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HomeMy WebLinkAbout902071When recorded, mail to: LONG BEACH MORTGAGE COMPANY P.O. BOX 201085 STOCKTON, CA 95202 LOAN NO. 6283374-7988 9020'71 0 21 3 RECEIVED _INOOLN COUF!''1~'~' CLERK [Space Above Tiffs Line For lt, ecording l)alu] MORTGAGE THIS MOR. TGAGE ("Security Instniment") is given on August 13 2004 DAVID MENDENHALL AND TAUNA MENDENHALL, ttUSBAND AND IdlFE Thc mortgagor is ("Borrower"). This Securiiy Instrument is given to LONG BEACH MORTGAGE COMPANY which is organized and existing under the laws of the State of Delaware , and whose address is 1400 S. DOUGLASS RD., SUITE 100, ANAHEIM, CA 92806 ("Lender"). Borrower owes Lender the principal suni of One Hundred Thirty Six Thousand and no/100 .......................................................... Dollars (U.S. $ 136,000.00 ). This debt is evidenced by Borrower's note dated the same date as this Security Instrument ("Note"), which provides for monthly payments, with the full debt, if not paid earlier, due and payable on September 1 , 2034 This Security Instrument secures to Lender: (a) the repay~nent of the debt evidenced by the Note, wid~ interest, and all renewals, extensions and modifications of the Note; (b) the payment of all other sums, with interest, attlvanccd uuder paragraph 7 to protect the security of this Security Instrument; and (c) the performance id' ltorrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender, with power of sale, the following described property located in L1NCOLN County, Wyoming: LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART tlEREOF which has the address of 366 E 5TH AVENUE Wyoming 83110 [Zip Code] WYOMING-Single Family-FNMA/FHLMC UNIFORM INSTRUMENT Form 3051 9/90 ~®-6H(WY) 19403).Ol Amended 1 2~93 VMP MORTGAGE FORMS - (800)52~-7291 ~ Page 1 of 6 TDWY 1 (04102104) PC Initials: AFTON IStrech Ci~yh ("Properly Address"); TOGETHER WITtl all tile improvements now or hereafter erected tm the property, and all easements, appm-lenances, and fixtures now or hereafter a part of the property. All replacements alll. l additions shall also be covered by this Security Instrument. All of the foregoiug is referred to in dfis Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, eXCCl)t for encumbrances of record, Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encmnbrm~ces of record. THIS SECURITY INSTRUMENT combines uniform covenants for m~tional use and non-uuiform covenants with limited variations by jurisdiction to constitute a uniform security instrument covcriug real property. UN1FORM COVENANTS. Borrower and Lender covenant and agtcc as follows: ' 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall prompdy pay when due tim principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. Funds fro' Taxes and Insurance. Subject to applicable law or 1o a written waiver by Lender, Borrower shall pay to Lender on the day ~nonthly payments are due under the Note, until the Note is paid in full, a sum ("Fnnds") for: (a) yearly taxes and assessments which ~nay attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehoht payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiuins, if any; and (f) any sttrils payable by Borrower to Lender, in accordance with the provisions of paragraph 8, in lieu of ~he payment of mortgage insur:mce prenfiums. These items are called "Escrow l~ems." Lender may, at any time, collect marl hold Funds in an amount not to exceed the maximum amount a lender for a federally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlemem Procedures Act of 1974 as amended fi'om time to time, 12 U.S.C. Section 2601 et seq. ("RI'~SPA"), unless another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hohl Funds in an amonnt nol lo exceed the lesser amonnt. Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable law. The Funds shall be held in an institutiou whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is such an institution) or in any Federal } h)mc l..oan Bank. Lender shall apply the Funds to pay the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on tl~e Lands and applicable law permits Lender to make such a charge. However, Lender may require Borrower to pay a one-time clmrgc for an independent real estate tax reporting service used by Lender in connection with this loan, unless applicable law provides otherwise. Uuless an agreement is made or applicable law requires interest to be paid, Lender shall not be required ~o pay Borrower any interest or earnings on the Fumls. Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an aimual accounting of the Funds, showing credits anti debits to the Funds and tli.e purpose for which each debit to the Funds was made. The Funds are pledged as additional security for all sums secured by this Security Instrument. If the Funds held by Lender exceed the anaounts pernfitted to be held by applicable law, Lender shall account 1o Borrower for the excess Funds in accordance with the requirements of applicable law. If the anaount of the Funds held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may st) notify Borrower in wridng, 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 sums secured by this Security Instrument, Lender shall prompdy retired to Borrower any Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisitiou or sate of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against tile sums secured by this Security Instrument. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to any prepayment charges due under tl~c Note; second, to amonms payable under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late charges duc under the Note. 4. Charges; Liens. Borrower shall pay all taxes, assessments, chm'ges, fines and hnpositions attribtuable to the Property which may attain priority over tMs Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the maimer provided in paragraph 2, or if not paid in dmt manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender ;ttl notices of amounts to be paid under dfis paragraph. If Borrower makes these payments directly, Borrower shall promptly fimHsh to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over {his Security Instrument unless Borrower: (a) agrees iu writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests ill good faith the lien by, or defends against enforcement of the lien in, legal proceedings xvhicb in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures frown the holder of the lien ali. agreement satisl~lctory lo Leader subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may amdn priority over this Security Instrument, Lender may give Borrower a notice identifying thc lien. Borrower shall satis¢ il`lc lien or take one or more of the actions set forth above within 10 days of the giving of notice. iI~I®-6H{WY) 19403).01 *DWY2 Page 2 of 6 5. }lazard or Property Insurance. Borrower shall keep the imp~t)vements now ex~stiug or hereafter creeled on tile Property insured against loss by fire, hazards included within tile term "cxteuded coverage" and ally other hazards, iucluding floods or flooding, for which Lender requires insurance. This insurance shall bc maimaiued in the amounts aud for thc periods that Lender requires. The insurance carrier providing the insurance shall bc chosen by Borrower subjec~ to l.ender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, a~ Lender's option, obtain coverage to protect Lender's rights in the Property ill accol'ttauce with paragraph 7. All insurance policies and renewals shall be acceptable to Lender aud shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of dm Property damaged, if the restoration or repair is economically feasible and Icnder's security is not lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to die sums secured by this Security Instrument, whether or not then due, with auy excess paid to Borrower. If Borrower abandolls the Property, or does not answer within 30 days a notice from Lender that d'lc insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or it) pay SUmS secured by this Security Instrument, whether or not then due. The 30-day period will begin when the notice is given. Unless Lender ;md Borrower otherwise agree in writing, any application of proceeds to principal shall uot extcud or postpoue the due date of the ~nonthly payments referred to in paragraphs Iaud 2 or change the alnotmt of thc paymems. Il' under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resuhiug flora damage to the Property prior to the acquisition shall pass to Lender to ibc extent of the stuns secured by lhis Security Instrument immediately prior to the acquisition. 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; I~easeholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after tile execution of this Security Instrument and shall continue to occupy tim Property as Bm-tower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which c,mscnt shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall' not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be ill defauh if any fi~rfciture action or proceeding, whether civil or criminal, is begun that in Lender's good filith judgment could resuh ill lbrlkimre of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing thc action or proceeding to be dis~nissed with a ruling that, in Lender's good faith deternfination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be m dcfauh il' Borrower, during the loan application process, gave materially false or inaccurate inforu-~ation or statemeuts to Lender (or failed to provide Lender with any material information) in conuection with the loan t:videnced by the Note, including, I)ut not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security lusmnnent is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires Ice title to the Property, tile leasehold and the fee title shall not merge unless Lender agrees to the merger ill writing. 7. Protection of Lender's Rights in the Property. If Borrower fails to pertbrm the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly aflkct Lender's rights ill the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or 1o cnl'orce laws or regulatious), then Lender may do and pay for whatever is necessary to protect the value of the Property and l.endcr's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over dfis Security Instrument, appearing in courl, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action uuder this paragraph 7, Lender does not have to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower anti Lender agree to other terms of l)ayment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with inlel'cSt, upon notice from Lender to Borrower requesting payment. 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument, Borrower shall pay the premimns required to maintain the mortgage insurance in effect. If, for ally reason, tile mortgage insurance coverage required by Lender lapses or ceases to be in el'feet, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the mortgage insur,'mce previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect, from ~m alternate mortgage insurer apl)roved 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 being 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, l.oss reserve Fo~m 3051 9/90 -., 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 insurer approved by Lender again becomes available ~d is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, unlil lhe requirement for mortgage insur~ce ends in accord~ce with ~y written agreelnent between Borrower m~d Lender or applicable law. 9. Inspection. Lender or its agent may m~e reasonable entries lq)on alld inspections of the Property. l.ender shall give Borrower notice at the time of or prior to ~ inspection speci~ing reasomtblc cause for the inspection. 10. Condemnation. The proceeds of m~y award or claim for damages, direct or consequential, in connectiou witl~ any condemnation or other t~ing of ~y pa~ of the Property, or for conveyance in lieu of c0ndenmation, are hereby assigned and shall be paid to Lender. In the event of a total t~ing of the Property, the proceeds shall bc applied to the sums secured by this Security lnstmmeut, whether or not then due, with any excess paid to Borrower. In the event of a partial laking of lhe Property in which the fair market value of the Property innnediately before the t~ing is equal lo or greater than the amount of the stuns secured hy this Security Instrument im~nediately before the t~ing, unless Borrower and l.cndcr otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by d~e amount of the proceeds multiplied by the following fraction: (a) d~e total amount of the sums secured immediately before the t~ing, divided by (b) ll~e fair market value of die Property immediately betbre the t~ing. Any balm~ce shall be paid to Borrower. In tl~e evem el: a partial taking of the Property in which the fair market value of the Property immediately before the t~ing is less thau dm amount of the sums secured imn~ediaicly before the l;&ing, unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall be applied to the sums secured by this Security lustrument wheflmr or nol d~e stuns are then due. If the Property is ab~doned by Borrower, or if, after notice by Lender to Borrower that ll~e conde~or offers to make an award or settle a claim for d~unages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect ~d apply the proceeds, at its option, eid~cr h~ restoration or repair of the Property or to lhe sums secured by this Seem'try Instrument, whether or not then due. Unless Lender ~d Borrower othe~ise agree in writing, m~y apl)licadou of proceeds to principal shall not exlend or postpone the due date of the monddy payments referred to in paragraphs I ;uld 2 or change the amount of such payments. 11. Borrower Not Released; Forbearance By Lender Not a Waiver. t;xtension of the dine for payment or modification of amortization of the sums secured by this Security Instrument grm~tcd hy Lcudcr to any successor in interest of Borrower shall not operate to release the liability of the original Bogower or Borrower's successors in interest. Lender shall not bc required to commence proceedings against ~y successor in interest or reMse to extcud dtnc tut payment or otherwise modil~ amortizalion of the sums secured by this Security Instrument by reason of m~y dcmaud made by the original Borrower or Borrower's successors in interest. Any forbear~ce by Lender in exercising ~y right or remedy shall not be a waiver of or preclude the exercise of ~y right or remedy. 12. Successors and Assigns Bound; Joint and Several LiabiliD'; Co-signers. The covenants and agreements of dds Security Instrument shall bind and benefit the successors ~d assigns of kemler and Borrower, subject to ll~e provisions of paragraph 17. Borrower's coven~ts ~d agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (a) is co-signing this Securiiy Instrument only to mortgage, granl and convey d~at Borrower's interest in the Property under the terms of this Security Instrument; (b) is riel personally obligated to pay Ihe sums secured by this Security Instrument; ~d (c) agrees that Lender and any od~cr Borrower may agree to extend, modi~, fbrbear or make :my accommodations with regard to the terms of this Security lnstrumcul or tl~e Note wilhont that Borrower's consent. 13. Loan Charges. If the loan secured by this Security Instruincut is subject to a law which sets maximum loan charges, mM that law is finally interfered so that the interest or other lom~ charges collecled or to be collected in connection with ll~e loan exceed the pernfitted limits, then: (a) ~y such lom~ charge shall hc reduced by the amount necessary to reduce llxc charge to the permitted limit; ~d (b) any sums already collected from Borrower which exceeded permitted limits will be rd:unded lo Borrower. ~nder nmy choose to m~e this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. Ifa ret~nd reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note. 14. Notices. Any notice to Borrower provided for in this Security lnstrtm~cnt shall be given by delivering it or by mailing it by first class mail unless applicable law requires use of another med~otl. Thc notice shall be directed to the Property Address or ~y other address Borrower designates by notice to Lender. Any m~licc to Lender shall be given by first class mail m Lender's address stated herein or ~y other address Lender designates by metice to Borrower. Any notice provided tbr in this Security Instrument shall be deemed to have been given to Borrower or l.cnder when given as provided iu d~is paragraph. 15. Governing Law; Severability. This Security lnstrmnent shall he governed by federal law and the law oldie jurisdiction in which the Property is located. In the event that any provisiou or clause of this Securily Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisitms of this Security Instrument or tile Note which eau be given eftbct without the conflicting provision. To this end the provisions of this Security Instmmenl and lhe Note are declared to be severable. 16. Borrower's Copy. Borrower shall be given one conformed copy of tl~e Note and of this Security lnsmunent. Form 305'1 9/90 ~e-6H{WY) {9403).01 Page 4 of 6 I,,iti~l~ TDWY4 (~/(J2t~) PC .... 17. Transfer of the Property or a Beneficial Interest in Borrower. If all or m~y part of thc Properly or any inlcrcst iu it is sold or tr~st~rred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment iu ~ll of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by l~deral law as of the date of this Security Instrument. If Lender exercises this option, Lender shall give Borrower notice ol* acceleration. The notice shall provide a period of not less th~ 30 days from the date the notice is delivered or mailed widfi, which Borrower must pay all stuns secured by this Security Instrmnent. If Borrower fails to pay these sums prior to the expiration of ~his pc(tod, Lender may invoke any remedies permitted by this Security Instrument without further notice or dem~d on Borrower. 18. Borrower's Right to Reinstate. If Borrower meets certain comlitions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at ~y time prior to thc earlier of: (a) 5 days (or such other period as applicable law may speci~ for reinstatement) bel%re sale of the Property pursuant to m~y power of sale comained m this Security Instrument; or (b) ent~ of a judgment enforcing this Security hnstrumeut. Those conditions are that Borrower: (a) pays Lender ~1 snms which then would be due under this Security Instrument and the No~e as if no acceleration had occurred; (b) cures any default of ~y other coven~ts or agreements; (c) pays all expenses incurred in enlbrcing this Security lnsu*unxcnt, including, but not limited to, reasonable attorneys' fees; ~d (d) t~es sud~ action as Lender may reasooably require lo assm'e that the lien of this Security Instrument, Lender's rights in the Property and Borrower's obligation to pay the sums secured by this Security Instrument shall contilme unchanged. Upon reinstatement by Borrower, this Security Instrument and the obligations secured hereby shall remain ~lly effective as if no acceleration had occurred. However, nhis right to reinstate shall not apply in the case of acceleration under paragraph 17. 19. Sale of Note; Change of'Loan Servicer. The Note or a partial imercst in the Note (together with this Security Instrument) may be sold one or more times without prior notice to Borrower. A sale may result in a change in thc entity (known as the "Lo~m Servicer") that collects monthly payments due under the Nt~tc and this Security Instrument. There also may be one or more changes of the Lo~ Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will he given written notice of the ch~ge in accordance with paragraph 14 above and al)plicable law. The notice will state the name address of tim new Lo~m Se~icer and the address to which payments should be made. The notice will also contain any other information required by applicable law. 20. Hazardous Substances. Borrower shall not cause or permit thc presence, use, disposal, storage, or release of any H~ardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything aft~cling thc Property that is in violation of ~y Environmental Law. The preceding two sentences shall ~ot apply to the presence, use, or storage on the Property of small qum~tities of Hazardous Substm~ces that are generally recognized to be appropriate to normal residenti~ uses and to mainten~ce of the Property. Borrower shall promptly give Lender written notice of any investigation, claim, delnm~d, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any llazardous Substance or Environmental Law of which Borrower has actual knowledge. If Borrower learns, or is notil'icd by any governmental or regulatory authority, that ~y reInov~ or other remediation of ~y H~ardous Subst~ce affecting tl~c Property is necessary, Borrower shall promptly rake all necessary remedial actions in accord~ce with Enviro~ental Law. As used in this paragraph 20, "H~ardous Substm~ces" are those substances defined as toxic or hazardous substances by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, loxic pesticides ~d herbicides, volatile solvents, materials containing asbestos or l~)nnaldehydc, ~d radioactive malerials. As used in this paragraph 20. "Environmental Law" me~s federal laws and laws of thc jurisdiction where the Property is located thai relate to health, safety or environmental protection. NON-UNIFORM COVENANTS. Borrower ~d Lender ~rther covenant and agree as tbllows: 21. Acceleration; Remedies. Lender shall give notice to Borrower prim* to acceleration l'ollowing Borrower's breach of any covenant or agreement in this Security lnstrmnent (but not prior to acceleration umler paragraph 17 unless applicable law provides otherwise). The notice shall specify: (a) the dd'aull; (b) the action reqnired to cure the default; (c) a date, not less than 30 days from the date the notice is given to l~orrower, by which the default must be cured; and (d) that failure to cnre the default on or before the date speciried in Ihe notice may r'esolt in acceleration of the sums secured by this Security Instrument and sale of the Property. The m~lice shall further inform Borrower of the right reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in tine notice, Lender, at its option, may require immediate payment in frill of all sums secured by this Security Instrument wiflmut further demand and umy invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitled to collect all expenses incurred in preening the remedies provided io this paragraph 21, inchnling, but not limiled to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice or intent to foreclose to Bon'ower and to the person in possession of the Property, if difl'erent, in accordance with applicable law. l,ender shall give notice of the sale (~®-6H(WYt (94.03).01 TDW¥5 (04102104) PC Page 5 of 6 Fo[m 3051 9190 No. Borrower in the manner provided in paragraph 14. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by applicable law. Lender Or its designee may purchase the Property at auy sale. The proceeds of the sale shall be al)plied in the following order: (a) to all expenses of the sale, including, but noi limited to, reasonable attorneys' fees; (b) to all sans secured by this Security Instrument; and (c) auy excess lo the person or persons legally entitled to it. 22. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security lnstrmnent to Borrower. Borrower shall pay m~y recordation costs. Lender may charge Borrower a Ice tk~r releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fcc is permitted under applicable law. 23. Waivers. Borrower waives all rights of homestead exemptiou in thc Property and relinquishes all rights of curtesy and dower in the Property. 24. Riders to this Security lnstr,ment. If one or inore riders are executed by Borrower and recorded together with this Security Instrument, the covenants anti agreements of each such rider shall t.)e incorporated into anti shall amend and supplement the coven,'mts m~d agreements of this Security Instrument as if the rider(s) were a part of this Secnrity lnstruumnt. [Check applicable box(es)] [~ Adjustable Rate Rider ~] Condominium Rider [~ 1-4 Family Rider ~-~ Graduated Payment Rider [~ Planned Unit Developmcnl Rider [-~ Biweekly Payment Rider ~] Balloon Rider ~ Rate Improvement Rider [~ Second l lolnc l~ider ~ V.A. Rider ~-~ Other(s) [speci~] BY SIGNING BELOW, Borrower accepts m~d agrees to the ter~s and covenants contained in this Security lustrument and in any rider(s) executed by Borrower ,and recorded with it. Witnesses: ~ ~ ~tS(jx5 (Seal) DAVII) M[~NDENHALL -Borrower TA-15N A iVl END EN 1t ALl! Bm'rowe, (Seal) (Seal) -Borrower -BOl'lOwttf STATE OF WYOMING, Ltnco]~ County ss: by The foregoing instrument was acknowledged before me this My Conm~ission Expires: ¥~/bruary 2, 2006 13ich day of August, 2004 (date) DAvid Mendenhall and Tauna Mendenhall /~"~/TM Nomry l'tJldic (~)~,-6H(WY) (940310'1 TDW Y6 1.04 t02/04 ~ ~ - NOrWay ~c 4~ e6of6 Form 3051 9/90 l~oa~t No. 6283374-7988 ,! LEGAL DESCRIPTION Part of Lot 1 of Block 26 to the Town of Afton, Lincoln County, Wyoming being more particularly described as follows: Beginning at a point which is the Northwest Corner of Lot 1 of Bloc_lc 26 to the Town of Afton, thence South 20 rods; thence East 9 rods; thence North 20 rods; thence West 9 rods to the point of beginning. 09020'71 FIXED/ADJUSTABLE RATE (LIBOR Index - Rate Caps) RIDER THE NOTE RATE AND AMOUNT THE BORROWER'S ADJUSTABLE RATE CAN CHANGE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. THIS FIXED/ADJUSTABLE RATE RIDER is made on this 13th day of August 2004 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date giveu by the undersigned.(the "Borrower") to secure Borrower's Fixed/Adjustable Rate Note (the "Note") to : LONG BEACH M OI~.T(; A(; E COMPANY (the"Lender") of the same date and covering the property described in the Security Instrument and located at: 366 E 5TH AVENUE AFl'ON, WY 83111} [Property Addlcsq PROVIDES FOR A CHANGE IN THE BORROWER'S FIXED INTEREST TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AT ANY ONE ADDITIONAL COVENANTS. In addition to the covena,us and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTIILY PAYMENT C ! IA N G ES The Note provides for ;u~ initial fixed interest rate of a change in the initial fixed rate to an adjustable interest rate, as follows: 7.990 %. The Note also provides for 1. ADJUSTABLE INTEREST RATE AND MONTIH~Y PAYNIENT CIIANGES (a) Chauge Dates The initial tixed interest rate will change to an adjustable intcr~st rate on tile first day of September 2006 , and on the first day of tile month every 6th momh thereafter. Each date on which lhe adjustable interest rate could ch~mge is called a "Change Date." (b) The Index Begimfing with the first Change Date, the interest rate will bc based on an Index. The "Index" is the average of the London interbank offered rates for six month dollar deposits m die London market based ou quotations a~ five major banks ("LIBOR"), as set forth in the "Money Rmcs' section of The Wall Slree! Journal, or it' the Money Rates section ceases to be published or becomes unavailable for any reason, then as set lbrth m a comparable publication selected by the Lender. The most reccm Index figure available as of thc date 45 days before each Change Date is called the "Current Index." (c) Calculation of Changes Before each Change Date, the Lender will calculate my new interest rate by adding Four and Ninety Nine Huudredths percentage ptfim(s) ( 4.990 %) to the Current Index. The Lender 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 l(d) on thc following page, this rounded amount will be the new interest rate until the next Change Date. Fixed/Adjustable Rate Rider - Libor ~-1956016 19560161 (05/0M04) PC Page 1 oi 3 ELECTRONIC LASER FORMS, INC. -(600)327 0545 Loan No. 6283374-7988 The Lender will then determine the ainount of the momhly payment that would he sufficieul to repay Ihe unpaid principal balance as of the Change Date in full oil Ille Maturity Date at the new intmest rate m substantially equal payments. The result of this calculation will be lite llew mouthly paymeut. (d) Limits on Interest Rate Changes The interest rate at the first Change Date will not be greater than 8.990 % or less than 7.990 %. Thereafter, the adjustable interest rate will never be increased or decreased on m~y single Change Date by more than One percentage points ( 1.000 %) from the rate of interes~ applicable during the preceding 6 months. The adjustable interest rate will never be greater than 13.990 %, which is called tile "Maxi~nmn Rate" or less than 7.990 % which is called the "Minimum Rate". (el Effective Date of Changes Each new adjustable interest rate will become effective on each Change Date. The amotmt of each new monthly payment will be due and payable on the first momhly payment date after the Chmige Date until the amount of the monthly payment changes again. (0 Notice of Changes The Lender will deliver or mail a notice of any changes in the adjustable interes~ rate and the amotmt of the new monthly payment to the Borrower before the effective date of any change. The notice will inch,de information required by law to be given to the Borrower and also the title aud telephone uumber of a person who will answer any questions regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower's initial fixed interest rate changes to ali adjustable interest rate under the terms stated in Section A above, Uifiform Covenant 17 of the Security Instnnnent provides as follows: Transfer of the Property or a Beneficial Interest in Bor,'owe,'. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its optiou, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by l.ender if exercise is prohibited by federal law as of the date of this Security Instrument. 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 delivered or mailed within which Borrower must pay all sums 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 Instrument without further notice or demand on Borrower. 2. When Borrower's initial fixed interest rate changes to an adjustable imerest rate under Ihe terms staled in Section A above, Uniform Covenant 17 of the Security Instronlent contained in Section B(I) above shall then cease to be in effect, and Uniform Coveuant 17 of the Security lnslrument shall be amended to read as lbllows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment iii full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if Fixed/Adjustable Rate Rider - Libor ~-1956016 195~o1 19560162 (05/03/04) PC Page 2 ot 3 Loan No. 6283374-7988 0902:05'1. exercise is prohibited by federal law as of the date of this Security lnstrun~ent. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the inteuded transferee as if a new loan were being made to the transferee; aud (b) Lender reasonably deternfiues that Lender's security will not be impaired by the loan assumption and that thc risk of a breach of m~y covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by applicable law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender also ~nay require the lransferee to sign an assnmption agreetnent that is acceptable to Lender and that obligates the transferee to keel) all the promises and agreements ~nade in tl~e Note and in this Security Instrument. Borrower will continue to be obligated under the Note and Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days fi'o,n the date the notice is delivered or mailed within which Borrower must pay all sums secured by Ibis Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by dfis Security Instrument without further notice or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants coutaiued iii this Fixed/Adjustable Rate Rider. DAVID MENDENHALL -Borrower TAUNA 51ENI)ENHALE -Borrowcl (Seal) (Seal) -Borrower -Borfowel [Sign Original Only] Fixed/Adjustable Rate Rider - Libor ~-1956016 19~0} TM 19560163 (05/03/04) PC Page 3 ot 3 Loan No. 6283374-7988