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HomeMy WebLinkAbout901832', 1130910(02) Return To: Prepared By: Kc1 s Schneiter 901832 REC:E IVED I_INOO,_N "~ ~'- ' -~,,' .,(,' I,]ly 5G4 '43'7 [Space Above This I.h~e For Recto'ding Dalai MORTGAGE MIN 1000492-0001598143-1 DEFINITIONS Words used in multiple sections of this docu]nent are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated August 3, 2004 together with all Riders to this document. (B) "Borrower" is Kevi n John Ki'lroy and gillie Jo Kilroy, tlusband arid Wi'Fe Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation [ha! is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Secnrity Instrument. MERS is organized and existing under the laws of Delaware, and has an address and telephone nu~nber of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. KILROY, K. AF 1598143 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS (~}®-6A (WY) 1ooo5).o 1 s :.5~/).._,~~ Page 1 of l 5 MW 05/00.01 Initial VMP MORTGAGE FORMS - [800)521-7291 0 Form 3051 1101 (D) "Lender" is Major Mortgage Lender is a A Wyoming Corporation organized and existing under the laws of Lender's addressis 6101 Yellowstone Road LL17, Wyomi ng-' Cheyenne. WY 82009 (E) "Note" means the promissory note signed by Borrower and dated August. 3, 2004 The Note states that Borrower owes Lender One Hundred Eighty One Thousand and no/100 Dollars (U.S. $181,000.00 ) plus interest. Borrower has promised to pay this debt iu regular Periodic Payments and to pay the debt in full not later than September 1, 2034 (F) "Property" means the property that is described below under the heading "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 Instrument, plus interest. tH) "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 F--] Condominium Rider ~ Second Home Rider F--] Balloon Rider F--] Planned Unit Development Rider [~ 1-4 Family Rider ~-] VA Rider [] Biweekly Payment Rider F--] Other(s) [specify] ti) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Conmmnity Association Dues, Fees, and Assessments" means all dues, fees, assessments anti other charges that are imposed on Borrower or the Property by a condonfinium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction origiuated by check, draft, or similar paper instrmnent, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not linfited to, point-of-sale transfers, automated 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. tM) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: ti) dan~age to, or destruction of, the Property; (ii) condenmation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or onfissions as to, the value and/or condition of the Property. tN) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for ti) principal and interest under the Note, plus (ii) any mnounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) mid its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they nfigbt be an~endcd fi'om time to time, or any additional or successor legislation or regulation that goverus the same subject matter. As used in this Security Instrument, "RESPA" refers to 'all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does uot qualify as a "federally related mortgage loan" under RESPA. KILROY. K, AF 1598143 0 (~-6A(WY) 10oo51.01 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 assumed Borrower's obligations under the Note and/or this Security Instnunent. TRANSFER OF R1GHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment oF Ihe Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as 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 Jurisdiction] Lot 13 of Lincoln Second Addition to the Town of Afton, Lincoln County. Wyoming according to that plat filed July 30, 2003 as Instrument No. 892042 of the records of the Lincoln County Clerk. Parcel ID Number: 32192540205400 39 West 3rd Avenue Alton ("Property Address"): which currently has the address of [$treeq lCity] , Wyon'dng 83110 [Zip Code] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a [)art of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to m this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, il' necessary to comply with law or custom, MERS (as nonfinee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not linfitcd to, releasing and'.c,'mceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seisea of the estate hereby couveyed and has the right to mortgage, grant and convey the Property and that the Property is unencmnbered, except ['or 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 noumniJbnn covenants with linfited variations by jurisdiction to constitute a uniform security instrument coveriug real property. KILROY, K. AF 1598143 0 ~-6AIWY) (ooo51.m Page 3 ot t~ Form 3051 1t01 UNIFORM COVENANTS. Borrower and Lender covenant mid agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prel)ayment Charges, and Irate 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 [lay hinds for Escrow Items pursum~t to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency, ttowever, 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 itl one or more of the Ibllowing 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. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender inay return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payinent insufficient to bring the Loan 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 ti~ne such payments are accepted. If each Periodic Payment is applied as of its scheduled clue 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 withiu a reasouable period of time, Leuder shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note inm~ediately prior to foreclosure. No offset or claim which Borrower might have now or in the~future against Lender shall relieve Bm'rower from making paymeuts due uuder the Note and this Security Instrument or performing the coveuants aud agreements secnred by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described iu this Sectiou 2, all payments accepted and applied by Lender shall be applied in tile following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amouuts due under Section 3. Such payments shall be applied to each Periodic Pay~nent in the order in which it becmne due. Any remaining amounts shall be applied first to late charges, second to any other amounts due uuder this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient mnount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may al)ply any paylnent received from Borrower to the repayment of the Periodic Payments if, 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. Volumary prepayments shall be applied first to any prepayment charges and then as described iu the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due nnder the Note shall not extend or postpone tile due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Fnnds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance ou the Property; (b) leasehold pay~nents or ground rents on the Property, if auy; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the paymeut 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 Commmfity 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 l:urnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds lbr 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 auld where payable, the ,'unounts KILROY. K. AF 1598143 0 (~)-6A(WY) 1ooo5).Ol Page4of15 Form 3051 1101 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 Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Ite~n, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, anti in such amounts, that are then required under this Section 3. Lender may, at any .time, collect and hold Funds in an an~ount (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 amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are iosured by a federal agcucy, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay tile Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower lbr holding and applying thc Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agremnent is ~nade in writing or Applicable Law requires interest to be paid on the Funds, Louder shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. 11' there is a shortage 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 shortage in accorda,ce 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 Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold paymenls or ground rents on the Property, if any, and Cormnunity Associalion Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge ~any lien which has l)riority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by tile lien in a manner acceptable to Lender, but only so long as Borrower is performing such agrecmeut; (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 an agreement satisfactory to Lender snbordinating 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 KILROY. K. AF 1598143 0 (~-6A(WY) Iooosl.o~ Pago s ox ~s ' Form 3051 1/01 lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lieu 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 l'or 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 the 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 tbe amounts (including deductible levels) m~d for the periods Ibat Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen 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 oue-tiine charge for flood zone determination, certification and tracking services; or (b) a one time charge for flood zone determination and certification services and subsequent charges each time rcmappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in conuection with the review of any flood zone determination resulting from an objection by Borrower. I1' Borrower fails to maintain any 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 mnount 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, hazard or liability m~d might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These anaounts 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. All insurance policies required by Lender and renewals o~' such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Leuder as mortgagee and/or as an additional loss payee. Lender shall bare the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall iuclude a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, providt:d that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs m~d restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If 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 Instrument, whether or not then due, with KILROY. K. AF 1598143 ,,~,,,a,?&¢..~.._/~:~ ~"'"' 0 II~-6A(WY) Iooo51.ol Page O o115 Form 3051 1/01 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided tbr in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice fi'om Lender that lhe 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. In either event, or it' 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 thc Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned pre~niums paid by Borrower) under all insurance policies covering the Property, insot'ar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and nsc the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupm~cy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably wittfl~eld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, danmge or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Bon'ower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its conditiou. 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 condenmation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible .for repairing or restoring the Property only il' Lender has released proceeds fi)r such purposes. Lender may disburse proceeds for the repairs and restoration in a siugle payment or in a series of progress payments as the work is completed. If the insurance or condenmation proceeds are not sul'ficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements 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 default il', during the Loan application process, Borrower or any .persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (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 Security lnstrnment. It' (a) Borrower fails to perform the covenants and agreements coutained in this Security Instrument, (b)there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights nnder this Security Instrnment (such as a proceeding in bankruptcy, probate, lbr condemnation or fi)rt'cilure, for enforcement of a lien which may attain priority over this Security lnstnnnent or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay tbr whatever is reasonable or appropriate to protect Lender's interest in the Property and rights nnder this Security lnstrnment, 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 lion which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable KILROY. K. Ag 1598143 [Pt2'~"~/'r'('- 0 IIlitial~: I~}~-6A(WY) 1ooo§1.ol Page 7 o* ]5 Form 3051 1t01 attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace tlr board up doors and windows, draiu water from pipes, elinfinate building or other code violations or dangerous conditions, and have utilities turned 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 for 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 Instrument. These amounts shall bear interest at the Note rate fron~ the date oF disbursement and shall be payable, with such interest, upon notice l¥om 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 lee 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 the Mortgage Insurance in effect. If, tbr any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer tl~at previously provided such insurance and Borrower was required to make separately designated payments toward the premimns for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage lnsuraucc previously in effect, from an alternate mortgage insurer selected by Lender. If substanti',dly equivalcut Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amoum 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-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is uhimately paid in full, and Leuder shall uot be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount aud lbr 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 Insurm~ce as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirmnent for Mortgage Insurance ends in accordance with auy written agreement between Borrower and Lender providing lbr such termination or until termination is required by Applicable Law. Nothiug 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) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to thc Mortgage Insurance. Mortgage insurers evalnate their total risk on all such insurance in force t¥om lime to time, and may enter i~ito agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using arty source of funds that the mortgage insurer may have available (which may include funds obtained from Nlortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reilmurer, 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 f6r Mortgage Insurance, in exchange for sharing or modif-ying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premimns paid to the insurer, the arrangement is often termed "cai)tire reinsurauce." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay i'nr Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amouut Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refuud. KILROY, K. AF 1598143 0 (~}~-6AIWY} looos}.o~ Page 8 gl 15 Form 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 ol' 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellatiou of tile Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insm'ance premiums that were unearned at the time of such cancellation 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 r~storation Or repair of the Property, if the restoration or repair is econonrically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have tile right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Proper~y to eusure the work has been completed to Lender's satisfaction, provided that snch inspection shall be nndertaken promptly. Lender may pay tbr 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 Bon-ower 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 Miscelhmeous Proceeds shall be applied in the order provided for iii Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellmmous Proceeds shall be applied to the sums secured by this Security h~strument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value ol' the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument innnediately before the partial taking, destruction, or loss in value, unless Borrower and kcnder otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured i~rnncdiately belbre the partial taking, destruction, or loss in value divided by (b) tim fair market value of tim Property innnediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which tile fair market value of the Property immediately before the partial taking, destructioi1, or loss in value is less than the amount of the sums secured intmediately before the partial takiug, destruction, or loss in value, nnless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then clue. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that die Opposing Party (as defined in the next sentence) offers to make ,qn award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date tile notice is given, Lender is authorized to collect and 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 tMrd party that owes Borrower Miscellaneous Proceeds or the party agaiust whom Borrower bas a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a dcfauh 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 fin't'eiture of the Property or other nraterial 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 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 restoratiou or repair of the Property shall be applied in the order provided for in Section 2. 1I~-6A(WY} (ooosJ.ol Page 9 ot ~6 ~ Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of tire time for payment or modification of mnortization of the sums secured by this Security Instrument grm~tcd by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sun~ secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance oF payments from third persons, entities or Successors in Interest of Borrower or in amounts less than 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 that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, furbear or make any acconhmodations with regard to the terms of this Security Instrmnent 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 under this Security Instrumcut. Borrower shall not be released fi-om Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenm~ts and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower lees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest itl the Property and rights under this Security Instrument, including, but not li~nited 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 tee to Borrower shall not be construed as a prohibition on the chargiug 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 maxinmm 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 mnount necessary to reduce the charge to the permitted limit; and (b) any sums already collected l'rom Borrower which exceeded pcrufitted 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 priucipal, lhe reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security lustrun~ent 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 notice address by notice to 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 l)rocedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailiug it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement uuder this Security Instrument. KILROY. K. AF 1598143 ,,~,~,~,=~' ~'K~ ,.~ 0 (~-6A{WY) Iooos}.o~ Pa9e lo of 15 Fomr'~ 3051 1t01 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All righls 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 contracl or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract, lu 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 histrument: (a) words of thc maser,line gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean mad include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of tile Property or a Beneficial Interest in Borrower. As used in this Sectiou 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, contract for deed, instalhnent sales contract 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 Prol)crty is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is st)Id or transferred) without Lender's prior written consent, Lender may require immediate payment itl 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 Borruwer notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Scct||ity Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any retnedies permitted by this Security Instrument without ~rther notice or demand on Borrower. 19. Borrower's I~ght to Reinstate After Acceleratiun. If Borrower meets certaiu conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrmnent; (b) such other period as Applicable Law might specify for the terminatiou of Borrower's right to reinstate; or (c) entry of a judgment enlbrcing this Security Instrument. Those conditions 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 coveuants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' tees, property inspection and valuation lees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security lnstrumeut; aud (d) takes such action as Lender may reasonably 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 sunu and expenses in one or more of the following forms, as selected by [.ender: (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 lustrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred, llowever, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest iu the Note (together with this Security Instrument) cml 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 Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale oF the Note. If there is a chmlge of thc Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA · KILROY K. AF 1598143 ,~,,,~,~:I~A.~A/L~t/._./~._ ~,- 0 (~}~6A(WY) (ooos}.m P.9. 11 of 15 Form 3051 1/01 requires in connection with a notice of transfer of servicing. If tile Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be frans/'crred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by thc Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security histrnment or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse bet~re certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice m~d 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, pollutams, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos 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, sat'ety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Euvironmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any llazardous Substances, or threaten to release any Hazardous Substances, on or in tl~e 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 qmmtities 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, haz,'~rdous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, le~tking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition c,'msed by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall protnptly take all necessary remedial actions in accordance with Enviromnental Law. Nothiug herein shall create any obligation on Lender for an Environmental Cleanup. KILROY, K. AF 1598143 L~,~ . 0 h'~ilials: . ~./-6A{WY) 1ooo5}.o~ Page ~2 ot ]5 Fo[m 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender furlher covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Ilorrower prior to acceleratioo following Borrower's breach of any covenant or agreement iu tbis Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise}. The notice shall specify: (a) the defanlt; (b) the action required to cure the default; (c) a date, oot less than 30 days from tile date the notice is given to Borrower, by which the default must be cured; ami (d) that failure to cm'e il~e default on or before the date specified in the notice may result in acceleration of the sums Secm'ed by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a com-t action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If tile default is not cured on or before the date specified in the notice, Lender at its option nmy require immediate payment in foil of all sums secured by this Security Instrument without further demand and may iuvoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes tile power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, iii accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the rammer prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of ll~e sale sball lie applied in the following order: (a) to all expenses of lilt: sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured hy this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security lnstrmnent, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee lbr releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyon-dng. --KILROY' K. AF 1598NS [~ A~- ~'5~1'"'"' / 0 ~p6AIWY) (ooos~.o~ Page 13 ot 15 Form 3051 l/0l BY SIGNING BELOW, Borrower accepts and agrees lo the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: Kevin John Kilroy ~ (Seal) -Borrower (Sc.l) -Borrower (Seal) (Seal) -Borrower 4torrowcr (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower KILROY. K. AF 1598143 0 ~$1~6AIWY) t00OSL01 Page 14 of 15 Form 3051 1101 STATE OF WYOMING, The tbregoing instrument was acknowledged before me this byKevin ,John Kilroy and Billie Jo Kilroy My Conm~ission Expires: County ss: Notary Public KILROY. K. AF 1598143 0 (~-6A(WY) 1ooo51.o'~ Pao~ 15 of 15 Form 3051 1/01