Loading...
HomeMy WebLinkAbout901731Return To: Land Title Company 160 East Broadway Jackson, WY 83001 Prepared By: Krissy Ellison 2401 LAKE PARK DRIVE, SUITE 300, SMYRNA, GEORGIA 30080 901-/31 24000246 RECE IVI.--.D LINCOLN COIJt',,17Y CI._Et'~K [Space Above This Line For Recording Dural MORTGAGE ivI1N 1000655000001.5'/676 DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in tiffs docmnent are also provided in Section 16. (A) "Security Instrument" means this document, which is dated July 30, 2004 together with all Riders to this document. (B) "Borrower" is ROBERT A. SWEET~ ,~ ~ ~ Borrower is the mortgagor under this Security Instrmnent. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation lhat is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501~2026, tel. (888) 679-MERS. WYOMING~Single Family. Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS (~®-6A(WY) (0o05).02 ... Page I o~ I 5 Initials: VMP MORTGAGE FORMS - (800)521 ~7291 Form 3051 l/Ol (D) "Lender" is SUNSHINE MORTGAGE CORPORATION Lender is a CORPORATION organized and existing under the laws of The Stat'e of Georgia Lender's address is P.O; Box 9274, Marietta, GA 30065 (E) "Note" means the promissory note signed by Borrower and dated July 30, 2004 The Note states that Borrower owes Lender one hundred seventy-two thousand and 00/100 Dollars (U.S.'$172 , 000 . 00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt irt fidl not later than August 1, 2034 (F) "Property" means the property that is described below trader the beading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due Under the Note, and all sums due under this Security Instrumcut, plus interest. (H) "Riders" means all Riders to this Security ~nstrument that are executed by Borrower. The l'ollowing Riders are to be executed by Borrower [check box as applicable]: ~] Adjustable Rate Rider [~] Condominium Rider {~-} Second Home Rider [---] Balloon Rider [---] Planned Unit Development Rider [J~ 1-4 Family Rider ~ VA Rider [--] Biweekly Payment Rider ~ Other(s) [specil:y] (I) "Applicable Law" means all controlling applicable federal, state and local stamles, regulations, ordinances and administrative rules and orders (that have the el'feet of law) as well as all applicable l'irml, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer et' t'unds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated du'ough an electronic terminal, telephonic instrument, computer, or n'mgnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, autonmted teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any coinpensation, settlemeut, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or auy part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lemlcr agaiust the nonpayment of, or defimlt on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and ioterest under the Note, plus (ii) any amounts under Section 3 of this Security Ir~strmuent. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended fi'om time ~o time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrulnent, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~6AIWY) (00051.02 Page 2 of 15 Form 3051 1101 (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assmned Borrower's obligations under the Not~: and/or this Security lnsmm~ent. TRANSFER OF RIGHTS IN THE PROPERTY .. This Security Instrnment secures to Lender: (i) the repayment of the Loan, anti all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements trader this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property located in the COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording Jurisd ictionl ALL THAT CERTAIN REAL PROPERTY AS MORE PARTICULARLY DESCRIBED ON EXHIBIT A ATTACHED HERETO AND MADE A PART HEREOF. Parcel ID Number: 505 SNAKE RIVER DRIVE ALPINE ("Property Address"): which cnrreutly has tile address of [St,'ect'l [(7it3,] , Wyoming 83128 {Zip Code] TOGETHER WITH all the improvements now or ho-eafler erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoiug is referred to in this Security Instrument as the "Property." Borrower uuderstands aud agrees that MERS holds only legal tiHe to the interests granted by Borrower in this Security lnstrmncnt, l)ut, it' necessary to comply with law or custom, MERS (as nominee for Leuder and Lender's successors aud assigns) has the right; to exercise any or all of those interests, including, but not limited to, the right to lbreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing arid canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawhflly seised of the estate hereby conveyed and bas the right to mortgage, grant and convey the Property and that iht: Property is unencu,nbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non nniform covenants with limited variations by jurisdiction to constitute a u,filbrm security instrument covering real property. ~}®-6A(WY) (0005L02 Pa§a 3 of ]5 Form 3051 1/0! UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, l'repayment 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. Boirower shall als0 pay ftlnds fi)r Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be rnade in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that 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, batik check, treasurer's check or cashier's check, provided any such check is drawn upon ;'tit institution whose deposits are insn,-efl by a federal agency, instrumentality, or entity; or rd) Electronic Eu~lds Transfer. Payments are deemed received by Lender when receiver} 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 i,~sulTicient to bring the Loan current. Lender may accept any payment or pa,rial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such paymeut or parti&!l payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied furids umil 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 l:unds will be applied to tile outstanding principal balance under the Note inunediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borro\ver from making payments due uuder the Note and this Security Instrument or performing the covenants and agreements secured by dfis Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the 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 \vhich it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Secttrity 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, the paynrent may be apl)lied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any paynieut received from Borrower to the repayment of the Periodic Payments il', and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Vohm[ary prepayments shall be applied first to any prepayment charges and then as desciibecl in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal title under the Note shall not extend or postpone the due date, or change the aluount, of' the Periodic' Paymeuts. 3. Fnnds for Escrow Items. Borrower shall pay to l_ruder on the day Periodic Paymeuts are due under the Note, until the Note is paid in lull, a sum (the "Ftmds") to provide roi' payment of amouuts due Ibr: (a) taxes and assessments, and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or gronnd rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and rd) Mortgage Insurance prenfiums, if any, or any stuns payable by Borrower to l.em]er iii 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 Connnunity Association Dues, Fees, and Assessments, if any, be escro\vcd by Borrower, and stich cities, lees and assessments shall be an Escrow Item. Borrower shall promplly furnish to Lender all notices of amounts to be paid uuder this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for m~y or all Escrow Items at any time. Any such waive,: may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts ® -6A(WY} 100051.02 Page 4 o~ 15 Form 305'1 1/01 due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish tO Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instmmc-,u, as the phrase "covenant and agreement" is used in Section 9. It' Borrower is obligated to pay Escrow hems directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lcudcr may exercise its rights under Section 9 and pay such amount 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 L,ender all Funds, and in such amounts, that are then required uuder 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 to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the an~ount of Fuuds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or othe,'wise in accordance with Applicable Law. The Funds shall be held in an institution whose dq)osits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an iustitutiou whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the F'unds, aunually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest ou the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made iu writing or Applicable [.aw requires interest to be paid on the Funds, ILender shall uot be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, withont charge, an annual accountiug of Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined trader RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held m escrow, as defined under RESPA, Lender shall notify Borrower as required by P, ESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage i,l accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the 'amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Secnrity Instrument, Lender shall promptly reftmd 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 lnstrmnent, leasehold payments or ground rents on the Property, if any, and Connnunity Associatiou Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay d~em in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrumeut unless Borrower: (a) agrees in writing to the payment of the obligatiou scented by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien a,~ agrce,uent satisfactory to Lender subordiuating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the, hlidal$:~_ (~-6A(WY) (000~1.02 Pa<de 5 o, ~5 - Form 3051 1/01 lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy tile lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one4ime charge for a real estate tax veril"ication aad/or reporting service used by Lender in co~mection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property iusured against loss by fire, hazards included widfiu the term "extended coverage," aud auy other hazards including, but not limited to, earthquakes and floc~ds, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that I~ender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall bc 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 oneqime charge for flood zone determination, certification and tracking services; or (b) a oue-time charge tbr flood zone dcternfination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsihle for ihe payment of any fees imposed by the Federal Emergency Management Agency in connectiou with review of any flood zone deternfination resulting from an objection l)y Borrower. If Borrower fails to maintain m'~y of 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 tb~ conteuts of the Property, against any risk, hazard or Liability and might provide greater or lesser coverage than was previously in crt'ecl. Borrower acknowledges that the cost of the insurance coverage so obtained might siguificantly exceed tile cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under riffs Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice t'rom Lender to Borrower requesting payment. All insurance policies required by Lender m~d renewals of such policies shall be subject lo Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies aud renewal certificates. If Lender requires, Borrower shall promptly give to l.ender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by I.ender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause aud shall name Lender as mortgagee mid/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. I.ender may make proof of loss if not made promptly by Borrower. I..Jnlcss Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlyiug insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have tile right to hold such insurance proceeds until Lender has had m~ opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single paymeut or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Leudcr 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 sball be the sole obligation of Borrower. 11' the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security lustrumeut, whether or not then due, with (~Ao-6A(WY) (o0o51.02 Page 6 gl 15 Form 3051 1101 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided fi)r in Section 2. If Borrower abandons the Property, Lender may file, negotiate aud settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered io settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to ally insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use tile insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occnpancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy tile Property as Borrower's principal residence tbr at least one year after tile date of occupancy, unless Lender otherwise agrees ill writing, which consent shall not be unreasonably withheld, or unless extermating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of lite Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in tile Property, Bo,'rower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible tbr repairing or restoring the Property only if Lender has released proceeds fi)r such purposes. Lender may disburse proceeds for the repairs and restoration iu a single payment or in a series of progress payments as the W°rk is completed. If the insurance or coudenmation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for tile completion of 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 tile imp,-ovcments on tile Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying snch reasonable cause. 8. Borrower's Loan Application. Borrower shall be iu default if, during the Loan application process, Borrower or m~y persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations couceruing BorroWer's occupa,~cy of tile Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security lnstrmnent. If (a) Borrower fails to perform the covenants and agreements co,~taiued in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeitnre, 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, tl'~e,~ Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrmnent, 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 st, ms secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable Initials/t~ (~-6A(WY) (0oo,5).o2 Page 7 of 15 Form 3051 1/01 attorneys' lees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing th~z P~t~perty iucludes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, elilninate building or other code violations or dangerous conditions, and have utililies ttmled on or off. Although Lender may take action under this Section 9, Leudcr does imt have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender nnder this Section 9 shall become additional debt of Borrower Secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date disbursement and shall 13e 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 tile provisions of the lease. It' Borrower acquires fee title to the Property, the leascqlold and the fee title shall not merge mdt:ss Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making dte Loan, Borrower shall pay the prenfiuins required to maintain the Mortgage Insurance in effect. If, lbr any reason, the Mortgage Insurance coverage required by Lender ceases to bt available l¥om the mortgage insurer that previously provided such insurance and Borrower was requi,'ed to make separately designated paymems toward the prenfiums for Mortgage Insurmme, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to tile cost to Borrower of the Mortgage Insurance previously in effect, fi'om an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the mnount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refi~ndable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstandiug the fact that the Loan is ultimately paid in full, anti Lender shall not be reqnired to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (ill the anlotmt :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, Borrower shall pay the premimns required to maintain Mortgage Insurance in effect, or to provide a non refimdable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement betweeu Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) fl)r certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insm'ance in force from time to time, 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 mortgage insurer and the other party (o~ parties) to these agreelnents. These agreements may require the mortgage insurer to make payments using auy source of funds that the mortgage insurer may have available (which nlay include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, itl exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange tbr a share of the premimns paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not afrect the amonnts that Borrower bas agreed to pay Mortgage Insurance, or any other terms of tile Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will n{~t entitle Borro~ver to any refnnd. trlitials~ (~}~-6AIWY) 1ooo51.o2 Page 8 of ~5 Fom~ 3051 1/01 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellatiou of the Mortgage Insurance, to have tile Mortgage Insur-ance termioated aotomadcally, and/or to receive a refund of any Mortgage Insurance premiums that were nncarned at the'time of such caucellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoratiou 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 Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to eusure the work has been completed m Lender's satisfaction, provided that such inspection shall be uudcrtaken promptly. Lender may pay tel 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 L,'~w reqnires iuterest 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 ecouomically feasible or Lender's secarity would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security lnstrmnent, 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 stuns secured by this Security Instrument, whether or not d~eo due, with the excess, ii:' any, paid to Borrower. In the event of a partial taking, destrnction, or loss in value of the Property in which the l:air market value of the Property inm-~ediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the. sums secured by this Security h~strmnent in-unediately before lhe partial taking, destruction, or loss in value, unless Borrower and l.cnder otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by tl~e amount of tile Miscelhmeous Proceeds multiplied by the following fraction: (a) the total mnount of the sums secured immediately belBre ihe partial taking, destruction, or loss in value divided by (b) il~e fair market valne of the Property innnediately before the partial taking, destruction, or loss iu wtluc. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss ill Wdttc of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in valne is less than the amount of the sums secured iu~nediately before the partial laking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums arc then due. If the Property is abandoned by Borrower, or if, after notice by Lender 'to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property o~ to the sums secured by this Security Instrument, whether or not then title. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, wbether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property m' ~ther material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a defanh 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 forfeiture of the Property or other material impairment 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 inapairment 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. ~-6A(WY) ~ooo5}.o2 Pace 9 of ~5 Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the snms secured by dfis Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall uot bc required to conmrence proceedings against any Successor in Interest of Borrower or to refuse to extend time Ibr payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of auy demand made by the original Borrower or any Successors in Interest of Borrower. Any lbrhea,'ance by Lender in e×ercising any right or remedy including, without limitation, Lender's acceptance of payments fi-om dfird persons, entities or Successors in Interest of Borrower or in amom',ts less than tile amount then due, shall not be a waiver of or preclude ~he exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint aud several, l-towever, 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 tile co-signer's interest in the Property nnder the terms of this Security Instrmnent; (b) is not personally obligated to pay the sums scented by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Sc~curity Iastrmnent or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Iuterest of Borrower who assumes Borrower's obligations under this Security Instrument in writiug, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Iastttm~ent. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Leuder agrees to such release iu writing. The covenants and ,agreements of this Security lnsmm~ent shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees fin' services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security lustrument, including, but not limited to, attorneys' lees, property inspection aud valualiol~ tees. Iu regard to any other fees, the absence of express authority in this Security'lnstrumeut to charge a specific fee to Borrower shall not be construed as a prohibitiou on tlic charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, aud that law is finally iaterpreted so that the interest or other loan charges collected or to be collected iu counection with the Luau exceed the permitted limits, then: (a) any such loan charge shall be redfaced by the amount necessary to reduce tile charge to the permitted limi!; and (b) any sums already collected from Borrower which exceeded permitted limits will be refi~nded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct pay~nent to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepay~nent without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrowe,"s acceptance of any such refund made by direct payinent to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. .15. Notices. All notices given by Borrower or Lender iu connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute aotice address by notice to Lender. Borrower shall promptly uotify 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 S~:cm'ity lnstrmnent at auy oue time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security lusmunent is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement trader this Security Instrument. ~)-6A(WY) 100051.02 Page 10 of ~5 Forrn 3051 1/01 , (!,",,,o3 16. Governing Law; Severability; Rules of Constructiou. This Secdrity 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 aud limitations of Applicable Law. Applicable Law might explicitly or'implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean 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 el' tim Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial inlet-cst iu the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent sales coutract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or it' Borrower is not a natural person and a beneficial iuterest in Borrower is suld or transferred) without Lender's prior writteu consent, Lender may require inm~ediate 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 Bor,-ower notice of acceleri~tion. The notice shall provide a period of not less than 30 days I¥om the date the notice is given in accordance with Section 15 Within which Borrower must pay all sums secured by this Security lnstn, ment. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate Alter Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security lnstrnment discoutinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale conlained in this Security Instrument; (b) such other period as Applicable Law might specify tbr the terrninalion of Borrower's right to reinstate; or (c) entry of a judgment enl'orcing this Security Instn,ment. q'hose conditions are that Borrower: (a) pays Lender all sums which then would be dhe under this Security Instrument aud the Note as if no acceleration had occurred; (ti) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' tees, property inspection and vah~ation fees, and other fees incurred lot- the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasouably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Leuder: (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 I,~strulnent and obligations secured hereby shall remain fidly effective as if no acceleration had occurred. However, this right 1o reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrmnent) can be sold oue or more times without prior notice to Borrower. A sale might result in a chm~ge in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrume,~t and performs other mortgage loan servicing obligations under the Note, this Security Instrunrent, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. It: there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state lhe name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA (~®i6A(WY) Iooosl.o2 Page 11 of 15 Form 3051 1/01 requires in co]mection with a notice of transfer of servicing. It' the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or b~ transfcJred to a successor Loau Servicer and are not assumed by the Note purchaser unless otherwise provided by thc Note purchaser. Neither Borrower nor Lender may commence, join, or bc .joined to any judicial action (as either an individual litigant or the member of a class) that arises fi-om 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 Instrumeut, until such Borrower or kcndcr has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period alter the giving of such notice to take corrective actiou. If Applicable Law provides a time period which must elapse bel'ore 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 pnrsuant to Section 22 a,~d the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy, thc ]aotice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "ttazardous Substances" are those substances defined as toxic or hazardous substances, pollntants, or wastes by Environmental Law a,~d the following substances: gasoline, kerosene, other flan2nable 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 enviromnental protection; (c) "E~vironmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Enviro,~mental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmcutal Cleanup. Borrower shall not cause or permit the presence, nsc, disposal, storage, or release of any ltazardous Substances, or threaten to release any Hazardous Substances, o,~ or il~ the Property. Borrower shall uot do, nor allow anyone else to do, m~ything affecting the Property (a) that is iu violation of any Enviro~m~ental Law, (b) which creates an Enviromnental Condition, or (c) which, dt~e to -the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The precedit]g two sentences shall not apply to the presence, use, or storage ou the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consnmer products). .Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsnit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition cansed 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 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 Environmental Law. Nothing herein shall create any obligation on Lender for an Enviromnental Cleanup. (~)~-6A(WY) ~ooo5~.o2, lnitials~ Page 12 of ~5 Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further coveuant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleratiou following Borrower's breach of any covenant or agreement iii this Security lnstrun~ent (but not prior to acceleration under Section 18 unless Applicable Lawprovidcs otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified iii the notice may result in acceleration of the sums secured by this Security lnstrnment and sale of the Property. The notice shall rurther inform Borrower of die right to reinstate after acceleration and the right to bring a cotuq action to assert the non-existence of a default or any other defense of Borrower to acceleration and stile. If the default is not cured on or before the date specified iu the notice, Lender at its option may reqnire immediate paymeut in full of all sums secured by this Security Instrument without fro'tiler demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be eutitled to collect all expenses incurred iai pursuing the rmnedies provided in this Section 22, includiug, but not liniited 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 diffe,'ent, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in tile rammer provided in Sectiou 15. Leuder shall publish the notice of sale, and the Property shall he sohl iu the mauner prescrihed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale slmll be applied in the following order: (a) to all expenses of tile sale, including, bna not limited to, reasonable attorneys' fees; (b) to all stuns secured by this Security lustrument; and (c) any excess to tl~e person or persons legally eutitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs, kender may charge Borrower a fee lbr releasing this Security Instrument, but only if the tee is paid to a third party Ibr services rendered and the charging of the tee is permitted under Applicable Law. 24. Waivers. Borrower releases mid waives all rights under and by virtue of the homestead exemption laws of Wyoming. (~-6A(WY) 10005).02 Page ~3 of ~5 Form 3051 1/01 BY SIGNING BELOW. Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: (Seal) -Borrower (Seal) (Seal) -Borrower -Borrowe~ (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Bo~ rower (~6A(WY} (0005) 02 P~ge ~4 of ~5 Form 305'1 1/01 o o? The/bregoing instrument was acknowledged before me this 30th day by Robert A. Sweet Cotmty ss: of July, 2004 My Commission Expires: (~-6A(WY) Iooo5}.o2 PaDe 15 otl 5 Form 3051 1/01 Exhibit "A" Lot 91 of Riverview Meadows Second Addition to the Town of Alpine, Lincoln County, Wyoming, Within the SE1/4 of Section 30, T37N, RllSW, according to that plat filed February 11, 1994, Plat No. 264-D, Instrument No. 778568. ADJUSTABLE RATE RIDER (LIBOR One-Year Index (As Published In The l.V~dl Street Joltrnal) - Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 30th day of July, 2004 , and is incorporated into and shall be deemed to amend and supplcn~ent the Mortgage, Deed of Trust, or Security Deed (tlle "Security Instrument") of the sm'ne date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to SUNSHINE MORTGAGE CORPORATION (tile "Lender") of the same date and covering the property described in the Security Instrument and located at: 505 SNAKE RIVER DRIVE, ALPINE, WY 83128 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER IVIUST PAY. ADDITIONAL COVENANTS. In addition to the covenants m~d agreements made in the Sccnrity Instrument, Borrower and Lender fitrther covenant m~d agree as follows: A. INTEREST RATE AND MONTIILY PAYMENT CItANGES The Note provides for an initial interest rate of 4. 750 %. The Note provides for changes in the interest rate and the monthly payments as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CIIANGES (A) Change Dates Tile interest rate I will pay may change on tile first day of August, 200'/ , and on that day every 12th month thereafter. Each date on which my interest rate could change is called a "Change Date." MULTISTATE ADJUSTABLE RATE RIDER - WSJ One-Year LIBOR -Single Famdy- Fannie Mae UNIFORM INSTRUMENT (rR'2'~'~5--166R (0109).01 Form 3189 6/01 Paoe 1 of 4 Initiats:/~;~ / - / VMPMORTGAGE FORMS (800}52~-72E1 · 0 (B) The Index Begimdng with the first Change Date, my interest rate will be based on an Index. The "Index" is thc average of interbank offered rates for one-year U.S. dollar-do~ominated deposits in the [,ondon market ("LIBOR"), as published in The Wall Street Journal. The most recruit Index figure available as of die date 45 days before each Change Date is called the "Current ludex." If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable information. The Note Holder will give me uotice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding two and one-quarter percentage poims ( 2.250 %) to the Current Index. The Note llolder will then round the resuh of this addition to the nearest one-eighth of one percentage point (0. 125 %). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until tile next Change Date. The Note Holder will then determine the amount of the momhly payment that would be sufficient to repay the unpaid principal that I mn expected to owe at the Change Date in fidl on the maturity date at my new interest rate in substantially equal payments. The result of this calculation will be the new amounl of my monthly payment. (D) Limits on h~terest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater thau 6. '/50 % or less than 2. '750 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than two percentage points fl'om tile rate of interest I have been paying for the precediug 12 months. My interest rate will never be greater than 10. 750 %. (E) Effective Date of Changes My new interest rate will become effective on each Chauge Date. I will pay tile amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my nronthly payment changes again. (~ 166R 10109) .01 Initials :,~.~ Page 2 of 4 ' Form 3189 6/01 (F) Notice of Changes The Note Holder will deliver or mail to me a notice of auy challges in my interest rate and tile amount of my monthly payment before the effective date of any change. The notice will include iuformation required by law to be given to me and also the title and telephone nu~nber of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Section 18 of the Security Instrument is amended to read as tbllows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, coutract l\3r deed, installment sales contract or escrow agreement, the integer of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums scented by this Security Instrument. However, this cq)tio~ shall t~ot be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall ~ot exercise this option if: (a) Borrower canses to be submitted to Lender intbrmation required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; 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 Instrument is acceptable to Lender. To the extent pe~-mitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Leuder and 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 tile Note and this Security lnstrunlent unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days fi-om the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to expiration of this period, Lender may invoke any remedies peril'dried by this Security lnstrt,'nent without further notice or demand on Borrower. (~(~166R (0109) ,01 Inifials.,~ Pa§e 3 of 4 Form 3189 6/01 BY SIGNING BELOW, Borrower accepts and agrees [o tire Ierms and covenants contained iu this Adjustable Rate Rider. ¢ (Seal) (Seal) ROBERT A. SWEET -Borrower -Bm-rowe,- (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borlower (Seal) (Seal) -Borrower Bol 1-o wer (~¢166R (01091.01 Page 4 o! 4 Fom~ 3189 6/01