall specify: (a)
the default; (b) the action required to cure the default; (c) a d~,le, uot less than 30 days from the date
the notice is given to Borrower, by whicb the default lnust lie cra'ed; and (d) that failm'e to cure the
default on or bet'ore the date.specified in the notice amy result in acceleration of the stuns secured by
this Security Instrument and sale of tile Property. The notice shall further iuform Borrower of the
right to reinstate after acceleration and the right to bring a court aclion to assert the non-existence of
a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or
before tile date specified in the notice, Lender at its option may require immediate payment in full of
all sums seem-ed by this Security Instrument without furthe,, demand and ~nay iuvoke tile power of
sale and any other remedies permitted by Applicable Law. Lende,' shall be entitled to collect al!
expenses incurred in pursuing the remedies provided in this Section 22, iucluding, but not limited to,
reasonable attorneys' fees and costs of title evidence.
If Lender invokes the power of sale, Lender slmll give notice of intent to foreclose to Borrower
and to the .person in possession of the Property, if different, in accordance with Applicable Law.
Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall
publish the notice of sale, and the lh'operty shall be sohl 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 following order: (a) to all expenses of thc sale, including, hot not limited to,
reasonable attorneys' fees; 0a) to all sums secured by this Security Instrmnent; 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 Instrmnent, Lender shall release this
Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fcc for
releasing this Securit~ Instrument, but only if the fee is paid to a dfird party tbr services rendered and the
charging of the fee is permitted tinder Applicable Law.
24. Waivers. Borrower releases "md waives all rights trader and by virtue of the homestead
exemption. laws of Wyoming,
SAUN DERS, T&H 59481247 0
~-6(WY) 1ooo5~ Paoe 13 o~ ~s ~"~ Form 3051 1/01
-, 8'3-6
BY SIGNING BELOW, Borrower accepts and agrees ¢o the terms and covenants comained in
Securi[y Instmmen! and in any Rider executed by Borrower and recorded with iL
Witnesses:
~--~g"r:~"~{~~· ~e'~'' ~'~'f~---'~ ( Seal )
Thomas M. Saunders -B,,rrowe,
ope N. ~Satl~clers -Borrower
(Seal) (Seal)
-Borrower -Bm rower
(Seal) (Seal)
-Borrower ~Bon owcr
_ (Seal) (Seal)
-Borrower -Borrower
SAUNDERS. T&tt 59481247 0
~I~_~6(WY) 10005) Page 14 oi' 15 FOI'I'FI 3051 1/01
STATE OF WYOMING,
Teton County ss:
byThomas M. Saunders anm Hope N. Saunde'rs
by the entireties
The foregoing instrument was acknowledged before me this July 27, 2004
Husband ano wife. as tenants
My Commission Expires: ~ ~F ~::~ ~0~7
Notary Public
SAUNDERS. T&It 59481247 0
(~-6(WY) 10o05) Page ~5 o~ ~5 Form 3051 1/01