HomeMy WebLinkAbout90197230890 (,01)
901972
RECEIVED
INOOL_N O,,,,t; t'1 f CLERIr(
CHASE MANHATTAN MORTGAGE CORPORATION
10790 Rancho Bernardo Rd..
San Diego, CA 92127
Atto: Doc Control
LOAN # CE636140GG
-- State of Wyoming
Si,ace Above This 1.1~ For Recording Data
MORTGAGE
(With Future Advance Clause)
1. DATE AND PARTIES. The dale of this Mortgage (Security Instrument) is July 30, .2004 ......... and th~ pmlies, their
addresses and tax identification numbers, if required, are as follows:
MORTGAGOR:SUS&N g. SCHULTg AND CRAIG 'L. SCgUL?Z, W[Fg AND
AS TEN3~NTS l~Y THE ENTIRETIES
941 ~ADDLE DRIVE ALPINE, Wyoming 83128
941 SADDL~ DRIVE, ALPINE, Wyoming 83128
[] If checked, refer to the attached Addendum incorporated herein, for additional Mortgagors, their signatures and
acknowledgments.
LENDER: CHASE M/uNHATTAN ~ANK USA, N.A. DIRECT CO~d~ESL~ONDENCE TO:
200 White Clay Center Drive CHASE MANHATTAN MORTGAGE CORPORATION
Newark, DE 19711 10790 Rancho Bernardo Rd.
San Diego, CA 92127
2. CONYEYANCE. For good and valuable consideration, the receipt and sufficiency of which is acknowledged, and to secure
the Socured Debt (defined below) and MortgagoWs performance umbr thi~ Securily Insmm~eot, Mmlgagor grants, bargaias,
conveys, mortgagee and warrants to Lender, with power of sale, the £ollowing described prope~y:
All that tract or parcel of land as shown on Schedule "A" attached hereto
which is incorporated herein and made a part hereof.
1236192610026100
The properly is located in . .LJ, r~ooln..: .......................... at ...................................................
(county)
., 9 ~11.. SAI:IDLg.. DR~VIIi .......................... ~TNA .............................. Wyoming .... I~. 311 iii .............
(Ad&'~as) (City) (ZIP Coda)
Together with all rights, easements, appurtenances, royalties, mineral rights, oil and gas rights, all waist and riparian fields,
ditches, and waist stock and all existing and future improvements, structures, tintures, and replacemenls that may now, ur at
any time in the nature, be part of the real estate described above (all referred to us "Property").
MAXI~IUM OBLIGATION LIMIT. Tbs total principal amount secured by this Security Instrument at any one time shall
not eaceed $ ........................... 50 ,.000...0~ ...... . This limitation of amount does not include inlerest and other tL~es
and charges validly made pursuanl to this Security Instrument. Also, this lirnitmion does not apply to advances made under the
terms of this Security Instrument to protect Leader's security and to perlbrm ~ny of the covenants conlained in this Security
Instrument.
SECURED DEBT AND FUTURE ADVANCES. The term "Secured Debl" is defined as followa:
A. Debt incurred under the tern~ of all promissory note(a), contract(s), guaranty(s) or other evidence of debt described
below and all their exteasinns, renewals, modificatinna or subslitutious. (You must apecifically identify the debt(s)
secured and ),ou should include the final maturity date of such debt(~').)
The Rome Equity Line of Credit Agreement and Promissory Nots
dated July 30th, 2004 due and payable, if not ~aid earlier,
on August 4th, 2034.
WYOMING - HOME EQUITY LINE OF CREDIT MORTGAGE tNOr FOR gNMA. FHLMC. FHA IDR VA USEI
:272: SCHULTZ Cg636140GG
08
B. All future advances from Lender to Mortgagor or olher future obligalions of Mortgagor to Lender under any promissory
note, contract, guaranty, or olher evidence of'debt executed by Mortgagor iu lhvor of Lender executed aliar this Security
Instrument whether or not this Security Instrument is specifically referenced. If more than one person signs this Security
Instrument, each Mortgagor agrees that this Security Instrument will secure all lhture advances and fulure obligations
that are given to or incurred by any one or more Mortgagor, or any one of more Mortgagor and other~. All fulure
advances and other future obligations are secured by this Secnrity Insn'ument even Ihough all or part may not yet be
advanced. All future advances and other future obligations are secured as il'made ou the date o£this Secnrily Instrument.
Nothing in this Security Inslrument shall constitute a commilmeul to make additional or future loans ur advances in any
an~tount. Any attar commitment must be agreed to in a separale wriiing.
C. All other obligations Mortgagor owes to Lender, which may later arise, to die extent not prohibited by law. including,
but not fruited to, liabihties lbr overdrafts relaling to any deposit accomit agreement belween Mortgagor and Lender.
D. All additional sum~ advanced and expenses incurred by Lender far insuring, preserving or otherwise protecting the
Property and its value and any other sum~ advanced and expenses iacurred by Leader under the larma of this Secretly
Instrument.
In the event that Lender fhil~ to provide any necessary oolite of the right of rescission with respect to any additional
indebtedneqq securad under paragraph B of this Section, Lender waives any subsequent security interest ia tile Mortgager's
principal dwelling that is created by this Secority Instrument (but does not ~.aive the security interest for the debts referenced in
paragraph A o£ this Section).
MORTGAGE COVENANTS. Mortgagor agrees that the covenants in this section are material obligations under the Secnred
Debt and this Security Instrument. If Mortgagor breaches any coyenant in this section, Lender may refuse to make additional
extensions of credit and reduce the credit limit. By not exemi:sing either remedy ou Mortgagur% breach, Lender does not waive
Lender's right to later consider the event a breach if it happens again.
Payments. Mortgagor agrees that all payments under the Seemed Debt will be paid when due and in accordance with the terms
of the Secured Debt and this Security Instrument.
Prior Security Interests. With regard to any other mortgage, deed of h'ust, sectu'ity agreement or other lien document that
created a pdur security interest or encumbrance on the Property, Mortgagor agrees to make all payments when dna and to
per£mm or comply with all covenants. Mortgagur also agrees not to allow any moditicatinn or extension of, nm' to rexluest any
future advances undar any nolo or agreement secured by the lien document withmd Lender's prior written approval.
Claims Agahut Title. Mortgagor will pay all taxes, assessments, liens, encumbrances, lease payments, ground tents, utilities,
and other charges relating to the Property when due. Lender may require Mortgagor to provide to Lender copies of all notices
that such amounts are due and the receipts evidencing Mortgager's payment. M, rtgagor will defend lille to the Property against
~uy claims that would impair the lien of this Security Insh'ument. Mortgagor agrees to assign to Lender, as requested by Lender,
any righB, claims or defenses Mortgagor may have against parties who supldy labor or materials to maintain or improve the
Property.
Property Condition, Alterations and Inspection. Mortgagor will keep the Properly in good condition and ~nake all repairs
that are reasonably necc:~$ary. Mortgagor shall not conmfit or allow any wasle, impairment, or deterioration of the Property.
Mortgagor agrees that the nature of the occupancy and use will sol substantially change withoot Lender's prior written contact.
Mortgagor will not permit any change in any license, restrictive covenant or easement without Lender's prior written consent.
Mortgagor will noti~ Lender of all demands, proceedings, claims and actions against Morlgagor, and of any loss or damage to
the Property.
Lender or Lender's agents may, at Lender's oplion, enter the Prope;ly at any reasonable time fur the purpose of inspecting tha
Properly. Lender shall give Mortgagor notice at the time of or before an inspection speci~'/ing a reasonable purpose for the
inspection. Any inspection o.fthe Property shall be entirely lbr Lender's benelil and Mortgagor will ia no way rely on LendePa
inspection.
Authority io Perform. If Morlgagor lhils to per£orm any duty or any of the covenants contained in this Security Insm~inent~
Leader n~y, without notice, perform or cause them to be performed. Mortgagor appoints Leader as attorney in fact to sign
Mortgagors name or pay any amount necessary lbr performance. Lender's rigbt to perform for Mortgagor shall nol create an
obligation to perform, and Lender's failure to perform will not preclude Lender fi'om exercising any of LendePs erbar rights
under the law or this Security Instrument. .
Leaseholds; Condominiums; Planned Unit Developments. Mortgagor agrees to comply with the provisions of any lease it'
this Security Instrument is on a leasehold. If the Property includes a unit iu a coudominium or a planned unit development,
Mortgagor will porfurm ~11 of Mortgager's duties under the covenants, by-laws, or regulations of the condmoinium or planucd
unit developmenL
Condemnation. Mortgagor will give Lender prompt notice of any pending or Ihrealened action, by private or pnblic entities to
purchase or take any or all of the Properly through condemnation, eminent domain, or any other means. Mo£1gagur authorizes
Lender to intervene in Murtgagoes name in any of the above described aclioos or claims. Mortgagor assigns to I. ender the
process of any award Or claim for damag~ connected with a condemnalian or other taking of all or any part of the Property.
Such proceeds shall be considered payments and will be applied as provided in this Security Instrument. Thi'~ assigmnent of
proceeds is subject to the temls of any prior mortgage, deed of trust, security agreement or other lien document.
Insurance. Mortgagor shall keep Property insured against loss by /ire, fkmd, lhett and oilier hazards and risks reasonably
associated with the Property due to its type and locution. This insurance shall be maimained in thc amounts and fur the periods
that Lender requires. The insurance carrier providing the insurance shall bc cbnsen by Mortgagor subject to Lender's approval,
which shall not be um'easonably withheld If Mortgagor Pails to maintain the covarage described above, Lender may, ut
Lender's option, obtain coverage to protect Lender's rights in the Property accordiag to the terrm of this Security Instrument.
All insunmco policies and renewals shall be aeceptab~ to Lender and shall iaclude a stsndard "morlgage clause" and, where
applicable, "loss payee clause." Mortgagor shall immediately notify Lendar of cancellation o~' ternLiaation of the insurance.
Lender shall have the right to hold the policies and runawaY. If Lendar requires, Mortgagor shall immediately give to Lander
all receipts of paid prenfiun~q and renewal notices. Upon loss, Mortgagor shall give innnediute not/co to the insurance carrier
and Lender. Lender may make proof of loss if not made immediately by Mortgagur.
Unless otherwise agreed in writing, all insurance proceeds shall be applied to the restoralion or repair of tile Property or Io lite
Secured Dabl, whether or no[ then due, at Lender's option. Any apphcation of proceeds to principal shall not exlend or
:272: SCHULTZ C~636140GG
postpone the doe date of the scheduled payment nor change the amount of any paymenl. Any excess will be paid to the
Mortgagor. If the Property is acquired by Lender, Mortgager's right to any inslu'ance policies and proceeds resulting
danmge to thc Property before the acquisition shall pass to Lender to the cxteot of tile Secured Debt hmnediat¢ly bet~re tile
acquisition.
Financial Reports and Additional Documents. Mortgagor will provide to Len,ler upon request, any financial statemant or
information Lender amy deem reasonably necessary. Mortgagor agrees to sign, dehver, and file any additional documants or
certifications that Lender may consider necessary to perfect, continue, a~ld preserve Mortgager's obligations nndcr ibis
Securhy Instrument and Lander's lien status on the Properly.
6. DUE ON SALE. Lander may, at its option, declare Ihe entire balance of the ~ccured Debt to be immediately due and payable
upon the creation of, or conuact for the c'zeation of, a transfer ur sale o~' thc Property. This righl is subject to the restrictions
imposed by federal law (12 C.F.IL 591), as applicable.
7. DEFAULT. Mortgagor will be in defau t if any of the following occur:
Fraud. Any Consumer Borrower engages in fraud or material misrepresenlalion in connection with the Secured Debt tbat is an
open end home equity plan.
Payments. Any Consumer Borrower on any Secured Debt that is an open end htn~le eqnily plan tails to make a paymenl when
due.
Prnperty. Any action or inaction by the Borrower or Mortgagor occurs thal adversely affects the Property or Leuder's righla ha
the Property. Thia includes, bnl ia not limited to, the following: ia) Murtgagor l'ails ~o maintain required insurance on the
Property; (b) Mortgagor a'ansfers the Property; (c) Mortgagor eomnfits waste or otherwise deslrnctively uses or ~'ails to
maintain the Properly such that the action or inaction adversely affects Lender% security; id) Mortgagor fails to pay taxes on
the Property or otherwise falls to act and lliereby causes a lien lo be filed againsl the Properly that is senior to the lien of this
Security Instrument; to) a sole Mortgagor dies; (0 it' more than one Mortgagor, any Morlgagor dies and Lender's secuiity is
adversely affected; (g) the Property ia taken through eminent domaini th) a jtMgmenl is ~iled against Morlgagor mid snbjects
Mortgagor and the Property to action that adversely atl'ects Lendees inlerest; or ti) a prior lienltold~r tbrecloses ua the Property
and as a result, Lender% interest is adversaly aft'erred.
Executive Officers. Any Borrower is an executive officer of Lender or an at'liliate and such Borrower becomes indebted to
Lender or another lender io an aggregate anlount greater than the amount permilted tinder l'edcral laws end regulalions.
8. REM[EDIES ON DEFAULT. In addition to any other remedy available under tile terms of this Security [nstrumenl, Lender
may accelerate lhe Secured Debt and tbreclose lhia Security lnslrument in a manner provided by law if Mortgagor is in delhult.
Ia some inslances~ federal and state law will require Lender to provide IVlortgagur whh notice of the right to cute, or other
notices and may establish time schedules for foreclosure act/oas.
At the option of the Lender, all or any part of the agxeed tees and charges, accnied interest and principal shall becmne
inm~ediately due and payable, after giving notice if required by law, upon the occurrence of a defauli or anythne therealier.
Lender shall be eotilled lo, without limitation, the power to sell the Property.
The acceptance by Lender of any sum in palanent or partial payment on the Sectired Debt alter the balance is dt~e or is
accelerated or after foreclosure proceedings are filed shall not conslilule a waiver of Lender's right to require complele cure of
any existing delhult, By not exercising any remedy on Mongagur's del~ault, l~ender does not waive Lender's right to later
consider the event a default if it happens again.
9. EXPENSESi ADVANCES ON COVENANTS; A1TOIINEYS' FEES; COI.I.ECTION COSTS. If Mortgagor breacbes
any covenant in this Security Instrument, Mortgagor agrees to pay all expenses Lender incurs in perlbrrning such covenants or
protecting its security interest in the Property. Such expenses include, btu arc not limited to, fees incurred lbr inspecting,
preserving, or otherwise prolecthag the Property and Lander's security iulelcst. These expenses are payable o~l demand/and
will bear interest fi.om the date of payment until paid in full at the highest r~ue et' interest in effect as provided in tile tem~ of
the Secured Debt. Mortgagor agrees to pay all costs and expenses incurred hy Lander ha collecting, enforcing or protecting
Lander's rights and remedies under this Securily Instrument. This amoum may include, but is not lindled to, reasooable
attorneys' fees, court cosls, and other legal expenses. This amonnt does not include lltlorneys' fees for a salm-ied employee of
the Lender. To the extent permitted by the United States Bankruptcy Code, Murtgagur agrees to pay Ihe reasonable attorneys'
fees Lander incurs to collect the Secured Debt as awarded by any conrt exercising jurisdiction under the Bankruptcy Code.
This Security Instrument shall remain in eft~ct until released. Mortgagor agl'ees to pay for any recurdalion costs of such
release.
10. ENVIRONM[ENTAL LAWS AND IlAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law means,
without limitation, the Comprehensive Environmental Response, Compansadol~ and Liability Act (CERCLA, 42 ti.S.C. 9601
et seq.), and all other federal, atari and local lawn, regulations, ordinat~ccs, court orders, attorney general opinions or
interpretive letters concerning the publ/c health, safety, welfare, environmenl or a hazardous substance; and (2) tlazardous
Subslaoce means any toxic, radioactive or hazardous material, waste, pollulanl or contaminanl which has characleristics which
render the snbstance dangerous or potentially dangerous 1o the public health, safety, welfare or eovironnlent. The lei'iii
includes, without limitation, any subslances der'reed as "hazardous malerial," "tonic substances," "hazardous wasle" ur
"hazardous substance" under any Environmental Law.
Mortgagor represents, warrants and agrees that:
A. Except as previously disclosed and acknowledged in writing to Lender, ilo Hazardous Substance is or will be located,
stored or released on or in tho Property. This restriction does not apply to small quanlities of Hazardous Substancas that
are generally recognized to be appropriate for lhe normal use and nlai~llenance of the Property.
B. Except aa previously disclosed and acknowledged in wrt ng to Lender, Mortgagor and every tenant have been, are, and
shall remain in full compliance with any applicable Eoviromnental Law.
C. Mortgagor shall immediately notify Lender ifa release or threatened release ufa Hazardous Substance occurs on, under
or about the Property or there ia a violation of any Environmenlal Law concerning Ihe Property. in such an event,
Mortgagor shall lake all necessary remedial action in accordance with any Envirom~lental Law.
D. Mortgagor shall immedialely notify Lender in writing as soon as Mortgagor has reason to believe there is any panding
or threatened investigation, claim, or proceeding relating to the release or threatened release el' any Hazardous
Substance or the violation of any Environmantal Law.'Pa0o/S/~/
II.
12.
13.
¸14.
15.
16.
ESCROW FOR 'FAXES AND INSURANCE, Unless otherwise provided m a separate agreement, Mortgagor will not be
required to pay to Lender thuds for taxes and insurance in escrow.
JOINT AND INDIVIDUAL LIABILITY; CO-SIGNERS; SUCCESSORS AND ASSIGNS BOUND. All duties undar this
Secuhty Instrument are joint and individual. Il' Mortgagor signs Ihis Security Instrument bul does uti sign an evidence of
debt. Mortgagor does so only to mortgage Mortgagor's interest in the Property Io secure payment of the Sect[red Debt and
Mortgagor does not agree to be persoually liable on the Secured Debt. If this Security lnstrmnent secures a guaranty between
Lender and Mortgagor, Morlgagor agrees to waive any rights that may prevent [.ender from bringing any acnon m' claim
against Morlgagor or any puny indebted nndar the obligation. These righls may include, bul are not linfilcd It. any
anti-deficiency or one-action laws. The duties and benefits of this Security Instrument shall bind and benefit the succossors and
assigns of Mmlgagor and Lender.
SEVERABILtTY; INTERPRETATION. This Security Instrument is complete and Silly integrated This Security
Instrument may not be amended or modified by oral agreement. Any section in this Security Instrument, attachments, or any
agreement related to thc Secured Debt that conflicts with applicable law will not be effective, unless thai law expressly or
impliedly permits fl~e variations by whiten agreement. It'any section ut' this Security Instrument cannol be eat'treed according
to its terms, that section will be severed and will not affect the enforceability nf the ~emainder of this Security lnstrumem.
Whenever used, the singular shall include the plural and the plural the singular. The captions and headings of the sections ti
this Security Instrument are for convenience only and are not Io be used lo interpret or define the terms ol this Seem'try
Instrmnent. Time is of the essence ia this Security Instalment.
NOTICE. Unless otherwise required by law, any notice shall be given by delivering it or by mailing it by tirst class mail to thc
appropriate party's ad&ess on page I of this Security Instrument, or to any other address designated in writing Notice to one
mortgagor will be deemed to be notice to all mortgagors.
WAIVERS. Except to the extent prohibited by law, Mortgagor waives any right regarding the marshalbag of liens and assets
and all homestead exemption rights relating to the Property.
LINE OF CREDIT. The Secured Debt includes a revolving line of credit. Ahhough the Secured Debt may be reduced to a
zero balance, tiffs Security Instrnmant will remain in effect until released.
17. APPLICABLE LAW. This Security Instrument is governed by the laws as agreed Io in the Secured Debt, except to me extent
required by the laws of thc jurisdiction where the Property is located, and applicable federal laws and regulations.
18. RIDERS. Thc covenants and agreemems ti-each of the riders checked below are incorporated into and supplement and around
the terms of this Security Inslmment.
[Check all applicable boxes]
~ Assignmant of Leases and Rents ~ Other Additional Terms Rider to Security Instrument
19. [] ADDITIONAL TERMS.
:272: 9CHULTZ CE636140GG
Exhibit "A"
Lot 70 of Nordic Ranhhes Division No. 5, Lincoln County, Wyoming, according
to that plat filed August 9, 1994 as Plat No. 311-D.
Additional Terms Rider
to Security Instrument
THIS RIDER is made this 30th day of July , 2004 , and is incorporated into and shall be
deemed to atnend and supplement the Security Instrument of the same dale given by the undersigned (tile "Borrower")
to secure Borrower's Home Equity Line of Credit Agreement and Promissory Note
(the "Agreement") to CHASE MANHATTAN BANK USA, N.A.
(the "Lender") dated July 30th, 2004 and covering the Property described in the Security Instrmnent
and located at:
941'SADDLE DRIVE ETNA, Wyoming 83118
{Property Address]
ADDITIONAL COVENANTS. In the case of any conflict with the Sectaity Instn~ment, this Rider
controls. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender fin'ther
covenant and agree as checked below:
[~] A. PRIOR MORTGAGES AND DEEDS OF TRUST. This Security Instru~nent is subordinate to the
ibllowing described first mortgage or deed of trust ("Prior Mortgage"):
Prior Mortgage Original Principal Amount:
Prior Mortgage Original Lender: CF3tSE
Note Date:
Recording Date:
Recorded in Book: Page:
Property Records off Lincoln I '
Borrower warrants and represents that the granting of this Security Instrument is not a default of an event of
default under the Prior Mortgage and that any required consents theretmder have been obtained and delivered to
Lender.
If Borrower fails to make any payment when so due under such loan, or otherwise defaults thereunder,
Lender shall have the fight, but not the obligation, to make such payment directly to the holder of the loan secured by
the Prior Mortgage, to cure such default or to pay in full, the entire indebtedness secured by the Prior Mortgage. All
costs and expenses incurred by Lender to cure such default or to pay the entire indebtedness secured by the Prior
Mortgage:
(i) shall bear interest from the date advanced until paid at the interest rate in effect under the Agreement from
time to time;
(ii) shall be immediately due and payable by Borrower to Lender without notice or demand for payment; and
(iii) shall be and become a part of the indebtedness secured by this Security Instrument up to the amount of
the Credit Limit.
The curing by Lender of any default under the Prior Mortgage, or the payment by Lender of the entire
indebtedness secured thereby, shall not constitute a curing or waiver of the default under this Security lnstnunent
caused by Borrower's default under the Prior Mortgage, and Lender shall remain entitled to exercise all of the rights
and remedies available to it by virtue of such default.
AO6D341
:272: SCHULTZ
Page I of 3 /7////
Borrowers Initials:7~/~/~c/
CE636140GG
(}886
Any act or omission by Borrower which would constitute a default or an event of default under the Prior
Mortgage, shall constitute a default hereunder, without the necessity of giving any notice to Borrower or
affording Borrower any time in which to cure such act or omission. Borrower shall notify Lender within five (5)
days after receipt by Borrower of any notice from the holder of, or trustee named in the Prior Mortgage, noting or
claiming the occurrence of any default, non-payment or non-performance by Borrower or notice of acceleration
under the Prior Mortgage.
Borrower and Lender hereby request the holder of the Prior Mortgage or of any other mortgage,
deed of trust or other encumbrance witl, a lien which has priority over ti,is Security Instrument, to give
notice to Lemler, at Lender's address set forth on page one of this Security Instrument, of any default under
the Prior Mortgage or any other superior encumbrance and of any sale or other foreclosure actiou.
[---] B. FUNDS FOR TAXES AND INSURANCE. Subject to applicable law, Borrower shall pay to
Lender on the day monthly payments are due under the Agreement, until the Agreement is paid in full, a sum
("Funds") for: (i) yearly taxes and assessments which may httain priority over this Security Instrument as a lien
ou the Property; (ii) yearly leasehold payment or ground rents on the Property, if any; (iii.) yearly hazard or
property insurance premiums; (iv) yearly flood insurance premiums, if any; and (v) yearly morlgage insurance
premiums, if any. These items are called "Escrow Items." Lender may, at any time, collect and hokl Funds,
including reserves in excess of the amounts actually needed, using such ~nethods of calculation as may be
authorized or not prohibited, and in an amount not to exceed the maximum amount a lender for a federally related
mortgage loan may require for the Borrower% escrow account under the federal Real Estate Settlement Procedures
Act of 1974, as amended from time to time, 12 U.S.C. Section 2601 et seq. ("RESPA"), unless another law that
applies to the Funds sets a lesser amount, if so, Lender may, at any time, collect and hold Funds in an amount
not to exceed the lesser amount. Lender may estimate the amount of Funds due on the basis of current data and
reasonable estimates of expenditures of further Escrow Items or otherwise iii accordance with applicable law.
The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality,
or entity (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Subject to
applicable law, Lender may require Borrower to pay a one-time charge fi~r a real estate tax reporting service or
flood certification service used by Lender in connection with this loan, unless applicable law Provides otherwise.
Lender shall not be required to pay Borrower any interest or earnings on tile Funds, mfless expressly required by
law to do so. Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing credits
and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds arc pledged as
additional security for all sums secured by this Security Instrument. I '
If the Funds held by Lender exceed the amounts permitted to be lield by applicable law, Lender shall
notify Borrower that Borrower may elect to receive either a direct refund of such excess amounts, or a credit on
Borrower's future monthly installment of Funds. If Borrower fails to make such election within thirty (30) days
after notice has been mailed by Lender to Borrower, the Lender, in its sole discretion, may elect one of the
foregoing options, and notify Borrower of such election. If the amount of the Funds held by Lender at any time
is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case
Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the
deficiency in no more than twelve monthly payments, at Lender's sole discretion.
Upon payment in full of all slims secured by this Security Instnuncnt, Lender shall promptly refund to
Borrower any Funds held by Lender. If pursuant to the Remedies on Default as defined within this Security
Instrument, Lender shall acquire or'sell the Property, Lender, prior to the acquisition or sale of the Property, shall
apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this
Security Instrument.
AO6D342
: 272: SCHULTZ
Borrowers Initial
CE636140GG
083'
C. MORTGAGE INSURANCE. If Lender required mortgage insurance as a condition of making the
loan secured by tlfis Security Instrument, Borrower shall pay the premiums required to maintain the mortgage
insurance in effect. If, for any reason, the mortgage insurance coverage required by Lender lapses or ceases to be
in effect, 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 insurance
previously in effect, from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage
insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the
yearly mortgage insurance premium paid by Borrower when the insurance coverage lapsed or ceased to be in
effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance
payments. Loss reserve payments may no longer be required, at the option of Lender, if mortgage insurance
coverage (in the amount and for the period that Lender requires) provided by an approved by Lender again
becomes available and is obtained. Borrower shall pay the premiums required to maintain insurance in effect, or
to provide a loss reserve, unless and until the requirement for mortgage insurance ends in accordance with any
written agreement between Borrower and Lender or applicable law.
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this
Rider.
SUS32t r... $CHULTZ ~/' -Borrower
_(Seal)
-Boq'ower
_(Seal)
~Borrower
AO6D343
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