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HomeMy WebLinkAbout902080After Recording Return To: 9 0 2 0 8 0 BRIDGE CAPITAL CORPORATION 25391 COMMERCENTRE LAKE FOREST, CALIFORNIA 92630 Loan Number: 1040804003 [Space Above This Line For Recording Da[a] MORTGAGE MIN: 1001729-1040804003-8 DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, l 1, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this docmuent are also provided in Section 16. (A) "Security Instrument" means this document, which is dated AUGUST i2, 2 004 , toged,er with all Riders to this document. (B) "Borrower"is SHELLEY D. FAIRBANKS AND BUCKLEY D. FAIRBANKS Borrower is the mortgagor under this Security Instrument. (C) "MERS' is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporatinn that is acting solely as a nondnee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and bas an address and teleplmne nnmber of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. (D) "Lender"is BRIDGE CAPITAL CORPORATION Lender isa A CALIFORNIA CORPORATION and existing under the laws of CALI FORNIA Lender's address is 25391 COMMERCENTRE, LAKE FOREST, organized CALIFORNIA 92630 (E) "Note" means the promissory note signed by Borrower and dated AUGUST 12, 2 0 0 4 The Note stales fl~at Borrower owes Lender ONE HUNDRED NINETY-FIVE THOUSAND FIVE HUNDRED AND 00/100 Dollars (U.S.$195,500.00 ) plus interest. Borrower has prondsed to pay this debt in regular Periodic Paymenls and to pay the debt in dali not Inlet than SEPTEMBER 1, 2034 (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (O) "Loan" means the debt evidenced by the Note, plus interest, any prepayment cbarges and late charges due under the Note, and all sums due under this Security Instrmnent, plus interest. Borrower Initials: WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENI - MERS Form 3051 1/O1 Page I of 13 DocMagic ~ ao064 9. ~ 362 www. docmagic, corn 0902090 (H) "Riders" means all Riders to this Security Instrument that are execuled by Borrower. The following Riders are to be executed hy Borrower [check box as applicable]: [] Adjustable Rate Rider [] Condominium Rider [] Second Hmue Rider [] Balloon Rider [] Planned Unil Development Rider [] Oilier(s) [specify] [] 1-4 Family Rider [] Biweekly Pa)qnenl Rider PREPAYMENT RIDER TO SECURITY INST (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Conunmfity Association Dues, Fees, and Assessments" means all dr, es, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium associaliou, homeowners associatiou or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other thou a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrunient, computer, or magnetic tape so as to order, instruct, or authorize a financial instituliou m debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid hy auy third party (oilier than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condelnnation or other taking of all or any part of the Property; (iii) conveyance ill lieu of condemnation; or (iv) misrepresentations of, or omissions as to, tile value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loau. (O) "Periodic Payment" means the regularly scheduled amount due fi~r (i) priucipal and hiterest under the Note, plus (ii) any amounts under Section 3 of this Security Instroment. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended fi'on! time to time, or any additional or successor legislation or regulation that governs the same subject mailer. As used in this Seem'try Instrument, "RESPA" refers to all requirements and restrictions that are imposed iii regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" uuder RESPA. (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of lbe Loan, and all renewals, extensions and znodifications of the Note; and (ii) the performance of Borrower's covenants and agreements uuder this Securily Instrument and the Note. For this purpose, Borrower does hereby morlgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property located in the COUNTY of LINCOLN : {Type of Recording Jurlsdldion] lName of Recording Jurisdiction] LOT 53 OF NORDIC RANCHES DIVISION NO. 4, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT FILED AUGUST 9, 1994 AS INSTRUMENT NO. 787903 OF THE RECORDS OF THE LINCOLN COUNTY CLERK. A.P.N. #: 12-3619-26-1-00-053.00 Borrower IMtials: ~ ~'~l'~lOtJ¢ WYOMING--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMEN7 - MERS DocMagic~J'm,.~ Form 3051 1/01 Page 2 of 13 www. docmagic, com which currently has the address of 825 SADDLE DRIVE ETNA , Wyoming 8313~ 8 [tiff] 1Tip Code] I$:reetl ("Property Address"): TOGETHER WITH all the improvelnents now or hereafter erected on the property, and all easemems, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions si:all also be covered hy this Security Instrument All of the foregoing is referred io in rids Security Ii~strmnent as tl~e "Property. TM Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrumem, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, includiog, bul not limited to, lite right to foreclose aod sell the Property; and to take any action required of Lender including, but oot limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised nf Iht estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for eocmnbrances uf record. Borrower warrants and will defend generally the title to lhe Property againsl all claims anti demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT comhines uniform covenants for national use and non-uniform covenants wilh limited variations by jurisdiction to constitute a uniform security instrument covering real properly. UNIFORM COVENANTS. Burrower and Lender covenant and 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 tile Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow llems pursuant to Section 3. Payments due under the Note and this Security Instrmnent shall be made in U.S. currency, ttowever, if any check tlr olher instrmnent received hy Lender as payment under the Note or this Sectn'ity Instruntent is returned to Lender unpaid, Lender may require that any or all subsequent payments due under Ibc Nole and this Security Instrmnent be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bauk check, treasurer's check or cashier's check, provided any such check is drawn upoo an institution whose deposits are iosured by a federal agency, instrmnentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at tl~e location designated in tile Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or parlial payment if the payment or partial payments arc insufficient to bring the Loan currenl. Lender may accept any payment or partial payment insufficient to bring Ibc Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments alt tile time such payments are accepted. If each Periodic Paymeut is applied as of its scheduled due date, then Lender need not pay interest on unapplied hinds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediaiely prior Io foreclosure. No offset or claim which Borrower might have now or in the future against Lender si:all relieve Borrower from making paynlents due under the Note and this Security Instrument or performing ihe covenanls and agreements secured by lhis Securily Instrument. 2. Application of Payments or Proceeds. Except as od~erwise 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 Ihe Note; (b) priflcipal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining anmunls shall be applied first to la/o' charges, second to any other amounts due under this Security Instrument, and theu lo reduce lite principal balance of d~e Nole. If Lender receives a payment from Borrower for a delinquenl Periodic Payment which includes a suflicieol amount to pay any late charge due, the payment may be applied to lt:e delinquent payment and tile late charge. If more than one Periodic Payment is outstanding, Lender may apply say paymenl received fi'out Borrower to tile WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS Form 3051 1/O1 Page 3 of 13 DocMagic ~a~ 8oo~a49. ~ saz www. docmagic, corn 09O O O repayment of tile Periodic Payments' if. and to the extent that, each l~aylucn! (:all be paid in fldl. To the ex~euE that any excess exists after tile payment is applied to the full payment of one or more Periodic Paymems, such excess may be applied to any late charges due. Voluntary prepayments .shall be applied first to any prepaymenE charges and then as described in the Note. Ally application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under lhe Note shall not extend or postpone the due date, or change the amount, of lhe Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender nn die day Periodic Payments are due under tile Note, until lhe Note is paid in full, a sum (the "Funds") to provide fi~r payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security luslrument as a lien or encumbrance on tile Property; (b) leasehold payments or gromld rents on the Property, if a.y; (c) premiums for ally and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender ill lieu of the payment of Mortgage Iusurance premimns in accm'dance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time duriug lhe term of the Loan, Lender may require that Community Association Dues, Fe, es, and Assessmeuts, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnisl! lo Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay tile Funds for any or all Escrow Items. Lender may waive Borrower's obligation tu pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be ill writing. In the evenl of such waiver, Borrower shall pay directly, when and where payable, the amounts due filr any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish Itl Lender receipts evidencing such payment wilhin such time period as Lender may require. Borrower's obligation Ia make such payments and lo provide receipts shall for all purposes be deemed to be a covenant and agreement conlained in this Security Instrunlenl, as tile phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for all Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Seclioo 9 to repay to Lender any such amouot. Lender may revoke the waiver as to any or all Escrow Items at ally tinle by a notice giveu in accordance wilh Section 15 and, upon such revocation, Borrower shall pay to Lender ali Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds ill an amount (a) sufficient to permit Leuder to apply the Fuuds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of cmTenl dala and reasonable estimates nf expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an iustitution whose deposits are insured hy a federal agency, instrmnentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in ally Federal Home Loan Bank. Leuder shall apply tile Funds to pay the Escrow Items no later than tbe time specified under RESPA. Leuder shall not charge Borrower for holding and applying tile Funds, annually analyzing the escrow account, or verifying tile Escrow Items, unless Lender pays Borrower interest on the Funds aud Applicable Law penuits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires iuterest to be paid oil the Funds, Lender shall ual be required to pay Borrower any interest or earnings ,n Ihe Funds. Borrower and Lender can agree in writing, however, that interest shall be paid oil the Funds. Lender shall give to Borrower, without charge, all annual accounting of tile Funds as required by RESPA. If there is a surplus of Funds held ill 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 beld in escrow, as defiued under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 mo.thly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borr~wer as required by RESPA, and Burrower shall pay to Lender lhe amount necessary to make up the deficiency in accordance with RESPA, bu! in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instml'nent, Lender shall prmnptly refund lo Borrower any Funds held by Lender. Borrower Initials: WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS DocMagic~:~c~ aoo-6~9-~Ja~ Form 3051 1/01 Page 4 of 13 www. docmagic, com 0 '" 7 5 4. Charges: Liens. Borrower shall pay all taxes, assessments, charges, flues, and impositions attribulable to lhe Property which can allain priority over this Security Inslrumenl, leasehold payments or grouud rems on the Property, if any, and Conmmnity Association Dues, Fees, and Assessmems, if any. To the extent lbat diese items are Escrow Items, Borrower shall pay them in lhe manner provided iu Section 3. Borrower shall promptly discharge any lien whicb bas priority over this Security Instrument unless Borrower: (a) agrees in writing to the pa]anent of the obligation secured by the lieu in a ma nner acceplable lo Lender, but only so long as Borrower is performing such agreement; (h) contests tile lien in good faitb by, or defends againsl enforcement of the lien iii, legal proceedings which in Lender's opinion operam to prevent ihe enforcement of the lieu while those proceedings are pending, but only until such proceedings are concluded: or (c) secures from the bolder of the lien an agreement satisfaclory to Lender subordinating lbe lien In lhis Security Inslrumeut. If Lender determines that any part of the Property is subject Io a lien which can allain priority over this Security histrument, Lender may give Borrower a notice identifying the lien. Wilhin 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estale tax verification and/or reporting service used hy Lender in connection with lhis Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Properly insured against loss by fire, hazards included within the terru "exlended coverage," and any oilier hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This iusurance shall be maintained in the amounts (including deductible levels) and for ibc periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loau. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right It} disappruve Borrower's choice, which rigbl shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one- time charge fi~r flood zone determination, certification and tracking services; or (b) a oue-lime charge for flood zone determinatinn and certification services and subsequent charges each iin|e remapplngs or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible fur the paymeut of any fees imposed by the Federal Emergency Management Agency in counection with the review of any llood zone determination resulting from an objection by Borrower. If Borrower fails Io maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no ohligalion lo purchase any particular type or amouut of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or lhe contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cosl of insurance that Borrower couhl have obtained. Any amounts dishnrsed by Lender under this Section 5 shall become additional debt of Borrower secured by ibis Security Instrmnent. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such inlerest, upon notice from Lender to Borrower requesting payment. All insurance policies required hy Lender and reuewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as au additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains auy form of insurance coverage, not otherwise required by Lender, for damage lo, or destruction of, the Property, such policy shall include a standard .mortgage clause and shall name Lender as mortgagee and/or as an additioual loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall he applied Io resloralion or repair of the Property, if the resloralion or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall bare the rigt, to hold such insurance proceeds until 1,ender has had an opportunity to inspect such Property to ensure the work bas been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds fix' the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement Borrower Initials:~2~5 ~1'2[0C~ WYOMING--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT -MERS Form 3051 1/01 Page 5 of 13 DocMagic ~ 000-649-1362 www. docm;~gic, corn is made in writing or Applicable Law requires interest to be paid on such iusurance proceeds, Lender shall uot be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or olher third parties, retained by Borrower shall not be paid out of the insurance proceeds dud shall be tim sole obligation of Borruwer. If the restoration or repair is uot ecouomically feasible or Lender's security wmdd be lessened, the iusurance proceeds shall be applied to the sums secured by this Security Instrument, whelber or not theu due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided fur iu Section 2. If Borrower abandons the Property, Lender may file, negotiate dud settle any available insurance claim and related runners. If Borrower does not respond within 30 days to a uolice from Leuder that the insurance Carrier bas offered to settle a claim, then Lender may negotiate and settle the clahn. The 30-day period will begin when tile notice is given. In either evem, or if Lender acquires the Property under Section 2.7. or otherwise, Borrower hereby assigns tO Lender (a) Borrower's rights to any insurance proceeds in au amount not to exceed tile amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right m any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to lhe coverage of the Property. Lender may use the insurance proceeds either to repair or resture the Property or to pay amounts unpaid under the Note or this Security Insm, nmnt, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal resideuce within 60 days after the execution of this Security Instrulnent and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Leuder otherwise agrees itl writlug, which consent shall not be unreasonably wittdleld, or unless extenuatiug circmnstances exist which are beyoml Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall nol destroy, damage or impair the Property, allow tbe Property to deteriorate or cmnndt waste on the Property. Whether or not Borrower is residing In the Property, Borrower shall maintain the Properly in order to prevent the Property frum deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condelnnatlon proceeds are paid in connectiml with danlage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs dud restoration in a siugle payment or iu a series of progress payments as the work is completed. If the insurance or condeomatlon proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspectious of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be iu default if, during rile'Loan application process, Borrower or any persons or entitles acting at the direction of Borrower tlr with Borrower's knowledge or consent gave materially false, misleading, or Inaccurate information or statemeuts m Lender (or failed to provide Lender with material information) in connection with the Loan. Material represeututious include, but are not Ihnlted to, representations concendng Borrower's occupancy of fl~e Property as Bor,'ower's principal resideuce. §. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower falls to perform the covenants and agreements contained iu lifts Security Instrument, (b) there is a legal proceeding that ufight significantly affect Lender's interest in the Property dud/or rights under this Security lnstrumeut (such as a proceeding in bankruptcy, probate, for condemnation or fm'Mture, for enforcement of a lieu which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoued the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's luterest itl the Property and rights under this Security Instrument, including protecting and/or assessiug the value of the Property, and securing and/or repairing the Property. Lender's actions can iuclude, but are uot linfited to: (a) paying any stuns secured hy a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under Ibis Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited m, entering the Property Io make repairs, change locks, replace or board up doors and windows, drain water from pipes, elimiuate building or WYOMING-.Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS DocMaflic~m Boo-a49-13a2 Form 3051 1/01 Page fi of 13 www. docmagic, com O902OEO other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. Il is agreed that Lender incurs no liability for not taking any or all actions authorized tmdeF ibis Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured hy this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall coH,ldy wilh all the provisions of the lease. If Borrower acquires fee title to the Property, the leasebold and tbe fi.~e title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insm'allce as a condition of making tile Loan, Borrower sball pay the premiunrs required to utaintain the Mortgage Insurance iu effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from thc mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payulents toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain cow, rage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent 1o tile cost to Borrower of lhe Mortgage Insm'al~ce previously iu effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender tile amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lemler sball not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by au insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a conditiou of making the Loan and Borrower was required to nlake separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any writlen agreement between But'rower and Lender providing for such termination or until ter~Mnation is required by Applicable Law. Nolhing in this Seciion 10 affects Borrower's obligation to pay interest at the rate provided in the Nnte. Mortgage Insurance reimburses Lender (or any entity that purchases Ibc Nole) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force fi'om time to time, and may enter into agreements with other parties that. share or modify their risk, or rethn'e losses. These agreemeuls are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that tile mortgage Insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of tile Note, anolher insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or i,ldirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreemenl provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premimns paid to the insurer, the arrangement is often termed "captive reiusurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will uot increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, tn have the Mortgage Insurance terndnated automatically, and/ur to receive a relhod of any Mortgage Insurance premimns that were unearned at the time. of such cancellation or termination. Borrower Initials: WYOMING--Single Family.-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS Form 3051 1/01 Page 7 of 13 ¢ DocMa~lic ~ eoo. 6,~a. mee www. docmagic, corn ODO° OEO 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's securily is no! lessened. During such repair and restoration period, Lender sh',dl have the right to hold such Miscella,mous Proceeds until Lender bas bad an opportunity to inspect such Property to ensure the work has been comph.~ted to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for tl~e repairs and restoration in a single disbursement or in a series of progress payments as tile work is completed. Unless att agreemeut is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, L(mder 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, the Miscellaneous Proceeds shall be applied to the sums' secured by this Security Instrument, whether or nol 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 lhe event of a total taking, destruction, or loss in value of the Property, the Miscella'neous Proceeds shall be applied to the sums secured by this Security Instrmnent, whether or nnl lben due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of lire Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss itl value is equal to or greater than the amount of the sums secured by this Security Instrument immediately befure the partial Inking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by d~is Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fi'action: (a) lhe total amount of lhe sun'ls secured imulediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss iq value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of lite Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss irt value is less than the anlounl of lite sums secured immediately before the partial taking, destruction, or loss itl wdue, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whetber or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that tile Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Burrower fails to respond to Lender within 30 days 'after the date the notice is given, Lender is aud~orized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by Ibis Security Instrumenl, whether or not then due. "Opposing Party" means lhe third party that owes Borrower Miscellaneous Proceeds or tile party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shMl be in default if any action or proceeding, whether civil or criminal, is begun that, in Leuder's judgment, could result in forfeiture of lhe Property or oilier material impairu~eot nf Lender's interest in ll~e Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration bas occurred, reioslate as provided in Section 19, by causing tile action or proceeding to be dismissed with a ruling tttat, in Le,Mer's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Tile proceeds of any award or clabn for damages that are attributable to tile impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoratiou or repair of tbe Property shall be applied in the order provided for in Section 2. 1Z. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time fi~r payment or modification of amortization of the sums secured by this Security Inslrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liabilily of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borruwer or to refuse to extend time for payinent or otherwise modify amo,lization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interes! of Borrower. Any forbearance by Lender in exercising any right or remedy includit~g, withnut limitation, Lender's acceptance of Borrower Initials:~)~t~ ~}7~10~ WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS Do~Ma.~¢~?~7~ut~ aoot~49-15~2 Form 3051 1/01 Page 8 of 13 www. dacmagic.~;om payments from third persons, entities or Successors in Interest of Borrower m' in amounts less than the ammmt lhen due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shail be joint and several. However, any Borrower who co-signs this Security Instrument but does nol execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's Interest in the Property under the terms of this Security Inslrument; (b) is not personally obligated to pay the sums secured by this Security Instrmnenl; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the lerms of dds Secu~ty Instrmnent or the Note without the co-signer's consent. Subject to the provisinns of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, sball obtain all ot'Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release io writiog. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connectiou with Borrower's default, for the purpose of protecting Lender's interest in tile Property and rights under this Security Iostrument, including, hut not limited to, attorneys' fees, property inspection and valnatinn fees. In regard m any other fees, the absence of express authority in this Security Instrmnent to cbarge a speciBc fee to Borrower shall nol be conslrued as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Iustrun~ent or by Applicable Law. If tile Loan is subject to a.Jaw which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connectitm with the Loan exceed the permitled limits, lhen: (a) any such loan charge shall be reduced hy the amount necessary to reduce the charge to the permitted iimil: and (b) any sums already collected from Borrower which exceeded Imrmitted limits will be refmuled to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be lrealed as a partial prepayment without any prepayment charge (whether or not a prepayment charge Is provided tilt' under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be io writing. Any notice to Borrower in connection with this Security lnstrumeut shall be deemed to have been giveu to Borrower when mailed hy first class mail or when actually delivered to Borrower's notice adtkess if sent by other means. Notice to any one Borrower shall constitute notice to all Bm'rowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower bas designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Leuder specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address dlrough that specified procedure. There may be only one designated nolice adilress under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in cmmectiou with this Security Instrument shall not be deemed to have been given Io Lender until actually received by Lender. If any notice required by tills Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this £ecurity Instrument. 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 cm~tained in this Security Instrument are subject to any requirements and Iimitadm~s of Applicable Law_ Applicable [,aw might explicitly or implicitly allow the parties to agree by contract or il might be silent, but such silence shall nol be conslrued as a prohlbitinn against agreement by contract. In the ewmt that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall no! affect other provisions of this Security Iostrument or the Note which can be given effect without the conflictiug prnvision. Borrower luitials: ~(~19~ b14 WYOMING--Single Family~-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS Form 3051 1/O1 Page 9 of 13 www. docrnagi¢, corn 0 :'3' ? '3 As used in this Security Instrmnent: (a) words of the masculine gender shall mean and iuclude corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include lhe plural and vice versa; and (c) the word "may" gives sole discretion withoutany obligalion to take any action. 17. Borrower's Copy. Borrower shall be given one copy of tile Note and of this Security InsUmneut. 18. Transfer of the Proper~ or a Beneficial Interest in Borrower. As used iu this Section 18, "Interesl iu the Properly" means any legal or beneficial interest in the Property, including, but not limited to, lhose beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the inlem of which is tile transfer of tide 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 nula natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior wrillen consent, Lender may require immediate payment in full of all stuns secured by lhis Security Instrument. Itowever, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. 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 Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to lhe expiralion of this period, Lender may invoke any remedies permitted by this Securily lnslrument without further nulice or demand on Borrower. 19. Burrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontimmd at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale coalaiued in this Security lustrumeni: (b) such other period as Applicable Law might specify for lhe termination of Borrower's rigbl to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Burrower: (a) pays Lender all sums which then would be due under this Security Instrument and tile Note as if no acceleratimi had occurred; (b) cures any dehull of any other covenants or agreements; (c) pays all expenses incurred itl enfl~rcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection ami valuatioo fees, and other fees incurred for the purpose of protecting Lender's interest in the ProPerty and rights under this Security Instrmnenl; and (d) takes su,h action as Lender may reasonably require to assure that Lender's interest iu the Property and rights uoder this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall coutinue unchanged. Lender may require that Borrower pay such reinstatement sun,s and exl~enses in one or more of the following 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 whose deposils arc iusured by a federal ageucy, instrmnentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security lnstrmnenl and obligatim~s secured hereby shall remain fully effective as if no acceleration had occurred, ltowever, this righl to reinslale shall not apply in lhe case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Griewmce. The Nole or a partial iulerest in tile Note (together with this Security Instrument) can be sold one or more times willmul prior notice to Borrower. A sale might result in a change in the entity {known as tile "Loan Servicer") that collects Periodic Payments due uoder tile Note and this. Security Instrument and performs other ~nortgage loan servicing obligations under the Note, this Security Instrument, and Applicable LaTM. There also might be one or more changes of the Loan Servicer unrelated Io a sale of the Note. If there is a change of the Loan Servicer, Borrower will he given written notice of the change which will state the name and address of the new Loan Servicer, the address Io which payments should be made and any oilier information RESPA requires in connection with a 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 die Note, lite mmlgage loan servicing ohiigadons to Borrower will remain with the Loan Servicer or be transferred lo ii successm' Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may connnence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security hlstrument or that alleges that the other party has breached any provision of, or any duly owed by reason of, tbis Security InsU'mueot, until such Borrower or Lender has notified lhe other party (with such m~lice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time lml'iod which must elapse before certain action WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS DocMa~lic~,~ Boo-ti49-7362 Form 3051 1/01 Page 10 of 13 www. docmagic, com 09020S0 can be taken, that time period will he deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Secdon 2.2 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the nutice aud opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "llazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by E~virom~enlal Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, loxic pesticides and herbicides, wdatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Enviromnental Law" means federal laws and laws of the jurisdiction where die Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a cnndidon that can cause, conlribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Subslances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow a,~yone else to do, anything affecting the Property (a) tt~at is in violation of ;my Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Suhstance, creates a condition tbat adversely affects the value of the Property. The preceding two sentences shall not apply to presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, bul not limiled hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party inw~lving d~e Property and any llazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, includiug but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substauce which adversely affects lhe value' of the Property. If Borrower learns, or is notified by any govenm~ental or rt~g~,latory aud~ority, or any private party, that any removal or other remediation of any Hazardous Substance affecting tl~e Property is ~ecessary, Borrower shall promptly take all necessary remedial actions in accordance with Envirnmnc~ltal Law. Nothing herein shall create any obligation on Lender for an Enviroumental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender fl~rlher covenant and agree as foll~ws: 22. Acceleration; Remedies. Lender shall give notice to Burrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instru,ue~t (but 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 fi'om the date the notice is given ta Borrower, hy which the default must he cured; and (d) that failure to cure the default on or befnre the date specified in 11,e notice may result in acceleration of the sums secured by this Security histrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleratinn and the right to bring a court action to assert the nan-existence of a default nr any other defense of Burrower to acceleration and sale. If tl~e default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument withuut further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Bm'rower and to the person in possession of the Property, if different, in accordance wit h Applicable Law. Lender shall give notice of the sale tu Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and tl~e Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase tl~e Property at any sale. The proceed~ of the sale shall be applied in the following order: (a) to all expenses of tl~e sale, including, but not limited to, reasonable attorneys' feet; (b) to all sums secured hy this Security Instrument; and (c) any excess to the person or persons legally endded to it. Borrower Initials'~¢ ~ WYOMING--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUM£NT - MERS Form 3051 1/O1 Page 11 of 13 13ocMagic ~-~:~ 800 649- ~ 3~2 Wt4/W. dOClT~a gJc. COl7~ 23. Release. Upon payment of all sums secured by this Security lnstrunient, Lender shall release ibis Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasiug this Secmity Instrument, but only if the fee is paid to a third party for services remlered and the charging of fire fee is perudtted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and hy virtue of the homestead exemption laws of Wyoming. BY SIGNING BELOW, Borrower accepts and agrees to the wrms arid covenants contained iu this Security Instrument and in any Rider executed by Borrower and recorded wilh it (Seal) (Seal) ~gorrower -Borrower (Seal) (Seal) -Borrower ~Borrower Witness: WYOMiNG--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS DocMa~tic~,~ 8oo-t~49-z~6z Form 3051 1/O1 Page 12 of 13 www. docmagic, com State of Wymning ) County of LINCOLN ) The foregoing instrument was acknowledged befnre me by S lq E L L E Y BUCKLEY D. FAIRBANKS this } o,9::~ day of Witness my hand and official seal. D. FAIRBANKS, (Seal) WYOMING-Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS Form 3051 1/O1 Page 13 of 13 DocMa~liC ,~ 800649-1362 vuww. docmagic, corn O OgO80 Min: 1001729-1040804003-8 Loat% Number: 1040804003 ADJUSTABLE RATE RIDER (6-Month LIBOR Index - Rate Caps) (Assumable during Life of Loan) (First Business Day of Preceding Month Lookback) THIS ADJUSTABLE RATE RIDER is made this 12th day of AUGUST, 2004 and is incorporated into and shall be deemed to amend and supplement tile Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure the Borrower's Adjustable Rate Note (the "Note") to BRIDGE CA?ITAL CORPORATION, A CALIFORNIA CORPORATION (the "Lender") of the same date and covering the property described itl thc Security Instrument and located at: 825 SADDLE DRIVE, ETNA, WYOMING 83118 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CtIANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreeutents made in the Secm'ity Instrument, Borrower and Lender further covenant and agree as fi~llows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES Tile Note provides for an initial interest rate of 8. '750 %. in the interest rate and the monthly payments, as follows: The Note provides for chauges 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate l will pay may change on the 15t dayof SE?TEMBERt 200? and may change on that day every sixth nmnth thereafter. Each date nn which my interest rate could change' is called a "Change Date." (B) The Index Beginning with the first Change Date, my interest rate will be based on an Index. The "Index" is tile six nionth London Interhank Offered Rate ("LIBOR") which is tile average of interbank offered rates for six-month U.S. doilar-denonfinated deposits in the London market, as published in The Wall StreetJottrn;d. The most recent Index figure available as of the first business day of tile month immediately precediug the month in 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 which is based upon comparable information. The Note Holder will give me notice of this choice. MULTISTATE ADJUSTABLE RATE RIDER - 6-Month LIBOR Index (Assumable During Life of Loan) (First Business Day Lookback) Single Family--Freddie Mac MODIFIED INSTRUMENT Form 5120 3/O4 Page 1 of 3 dot:magic. O O Oc O (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding EIGHT AND 750/1000 percemagepoint(s) ( 8.750 %) to the Current Index. The Note Holder will then round the result of ibis addition m the nearest ooe-eighth of one percentage point (0.125%). Subject to the limits stated in Section ,1 (D) below, this rounded amomn will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the momb{y paymem that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date iu full on the matm'ity date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than; 11.750 % or less than 8.750 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than ONE AND 000 / 1000 percentage point(s) ( 1.000 %) from the rate of interest I have been paying for the precedh~g slx months. My interest rate will never be greater than 14.7 5 0 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after Ibc Change Date until the amount of loy monthly payment changes again. {F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my Interest rate and the anmunt of my monthly payment before the effective date of any change. Tbe nodce will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Section 18 of the Security Instrument is amended to read as follows: 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 Ibc transfer of title by Borrower at a future date to a purchaser. If ali 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 Borruwer is sold or transferred) wilhout 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 ifsucb exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender rei~sonably determines that Lender's security will not be impaired by the loan assumption and that tim risk of a breach of any covenant or agreement in this Security Instrmnent is acceptable to Lender. MULTISTATE ADJUSTABLE RATE RIDER - 6-Month LIBOR Index (Assumable During Life of Loan) (First Business Day Lookback) Single Family--Freddie Mac MODIFIED iNSTRUMENT Form 5120 3/O4 Page 2 of= 3 www. docmaQJc, corn 0 0 080 To the extent permitted by Applicable Law. Lender may cbarge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender: may also require the Iransferee to sigu an assumption agreemem that is acceptable to Lender and Ihat obligates tile transferee m keep all the promises and agreements made in the Note and in this Security Inslrument. Borrower will continue to be obligated under the Note and this Security Instrumem unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment i,~ full, Lender sba Il give Borrower notice of acceleration. The notice shall provide a period of nol less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to tile expiration of this period. Lender may invoke any remedies penni,ed by this Securily lnslrume,~t without further notice or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to Ibc u~rms and covenants contained in tbis Adjustable Rate Rider. SHELLEY~D. FAIRBANKS -Borrower BUCKLE ~./D. "fir~'~'~ ''~ ~-¢-'~- (Seal) FAIRBANKS -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower MULTISTATE ADJUSTABLE RATE RIDER - 6-Month LIBOR Index (Assumable During Life of Loan) (First Business Day Lookback) Single Family-Freddie Mac MODIFIED INSTRUMENT Form 5120 3/04 Page 3 of 3 ww~v. docma gic. corn 0:902080 PREPAYMENT RIDER Loan Number: 1040804003 Date: AUGUST 12, 2004 Borrower(s): SHELLEY D. FAIRBANKS, BUCKLEY D. FAIRBANKS THIS PREPAYMENT RIDER (the "Rider") is made this 12 t h day of AUGUST 2 0 0 4 , , and is incorporated into and shall be deemed to ainend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned ("Borrower") to secure repayment of Borrower's promissory irate (tim "Note") in favor of BRIDGE CAPITAL CORPORATION ("Lender"). The Security Instrument encumbers the Property more specifically described in the Security Instrument and located at 825 SADDLE DRIVE, ETNA, WYOMING 83118 IProperty Address] ADDITIONAL COVENANTS. In addition to the covenants and agreements made in tbe Security Instrument, Borrower and Lender further covenant and agree as fl~llows: PREPAYMENT CHARGE The Note provides for the payment of a prepayment charge as f. llows: 5 . BORROWER'S RIGHT TO PREPAY; PREPAYMENT CHARGE I have the right to make payments of Principal al any time before they are due. A payment of Principal only is known as a "Prepayment." When 1 make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly paymems due under the Note. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under the Note. However, the Note Holder may apply my Prepayment to the accrued and unpaid interest on the Prepayment amount, before applying my Prepayment to reduce the Principal amount of the Note. If I make a partial Prepayment, there will be no changes in the due dates of my monthly payment unless the Note llolder agrees in writing to those changes. If the Note contains provisions for a variable interest rate, my partial Prepayment may reduce the amount of my monthly payments after the first Change Date following my partial Prepayment. However, any reduction due to my partial Prepayment may be offset by an interest rate increase. If this Note provides for a w.iable interest rate or finance charge, and the interest rate or finance charge at any time exceeds the legal limit uuder MULTISTATE PREPAYMENT RIDER 6/0 3 Page 1 of 2 DocMagic ~%l~ ao¢~649-1362 www. docmagic, corn 0 0 .080 Rider. which a Prepayment penalty is allowed, then the Note Holder's right to assess a Prepayment penally will be determined under applicable law. If within TH I RTY- S IX ( 3 6 ) mouths from the date the Security Instrument is executed I make a full Prepayment or one or more partial Prepayments, and the total of all such Prepayments in any 12-month perind exceeds twenty percent (7.0%) of the original Principal amount of the loan, I will pay a Prepaymem charge in an anmum equal to S IX ( 6 ) months' advance in~erest on the amount by which the total of my Prepayments within any 12-month period exceeds lwenly percent (7.0%) of the original Principal anmun! of the loan. BY SIGNING BELOW, Borrower accepts and agrees to Ibc terms and provisions contained in this SHELLEY ~. ~FAIRBANKS -Borrower BUC'~L~. FAIRBANKS Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower MULTISTATE PREPAYMENT RIDER DocMagic~fi%~-v~ $o0.649-73a2 6/O3 Page 2 of 2 www. docmagic.com