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HomeMy WebLinkAbout901968,' , Return To: AURORA LOAN SERVICES INC. 601 5TH AVENUE, P.O. BOX 4000 SCOTTSBLUFF, NE 69365 0 ! 9 6 Prepared By: VILMA VALDERRAMA AURORA LOAN SERVICES 2530 S. PARKER ROAD, AURORA, CO. 80014 SUITE 601 [Space Almve Tlds Line For Recording l)ntn] MORTGAGE NllN 100025440001783270 DEFINH'IONS Words used in mnltiple sections of this document are defined below and other words are defined in Sections 3, 11, 13. 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means fl~is document, which is dated August 5, together with all Riders to this document. (B) "Bor,'ower'' is BLAKE W HOOPEfi AND KELLI ANN HOOPES ~,~ ~ wi~e 2004 Borrower is the mortgagor under fl~is Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate coq}oratiou that is acting solely as a nominee Ibr Lender and Lender's successors and assigns. MERS is the mortgagee under this Secnrity Instrument. MERS is orgauized and existing under fl~c 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 ~®-6A(WY) (ooo5) Page 1 el 15 InRials:. VMP MORTGAGE FOI~MS - (800)521-7291 Mac UNIFORM INSTRUMENT WITH MERS Form 3051 1/01 (D) "Lemler" is LEHMAN BROTHERS BANK, 100025440001783270 0016880866 FSB,A FEDERAL SAVINGS BANK Lender is a FEDERAL SAVINGS BANK orgardzed and existing under the laws of UNITED STATES OF AMERICA Lender's address is 2530 S. PARKER ROAD, STE. 601, AURORA, CO 80014 (El "Note" meaus file promissory note signed by Borrower and dated August 5, 2 004 The Note states that Borrower owes Lender ONE HUNDRED TWO THOUSAND FIVE HUNDRED SIXTY & 00/100 Dollars (U.S. $ 102,560.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than S~ptomber 1, 2 034 (19 "Property" meaus the property that is described below umlcr the hcadiug "Transfer of Righls in the Property." (Gl "Loan" means the debt evidenced by die Note, phis interest, auy prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. 00 "Riders" means all Riders to this Security Instrument that arc executed by Borrower. The follnwing Riders are to be executed by Borrower [check box as applicable]: [~ Adjustable Rate Rider [--] Coudominittm Rider [-~ Second Home Rider I---] Balloon Rider [--1 Planned Unit Development Rider ~ 14 Family Rider [---I VA Rider I---] Biweekly Payment Rider ~ Other(s) [specify] I ' (1) "Applicable Law" means all controlling applicable t'~dcral, state and local statutes, regulations, ordinances and achninistrative rules and orders (that have thc ertl:ct of law) as well as all applicable non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" mcaus all dues, fees, assessments and uther charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (IQ "Electronic Funds Transfer" means auy transfer of t~nds, other thau a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic tennimd, telephonic instrulneut, computer, or magnetic tape so as to order, instruct, or authorize a firumcial institution to debit or credit an account. Such term includes, but is not limited to, poim-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse trausfcrs. (L) "Escrow lte~ns" means those items that are described iu Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the c~werages described iu Section 5) for: (il damage to, or destruction of, the Property; (ii) condcnmation or uther taking of all or any part of the Property; (iii) couveyance in lieu of condemmttion; or (iv) misrepresentati~ms of, ur omissions as to, the vahle and/or condition of die Property. (N) "Mortgage lnsm'ance" means insurance protecting Lemter ag:dust the nonpayment of, or defimlt on, the Loan· (0) "Periodic Payment" means tilt regularly scheduled mnoun~ duc tbr (i) 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 USC. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.E.R. Part 3500), as they might be amended from time to dine, or any additio~ml or successor legislation or regulation that governs the stone suhject matter. As used m this Security Instrument, "RESPA" refi~rs to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even it' fl-~e Loan does not qualil~, as a "federally related mortgage loau" under RESPA. Initials:~.~¥~ (~-6A(WY) (ooos) Page2ol ~s ~(__~ Form 3051 1101 100025440001783270 0016880866 (Q) "Successor in Interest of BOrrower" means any party that has taken title to tile Property, wliether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN TIlE PROPERTY This Security Instrument secures to Lender: (i) die repayment of thc Loan, and all renewals, extensions and modifications of the Note; and (ii) the per/bnnance of Borrower's covetmnts and agreements under this Security Instrument and the Note. For this puq)ose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee tbr Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the fi)llowing described property located in ~e County of Lincoln : [Type of Recording Jurisdiction] [NalilC of Rccordillg Jnrisdiclion] Ail that tract or parcel of land as shown on Schedule "A" attached hereto which is incorporated herein and made a part hereof. This is a First Real Estate Mortgage recorcUng concurrently with a Second Real Estate Mortgage in favor of Lehman Brothers Bank, FSB, dated August 5, 2004, in the original amount of $25,640.00. ParcellD Number: 32183130509200 69 EAST 4TH AVENUE AFTON ("Property Address"): which currently bas the address of [Sl,-cet} Wyoming 8 3110 [Zip Code} TOGETHER WITH all fl~e improvements now or hereaficr erected on the property, and all easemeuts, appurtenances, and fixtures now or hereafter a part of the property. All rcplace,nents and additions shall also be covered by this Security Instrmnent. All of the foregoing is rufcrrcd to in this Security lnstrmnent as the "Property." Borrower understands and agrees that MERS holds o,ly legal title to the iuterests granted by BorrOwer in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee fi)r Lender aid 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 limited to, releasing and canceling this Security bistrumcnt. BORROWER COVENANTS that Borrower is lawfully scisud of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that thc Property is unencumbered, except fi)r encumbrances of record. Borrower warrants and will defend guncrally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines urtifonn covenants tbr lmtiom-d use and nou-uni£orru cove~mnts with limited variatio~m by jurisdiction to constitute ~t uHiform security instrument covering real property. (~6A(WY) (ooos) Page 3 o~ ~5 Form 3051 1101 - 100025440001783270 08.1.i 0 oo1 88o8 UNIFORIvl COVENANTS. Borrower anti Lender covenant lind agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the No{e. Borrt~wcr shall also p~ty funds for Escrow Items pursuant to Section 3. Payments due uuder the Note and this Security lnstmlnent shall be made in U.S. currency. However, if any check or other instrmnent received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that auy or all subsequent payrueuts due under the Note and this Security Instrument be made in one or more of the tbll0wing fmms, 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 wbos~ deposits are insured by a I~deral agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location desigmtted itl the Note or at such other location as may be designated by Lender in accortkmce xvith d~e notice provisions in Section 15. Lender may return any payment or partM payment if the payment or partial payments are iusufficient to bring file Loan current. Lender may accept any payment or partial payment insufficient to bring the Luau 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 thc time sucll payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lc. uder need not pay interest on unat)plied fi_rods. Lender may hold such mmpplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a rcasotmble period of time, Lender shall eiflier apply such funds or relurn them to Borrower. If not applied earlier, such funds will be applied to thc outstanding principal balance under file Note immediately prior to foreclosure. No offset or clailu which Borrower might have now or in thc future against Lender shall relieve Borrower fi-om making paymcq~ts due under the Note and this S~ecurity Instrmnent or perfunning the covenants and agreements secured by this Security lustrument. } 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) ednounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it becmne due. Any remaining amom-~ts shall be applied first to late charges, second to any other mnounts due under this Security h~strument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a deliuqucnt 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, Lcllder may apply any payment received fi-om Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent dial 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. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscdlaneous Proceeds to principal due under the Note shall not extend or postpone tile due date, or change the amount, of the Periodic Payments, 3. Ftmds rot Eso-ow Items. Borrower shall pay to Lender on the day Periodic Payments are due trader the Note, until the Note is paid in full, a stun (the "Funds") to provide fi~r payment of amounts due fi~r: (a) taxes and assessments and off, er items which eau attain priority over this Security Ir~strument as a lien or encmnbrance on the Property; (b) leasehold payments or ground rents on the Property, if arty; (c) premiums for any and all insurance required by Lender under Section 5; ami (d) Mortgage lnsnrauce premiums, if a,~y, or any stuns payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origi,mtion or at any time during the term of the Luau, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, ibcs and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of mnou,ts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Iterns unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligalion to pay to Lender Funds fi~r any or all Escrow Items at any time. Any such waiver may only be in writing, ltl the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due lbr auy Escrow Items for which payment of (~)~6A(WY) (ooos) Page 4 of lS ~ Form 3051 1/01 100025440001783270 Q-3~0016880866 Funds has been waived by Lender and, if Lender requires, slmll £urnish m 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 fur all purposes be deemed to be. a covenm~t and agreement contained m this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If. Borrower is obligaled to pay Escrow Items directly, lmrsuant to a waiver, and Borrower fails to pay the mnount due for an Escrow l~em, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall theu be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to auy or all Escrow Items at any time by a notice given itl accordance wifl] Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not tu exceed lhe maximum mnount a lender can require under RESPA· Lender shall estimate the mnount of Funds duc on the basis of current dala and reasonable esthnates of expenditures of future Escrow Items or olhcrwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, insmmlentality, or entity (including Lender, if Lender is an institution whose deposils are so insured) or in any Federal ltome Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later thau the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying file Escrow Items, unless Lender pays Borrower interest on thc Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not b¢ required to pay Borrower anytint'erest or earnings on the Funds. Borrower and Lender can agree in writi~g, 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. If 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 die shortage in accordance with RESPA, but in no more than 12 monfl~ly 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 Ltmder the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 mouthly payments. Upon payment in full of all sums secured by this Secm-ity Instrument, Lender shall promptly refund to Borrower any Funds held by I_.ehder. 4. Cha,'ges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Conmmnity Association Dues, Fees, and Assessments, il: any. To the extent that fl~ese items are Escrow Items, Borrower shall pay them iu thc manner provided in Section 3. Borrower shall promptly discharge auy lien which has priority over this Security h~stnunent unit:ss Borrower: (a) agrees in writing to the payment of file obligation secured by the lien ill a utarnler acceptable to Lender, but only so long as Borrower is performing sucll agreement; (b) contests the lien in good faith by, or &fends against enforcement of the lien in, legal proceedings which iu Lender's opinion operate to prevent the enforcement of the lien while fl~ose proceedings are pending, but only until such proceedings arc concluded; or (c) secures from the holder of fl~e lien an agree~nent satisfactory to Lender subordinating the lien to this Security Instrument. If Lender detennines that any part of the Prol)tzrty is subject to a lien which can attain priority over this Security Instrument, Lender may give Borruw~r a notice identifying the lien. Within 10 (~-6A(WY) (ooo~) Page5o,'i~ ~.~. Form 3051 1/01 100025440001?832?0 0016880866 days of the date on which that notice ~s given, Borrower shall s:~lisf), the lien or take one or more of the actions set forfll above in this Section 4. Lender may require Borrower to pay a one-time cha~-ge for a real estate tax verification and/or reporting service used by Lender in comlection with this Loan. ' ., 5. Property Insur~mce. Borrower shall keep the improvements now existing or here:~t'ter erected on tile Property insured against loss by fire, hazards included wi(hill d~c term "exteMed coverage," and ar~y od]er hazards including, but not limited to, earthquakes and fioods, l't]r which Lender requires insurance. This insurance shall be maintained in the oanounts (including deductible levels) and ('or the periods that LeMer requires. What Lender requires pursuant to the preceding sen(cruces ca~ change during the lenu of die The insura]lce carrier providing the insurance shall be cbosc~ by Borrower subject to Lender's right disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender olay require Borrower to pay, in co~nlection with fids Loan, either: (a) a onc-ti~ue charge for flood zone determination, certificatior~ and tracking services; or (b) a one-time charge l'~r flt~od zone dctemdna£io]~ and certifica£ion services and subsequent charges each time remappings or similar cha]tges occur which reasonably ndght aft'cc( such determi~ttion or certification. Borrower shall also be rcspot~sible for fl-re paynlcnt of airy fees imposed by the Federal Emergency Management Agency in connection with tile review of a~ly flood detem~ination resulting from an objection by Borrower. if Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. LeMcr is uMer no obligation to purchase arty particular type or 2allou]~t of coverage. Therefore, such coverage shall cover LeMer, but might or might protect Borrower, Borrower's equity in tile Property, or die contents ~¢r the Property, agai]~st any ri, sk, I,tazard or liability and might provide greater or lesser coverage than was previously in eft'ccc Borrower acknowledges that the cost of the insurance coverage so ob(at(lcd might significantly exceed the cost of insurance that Borrower could have obtained. Any mnoun/s disburst.d by Lender under this Section 5 shall become additional debt of Borrower secured by this Security lnstru]~ld~t. These amounts shall bear i~leresl ~lt die Note rate from file date of disbursement and shall be payable, with such interest, upon notice liom l.eMer to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard niortgage clause, and shall n:.u-ne Lender as mortgagee and/or as an additional loss payee. Lender shall bavc thc right to hold the policies and re]lewal certificates· If Lender requires, Borrower shall promptly give to l.cnder all receipts of paid prc]niun~s renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, fi~r d,'unage to, or destruction of, the Property, such policy shall ir~cludc a standard mortg2]ge clause and shall mune 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. U]xless Lender a~]d Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying irisura~ce was required by Lender, shall be applied to restoration or repair of tl~e Property, if the restoration or repair is economically t'casiblc and Lender's security is not lessened. During such repair and restorati]]n period, Lender shall have the right to hold such insurance proceeds until Le~lder has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such i~spectiou shall be undertaker( promptly. Lender may disburse proceeds tbr die repairs aM restoratiou in a single payment or in a series of progress payments as the work is completed. Urfless an agreement is ~aclc iu writing or Applicable Law rcqtfircs interest to be paid on such insurance proceeds, Lender shall not be required ~o pay Borrower any iii(crest or earnings on such proceeds. Fees/'or public adjusters, or other third parties, re(alined by Borrower shall no( be paid out of the insurance proceeds and shall be the sole obligatit~n o1: Borrower. It' the restoration or repair is not economically feasible or Lender's security would be lesse]led, the it~surance proceeds shall be applied (~6A(WY) (0005) Pag~ 6ol~s Form 3051 1/01 :,.J ...~ 100025440001783270 0016880866 the sums secured by this Security Instrument, whether or not [hc}~ duu, witl~ the excess, if any, paid [() Borrower. Such insurance proceeds shall be applied in the order provided fi)r in Section 2. If Borrower abandons thc Property, Lender may file,.nego[ia~c and settl~ any available insurance claim and related mat/ers. If Borrower does not respond within 30 days ~o a notice tkam Lender that the iusurancc carrier has oftbred to settle a claim, then Lender may negotiate and scltlc the claim. The 30-day t)~riod will begin, when the notice is given. In either event, or if Lender acquires thc Property under Scclion 22 or o~crwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amounl lint ~o exceed the anounts unpaid under thc Note or efts Security instrument, and ~) any other of Borrower's rights (other than ~c right to any re,nd of unearned premiums pai(I by Borrower) under all iusurancc policies covering the Property, insofi~r as such rights are applicable to fl~c coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Prul)crty or to pay mnounts unpaid under thc Note or this Securiiy Instrmnent, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and emil continue to occupy thc Properfy as Borrower's principal residence for at least one year after the (talc of occupancy, unless Lender otherwise agrees in writing, which consent shall not be um'easo~bly withhchl, or uuless extenuating circumsmuces exisi which are beyond Borrower's control. 7. Preservation, Maintenance m~d Protection of Ibe Property; lnspeclions. Borrower shall no[ destroy, d~mge or impair the Property, allow the Property ~o dc[crioral~ or commit waste on the Property. Whether or not Borrower is.residing in the Property, Borrower shall mairttain the Property in order to prevent the Property lkom deteriorating or decreasing in value due to its comlidon. Untcss ii is determined pu~-smm[ m Secdon 5 that repair or restoration is not economically feasible, Borrower shall prompdy repair flic Property if d~mged to avoid ~r~er deterioration or dmuage. If insurance or condemnation proceeds are paid in connection with dmnage [o, or the taking of, ~e Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds tbr the repairs and restoration in a single payment or in a serius of progress payments as thc work is completed. If the insurance or condemnation proceeds are not sufficient lo repair or restore the Property, Borrower is not relieved of Borrower's obligation for the complethm of such repair or restoration. Lender or its agent may make reaso~mble entries upon and inspections of the Properly. Ir ii has reasolmble cause, Leudcr may inspect the interior of ~e improvements on the Property. Lender shall give Borrower notice at ~c time of or prior to such an inierior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during thc Loan application process, Borrower or auy persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or i~mccurate information or statements to Lender (or tkdlcd ~o provide Lender with material information0 in com~ection with the L()an. Material representations include, bu~ are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's princil)al residence. 9. Protection of Lender's Interest in the Property and Righls Under this Security lnstrmnen/. If (a) Borrower lhils to perform the covenants and agreements containc, d in this Security Instrument, (b) there is a legal proceeding ~at might sig~dficantly aftbct Lender's interest in the Property and/or rights under this Security h~trument (such as a proceeding in bankruptcy, proba[u, for condcnmation or fbrfciture, tbr enfi)rcement of a lien which may attain priority over this Sucurity Instrument or to entbrcc laws or regulations), or (c) Borrower has abandoned ~e Property, then l.cmler may do and phy for whatever is reaso~ble or appropriate to protect Lender's interest in the Propurty and rights under this S~cm-ity Instrument, including protecting and/or assessing ~e value of th~ Proper/y, and securiug and/or rcpairiog the Property. Lender's actions can include, but are not limited to: (a).paying any sums secured by a lim~ which has priority over fl~s Security Instrument; ¢) appearing in court; and (c) paying reasonable Form 3051 1/01 100025440001783270 0016880866 attorneys' fees to protect its interest in the Property and/or rights under this Security h]stnm~ent, including its secured position in a bankruptcy proceeding. Securing the Property i~lcludcs, but is not limited to, enteriug the Property to make repairs, change locks, replace or board up dc~ors and windows, drain witter fi-om pipes, el(migrate building or other code violations or dangerous conditions, and have .utilities turned on or t,t'f. Although Lender may take action under this Section 9, Lender docs not have 'to do so and is not under any 'duty or obligation to do so. It is agreed that Lender i~murs 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 iutcrest at the Note rate from the (late of disbursement and shall be payable, with such interest, upon ~otice fi-om Lender to Borrtlwer requesting payment. If this Security Instrument is on a leasehold, Borrower shall tim}ply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and thc~ fc.c 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 Mo(ti:age Insurance in effect. If, /bt any reasou, the Mortgage Insurance coverage required by Lemler ceases m be available fronl the mortgage insurer that previously provided such insurance and Borrower was required tt~ make separately des(glinted payments toward the premimns fbr Mortgage Insurance, Borrower shall pay tl~e premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously i~ c1'i'~ct, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in ef/'cct, ffonl all alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurm~ce coverage is not available, Borrower shall continue to pay to Lender file mnount of the separately des(glinted payments that were due wheu did, 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 nlm-refundable, notwithstanding the lhct It(at the Loan is ultimately paid in full, and Lender shall not be requin:d 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 mnount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately desig~mted payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a conditilm t)f making the Loan and Borrower wits required to make separately des(gm, ted payments toward the premiums fur Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance iu effect, or to provide a nou-refundable loss reserve, until Lender's requirement /'or Mortgage Insurance ends ii} accordance MOt any written agrcemeut between Borrower and Lende? providing for such tenni~mtion or until terminatiou is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay (merest 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 file Loan as agreed. Borrower is uot a party to fl-~e Mortgage Insurance. Mortgage insurers evaluate their total risk on all such iosurance in lb(ce from time to time, and may enter into agreements with other parties that share or modify fl]eir risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) ti) lhese agreements. These agreements may require the mortgage insurer to u~ake paynrents using at~y source of funds that the mortgage insurer may have available (which may 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 fl~at derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insm'ance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of file insurer's risk in exchange lb( a share of the premiums paid to the insurer, the arrangement is often tem~ed "captive reinsurance." Further: (a) Any such atp'eements will not affect the amour~ts lhat Borrower h~Ls agreed to pay rot Mortgage lnsm'ance, m' any other terms of the Loan. Such ag,'eements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (~-6A(WY) (ooo5) Page Form 3051 1101 100025440001783270 °°1688°8 6 (b) Any soch agreements will not affect the rights Borrower has - if any ,- with respect to lite Mortgage hrsurance under the Homeowners Protection Act of 1998 or any other law. These rights may include tile right to receive certain' disclosures, to request mid obtain cancellation of the Mortgage Insurm~ce, to have the Mortgage Insurance ternfinated automatic.'dly~ ami/or to receive a rel'und or any Mortgage Insurance premiums that were une~wned at the time or such cancellation or termination. 11. Assignment of Miscellaneoos Proceeds; Forreiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If tim Property is dmnaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and l.ender's security is not lessened Duriug such repair and restoration period, Lender shall have tile right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has beeu completed to Lender's satisfaction, provided that such inspection shall be undertaken llromptly. Lender may pay tbr the repairs and restoration in a single disbursement or in a series of progress payments as thc work is compleled. /Jnless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, tile lvliscellaueous Proceeds shall be applied to the sums secured by this Security [nstrumeut, 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 rite event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, wb,:ther or not then due, wid~ the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the f¢ir pmrket value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the mnount of the stuns secured by this Security Instrun~ent ilnmediately before th_e i)artial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security hlstruinent shall be reduced by the m~ount of the Miscellaneous Proceeds multiplied by fire following fraction: Ca) the total mnount of the sums secured immediately before rite partial taking, destruction, or loss in value divided by Co) the fair market value of the Property ilnlUediately before the partial taking, destruction, or loss in value, Any balance shall be paid to Borrower. In the event of a parti'al taking, destruction, or loss in value of the Property in which the fair market value of the Property irmnediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured ilnmediately before the partial takings, destruction, or h)ss in value, unless Borrower and Lender otherwise agree in writing, the Miscellmwous Proceeds shall be applied to the sun'ts secured by fids Security Instrument whether or not the sums are then due. If the Property is abar, doned by Borrower, or if, after notic~ by Leuder to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for dmnages, Borrower fidis to respond to Lender within 30 days after the date the notice is givt:u, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sinus secured by this Security Instrmnent, whether or not then clue. "Opposing Party" m~:ans the third party that owes Borrower Miscellaneous Proceeds or'the party against whom Borrower has a right of action in regard to iVliscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or crirninal, is begun that, in Lender's judgment, could result in forfeiture of the Property tlr other material impairu~ent of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided iu 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' ,naterial impairment of Lender's interest in the Property or rights under this Security Iustrunle,lt. The proceeds of any award or claim for dmnages 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 restoratimt or repair of the Property shall be applied in the order provided for in Section 2. (~-6A(WY) (0oo$) Pa[lo fl o! 15 Form 3051 1/01 100025440001783270 0016880866 12. Borrower Not Released; Forbem'ance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or arty Successor in Interest of Borrower shall not operate tu release the liability of Borrower or ally 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 ft~r payment or ofl~e'rwise modify amortization of the sums secured by this Security Instrumera by reason of ;my (Icmand 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 l'rom third persons, entities or Successors in Interest of Borrower or in amouuts less than the amount theu due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Snccessors ami Assigns Bonnd. Bom)wee covenants aud agrees thai Borrower's obligations and liability shall be joint and several. However, auy Borrower who co-signs this Security Instrument but does not execute file Note (a "co-signer"): (a) is co-signiug this Security Instrument only to mortgage, grant and convey file co-signer's interest in the Property under file terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees flint Lender and any other Borrower can agree to extend, modify, forbear or make auy acconnnodations with regard to the terms of this Security Instrument or tile Note without the co-signer's consent. Subject to the provisions of Section 18, ally Successor iu h~tcrcst of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is al)proved by Lender, shall obtain all of Borrower's rigbts and benefits under this Security Instrument. Borrower shall not be released fi-om Borrower's obligations and liability under this Security Instn. m~cnt unless Lender agrees to such release in writing. The covenants aud agreements of this Security Instrun-~cut shall bind (except as provided iin Section 20) and benefit file successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed irt connection with Borrower's defanlt, for the purpose of protecting Lender's interest iu the Property and rights under this Security Instrument, including, but not limited to, attorneys' t~es, property inspection and valuatiou fees. [n regard to any other fees, the absence of express authority in this Security h'lstrument to charge a specific fee to Borrower shall not be construed as a prohibition on file cltargiug of such fee. Lender may not charge fees that are expressly prohibited by this Security lnstrmnent or by Al)plicable Law. If file Loan is subject to a law which sets maximum loan charges, and that law is finally interl)reted so dial the interest or other loan charges collected or to be collected in cmmection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the cllarge to the permitted limit; and (b) any sums already collected from Borrower which exceeded l)ennitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by rna'king a direct payment to Borrower. If a retired reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under file Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower migbt have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with flits Sect~rity lnstrulnent 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 coustitute notice to all Borrowers nnless Applicable Law expressly requires otherwise. The notice address shall be rile Property Address unless Borrower has designated a substitute notice address by notice tu Lender. Borrower shall promptly ootify Lender of Borrower's change of address. If Lender specifies a prt~cedu|'e 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 desig~mted notice address under this Security Instrument at any one time. Any not[ce to Leuder shall be given by delivering it or by mailing it by first class mail to k. ender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice iu connection with this Security hlstruutent shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security lnstrmnent is also required under Applicable Law, the Applicable [.aw requirement will satislr~, file corresponding requirement under fllis Security Instrument. ~II~-6A(WY) (ooo5) Page lO o115 ~)~,~ Form 3051 1/01 100025440001783270 0016880866 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 rights and obligations contained in this Security Instrument are subject to any requirclnents and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a 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 conllict shall not affect other provisimm of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (at words of the masculine gender shall menu and include corresponding neuter words or words of the feminine gender; (bt words in the singular shall mean and include the plural and vice versa; and (ct the word "may" gives sole discretion without auy obligation to take any action. 17. Borrower's Copyi Borrower shall be given one copy of tht: Note and of lids Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Sectkm 18, "Interest in file Property" means any legal or beueficial interest in tile 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 Property is sold or transferred (or if Borrower is not a m~tural 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 secured by this Security Instmn)ent. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable I.aw. If Lender exercises this option, Lender shall give Borrower 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 9Fction 15 within which Borrower must pay all stuns secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrmnent without further notice or demand on Borrower. 19..Borrower's Right to Reinstale After Accele,'ation. If Borrower meets certain couditions, Borrower shall have the right to have entbrcement of this Security h~strument discontiuued at auy time prior to file earliest of: (at five days before sale of the Property pursuant to any power of sale contaioed in this Security Instrument; (bt such other period as Applicable Law might specify lbr the tenni~mtion of Borrower's right to reinstate; or (ct entry of a judgment enfurcing this Security Instrument. Those conditions arc that Borrower: (at pays Lender all stuns which then would be due undt:.r this Security Instrument and the Note as if no acceleration had occurred; (bt cures any default of any other covenants or agreements; (ct pays all expenses incurred in enforcing riffs Security Instrument, including, but not limited to, reasonable atlorneys' fees, property inspection and valuation tees, and other tees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security lnstn, uuent, and Borrower's obligation to pay the stuns secured by this Security h~strument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following lrbrms, as selected by Lender: (at cash; (bt money order; (ct certified check, bank clleck, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insttred by a federal agency, instrumeutality or entity; or (d) Electronic Funds Transfer. Upon reinstatement hy Borrower, lids Security Instrument and obligations secured hereby shall remail~ fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice o1' Grievance. The Note 'or a partial interest in the Note (together with this Security Instrmnent) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payu,ents due Under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state tile nmne and address of the new 'Loan Servicer, the address to which payments should be made and any other infimnation RESPA requires in connection with a (~-6A(WY) (o00s) P.ge 11 o, ,s 51~[~ Form :3051 1/01 08.3 100025440001783270 0016880866 notice of transfer of servicing. If 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 Ihe Loan Servicer or be transferred to a successor Loan. Servicer ~:nd are not assmned by the Nole purcllaser unless otherwise provided by the Nole 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) tha£ arises from the other party's actions pursuanl 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 Instrument, until such Borrower or Lender has notified the other par~y (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 tile giving of such notice to take corrective action. If Applicable Law provides a ~ime period which nmst elapse before certain action can be taken, thai time period will be deemed to be reasomtble 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 satisfy the notice and opportunity to take corrective action provisions o~' this Section 20. 21. H~ardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flarmnable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials con£aining asbestos or fimnaldt~hyde, and radioactive ma[eri~ds; (b) "Envirorunental Law" means federal laws and laws of file jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Enviromncntal Cleanup" includes any response action, remedial action, or removal action, as defined in F. nviromnental Law; and (d) an "l~nvironmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Enviro~m~ental Cleanup. Borrower shall not cause or permit tile presence, use, disposal, storage, or release of any Hazardous Substances, or threaten ~o release any Hazardous Substances, (m or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (~0 that is in violation of any Environmental Law, (b) which creates an Enviromnental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely aft'~cts the value of the Property. Tile preceding sentences shall not apply to the presence, use, or storage on thc Property ct' small quantities ct' Hazardous Substances that are generally recognized to be appropriate to nom~al residential uses and to maimenance ct' the Properly (including, but no£ limited to, hazardous substances in cousumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any goverrnnental or regulalory agency or private: party involving file Property and any Hazardous Substance or F. nvironmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, lea'king, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. It' Borrower learns, or is notified by any govermnental or regulatory authority, or any private party, tha~ any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Enviromnental Law. Nothing herein sludl create any obligation on Lender for an Enviroranental Clemmp. (~-6A(WY) (ooo5) Page 12 o115 ~ Form 3051 1/01 100025440001783270 0016880866 NON-UNIFORM COVENANTS. Borrower and Lender further covcimnt and agree as tbllows: 22. Acceleration; Remedies. Lender shall give notice to Bm'rower prior to acceleration following Borrower's breach of any covenant or agreement'in tl~is Secnrity h-~strument (I)ut not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days f,'mn the date the notice is given to Borrower, by which the default must be cured; and (d) tlmt failure to cu,'e tbe default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale or the Prope,'ty. The notice shall furthe,' inform Bm-rower of the right to reinstate after acceleratiou mid the right to bring a cou,'t adion to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not ct,,'ed on or before the date specified in the notice, Lender at its option may require immediate' payment in full of ~fll sams secured by this Security h~strument without farther demand and may invoke the power of sale and any other remedies permilted by Applicable Law. Lemler shall be entided lo collect all expenses incurred in pursuing the remedies provided in this Section 22, including, hut not limited to, re~tso,mble 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, il' different, iu 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 maimer prescribed by Applic{tble Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, inclmling, but not limited to, rettsonable attorneys' fees; (b) to 'all sums seem'ed by this Security lnstrmnent; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lc,Met may charge Borrower a fee tbr releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the tee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. (~}~'6A(WY) (ooos) Inilials: Page ~3 o~ ~s X~ Form 3051 1/01 100025440001783270 0016880866 BY SIGNING BELOW, Borrower accepts and agrees to thc terms and cove~mnts contained in this Security Instrument and in any Rider executed by Borrower and recorded with tr. Witnesses: ~' ~ (Seal) / BLAKE W }~ -Borrower -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Barrower (~I~6A(WY) (ooos) Page 14 o{ 15 Form 3051 1/01 084 100025440001783270 0016880866 STATE OF WYOMING, The foregoing instrument was acknowledged before mc this by Blake W. Hoopes & Kelli Ann H~opes ~C~. ~ Counly ss: / My Connnissipn Expires: Ndary Pffbl ic ~ I~)~-6A(WY) (ooos) Page 15 oi 15 Inilials: ~ Form 3051 1/01 EXHIBIT "A" 08,12 PARCEL 1: COMMENCiNG at a point 172 feet West fi'om the Southeast Comer of Lot 4 in Block 17, Afion Townsite Sm-vey, Lincoln County, Wyoming and running thence West 61 feet; thence North 165 feet; thence East 61 feet; thence South 165 feet to the Place of Begim~ing. EXCEPTING therefrom that portion of the described premises situated within the bounds of that property described in Book 2 l 5 P.R., Page 665. PARCEL 2: ALL the land in Lot 4, Block 17, of the Townsite of Alton, I,incoln County, Wyoming, lying and being situate South of the following deschbed portion of the South boundary line of the William 1. Baetge tract (subsequently conveyed to Robert Loren Stumpp and Michelle Faye Stumpp, husband and wile,' by the entireties) as shown on a plat thereof prepared by Paul N. Scherbel, Land Surveyor (no. 164), as of 26 June 1984, said South boundary line segment of said Baetge tract being more particularly described as follows, to wit: BEGINNING at a point which is N01°45'56'' E, 214.50 feet, thence N87 58.0'W, 49.50 feet, thence continuing N 87° 58.0'W, 168.54 feet from the Ivan L. Call (Registered Land Survey No. i274) Mueller water cap with hexagon bolt at the approximate intersection of Adams Street and Fora-th Avenue (said begi~ming point also being the Northwest corner f the Phillip R. Grosjean tract and on the South boundary of said Baetg tract, as shown on said plat of 26 June 1984), and running thence N87°58.0'W, 53 feet (along said South boundary line) to the Southwest corner of the William I Baetg tract (as shown on said plat). 0016880866 1000254400D1783270 0 ,13°° 688°866 ADJUSTABLE RATE RIDER (LIBOR Six-Month Index (As Published In The Wull Stree! Journal) - Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 5 th day of Augus t, 2004 and is incorporated into and shall be deemed to mnend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrmnent") of the stone date given by the undersigned ("Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to LEHMAN BROTHERS BANK, FSB ("Lender") of the s,'une date and covering located at: 69 EAST 4TH AVENUE, AFTON, the property described WYOMING 83110 in the Security lnstrmnent and [Properly Address] 1 ' THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower mM Lender fnrther cove~mnt and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CtlANGES The Note provides for an initial interest rate of 5.375 changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANG ES (A) Change Dates The interest rate I will pay may change on the first day of September , 2009 and on that day every 6th month thereafter. Each date on which my interest rate could change is called a "Change Date." %. The Note provides tbr MU LTISTATE ADJUSTABLE RATE RIDER-LIBOR SIX-MONTH STREET JOURNAL ) -Single Family- Fannie Mae Uniform Instrument (~838R (0006) Form 3138 1/0/} Page 1 of 4 Initials: VMP MORTGAGF FORMS - (800)52 INDEX (AS PUBLISHED IN THE WALL 08,1 100025440001783270 0016880866 (B) The Index Beg~m~ing with the first Change Date, my interest rate will be based on an Index. The "Index" is thc average of interbank offered rates tbr six monfl~_ U.S. dollar-denomim~ted deposits in the London market ("LIBOR"), as published in The Wall Street Jour~ml. The most recent Index figure available as of the first business day of the month immediately preceding file month io which the Change Date occurs is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable infommtion. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, rite Note Holder will calculate my new interest rate by adding TWO AND 25 HUNDREDTHS percenmge poil~tS ( 2.250 %) to the Cra'rent Index. The Note ltolder will then romxl fl~e rcsuh et' this addition to file nearest one-eighth of one percentage point (0.125~). Subject to file limits stated in Section 4(D) below, this rounded amount will be thy new interest rate until thc next Change Date. The Note Holder will then determine the amount of the montldy payment that would be su[ficient to repay the unpaid principal that I am expected to owe at the Change D:~te in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amt}unt of lny monthly payment. (D) Limits on Interest Rate' Ch}rages The interest rate I mn required to pay at the first Change Date will not be greater than 11. 375 % or less than 2.250 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than TWO percentage points ( 2.000 %) from the rate of interest I have been paying for the preceding 6 months. My interest rate will never be greater than 11.375 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the mnount of my new monthly payment begi~ming on the first monthly payment date after thc Change Date until tile amount of my momhly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes iu my interest rate and the amount of my monthly payment before the effective date of any chauge. The notice wilt include infonnation required by law to be given to me and also the title and telephone nmnber of a person who will answer any question l may have regarding the notice. (0006) Page 2 of 4 ~.~ Form 313~ 1/01 0016880866 100025440001783270 0016880866 B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Urdform Cove,~nt 18 of the Security lnstrmnent 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, 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 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 secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender informatiou required by Lender to evaluate lthe, intended transferee as if a new loan were being made to fl~e transferee; arid (ia) Lender reasomtbly detennines 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 Leuder. To the extent permitted by Applicable Law, Lender may charge a reasonable tee as a condition to Lender's consent to the loan assumption. Lender also may require fl~e transferee to sign an assumption agreement flint is acceptable to Lender and that obligates fl~e transferee to keep all fl~e promises and agreements made in the Note and in this Security Instrument. Borrower will conthme to be obligated under the Note and this Security lnstrulnent uuless Lender releases Borrower in writing. If Lender exercises the option to require ilmnediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less titan 30 days fi-om the date the notice is given in accordance wifl~ Sectiou 15 within which Borrower must pay all sums secured by fl~is Security h~trument. If Borrower fails to pay fl~ese sums prior to the expiration of this period, Lender ,nay invoke any remedies permitted by fl~is Security lnstrmnent without further notice or demand on Borrower. InLtials: (~,838R (0006) Page 3 of 4 ~ Form 3138 1/01 0016880866 100025440001783270 0016880866 BY SIGNING BELOW, Borrower accepts and agrees to fl~c terms and cove]rants contained in this Adjustable Rate Rider. I~LAKE W I'Ioo-~ _Borrower KELLI ANN HOOPES (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower ~<~838R (0006) Page 4 of 4 Form 3138 1/01 . ADDENDUM TO ADJUSTABLE RATE RIDER °°1 8!l¢ ooo1 832 o 0016880866 This addendum is made August 5 , 2004 and is incoq)orated into and deemed to amend aud sitpplement the Adjustable Rate Rider of the same date. The property covered by this addendum is described in the Securily hlslrtnnenl and located at: 69 EAST 4TH AVENUE , AFTON , WYOMING 83110 AMENDED pROvISIONS In addition to the provisions and agreements made in the Security h~sh-ument, l/we fi~rther covenant and agree as follows: ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES Limits on Iuterest Rate Changes The interest rate I am required to pay al tile first Change Date will not be greater than 11.375 % or less thau 2. 250 %. Thereafler, my adjustable interest rate will never be increased or decreased on any single Change Date by more than Two percentage point(s) ( 2 .'000 %) l¥om the rate of interest I have been paying for the preceding six (6) months. My interest rote will never be grealer lhan 11.375 %. My interest rate will never be less than 2.250 %. TRANSFER OF TIlE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 18 of the Security Instrument is amended to read as lbllows: Transfer of the Property m' a Beneficial Interest in Borrower. As used in lifts Section 18, "Interest in lite Property" means any legal or beneficial interest in the Property, including, but not lmfiled to, those beneficml iuterests transferred in a bond for deed, contract for deed, installment sales contracl 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 tile 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) wilhout Lender's prior written conseut, Le,tder may require immediate payment in fidl of all sums secured by this Secm-ity Inslrument. ttowever, lhis oplion shall nol be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleralion. The notice shall provide a period of not less than 30 days front the date tim notice is given in accordance with Sectiou 15 within which Borrower mnsl pay all sums secured by this Security Iustrument. If Borrower fails to pay these stuns prior to the expiralion of lhis period, Lender may invoke any remedies permitted by this Security Instrument without fi.lher notice or demand on Borrower. lu Wimess Thereof, Tmstor has executed this addendum. Witness D ate Date Date Date DIS0221 1202 LIBOR Addendmn to Rider 1/01 0016880866 INTEREST-ONLY ADDEND U M TO ADJUSTABLE RATE RII)ER LOAN NUMBER: 0016880866 69 EAST 4TH AVENUE PROPERTY ADDRESS: AFTON, WYOMING 83110 THIS ADDENDUM is made this 5th day of August , 2004 and is incorporated into and intended to form a part of the Adjustable Rate Rider (the "Ride¢') dated the same date as this Addendum executed by the undersigned and payable to LEHMAN BROTHERS BANK, FSB, 2530 S. PARKER ROAD, STE. 601, AURORA, CO 80014 (the Lender). THIS ADDENDUM supersedes Section 4(C) of the Rider. None of the other provisions of the Note are changed by this Addendum. 4. INTEREST RATE AND .MONTHLY PAYMENT CHANGES (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding 2.25 percentage point(s) (2.25 %) to the Current Index flor ~uch Change Date. The Note Holder will then round the result of this addition to the nearest one- eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D), this rounded amount will be my new interest rate until the next Change Date. During the Interest-Only Period, the Note Holder will then determine the amount of the monthly payment that would be sufficient to repay accrued interest. This will be the amount of my monthly payment until the earlier of the next Change Date or the end of the Interest-Only Period unless I make a voluntary prepayment of principal during such period. If I make a voluntary prepayment of principal during the Interest-Only Period, my payment amount for subsequent payments will be reduced to the amount necessary to pay interest at the then current interest rate on the lower principal balance. At the end of the Interest-Only Period and on each Change Date thereafter, the Note Holder will determine the amount of the monthly payment that would be sufficient to repay in full the unpaid principal that I am expected to owe at the end of the Interest-Only Period or Change Date, as applicable, in equal monthly payments over the remaining term of the Note. The result of this calculation will be the new amount of my monthly payment. After the end of the Interest-Only Period, my payment amount will not be reduced due to voluntary prepayments. B~.AK~ ~ ~OOPES I~E L Li' "~NN HOOPES DIS0291 page 1 of 1 l/01 Form 603F