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HomeMy WebLinkAbout901662Return To: NEW CENTURY MORTGAGE CORPORATION 18400 VON KARMAN, SUITE 1000 IRV .E, CA Prepared By: NEW CENTURY HORTGAGE CORPORATION RECEIVED LINCOLft COI. JHTY CI._ERK [Space Above This Line For l~,ecording D;~ta]- 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 ,'md 21. Certain rules reg,'u-ding the usage of words used in dos document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated August 2, 2004 together with all Riders to this docmnent. (B) "Borrower" is JENNIFER HOOPES, h MARRIED WOMAN AS HER SOLE AND SEPERATE PROPERTY Borrower is the mortgagor under this Security Instrument. (C)"Lender"is NE~t CENTURY MORTGAGE CORPORATION Lender isa CORPORATION organized and existing under d~e laws of CALI FORNIA WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~)®-6(WY) (ooos) VMP MORTGAGE FORMS - (800)52h"-7291 0001741354 Form 3051 1/01 Lender's address is 18400 VON KAItI~AN, SUITE 1000 IItVINE, CA 92812 Lender is the mortgagee under this Security Instrument.. (D) "Note" means the promissory note signed by Borrower anti dated Au[lust 2, 2004 The Note states that Borrower owes Lender One Hundred lwent¥-Eight lhousand and No/100 ....................... Dollars (U.S. $ 128,000.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in fidl not later than September 1, 2034 (E) "Property" means the property that is described below under tile heading "Traust'er of Rights in the lh'operty." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Insn'ument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable}: [~] Adjustable Rate Rider [---] Condominium Rider [] Balloon Rider [] Planned Unit Development Rider ~-] VA Rider ~] Biweekly Payment Rider ~] Second Home Rider [~ 1-4 Family Rider ~ Other(s) [specify] Prepayment Rider Arm Rider Addendum tH) "Applicable Law" means all controlling applicable federal, state and local statutes, regt,lations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (1) "Connnunity Association Dues, Fees, and Assessments" means all dues, fees, assessments and olher charges that are imposed on Borrower or the Property by a condominium association, homeowuers association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a Iransaction originaled by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape sd as to order, instruct, or authorize a l'inanci~d institution to debit or credit an account. Such term includes, but is not limited to, point-ol'-sale transfers, antomated 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" means any co~npensafion, settlement, award of danmges, or proceeds paid by any third party (edger than insurance proceeds paid under the coverages described in Sectioa 5) for: ti) damage to, or destruction of, the Property; (ii) condemnation or t)ther taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or o~nissions as to, the value and/or condition of the Property. tM) "Mortgage Insurance" means insurance protecting Lender against tile nonpayment of, or del'ault on, the Loan. tN) "Periodic I'ayment" means the regularly scheduled anaount due for ti) principal and interest under tile Note, plus (ii) any amounts tinder Section 3 of this Security Insu'tnnent. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its i~nplementing regulation, Regulation X (24 C.F.R. Part 3500), as dley might be an~ended from time to time, or any additional or successor legislation or regulation that governs the same subject mailer. As used in this Security Instrument, "RESPA" refers to all requirements mM restrictions that are imposed in regard to a "feder~dly related mortgage loan" even if the Loan does not qmllify as a "federally related mortgage loan" under RESPA. Inilials(~.~ 0001741354 (~}~-6(WY) (ooo5) Paga 2 ot ~5 Form 3051 1/01 (P) "Successor in Interest of Borrower" means ~my party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Seem'try Insu'ument. TRANSFER OF RIGHTS IN TIlE PROPERTY This Security Instrument secures to Lender: (i) the repayment o1' lite Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instru~ent and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender. and Lender's successors and assigns, with power of sale, the following described property located in the COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording lurisdiction] SEE LEGAL DESCRIPTION ATTACHED HERETO AND IqADE A PART HEREOF. Parcel ID Number: 1232192110104500 361 HILLVIE}~ DRIVE , AFTON ("Property Address"): which currently has the address of [Street] /City] , WyOming 83110 [Zip Codel TOGETHER WITH all the improve~nents now or hereafter erected on lite property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all cl,'fims and demands, subject to any encumbrances of record. THIS SECURITY iNSTRUMENT combines uniform covenants for uational use and nonqmiform covenants with limited variations by jurisdiction to constitute a uniform security insu'ument covering real property. UNIFORM COVENANTS. Borrower and Lender covenam and agree as follows: 1. Payment ct' Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrumeut shall be made in U.S. currency. However, if any check or other inslrument received by Lender as payment under the Note or this Ini~i~ls.~__ 0001741354 l~-6(WY)(ooos) Pagoaol~s Form 3051 1/01 ,.. ,.;,,;; ':.;.5':;;',:¢.:i ;' Security Instrument is 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) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose dc. posits are insured by a lbderal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received itt the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient Io bring the Loan current. Lender may accept any payment or partial paymeut insufficient to bring the l~oan current, without waiver of any rights hereunder 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 payments are accepled. 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 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 funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding princil)al 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 paymeuts due nnder the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all paymeuts 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 hlstrument, and then to reduce tile principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a snfficient amount to pay ,'my late charge due, the payment may be al)plied to the delinquent payment and late charge. If more than one Periodic Payment is outstanding, iL.enter may apply any paymeut received fi-om Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent dmt any excess exists ,'filer the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges title. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due nnder the Note shall not extend or postpone the due date, or ch,'mge the alnount, of the Periodic Paymeuts. 3. Funds for Escrow Items. Borrower sh~l pay to Lender on the day Periodic Payments are due under the Note, nntil the Note is paid in full, a sum (the "Funds") to provide for payment of amounls due for: (a) rexes 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 renls on the Property, if auy; (c) premiums for any aud all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, il' 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 ae called "Escrow Items." At originatk)n or itt any time during the term of the Loan, Lender ~nay require that Commuaity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts Io be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items 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 only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of ~,,. ia ~ ~(~¢~L_0001741354 Funds has been waived by Lender and, if Lender reqmres, shall ['urnish to Lender receipts evidencing such payment within such Lime period as Lender may reqmre. Borrower's obligation [o make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained m this Security Instrument, as the phrase "covenant anti agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails It) pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender m,'ty revoke the waiver as to any or all liscrow Items at any time by a notice given in accord,'mce with Section 15 and, upon such revocation, Bon'ower 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 ,'tn amount (a) sul'ficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current dam and reasonable estimates of expenditures of future Escrow Items or olhcrwise iu accordance with Applicable Law. Tile Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in ~my Federal tk)me Loan Bank. Lender shall apply the Funds to pay file Escrow I~ems ilo laler than the dine specified under RESPA. Lender shall not charge Borrower for holding anti al)plying file Funds, annnally analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest oil the Funds and Applicable Law permits Lender to make such a charge. Unless an agrecmenl is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any inlerest or e,m-nings on the Funds. Borrower and Lender c,'m agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Fnnds held in escrow, as defined under RESPA, Lender shall acconnt to Bon'ower for the excess funds ill accordance with RESPA. If there is a shortage of Fumls held in escrow, as defined under RESPA, Lender sh~dl notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Leuder shall notify Borrower as required by RESPA, and Borrower shall pay lo Leuder the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Insu'umcnt, Lender shall prompdy 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 Insu'ument, leasehold payments or ground rents on the 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 the manner provkled in Section 3. B'on'ower 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 hy the lien in a manner acceplable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which ill Lender's opinion operate It) prevent the enforcement of the lien while those proceedings are pending, but ouly until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of tile Property is subject to a lien which can attain priority over lhis Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 (~-6(WY) (ooo5) PaOe 5 ol 0001741354 Form 3051 1/01 days of the date on Which that notice is given, Borrower shall satisl'y the lien or take one or more of the actions set forth above in this Section 4. Lender 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 Insurance. Borrower shall keep the improvements now existing or hereafter erected on lite Property insured against loss by fire, hazards included within tile 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) anti for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term o1' 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. Leuder may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for rlood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might al'fect such determination or certification. Bon'ower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in counection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any o~' the coverages described above, Lender may obtain insurance coverage, at Lender's option 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 the Property, or the contents of the Property, against any risk, hazanl or liability and might provide greater or lesser coverage than was previously in effect. Bon'ower acknowledges that the cost of the insurance coverage so obtained might significantly exceed tile cost of insurance that Borrower could have obtained. Any ,mnounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These alnounts shall bear interest at the Note rate from the date of dlsbursement and shall be payable, \vith such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject'to Lemler's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Le,Mer all receipts of paid preruitmls and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, damage to, or destruction of, the Property, such policy shall include ii 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 the insurance carrier and Lender. Lender 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 the underlying iusurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible anti Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such (aspect(on shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series o1: 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 and shall be the sole obi(gal(on ol' Borrower. If the restoration or repair is not economically feasible or Lender's security wouM be lessened, the insurance proceeds shall be applied to ,.i~i~l~),~ 0001741354 (0005) Page6o115 ~.,/.~/~ Form 3051 1/01 the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and setde any available insurance claim and related matters. If Borrower does not respond within 30 duys to a uotice froin Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. Iu either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Iustrun~ent, and (b) any other of Borrower's rights (other than the right to any refund of unearned prenmuns paid by Borrower) under all instn-ance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to rep,fir or restore the Property or to pay ,'unounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days ',filer the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principtd residence for at least one year after the dale of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circulnstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Pruperty; Inspections. Borrower shall not destroy, da[nage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decretksing 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 if damaged to avoid further deterioration or dmnage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion ol' such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvemeuts on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in det','mlt if, during the Loan application process, Borrower or any persons or entities acting at the direction of Bt~rrower or with Borrower's knowledge or consent gave materially fidse, misleading, or inaccurate informatiou or statements to Lemler (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Securily lnstrnment. If (a) Borrower fails to perform the covenants and agreements contained in this Security Insmmmnt, (h) 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 Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the 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 eom't; and (c) paying reasonable , ~, i~,~///~,~ 000174~354 l[~-§{W¥) (00o5) Pa§,7o, 15 L./..j.,~[~.~ Form 3051 1/01 attorneys' fees to protect its interest in the Property and/or rights under this Security [nsu-ument, including secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water fl'om pipes, eliminate building or other c0de~violations or dangerous conditions, and have. utilities lumed on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It .is agreed that Lender incurs no liability lbr not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrulnent. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain file Morlgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to bc available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated paymeuts toward the premiums for Mortgage Insurance, Borrower shall pay thc premiums required to obtain coverage substantially equivalent to file Mortgage Insurance previously in elTect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated paymenls that were due wheu the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refuudable loss reserve in lieu of Mortgage Insur~mce. Such loss reserve shall be non-refm~dable, notwithstanding the I'act that the Loan is ultimately paid in full, and Lender shall not be requircd to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve l)ayments if Mortgage Instu'ance coverage (in the amount ,'md 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 the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Bon'ower shall pay the premiums required to maint~fin Mortgage Insurance in effect, or to provide a nomrefundable loss reserve, unhl Lender's requirement for Mortgage Insurance ends ill accor&mce with any written agreement between Borrower m~d Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interesl at the rate provided in the Nole. Mortgage Insurance reimburses Lender (or any entity that pm'chases the Note) for certain losses il may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to file Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance iu force from time to time, and [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 file mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer it) make payments using any source of funds that the mortgage insurer may have available (which may include ftmds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, ally reinsurer, other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage' Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provkles that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums pakl to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts thai Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreemeots will not increase the amutmt Borrower will owe for Mortgage Insurance, and they will nnt entitle Borrower to any refund. initial ~,.~,~t.,,, 0001741354 (~-6(WY) (0005) Page a of ~5 ~r.~LT Form 3051 1101 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Acl t)f 1998 or any other law. These rights may include the right to receive certain disclosures, to requesl and obtain cancellation o1' the Mortgage Insurance, lo have the Mortgage Insurance ter~ninated automatically, and/re' to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds ~re 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 kender's security is not lessened. During such repair and restoration period, Lender shall have the rigbt to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to kender's satisfaction, provided that such inspection shall be undertaken prompdy. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In 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 Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in vah~e of the Property in which the fair market value of the Property immediately before the partial taking, deslruction, or loss in value is equal to or grealer than the amotmt of the sums secured by this Security Instrnment immediately before the partial i'~ing, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the stuns secured by this Security Instrument shall.be reduced by the mnount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In fl~e event of a partial taking, destruction, or loss in value of the Property in which the fidr mtaket value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscelhmeous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the snms are then due. If the Property is abandoned by Borrower, or if, al'ret notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower l:ails to respond to Lender within 30 days after the date the notice is given, Lender is autho,-ized to collecl aud apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Bom)wet Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or olhor umterial impairment ol' Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default anti, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with ti ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairmenl of Lender's interest in the Property or rights under this 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. , o i~i~,%~/~/(]L 0001741354 (~-6(WY) (ooo5) P~ge'9 ol ,5 L./.~./'/~ Form 3051 1/01 " '-, .039 12. Borrower Not Released; Forbearance By Lender Nul a Waiver. Extension of the time [:or payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender sh~dl.n0t be reqtfired to cerumen)ce proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or Otherwise modify mnortization of the sums secured by this Security Instrument by reason of any demand made by file original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender iu exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Snccessors in Interest of Borrower or in amounts less titan the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees lhat Borrower's obligations and liability shall be jotul and several, ttowever, 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 and convey the co-signer's iuterest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; ,mid (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to Ihe terms of this Security Insn-tmleut 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 Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits tinder this Security Instrument. Borrower shall not be released f,'om Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Iustrument shall bind (except as provided iii 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 tile Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation tees. In 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 triay not charge tees 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 Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums 'already collected fi'om Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund 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 consfilute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Msn'ument must be in writing. Any notice lo Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers t,nless Applicable Law expressly, requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice lo Lender. Borrower shall promptly 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 Instrmnent at any erie time. Any notice 1o Lender shall be given by delivering it or by mailing it by first class mail to Lender's uddress stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument Sb2fll not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. h, llials :~ 0001741354 ~-6(WY) (ooo5) Page ~o el rs Form 3051 1/01 16. Governing Law; Severability; Rules of Construe,inn. This Securily Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be sileut, but such silence shall not be construed as a prohibition against agreement by contract. In tile event that any provision or clause of this Security Instrument or the Note conllicts with Applicable Law, such couflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without tile conflicting provision. As used in this Security Instrument: (a) words of tile masculine gender shall mean anti include corresponding neuter words or words of the feminine gender; (b) words in file singular shall mCan and include the plural and vice versa; and (c) the word ",nay" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy el' the Note anti of this Security Instrument. 18. Transfer of the Property or a Benelicial Interesl in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest iii the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales conlract or escrow agreement, the intent of which is the transfer of title by Borrower al a ftflnre date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or tra,)s[erred)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 is prohibited by Applicable Law. if Lender exercises this option, Lender shall give Borrower uotice of acceleration. The notice shall provide a period of not less than 30 days l¥om the date the ntb,ice is given in accordance with Section 15 within which Borrower must pay all sums ~ecured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies penni,ted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleraliun. If Borrower meets certain conditions, Borrower shall have the right to have enforce,nent of this Security h~strumeut discontiuued at auy time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained m this Security Instrument; (b) such other period as Applicable [.aw might specify fi)r the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those couditions are that Borrower: (a) pays Lender 'all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrutnent, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting I.ender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Insuument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses ill one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or 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 nr Grievance. The Note or a partial interest in tile 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 "Loan Servicer") that collects Periodic Payments due under the Note and this Secm'ity Instrument and perfomls other mortgage loan servicing obligations nnder the Note, this Security Instrument, and Applicable Law. There also ,night be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and ,'my other information RESPA requires in connection with a (~}~-6(WY) (0005) Page ,, et ~5 0001741354 nonce of transfer of servicing. If file Note is sold and theredter tile Loan ts serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Bon'ower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assamed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) thal arises from the other party's actions pursuant to this Security Instrutnent or that alleges that the other party has breached any provision of, or any duty owed by reason or', this Security Instrument, until such Borrower or Lender has notified the other party (with such nonce given m compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice ~o take corrective action. If Applicable Law provides a rune period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pt~rsuant to Section 18 shall be deemed to satisfy the notice anti opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmeutal Law and the 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 the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmeuud Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; anti (d) an "Enviromnental Condition" means a condition that can cause, contribute to, or otherwise trigger an Euviromnental 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 the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small qu~mtities 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 consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, clai~n, demand, lawsuit or other action by any governmental or regulatory agency or private party revolving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition ca,sed by the presence, use or release of a Hazardous Substance which adversely affects the value of the Prolx~rty. If Borrower learns, or is notified by any govermnental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Enviromnental Law. Nothing herein shall create any obligation on Lender for an Environment~d Cleanup. (~6(W¥) (nons) Page 12ol 15 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender Shall give{ notice to IIorrower prior to acceleralion fi~llowing Borrower's breach of any covenant or agreement in this Security Instrument (but not prior Io acceleration under Section 18 unless Applicable Law provides otherwise). Tbe notice shall specify: (a) the default; (b) tbe action required to cure the default; (c) ti date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) tlmt t'ailure to cure the default on or before the date specified in the notice may resul! in acceleration of tbe snms secured by this Security Instrmnent and sale of the Property. Tile nutice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a cnurt action to assert the non-existence or a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all snms secured by this Security Instrument without further demaud and may invoke the power of sale and any other remedies perinitted by Applicable L.'~w. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited 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, iu accordaoce with Applicable Law. Lender shall give notice of the sale to Borrower in the manuer provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, inch,ding, but not limited to, reasonable attorneys' fees; (b) to all sums secared by tiffs Security Instrun~eut; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of ~1 sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall 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 services rendered and chm'ging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights uuder and by virtue of the homestead exemption laws of Wyoming. BY SIGNING BELOW, Borrower accepts md agrees to d~e terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Wimesses: NN HOOPES ~' (Seal) 4torrower (Seal) -[lorrower (Seal) (Seal) -Borrower Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower ,l:~7o(w ¥)lo00sl Page 14, of 15 0001741354 Form 3051 1/01 STATE OF WYOMING, The foregoing instrument was acknowledged before.me this ,~ d Te~'r y by Jennifer Ann l:toopes an V. My Commission Expires: ~~ /~/ ~O '7 No~a ry~u;,ic County ss:~~ }tOopes I n ilia Is :g~_/~t~. 0001741354 (~-6(WY) (ooo5) Page 15of is (./~,/~t-- Form 3051 1/01 LEGAL DESCRIPTION Lot 19 of Star View Estates Subdivision, Lincoln County, Wyoming as described on the official plat thereof. ,~ ~ Loan N~mb~r 0 0 01 7 41 3 5 4 ADJUSTABLE RATE RIDER ADDENDUM (Libor Index - Rate Caps) This Adjustable Rate Rider is made this 2nd day of Au0ust 2004 and is incorporated into and shall be deemed to ameud and supplement die Promissory Note (the "Note") and Mortgage, Deed of Trust or Security Deed (the "Security Instrument") and Adjustable Rate Rider (the "Rider") of the same date given by the undersigned (the "Borrower") to secure repayment of Borrower's Note to NEW CENTURY MORTGAGE CORPORATION (the 'I,ender"). Property securing repayment of the Note is described in the Security Instrument arid located at: 361 HILLVIEW DRIVE , AFTON, WYOMING 83110 (Property Address) To the extent that the provisions of this Adjustable Rate Rider Addendum are inconsistent with the provisions of the Note and/or Security Instrument and/or Rider, the provisions of this Addendum shall prevail over and supersede any such inconsistent provisions of the Note and/or Security Instrmnent and/or Rider. In addition to the covenants and agreements made in the Note, Security Iustrument, and Rider, Borrower and Lender further covenant and agree as follows: 4. (D) LIMITS ON INTEREST RATE CHANGES The interest rate I am required to pay at the first change date will not be greater than 8. 2500 % or less than 6. 7500 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than One and One-Half percentage point(s) ( 1.500 %) from the rate of interest 1 have been paying for the preceding 6 months. My interest rate will never be greater than 13. 7500 % or less than §. 7500 %. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider Addendum. New Century Mortgage ridmin.ild JP 051702 RE 102 (082296) ADJUSTABLE RATE RIDER (LIBOR Six-Month Index (As Published In 7'he Wall Street Jourtml) - Rate Caps) 2 YEAR RATE LOCK THIS ADJUSTABLE RATE RIDER is made this 2nd day of August 2004 , ,'md is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrulnent") of the same date g~vcn by the undersigned ("Borrower") to secure Borrower's Adjuslable Rate Note (the "Note") to I, IE~ CENTURY },t0RTGAfiE CORPORATION ("Lender") of the same date and covering the property described located at: 361 ItlLLVIE~/ DRIVE , AFTON, ~Y 83110 in the Security Instrnmenl and [Properly Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT, THE NOTE LIMITS THE AMOUNT BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of fi. 75 0 0 %. The Nole provides tier changes in the interest rate and the monlhly 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 8 and on that day every Otb month thereafter. Each date on which my interest rate could change is called a 'Chang.e Date." 0001741354 MULTISTATE ADJUSTABLE RATE RIDER-LIBOR SIX-MONTH I~DEX (AS PUBLISHED IN TH£ ~£/._ STREET JOURNAL) -Single Family-Fannie Mae Uniform Instrument (~838R (0006) Form 3138 1/01 Ifilllllillfl[l[ll I! VMP MORTGAGE FORMS - ((~ff00)521-7291 (B) The Index Beginning with the first Change Date, my interest rate will be based on an Index. The "Index;' is the average of interbank offered rates for six month U.S. dollar-deuominated deposits in the London market ("LIBOR"), as published in The Wall Street Journal. The most recent Index figure available as of the first business day of the month immediately preceding the month in which the Change Date occurs is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder'will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding F i va and F i fty-F i va Hundredths percentage points ( 5. 5500 %) to the Current Index. The Note llolder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated iii Section 4(D) below, this rounded mnount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in subst,omfially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 8.2500 % or less than fi. 7500 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more Ihan One and One-Ha I f perceutage poiuts ( 1. 500 %) from the rate of interest I have been paying for the preceding fi months. My interest rate will never be greater than 13. 7500 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date al'tot the. Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a nouce of any chauges in my interest rate and the amot,nt of my monthly payment before the effective date of any change. The notice will include inforination required by law to be given to me and also the title and telephone number el~ a person who will answer any question I may have regarding the notice. 1(~838Fl (0006) Page 2 of 4 Initials :.~? ~[' 0001741354 Form 3138 1/01 B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Coveaant 18 of the Security Instrument is mnended to mad as Follows: Transfer of the Property or a Beneficial Interest in IInrrower. As used in this Section 18, "Interest in the Property" me,ms any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests ~ransferred in a bond fo,' deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is the Iransfer of tide by Borrower at a future date to a purchaser. If all or ,'my part of the Property or any Interest in the Property ~s sold or transferred (or if Borrower is not a natural person and a beneficial interest m Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment m full of all stuns secured by this Security Instrmnent. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate Ihe intended transferee as if a new loan were being made to the Iransferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Insu'tuncnt is acceptable to Lender. To the extent permitted by Applicable Law, Lender nlay charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender und that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated Under the Note and this Security lnsu'ument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate puyment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days fi'o,n the date the notice is given in accordance with Section 15 within which Borrower must pay all snms secured by this Security Instrument. If Borrower fails to pay these sulns prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. (0006) Page 3 of 4 0001741354 Initials~~ (,~/h[ Form 3138 1/01 BY SIGNING BELOW, Borrower accepts and agrees to thc terms and covenants contained in dfis Adjustable Rate Rider. HOOPlaS -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~)~838R (0006) Page 4 of 4 0001741354 Form 3138 1/01 Loan Number0001741354 PREPAYMENT RIDER ADJUSTABLE RATE LOAN This Prepayment Rider is made this 2nil day of August 2004 and is incorporated into and shall be deemed to amend and supplement the Promissory Note (the "Note") and Mortgage, Deed of Trus[ or Security Deed tthe "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure repayment of Borrower's Note to NEW CENTURY HORTfiAGE 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 Instrument, 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 "prepayment". When I tnake 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 2 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 and agrees to the terms and covenants c~/}~,o~ined in this Prepayment Rider, NCMC RE-lO3.1fd Generic Prepayment Rider JP 051'/132 RE 103 Revised (020800)