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HomeMy WebLinkAbout902125RetumTo: WELLS FARGO HOME MORTGAGE 3601 MINNESOTA DR. SUITE 200 BLOOMINGTON, MN 55435 Prepared By: WELLS FARGO BANK, N.A. 90212 ,_lN601._[I CC)Uf',t-f¥ ~LERIx 1919 DOUGLAS,, OMAHA, 681010000 NE [Space Above This Lh~e For Rec.r,ling MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined bch)w and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding d~c usage of words used iu this document are also provided in Section 16. (A) "Security Instrument" means this docurnent, which is dated AUGUST 12, 2004 together with all Riders to this docuinent. (B) "Borrower" is RONALD C SCHUPP AND PAMALA SCHUPP, HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. (C) "Lender" is WELLS FARGO BANK, N.A. Lender is a NATIONAL ASSOCIATION organized and existing under the laws of THE UNITED STATES 0040402893 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~®-6{WY) Iooo~) P~ge I of 15 Initials:~ VMP MORTGAGE FORMS - (800)521-7291 Form 3051 1/01 Lender's address is p.o. Box 10304, DES MOINES, IA 503060304 Lemler is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by BorrOwer' and dated AUGUST 12 ,. 2 0 04 The Note states that Borrower owes Lender ONE HUNDRED TWENTY THOUSAND AND 00/100 Dollars (U.S. $ ** ** 12 0,0 0 0.0 0 ) plus interest. Borrower has promised to pay dfis debt in regular Periodic Payments and to pay the debt in full not later than S~PTEMBER 01, 2 03 4 (E) "Property" means file property that is described below under thc heading "Transfer of Rights in rile Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrunmtt, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The Ibllowmg Riders are to be executed by Borrower [check box as applicablel: [~] Adjustable Rate Rider [---] Condominium Rider [~ Second ltome Rider [-~ Balloon Rider [-~ Plamled Unit Development Rider ~] 1-4 l~amily Rider [~] VA Rider ~-] Biweekly Payment Rider [] Other(s) [specifyl (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the eftkct of law) as well as all applicable final, non-appealable judicial opinions. (1) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condomi~fium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other dian a transaction originated by check, draft, or sinfilar paper instrument, which is i~fitiated through au electronic terminal, telephonic instrument, computer, or nmgnetic tape so as to order, instruct, or authorize a financial institutimi to debit or credit an account. Such term includes, but is not liufited to, point-of-sale transfers, atttomated teller machine transactions, trausfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described ill Sectiou 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under die coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condennmtion or oilier taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or onfissions as to, d~e value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the noupayment of, or default on, the Loan. (ND "Periodic Pay~nent" means the regularly scheduled amount due for (i) principal and interest under die Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implemeuting regulatiou, Regulatioh X (24 C.F.R. Part 3500), ;ts they nfight be amended frum time to time, or any additional or successor legislation or regulation that goverus the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed itl regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~-6(WY) 1ooo6! Pao. 2of 15 /~ Form 3051 1/01 O O :;Ud5 '. 0 ,93 (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assmned 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 file l.oan, and all renewals, exteusions and modifications of rile Note; and (ii) the performance of Borrower's covenants aud agreements t,ndcr this Security Instrmnent and the Note. For this purpose, Borrower docs hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, thc following described property located in the COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Name of' Recording Jurisdiction] LOT 97 OF STAR VALLEY RANCH PLAT 21, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. *SEE ADJUSTABLE RATE RIDER TAX STATEMENTS SHOULD BE SENT TO: 10304, DES MOINES, IA 503060304 WELLS FARGO HOME MORTGAGE, P.O. BOX ParcelID Number: 12341806404027.00 105 CUSTER DRIVE THAYNE ("Property Address"): which currently has the address of [St,'eeq [City] , Wyolnillg 83127 [Zip Code] TOGETHER WITH all the improvements now or hercal'tcr erected on the property, and all easements, appurtenances, and fixtures uow or hereafter a part rd' the property. All replacements and additions shall also be covered by this Security Instrument. All of thc foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seiscd of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that tile Property is unencumbered, except tbr encmnbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and denmnds, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines unitbnn covenants for national use and non-until)mt covenants Mth limited variations by jurisdiction to constitute a tmifimn security instrument coveriug real property. UNIFORM COVENANTS. Borrower and Lender covenant alld agree as tbllows: 1. Payment of Principal, Interest, Escrow Items, Prel)ayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest ou, thc debt evidenced by thc Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this I~-6(WY} 10oo61 P~, 3 of 15 Form 3051 1/01 Security Instrument is returned to Lender unpaid, LelMer may require that any or all subsequent payments due under the Note and this Security Instrument be made iu oue or more of die following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn Upon an institutiou whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electro~fic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance Mdt die notice provisions in Section 15. Lender nmy return any payment or partial payment if the paymeut or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial I)ayment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Paytnent is applied as of its scheduled clue date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied fimds until Borrower makes payment to bring the Loan current. If Borrower does ~mt do so within a reasouable 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 immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or perfornfing the coveimnts and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the fullowing order of priority: (a) iuterest due under the Note; (b) principal 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 amounts shall be applied first to late charges, second to any other amounts due under this Security lnstruulent, and then to reduce the principal balauce of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment nmy be applied to the delinquent paymeut aud the late charge. If more tiian one Periodic Payment is outstanding, Lender umy apply any payment received f¥om Borrower to the repayment of file Periodic Payments if, and to tile extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess nmy be applied to any late charges dice. Voluntary prepayments shall be applied first to any prepayment charges and then as described iu the Note. Any application of payments, insurauce proceeds, or Miscellaueous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the ;mlouut, of die Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until file Note is paid in full, a sum (the "Funds") to provide tbr payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security hlstrument as a lien or encumbrance on file Property; (b) leasehold payments or grouud rents on file Property, if any; (c) prernimns for any and all insurance required by Lender under Section 5; and (d) Mortgage lusurance prenfiums, if any, or any sums payable by Borrower to Lender in lieu of the pay~nent of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origiimtion or at any time during the term of file Luau, Lender may require filet Commmfity Association Dues, Fees, and Assess~nents, if any, be escrowed by Borrower, and such dues, tees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all ~mtices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lmder ~nay waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may ouly be in writing. In the event of such waiver, Borrower shall pay directly, wheu and where payable, the amolmts (~-6{WY) 1ooo~} Page 4 ot 15 Initials: ~(~ Form 3051 1/01 due for any Escrow Items for wlfich payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within st(ch time period as Lender uuiy require. Borrower's obligation to make such payments and to provide receipts shall fi)r all purposes be deemed to be a covenant and agreement contained in this Security'Insimment, tis the phras¢ "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant lo a waiver, aud Borrower fails to pay the amount due for an Escrow Item, Leudcr may exercise its rights under Sectiou 9 and pay such ainount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and iix such amounts, that are then required under this Section 3. Lender may, at any time, collect ami hold Funds in an amotmt (at sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (bt not to exceed the nmximum amonnt a lender eau require under RESPA. Lender shall estimate the amount of Funds due oil the basis of current data and reasonable estitnates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrmnentality, or entity (including Lender, if Lender is an institutiou whose deposits are so insured) or in any Federal Ho~ne Loan Bank. Lender shall apply file Funds to pay the Escrow Items no later lhan the dine specified under RESPA. Lender shall not charge Borrower for holdiug and applyihg the Funds, annually aualyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Uulcss an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earifings on the Funds. Borrower and Lender can agree ill writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, ad annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall accouut to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held iu escrow, as defined under RESPA, Lender -shall notify Borrower as required by ILESPA, aud Borrower shall pay to Lender the amount necessary to make up file shortage in accordance with RESPA, but itt no more diau 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amouut necessary to make up the deficiency in accordance with RI~SPA, but in no more than 12 mouthly payments. Upon pay~nent in full of all sums secured by this Security lnstruntent, Lender shall proo~ptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessmeats, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold paymeuts or ground rents on the Property, if any, and Co~mnmfity Association Dues, Fees, and Assessments, if any. To die extent that these items are Escrow Items, Borrower shall pay them itl the rammer provided ill Scctiou 3. Borrower shall promptly discharge any lien which has priority over this Security lnstrunlent unless Borrower: (at agrees in writing to the payment of the obligation scctlrcd by the lien in a manuer acceptable to Lender, but oldy so long as Borrower is performing such agreemeut; (bt coutests the lien in good frith by, or defends against enforcement of the lien in, legal proceedings which iii Leuder's opinioo operate to prevent the enforcemeut of the lien while those proceedings are pending, but only until such proceediugs are concluded; or (ct secures from the holder of tile lien an agreement satisfactory to Lender subordinating the lien to this Security Instrmnent. If Lender determines that any part of the Property is subject to a lien which cau attain priority over this Security Instrument, Lender may give Borrower a notice identifying the (~J~}~-6(wY) (Odd6) Page s of ~s ~._.t/~" Form 3051 1t01 lien. Widfin 10 days of the date on which that notice is given, Burrower shall satisfy the lien or take one or more of fl~e acfio~ set forfl~ above in fids Section 4. Lender ~y require Borrower to pay a one-time charge lbr a real estate mx verification and/or reporting service used by Lender in connection wi~ ~is Eoan. 5. Property Insurance. Borrower shall keep ~e improvem~ms uow existing or hereafter erected on fl~e Property iimured agai~mt loss by fire, hazards included within thc term "extended coverage," and any o~er hazards including, but not limited to, ear,quakes and floods, fi)r which Lmder requires insurance. This insurance shall be nmintained in fl~e amounts (including deductible levels) and lbr fl~e periods that Lender requires. What Lender requires pursuant to fl~e preceding sentences can change during the term of fl~e Loan. The i~urance carrier providing ~e insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which fight shall not be exercised unrcasmmbly. Lender n~y require Borrower to pay, in co~ection wi~ ~is Loan, either: (a) a one-time charge lbr flood zone deten~mtion, certification and trackiug services; or (b) a one-time charge for flood zone deternfi~mtion and certification services and subsequent charges each time rcmappings or similar changes occur which reasombly nfight aft~ct such deternfi~mtion or certification. Borrower shall also be responsible tbr the payment of any ibes imposed by fl~e Federal Emergency Management Agmmy in com~ection with fl~e review of any flood zone deter~tion resulting from an objectiou by Borrower. If Bo~ower fails to nmintain any of ~e coverages described above, Lender nmy obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. There/bre, such coverage shall cover Lender, but nfight or might not protect Borrower, Borrower's equity in fl~e Property, or fl~c contents of.fl~e Property, agaiust any risk, hazard or liability and nfight provide greater or lesser coverage than was previously in effect. Borrower acknowledges fl~at ~e cost of ~e insurance coverage so obtained might significantly exceed d~e cost of insurance flint Borrower could have obtained. Any amounts disbursed by Lender under fids Section 5 shall become additioml debt of Borrower secured by fids Security Instrument. These amounts shall bear interest at fl~e Note rate rom fl~e date of disbursement and shall be payable, widt such interest, upon notice fi-om Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall t-mme Lender as mortgagee and/or as an additioml loss payee. Lender shall have the right to hold ~e policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtai~ any form of insurance coverage, not ofl~erwise required by Lender, for damge to, or destruction of, fl~e Property, such policy shall include a standard mortgage clause and shall ~mme Lender as mortgagee and/or as an additioml loss payee. In fl~e event of loss, Borrower shall give prolnpt notice to the insurance carrier and Lender. Lender ~my rake proof of loss if ~mt nmde promptly by Borrower. Uulcss Leuder and Borrower oflicrwise agree in writing, any insurance proceeds, whether or not fl~e underlying insurance was required by Lender, shall be applied to restoration or repair of fl~e Property, if rite restoration or repair is ecm~oufically tkasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have fl~e right to hold such i~urance proceeds until Lender has had an opportunity to respect such Property to ensure tim work has been cmnpleted to Lender's satisfaction, provided ~at such inspection shall be undertaken promptly. Lender ~my disburse' proceeds for file repairs and restoration in a siugle payment or in a series of progress payments as the work is completed. U~fless an agreement is nmde in writing or Applicable Law requires interest to be paid on such i~urance proceeds, Lender shall not be required to pay Borrower any interest or eanfings on such proceeds. Fees for public adjusters, or other flfird parties, retained by Borrower shall not be paid out of fl~e i~urance proceeds and shall be the sole obligation of Borrower. If fl~e restoration or repair is not economically feasible or Lender's security would be lessened, fl'~e insurance proceeds shall be applied to ~e sums secured by ~is Security lnstrun~¢ut, whefl~er or ~mt flien due, with ~6{WY) looos) P~sofls Form 3051 1/01 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided tbr in Section 2. If Borrower abandons the Property, Lender may fi!e, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. Irt either event, or il' bender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under thc Note or this Security lustrument, and (b) any other of Borrower's rights (other than the right to any rcftmd of tmearned p~:emiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and usc thc Property as Borrower's priucipal residence within 60 days after the execution of fids Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, wlfich consent shall not be unreastmably withheld, or unless extemutting circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property tt, deteriorate or co~m~fit waste on rite Property. Whether or not Borrower is residing in the Property, Bm'rower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in wduc 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 daumged to avoid further deterio,';ttion or damage. If insurance or condevmmtion proceeds are paid in cmmection with damage to, t,r the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only il' kender bas released proceeds tbr such purposes. Lender may disburse proceeds tbr the repairs and restoration in a single payment or in a series of progress payments as flxe work is completed. If the insurance or ctmdem~mtion 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 inspections of fl~e Property. If it has reasonable cause, Lender may inspect the interior of the improvcmems on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspectkm specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in delhult if, during th~ Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, nfisleading, or inaccurate information or statements to Lender (or tailed to provide Lender with nmterial information) i~ c,mnection with the Loan. Material representations include, but are not limited to, representations cot~cerning Borrower's occupaucy of the Property as Borrower's principal residence. 9. Protection of Lender's ln, terest in the Property and Rights Under this Secnrity Instrument. If (a) Borrower fails to perform the covenants and agreements contai~led in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's intel'est itl the Property and/or rights u,~der this Security Instruinent (such as a proceeding in bankruptcy, probate, fi3r condenmation or forfeiture, lbr enforcement of a lien which ~nay attain priority over this Security Instrument or to. cntbrce laws or regulations), or (c) Borrower has abandoned file Property, then I__ender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing d~e Property. Lender's actions can include, but are not limited to: (a) paying auy sums secured by a lien which has priority over this Security Instrument; (b) appearing in corn-t; and (c) paying reaso,utble I~-8(WY) [ooo~) Page 7 of 1§ Fofl~J 3051 1/01 attorueys' fees to protect its interest in the Property and/or rights uuder this Security Instrument, includiug its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water I¥om pipes, eliminate building or other code violations or dangerous conditions, and have ntilities turned on or off. Although Lender may take actiou under this Section 9, Lender docs not bare to do so aud is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking ally or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at file Note rate fi'om the date of disbursement and shall be payable, with such interest, upou notice from Lender to Borrower requesting paymenC If this Security Instrument is on a leasehold, Borrower sh',tll comply with all file provisions of the lease. If Borrower acquires fee title to the Property, file leasehtlkl and the tee title shall not merge unless Lender agrees to fire merger in writing. 10. Mortgage Insurance. If LeMer required Mortgage Insurance as a coudition of makiug the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for auy reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the prenfimns for Mortgage Insurance, Borrower shall pay file premiums required to obtain coverage substantially equivalent to the Mortgage Insurauce previously ill effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously irt effect, from aa alternate mortgage insurer selected by Lender. If substantially equiwdcnt iVlortgage Insurance coverage is not available, Borrower shall conti~me to pay to Lender file amount or' the separately designated payments that were due when the iusurance 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 ultimatdy paid in full, and Lender shall 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 amotmt and for file period that Lender requires) provided by an insurer selected by Leuder again becomes available, is obtained, and Lender requires separately designated payments toward file prenfimns for Mortgage lusurance. If Lender reqoired Mortgage Insurance as a condition of making the Loan and Borrower was required to xnake separately designated payments toward the premiunts for Mortgage Insurance, Borro\vcr shall pay the premiums required to lnaintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, uutil Lender's requirement for Mortgage Insurance ends in accordance with ally written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing itl flits Section 10 affects Borrower's obligation to pay interest at the rate provided itt the Note. Mortgage Iusurance reimburses Lender (or any entity that purchases the Note) fbr 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 insurauce iu force from time to time, and nmy enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements nkqy require the mortgage insurer to utake payments using any source of funds that the mortgage insurer may have available (which may include funds obtained t¥om Mortgage Insurance prenfiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or nfight be characterized as) a portion of Borrower's paymeuts tbr Mortgage lnsurauce, in exchange for sharing or modifying file mortgage insurer's risk, m reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the prenfimns paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (al Any such agreements will not affect the amoonts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Soch agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. Init i~.~~ (~-6(WYJlooos} P~g~aot~ Form 3051 1/01 (b) Any such agreements will not affect the rights Borrower has - if any - with respec! to the Mortgage Insurance under the Homeowners Protection Act o1' 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain' cancellation of the Mortgage Insurance, to have the Mortgage Insurance' terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unea,'ned at the time of such cancellation or termination. 1!. Assignment of Miscellaneous Proceeds; Forfeiture. All lVliscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is danuiged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is econonfically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property lo ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender nniy pay tbr the repairs and restoration in a single disbursmnent or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable [.aw requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. Ill the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security l,tstrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss ill value of the Property in which the /'air umrket value of the Property innnediately before the partial taking, destruction, or loss iii value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the parlial taking, destruction, or loss in value, mdess Borrower and Lender otherwise agree iii writing, the sums secured by this Security Instmnrent shall be reduced by the amomit of the Miscellaneous Proceeds multiplied by the following fraction: (a) fl~e total amount of the sums secured immediately before thc partial taking, destruction, or loss in value divided by (b) fl~e fair market value of the Property immediately belbre the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of die Property in which the fifir market value of the Property irmnediately before the partial taking, destruction, or h)ss in value is less than thc amount of the stuns secured innnediately before the partial taking, destruction, or loss iii value, unless Borrower and Lender otherwise agree in writing, the Miscellanem~s Proceeds shall be applied to the sums secured by this Security Instrun~ent whether or not the sums are then clue. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim /'or danmges, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of die Property or to the stuns secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or cril.~fimd, is begun that, in Lender's judgment, could result in forfeiture of the Property or odter nmterial impairment of Lender's interest iii the Property or rights under this Security Instpament. Borrower can cure such a dethult and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes fi~rfeiture of the Property or oilier material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairlneut of Lender's interest in dm Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restor:uion or repair of the Property shall be applied in the order provided for in Section 2. (~-6(WY) 1ooo5} Page 9 of 15 Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of tile time for payment or modification of amortization of the sunts secured by this Security lustmmeut grained by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to connnence proceedings against any Successor iu Interest of Borrower or to refuse to exteud time i"or payment or otherwise modify amortization of the suins secured by this Security Instrument by reason of any denkqnd made by the m-iginal Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or rexnedy including, without limitation, Lender's acceptance of paymeuts fi'om third persous, entities or Successors in lnterest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint aud several. However, any Borrower who co-signs this Security Instrmnent but does not execute the Note (a "co-signer"): (a) is co-signing flits Security Instrument only to mortgage, grant aud convey the co-signer's interest in the Property trader the terms of this Security Instrument; (b) is not persmnally obligated to pay file sums secured by this Security Instrument; and (c) agrees that Lender and any other Bon'ower can agree to extend, modify, forbear or nmke any accolmnodatimks with regard to the terms of tiffs Security Instrument or the Note without the co-signer's consent. Subject to tile provisions of Section 18, any Successor ill luterest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrumem. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security h~strt, ment shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower tees fi)r services performed in connectiol~ with Borrower's default, Ir'or the purpose of protecting Lender's interest itl the Property and rights nnder this Security Instrument, including, but not linfited to, attorneys' tees, property inspection aud valuation fees. In regard to any other fees, the absence of express authority in this Security Instrun~ent to charge a specific tee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge tees that are expressly prohibited by Otis Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maxinmm loan charges, and that law is finally iuterpreted so that the interest or other loan charges collected or to be collected i, connection wifl~ the Loan exceed the permitted Ii,nits, then: (a) any such loan charge shall be reduced by file amouut necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this reihnd by reducing the principal owed under the Note or by making a direct payment to Bon'ower. tfa reful'ld reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whetber or not a prepayment charge is provided for uuder the Note). Borrower's acceptauce of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might bare arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in cmmection with this Security Instrumeut must be in writing. Any notice to Borrower in cmmection wifl~ this Security lustrument shall be deemed to have been given to Borrower when mailed by first class mail or wl~en actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers nnless Applicable Law expressly requires otherwise. The notice address shall be the P~'operty Address unless Borrower has desig~mted a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifics a procedure Irbr reporting Borrower's change of address, then Borrower shall tuffy report a change of address through that specified procedm'e. There may be only one designated notice address under tiffs Security lustrumeut at any one time. Any notice to Lender shall be given by delivering it or by nmiliug it by first class nmil to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice itl connection with tiffs Security Instrument shall not be deemed to bare been given to Lender until actually received by Lender. If any notice required by this Security lnstrumcut is also required nnder Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construclion. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or iinplicidy allow die parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibititm agaiust agreement by contract. In the event that any provision o[ clause of this Security Instrumcut or the Note conflicts with Applicable Law, such conflict shall uot affect other provisions of this Security Instrument or file Note which can be given effect witlmut the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall inean and include corresponding neuter words or words of the fenfin/ne gender; (b) win'ds in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's CoPy. Borrower shall be given one cop), of thc Note aud of this Security Instrument. 18. Transfer of the Property or a Beneficial Iuterest in Borrower. As used iu this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not liufited to, those beneficial interests transferred in a bond Ibr deed, contract fi~r deed, instalhnent sales connact or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or auy Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises Otis 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 stuns secured by this Security Instrument. If Borrower fidis to pay these sums prior to the expiration of this period, Lender may invoke any remedies pernfitted by this Security Instrument without further notice or denmnd on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have e~fforcement of this Security h~strunxent discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrmneut; (b)such other period as Applicable Law nfight specify for rile termimttion of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all stuns which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures arty defimlt of any other covenants or agreements; (c) pays all expenses incurred ill enforcing this Security hismunent, includiug, but not limited to, reasonable attorneys' fees, property inspection and valuatiou ibes, and other Ices incurred for the pm-pose of protecting Lender's interest in the Property and rights trader this Security Instrmnent; and (d) takes such action as Lender may reasonably require to assure that Lender's iuterest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reiustatement stuns aud expenses in one or more of the followiug forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrmneutality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Insmuuent and obligations secured hereby shall remain fully effective as if no acceleration had occurred. }towever, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrumen0 can be sold one or more times without prior re)rice to Borrower. A sale might result in a change in the entity (knowu as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Insmnnent and performs other mortgage loau servicing obligations under the Note, this Security Instrument, and Applicable Law. There also nfight bc one or more changes of the Loan Servicer unrelated to a sale of thc Note. If there is a change of file Loan Servicer, Borrower will be given written notice of rile change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other intbrnmtion RESPA (~-filWY) 1ooo6) Page 11 of 15 ~ Form 3051 1/01 requires in co~mection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than file purchaser of the Note, the mortgage loan servicing obligatious to Borrower will remain with the Loan Servicer or be trans, ferred to a successor Loan Servicer and are not assumed by the Note purchaser mfless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises froln thc other party's actions pursuant to flits Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrmnent, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded file other party hereto a reaso~mble period after tile giving of such ~otice to take corrective actiou. If Applicable Law provides a time period which must elapse befo~t: certaiu action can be taken, that time period will be deemed to be reasmmble for pm'poses of this paragraph. The notice of acceleratiou and opportmfity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substauces defiued as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flanmmble or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, nmterials contai:fing asbestos or formaldehyde, and radioactive materials; (b) "Enviromnental Law" means federal laws and laws of the jurisdiction where file Property is located relate to health, safety or enviromnental protection; (c) "Envinmmcntal Cleanup" includes ally response action, remedial action, or removal action, as defined in Euviromneutal Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Enviromnental Cleanup. Borrower shall not cause or pernfit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or i, the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Envirorunental Law, (b) which creates an Enviro~m~ental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage o,~ tile Property of small quantities of Hazardous Substances that are generally recog~fized to be app,-opriate to nonual residential uses and to nminte~mnce of the Property (including, but not limited to, hazardous substances in co~ksumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, denmnd, lawsuit or other action by any govermnental or regulatory agency or private party involving the Property and any Hazardous Substance or Enviromnental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leakiug, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of file Property. If Borrower learns, or is notified by any govermnental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting file Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Enviromnental Law. Nothing hereiu shall create any obligation on Lender/'or an Enviroxunental Cleanup. 1~-6{WY) (ooos) Page 12 of 15 Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as fi)llows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security lnstrmnent (but not prior to acceleration under Section 18 unless Applicable Law provides olherwise). The uotice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, ,Jot less than 30 {lays h'om the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may resull ill acceleration of the sulns secured by this Security Instrument and sale of the Property. The nolice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a cou,'t 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 {late specified .in tike notice, Lender at its option may require immediate paynrent iu full of all sums secured by this Security Instrmnent without further demaud aud may iuvoke the power of sale and any other remedies permitted by Applicable Law. Leuder shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, hot not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give nolice of intent to foreclose to Borrower and to the person in possess, ion of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sohl in ihe mauner prescribed by Applicable Law. Lender or its designee may purchase the Property at auy sale. The proceeds of the sale shall lie applied iu the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security lostrmnent; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release tiffs Security Instrument. Borrower shall pay any recordation costs. Leuder may charge Borrower a tee for releasing this Security Instrument, but rally if the lee is paid to a third party Ibr services rendered and the charging of the fee is perntitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of tike homestead exemption laws of Wyonfing. {~)~-6(WY) (ooosl Page 13 oi' ~s ~i,i~:_~~___~ Form 3051 1/01 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrumeut and in any Rider executed by Borrower and recorded wifl~ it. Witnesses: RONALD C $CHUPP ! PAMALA SCHUPP eal) -Borrower (Seal) -Borrower (Seal) -Borrower (SeaD -Bogower (Seal) -n,~)rrower (Seal) -Borrower (Seal) -Borrower (~I?(WY) {ooos) Page 14 of 15 Form 3051 1/01 .0 4 ': 5 STATE OF WYOMING, Lincoln The tbregoing instrument was acknowledged before me this by RONALD C SCHUPP AND PAMALA SCHUPP County ss: My Commission Expires: (~I~-6G{WY) (ooo~! Page 16 of 1 B Form 3051 1/Ol O O :LZ5 FIXED/ADJUSTABLE RATE RIDER (One-Year Treasury Index - Rate Caps) THIS FIXED/ADJUSTABLE RATE RIDER is made this 12TH da3, of AUGUST, 2004 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (die "Security Instrument") of the same date given by the undersigned ("Borrower") to secure Borrower's Fixed/Adjustable Rate Note (the "Note") to WELLS FARGO BANK, N.A. ("Lender") of the same date and covering the property described in the Security Instrument and located at: 105 CUSTER DRIVE, THAYNE, WY 83127 [Property Address] THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements nmde in file Security Instrument, Borrower and Lender furflaer covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CItANGES The Note provides for an initial fixed interest rate of 4.125 %. 'File Note also provides for a change in the initial fixed rate to an adjustable interest rate, as Ibllows: 4. ADJUSTABLE INTEREST RATE AND MONTItLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to all adjustable interest rate on the first day of SEPTEI~ER, 2009 , and the adjustable interest rate I will pay may change on that day every 12th month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change, is called a "Change Date." 0040402893 MULTISTATE FIXED/ADJUSTABLE RATE RIDER - ONE-YEAR TREASURY INDEX- Singl~ Family - Fannie Mae Uniform Instrument Page I of 4 Initials.~,~ VMP MORTGAGE FoRMs- (BOOjS2~/2~'~' (B) The Index Begimting with the first' Change Date, my adjustable interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant matmity of one year, as nmde available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the halex is no longer available, the Note Holder will t:hoose a new index that is based upou comparable information. The Note Holder will give me notice gl' this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AND THREE-QUARTERS percentage points ( 2.750 %) to die Current hldex. The Note ]{older will then round fl~e result of dfis addition to the nearest one-eighth of one percentage point (0.125 %). Subject to fl~e limits stated in Sectiou 4(D) below, this rounded amount will be my new interest rate umil the next Change Date. The Note Holder will then determine the amount of rte mm~thly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change [)ate in dali on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly pay~nent. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater thau 9.125 % or less than 2.750 %. Thereafter, ~ny adjustable interest rate will never be increased or decreased on any single Change Date by more than two percentage points from the rate of interest I have been paying for the precediug 12 mund~s. My interest rate will never be greater than 9. 125 %. (E) Effective Date of Changes My new interest rate will becoine effective on each Change Date. I will pay the amount of my new monthly payment hesitating on the first monthly payment date after the Change Date until the a,nooul of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or nmil to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable inte,'cst rate betbre the effective date of any change. The notice will include the amount of my monthly paymcm, auy inforumtion required by law to be given to me and also the title and telephone nuinber of a person who will answer any question I nmy have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower's initial fixed interest rate changes to an adjustable interest rate uuder the terms stated in Section A above, Uniform Covmmnt 18 of the Secm'ity Instrument shall read as tbllows: Initials:~~ I1~)~843R (0006) Page 2 of 4 /fi/~ Form 3182 1/01 Transfer of the Property or a Beneficial Interest in Borrower. As used iu this Section 18, "Iuterest in the Property" means any legal or beneficial interest in time Property, incfuding, but not linfited to, those beneficial interests transferred in a bond for deed, contract tbr deed, ingtalhnent sales contract or escrow agreement, time iutcnt of which is time transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest iu the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require inuuediate payment iu full of all sums secured by this Security lnstrmnent. However, tiffs option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Burrower notice of acceleration. The notice shall provide a period of not less than 30 days fi'om the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrmnent. If Borrower t:ails to pay these sunts prior to the expiration of this period Lender may invoke any remedies permitted by this Security Instrument Without further notice o~: demand on Borrower. 2. When Borrower's i~fitial fixed interest rate changes to an adjustable interest rate uuder the terms stated in Section A above, Unitbrm Covenant 18 of time Security lnstrumeut described in Section BI above shall then cease to be in effect, and time provisions of Uniform Covcnaut 18 of time Security lnstrmnent shall be 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 iu a bond for deed, contract fur deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest iu the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest iu Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment iu fidl of all sunts secured by this Security Instrument. However, tiffs optiou shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lendo' also shall not exercise this option it': (a) Borrower causes to be subnfitted to Lender infornmtiol~ required by Lender to evaluate the intended transferee as if a new loan were being umde to the transferee; amid (b) Lender reasonably determines that Lender's security will not be impaired by fl~e loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable tee as a condition to Lender's consent to the loan assumption. Lender also nmy require the transferee to Sign an assumption agreement that is acceptable to Lender and flint obligates fl~e transferee to keep all the promises and agreements made in rime Note and iu this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrmnent 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'om the date the notice is given in accordance with Section 15 widfiu which Borrower nmst pay all ~(~843R (0006) Page 3 of 4 hfitials:~ ~ Form 3182 1/01 04'"9 Sums secured by this Security Instrument. If Borrower fi'fils to pay these sinus prior to the expiration of this period, Lemler nmy invoke any remedies permitted by this Security Instmn~ent without further notice or deumud on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to thc terms and cove~mnts contained in tiffs Fixed/Adjustable Rate Rider. ~ (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower {~)<~843R (0006) Page 4 of 4 Form 3182 1/01 PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNIT DEVELOPMENT RIDER is made this 12TH. day of AUGUST, 2004 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trt,st, or Security Deed (the "Security Instrument") of the same date, given by the undersigned (the "13orrower") to secure Borrower's Note to WELLS FARGO BANK, N.A. (the "Lender") of the same date and covering the Property described in the Security Instrmnent and located at: 105 CUSTER DRIVE, THAYNE, WY 83127 [Property Address} The Property includes, but is not lindted to, a parcel of land improved with a dwelling, togefl~er with such parcels and certain cmmnon areas and facilities, as described in COVENANTS, CONDITIONS AND RESTRICTIONS (the "Declaration"). The Property is a part of a planned mdt develop,nent knowu as [Name of Planned Unit Development] (the "PUD"). The Property also includes Borrower's interest in the homeowners association or equivalent entity ow~fing or managing the cominon areas and facilities of thc PUD (fl~e "Owners Association") and file uses, benefits and proceeds of Borrower's interest. PUD COVENANTS. In addition to the cove~mnts and agrcemeuts made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. PUD Obligations. Borrower shall perform att of Borrower's obligations under the PUD's Constituent Documents. The "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation, trust instrument oi' any equivalent doculnent which creates file Owners Association; and (iii) any by-laws or other roles or regulations of file Owners Association. Borrower shall prompdy pay, when due, all dues and assessxnents imposed pursuant to fl-~e Constituent Documents. 0040402893 MULTISTATE PUD RIDER - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT r'---, Fqa;m 3150 Page I of 3 Initials:~l~~ (0008) VMP MORTGAGE FORMS - (800)521-7291 ~. 1/01 B. Property Insurance. So loug as tile Owners Associatitm maintains, with a generally accepted insurance carrier, a "master" or "blauket" policy insuring the Property which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for the periods, and against loss by tire, hazards included within the term "extended coverage," and any other haza~Tds, including, but not linfited to, earthquakes and floods, tbr which Lender requires iusurance, theu: (i) Lender waives tile provision in Section 3 for the Periodic Pa),mcnt to Lender of the yearly premium installments for property insurance on the Property; and (ii) 13o~-mwcr's obligatiou under Section 5 to maintain property insurance coverage on the Property is deemed satislied to tile extent that the ~-equired coverage is provided by the Owners Association policy. What Lender requires as a condition of this waiver eau change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. In the event of a distribution of property insurance proceeds iu lieu of restoration or repair tbllowing a loss to the Property, or to common areas and facilities of the PUD, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply thc proceeds to the stuns seem'ed by the Security Instrument, whether or not then due, with the excess, it' any, paid to BorroWer. C. Public Liability Insurance. Borrower shall take such actitms as may be reasouable to insure that the Owners Association maintains a public liability insurance lmlicy acceptable in. lbrm, amount, dud extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim lbr damages, direct or consequential, payable to Borrower in cmmection with any condenmation or other taking of all or any part of tile Property or the connnon areas and thcilities of the PUD, or for any conveyance in lieu of condennmtion, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the stuns secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandorunent or ternfi~mtion of the PUD, except for aba~Monment or termi~mtion required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by ctmdcnmation or eminent domain; (ii) any amendment to any provision of the "Constituent Documents" il' thc provision is for the express benelit of Lender; (iii) ternfiuation of professional management and assumption of self-management of the Owners Association; or (iv) any action which would have the effect of ~-cndcriag the public liability insurance coverage nmintained by rite Owners Association unacceptable to Lender. F. Remedies. If Borrower does not pay PUD dues aud assessments when due, then Lender may pay thegn. Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender- agree to other terms of payment, these a~nounts shall bear interest from the date of disbursement at thc Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. tnitials :~---~ (~TR (0008) Page 2 of 3 /,//),/..._, Form 3150 1/01 BY SIGNING BELOW, Borrower accepts and agrees to fl~e tcrlns and provisions contained in tiffs PUD RONALD C SCHUPP - rower ~ ~ ' ' ~ PAOLA SCHUPP ,.~ ~on'ower (Seal) (Seal) -Borrower -Bor,'owcr (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~;7R (0008) Page 3 of 3 Form 3150 1/01 1-4 FAMILY RIDER (Assignment of Rems) THIS 1-4 FAMILY RIDER is made this 12TH day of AUGUST, 2004 and is incorporated into and shall be deemed to amend and supplement die Mortgage, Deed of 'rmst, or Security Deed (the "Security Instrument") of the same date giveu by the undersigned (the "Borrower") to secure Borrower's Note toWELLS FARGO BANK, N.A. (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 105 CUSTER DRIVE, THAYNE, WY 83127 [Property Address} 1-4 FAMILY COVENANTS. In addition to the covenants and agreements nmde in the Security Instrument, Borrower and Lender further covenant and agree as fi)llows: A. ADDITIONAL PROPERTY SUBJECT TO THE SECURITY INSTR/LrMENT. In addition to the Property described in the Security Instrument, the following items now or hereafter attached to the Property to the extent they are fixtures are added to the Property description, and shall also constitute the Property covered by the Security Instrument: building nmtcrials, appliances and goods of every ~mture whatsoever now or hereafter located ill, on, or used, or intc,~dcd to be used in connection with the Property, including, but not limited to, those for the pm-poses of supplying or distributing heating, cooling, electricity, gas, water, air and light, fire prevention and extinguishing apparatus, security and access control apparatus, plumbing, bath tubs, water heaters, water closets, sinks, ranges, stoves, refrigerators, dishwashers, disposals, washers, dryers, awnings, storm windows, storm doors, screens, blinds, shades, curtains and curtain rods, attached nfirrors, cabinets, paneling and attached floor coverings, all of which, including replacements and additions thereto, shall be deemed to be and remain a part of the Property covered by the Security Instrument. All of the foregoing togetlIer with die Property described in the Security Instrument (or the leasehold estate if the Security lt~strument is on a leasehold) are referred to in this 1-4 Fanfily Rider and the Security Instnnnent as the "Property." 0040402893 RIDER - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT {flitials:'~L.~ MULTISTATE 1- 4 FAMILY Page 1 of 4 %~,~57R (0008) VMP MORTGAGE FORMS - (800)521-7291 1/01 04t4 B. USE OF PROPERTY; COMPLIANCE WITFI LAW. Borrower shall not seek, agree to or tnake a change in the use of the Property or its zoning classification, unless Lende[ has agreed in writing to file change. Borrower shall comply with all laws, ordinances, regulations and requirements of any governmental body applicable to the Property. C. SUBORDINATE LEENS. Except as permitted by federal law, Borrower shall not allow any lien inferior to the Security h~strmnent to be perfected against the Property without Lender's prior written permission. D. RENT LOSS INSURANCE. Borrower shall nmintain iustmmce against rent loss in addition to the other hazards tbr wlfich insurance is required by Section 5. E. "BORROWER'S RIGHT TO REINSTATE" DELETED. Section 19 is deleted. F. BORROWER'S OCCUPANCY. Unless Lender and Borrower otherwise agree in writing, Section 6 concerning Borrower's occupancy of the Property is deleted. G. ASSIGNMENT OF LEASES. Upon Lender's request after default, Borrower shall assign to Lender all leases of the Property and all security deposits made i. comlcction with leases of file Property. Upon the assigmnent, Lender shall have file right to modify, extend or terminate rite existing leases and to execute new leases, in Lender's sole discretion. As used in this paragraph G, the word "lease" shall mean "sublease" if the Security Instrument is on a leasehold. FI. ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; LENDER IN I~SSESSION. Borrower absolutely and unconditionally assigns and transfers to Lender all the rents and revenues ("Rents") of the Property, regardless of to whom the Reuts of the Property are payable. Borrower authorizes Lender or Lender's agents to collect the Rents, and agrees that each tenant of the Property shall pay the Rents to Lender or Lender's agents. However, Borrower shall receive the Rents until: (i) Leuder has given Borrower notice of default pursuant to Section 22 of tile Security Instrument, and (ii) Lender has given notice to the tenant(s) that fl~e Rents are to be paid to Lc.der ur Lender's agent. Tiffs assignnmnt of Rents constitutes an absolute assigrm~ent and not an assigmnent fi. additional security oldy. If Lender gives notice of default to Borrower: (i) all Rents received by Borrower shall be held by Borrower as trustee for file benefit of Lender only, to be applied to the stuns secured by the Security Instrmnent; (ii) Lender shall be entitled to collect and receive all of the Rents of the Property; (iii) (0008) Page 2 of 4 Initials:2. ~J~ ,~m 3170 1/01 Borrower agrees that each tenant of the Property shall pay all Rents due and unpaid to Lender or Lender's agents upon Lender's written detnand to the tenant; (iv) unless applicable law provides otherwise, all Rents collected by Lender or Lender's agents shall be applied first to thc costs of taking control of and managing the Property and collecting the Rents, including, but not limited to, attorney's fees, receiver's fees, premiums on receiver's bonds, repair and maintenance costs, insurance premiums, taxes, assessments and other charges on the Property, and then to the sums secured by the Security Instrument; (v) Lender, Lender's agents or any judicially appointed receiver shall be liable to account for only those Rents actually received; and (vi) Lender shall be entitled to have a receiver appoiutcd to take possessiou of and manage the Property and collect the Rents and profits derived from thc Property without any showing as to the inadequacy of the Property as security. If the Rents of the Property are not sufficient to cover file costs of taking control of and managing the Property and of collecting the Rents any funds expended by Lender for such purposes shall become indebtedness of Borrower to Lender secured by the Security Instrument pursuant to Section 9. Borrower represents and warrants that Borrower has not executed any prior assignment of the Rents and has not performed, and will not perfurm, any ac~ fl~at would prevent Lender from exercising its rights under this paragraph. Lender, or Lender's agents or a judicially appointed receiver, shall not be required to enter upon, take control of or nmintain the Property before or after giving notice of default to Borrower. However, £ender, or Lender's agents or a judicially appointed receiver, ~nay do so at any time when a default occurs. Any application of Rents shall not cure or waive any default or inwdidate a,~y other right or remedy of Lender. This assigmnent of Rents of the Property shall terminate when all the sums secured by fl~e Security Instrument are paid in full. I. CROSS-DEFAULT PROVISION. Borrower's del::ault or breach under any note or agreement in which Lender has an interest shall be a breach under the Security Instrument and Lender may iuvoke any of the remedies permitted by the Security Instrument. (~57R (0008) Page 3 of 4 Initials:~~ 3170 1/01 RONALD C SCHUPP BY SIGNING BELOW, Borrower accepts and agrees to £he icrms and provisions conlained in tiffs 1-4 Family Rider. (Sea,) (Seal) -Borrower ~A"'MALA SCHUPP ~ g'0 -~o,','ower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower i1~57R (0008) Page 4 of 4 Form 3170 1t01