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HomeMy WebLinkAbout902161Return To: FIRST INTERSTATE BANK P.O. BOX 40. CASPER. WY 82602-0040 902161 Prepared By: LYNN CLUTTER RECEIVED LINCOI.N COLtt,..ITY CLERK [Space Above This Line For Reco,'ding Data] MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated August 19, 2004 together with all Riders to this document. (B) "Borrower" is KURTA. OLOFSON and LAURA J. OLOFSON. HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. (C) "Lender" is FIRST INTERSTATE BANK Lender is a A CORPORATION organized and existing under the laws of STATE OF MONTANA 470LOFSON. KO7 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 1 of 15 MW 05/00.01 Initials: VMP MORTGAGE FORMS - (800152¥-/291 Form 3051 1101 047g, Lender's address is 842 W BROADWAY. JACKSON. WY 83001 Lender is the mortgagee under this Security Instrument, (D) "Note" means the promissory note signed by Bon:ower and dated August ].9, 2004 The Note states that Borrower owes Lender OFle HuFIdred Thi rlgy ThousaFid arid FIO/100 Dollars (U.S. $130. 000.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than September ], 2019 (E) "Property" means the property that is described below under the beading "Transfer of Rights in tl~e Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, mid all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument tt~at are executed by Borrower. Tile followiug Riders are to be executed by Borrower [check box as applicable]: ~ Adjustable Rate Rider F-~ Condominium Rider [~ Second Home Rider F--] Balloon Rider F--] Planned Unit Development Rider [7~] 1-4 Family Rider ~ VA Rider [---] Biweekly Payment Rider [] Other(s) [specifyl (It) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative niles mid orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions'. (1) "Cormmmity Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condomiuium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of lhnds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic ternfinal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institmion to debit or credit an account. Such term includes, but is not linfited to, point-of-sale transfers, arm)mated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under thc coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) nfisrcpresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest nnder the 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 implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be mnended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Secmity Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not quality as a "federally related inortgage loan" under RESPA. 470LOFSON, KO7 :~O, (~-6(WY) 1ooo5) Page2ofl5 Fom~ 3051 1/01 0477" (P) "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 tile Loan, and ali renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument 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, the following described property located in the COUNTY of L I NC0[N : [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] SEE ATTACHED SCEDULE C FOR LEGAL DESCRIPTION ParcellD Number:12-3219-16-1-00-506.00 80 SPACKMAN ROAD AUBURN ("Property Address"): which currently has the address of [Streetl Wyoming 83 } 11 [Zip Code] TOGETHER WITH all the improvements now or heFeafler erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that d~c Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. TI-tIS SECURITY INSTRUMENT combines uniform covenants tbr national use and non-unitYmn covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as tbllows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the 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, ttowever, if any check or other instrument received by l.cnder as payment under the Note or this 470LOFSON. KO7 Initials: Ii~d6(WY) Iooo5} Pa~e 3 of ~5 Form 3051 1101 047 Security Instrument is returned to Lender unpaid, Lender may req,ire that any or all subsequent payments due under the Note ,'md this Security Instrument be made in oue or more of the following forms, as selected by Lender: Ca) cash; Cb) 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 insm'ed hy a federal agency, instrumentality, or eutity; dr Cd) Electronic Fnnds 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 with the notice provisions in Section 15. Lender ~nay return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment 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 Payment is applied as of its scheduled clue date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied fuuds until Borrower makes payment to briug the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return thetn to Borrower. If not applied earlier, such t\mds 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 m'~ing payments due nnder the Note and this Security Instrmnent or perfornfing the covenants and agreements secured by this Security Instrument. 2. Application of Pay~nents or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied iu d~c following order of priority: Ca) interest due under the Note; Cb) principal due under the Note; Cc) amounts clue under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining mnounts shall be applied first to late charges, second to any other amounts due under this Security lnstrmnent, and then to reduce the principal balance 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 may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Leuder may apply any payment received from Borrower to the repayment of the Periodic Payments if, a.d to the extent that, each payment can be paid in full. 'Fo the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscelhmcous Proceeds to principal due under the Note shall not extend or postpone the due date, or change thc amount, of the Periodic Payments. 3. Fnnds for Escrow Items. Borrower shall pay to Lender on the clay Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide ibc payment of amounts due for: Ca)taxes and assessments and other items which can attain priority over this Security Instrnment as a lien or encumbrance on the Property; Cb) leasehold payments or gtmmd rents on the Property, if any; Cc) premiums for any and all insurance required by Lender under Section 5; and Cd) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Sectiou 10. These items are called "Escrow Items." At origination or at any time during the term of the koan, Lender may require that Commmfity Association Dues, Fees, and Assessments, if any, be escrowed l)y Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly l~urnish to Lender all notices of amonnts 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. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at auy time~ Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay direclly, when and where payable, the amounts 470LOF$0~. }<07 © tnitial _ ~-6(WY) (ooo5) Page 4 of 15 Forl~'l 3051 1/01 0479 due for any Escrow hems for which payment of Funds has beeu waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall tbr all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the t)hrasd "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow hems directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Leuder may exercise its rights under Section 9 and pay such anmunt 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 hems at any time by a uotice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amouut (a) sufficient to permit Lender to apply the Funds 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 current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are iusured by a tkderal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower l'or holding and applying the Funds, annually analyzing 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. Uuless an agreement is made in writiug or Applicable Law requires interest to be paid on the Funds, Louder shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined tinder RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. II' Ihcre is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, mad Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 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 amount necessary to make up the deficiency in accordance with RESPA, but in no more dmu 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessmeuts, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the rammer provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security lnsmnnent unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that auy part of the Property is subject to a lien which can attaiu priority over this Security Instrument, Lender may give Borrower a notice identifying the 470LOFSON. KO7 (~-6(WY) (ooo5) Page 5 of 15 Form 3051 1101 lien. Within 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 fi)r a real estate tax verification m~d/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included widfin the term "extended coverage," and any other hazards including, but not linfited to, earthquakes and floods, lbr which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for tl~e periods tl~at Lender requires. What Lender requires pursuant to the preceding sentences can change during the term or' the Loan. The insurance carrier providing the insurance shall l)e chosen by Borrower subject to Leuder's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remapl)ings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible t'or the payment of any fees imposed by the Federal Emergency M~tnagelnent Agency in connection wi~h the review of any flood zone determination resulting from an ohjection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or an'~ount of coverage. Therefore, such coverage shall cover Lender, but might or nfight not protect Borrower, Borrower's equity in the Property, or thc contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously itt effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any an~ounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Insmm~eut. 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. 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 name I~ender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to l~ender all receipts of paid premiums artd renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by kender, for danuage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by l~cnder, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds tbr the repairs and restoration in a single payment or iu a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lencler shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with 470LOFSON, KO7 (~6(WY) (00053 Page 6 of ~5 Form 3051 1101 0481 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, 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. In either event, or il' hender 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 the Note or this Security lnstnnnent, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums 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 nsc the Property as Bon'ower's principal residence within 60 days after the execution of this Security lnstnnnent 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, which consent shall not be unreasonably withheld, or unless extenuating circmnstances 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 to deteriorate or COlnmit waste on tt~e Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from 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 condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only ii' Lender has released proceeds tbr such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation 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 the Property. If it has reasonable cause, Lender may inspect the interior of the improvemeuts 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 the Loan application process, Borrower or any persous or entities acting at tile direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material infornmtion) in connection with the hoan. Material representations include, but are not limited to, representations coucerning Borrower's occupancy ol' the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to pertbnn the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's iutcres[ in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or Forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then l.ender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in thc Property and rights' under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited ~o: (a) paying any stuns secured by a lien which has priority over this Security Instrument; (b) appearing itl conrt; and (c) paying reasonable 470LOFSON. KO7 (~-6(WY) 1ooo~} Page 7 o~ ~5 Form 3051 1/01 0482 attorneys' fees to protect its interest in the Property and/or rights nuder this Security Instrument, including 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 l:¥om pipes, eliminate building or other code violation~ or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Sectiou 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender inctlrs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear iutcrest at the Note rate from the date 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 sh~dl comply with all the p~:ovisions of the lease. If Borrower acquires fee title to the Property, the leasehold aad the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage lnsurm~ce in effect. If, for any reason, the Mortgage Insurance cove/age 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 premiums for Mortgage Insurance, Borrower shall pay the premimns required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurauce previously in effect, fi'om an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the anaount of the separately designated payments that were due when the insurance coverage ceased to be iii 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 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 the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the preufiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premimns required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, nntil I.ender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that pm:chases the Note) t'or 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 from time to time, and may 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 may require the mortgagc- iusurer to make payments using any sum-ce of funds that the mortgage insurer may have available (which may include l'unds obtained fi'om Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or m/ght be characterized as) a portion of Borrower's I)ayments for Mortgage fusurance, in exchange tbr sharing or modifying the mortgage insurer's risk, or redttcing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange lbr a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." 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. Snch agreements will not increase the ainount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any rebind. 470LOFSON. K07 Initial 11~I~-6(WY) (0005} Page S of ~5 Form 3051 1101 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeo;n~ers Protection Act ol' 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 tmcarncd at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeitnre. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds sba, Il be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lcsseucd. During such repair and restoration period, Lender shall have the ,ight to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to eusnrc the work has been completed to Lender's satisfaction, provided that such inspection shall be tmdcrtaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, it' any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in wdue of the Property, 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. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property innnediately before the partial taking, destruction, or loss in value is equal to or greater than the an~ount of the sums secured by this Security lnstrmncnt immediately before the parlial taking, destruction, or loss in value, unless Borrower and I.¢ncler otherwise agree in writing, tile sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately hefore 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 in vahle. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in wdue of the Property in which tile lair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial takiug, destruction, or loss in value, nnless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums arc then due. 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 au award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is attthorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not theu 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 criminal, is begun that, in Lender's.judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a dehult and, it' acceleration has occurred, reinstate as provided in Section 19, by causing the actiou or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other ~naterial impairment of Lender's interest in the Property or rights undo,' this Security Instrument. Tile proceeds of any award or claim for damages that are attributable to the impairmcut of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of thc Property shall be applied in the order provided for in Section 2. 470LOFSON. KO7 tnitiais :~J~ (~-6{WY) too05) Pase 9 of ~5 Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the dme for payment or modification of amortization of the sums secured by this Security Instrument granted 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 bc required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by riffs Security Instrument by reason of m~y demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, enlities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not he a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bonnd. Borrower covemmts and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not 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 Instrument; (b) is not personally obligated to pay the sums scented hy this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, tbrhear or make any accommodations with regard to the terms of this Security lnstrmnent or the Note without the co-signer's consent. Subject to the provisions 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, shall obtain all of Borrower's rights and benefits under this Security h~strument. Borrower shall not be released from Borrower's obligations and liability under this Security Instruntcnt unless Lender agrees to such release in writing. The covenants and agreements of this Security lnstrulnent 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 connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Secmity Instrmnent to charge a specific fee to Borrower shall not be construed as a prohibition on thc charging of such tee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan ch~,'ges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount 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 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 treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such retired nmde 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 iu connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Secmity Instrument shall he deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall prompdy notify Lender of Borrower's change of address. If Lender specifies a procedure lbr reporting Borrower's change of address, then Borrower shall only report a chm~ge of address through ti!at specified procedure. There may be only one designated notice address under dfis 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 connection with this Security Instrument shall not be deemed to have beeu given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement nnder this Security Instrument. 470LOFSON, KO7 (~-6(WY) (goos) Page lo of ~5 Form 3051 1/01 0485 16. Governing Law; Severability; Rules of Constrt,ction. 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 ~y requirements and limitations of Applicable Law. Applicable Law might explicitly or implicidy allow the parties to agree by contract or it ~ght be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that ~y provision or clause of this Security Insmm~cnt or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrmnent or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include co~esponding neuter words or words of the fe~nine gender; (b) words in the singular shall mean and include the plur~ ~d vice versa; m~d (c) the word "may" gives sole discretion without any obligation to t~e ~y action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Secmity Instrmnent. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" memos ~y leg~ or benefici~ interest in the Property, including, but not limited to, those benefici~ interests transferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or ~y part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person ~d a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require i~ediate payment in I5dl of all sums secured by this Security Instrument. However, this option shall not be exemised 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 th~ 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all su~ secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies pernfittcd by this Security Instrument without ~rther notice or dem~d on Borrower. 19. Borrower's ~ght to Reinstate After Acceleration. If Borrower meets certain conditions, Bo~ower shall have the right to have enforcement of this Securily Instrument 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 Instrument; (b) such other period as Applicable Law might speci~ for the termination of Borrower's right to reinstate; or (c) entry of a judgment entbrcing this Security lnstmmenl. Those conditions are that Borrower: (a) pays Lender all su~ which then would be due under this Security Instrument ~d the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection m~d valuation tbes, and other t~es incurred for the pu~ose of protecting Lender's interest in the Prope~gy and rights under this Security lnstrunaent; m~d (d) t~es such action as Lender may reasonably require to assure that I.ender's interest in the Property m~d rights under this Security Instrument, ~d Borrower's obligation to pay the sums secured by this Security Instrument, sh~l continue unchanged. Lender may require that Borrower pay such reinstatement stuns and , expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, b~k check, treasurer's check or cashier's check, provided any sucl~ check is drawn upon ~ institution whose deposits are insured by a feder~ agency, instrumentality or entity; or (d) Electronic Funds Tr~sfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby sh~l remain ~lly effective as if no acceleration had occurred, lfowcver, 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 InstruInent) can be sold one or more times without prior notice to Borrower. A sale might result in a ch~ge in the entity (known as the "Lom~ Servicer") that collects Periodic Payments due under the Note ~d this Security Instrument and performs odmr mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more ch~ges of the Loan Servicer unrelated to a sale of thc Note. If there is a change of lhe Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Lo~ Servicer, the address to which payments should be made and any other information RESPA 470LOFSON, KO7 ~6{WY) 1ooo5) Page ~ 1 of ~ 5 Form 3051 1101 0486 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 the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless 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 from the other party's actions pm'suant to this Security Instrument or that alleges ~:hat the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender bas notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed 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) "Ilazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or l'ormaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the 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 condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any llazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor 'allow anyone else to do, anything affecting the Property (a) ~l~at is in violation of any Environmental Law, (b) which creates an Enviromnental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quautities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, 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 involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including 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 ttazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borroxver shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. 470LOFSON. KO7 I~)®-6(WY) Iooo5) Page 12 of 15 Fom] 3051 1/01 0487 NON-UNIFORM COVENANTS. Borrower and Lender ftmher covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give. notice to Borrower prior to acceleration hallowing Borrower's breach of any covenant or agreement in this Secm'ity lnstrnment (bat not prior to acceleration nnder Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action reqnired to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default nrnst be cared; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums scented by this Security Instrnment and sale of the Property. Tbe notice shall farther inform Borrower of tile right to reinstate after acceleration and the right to bring a conrt action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment iu hdl of all sums secured by this Secnrity Instrument without furd~er demand aud may invoke the power of sale and any other remedies permitted by Applicable Law. I.ender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, hut 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 Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the nranner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purcbase the Property at any sale. Tbe proceeds of the sale shall be applied in the following order: (a) to all expenses of file sale, including, but uot limited to, reasonable attorneys' fees; (b) to all sums secured by this Security h~strtnnent; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sams secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrqment, but only if the fee is paid to a third party tbr services rendered and the charging of the fee is pernfitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. 470LOFSON, KO7 (~dalwvl iooo~} Page 13 of 15 Form 3051 1/01 0488 BY SIGNING BELOW, Borrower accepts and agrees to llie Ierms and covenants coutained in this Security Instrument anti in any Rider executed by Borrower and recorded with it. Witnesses: KURTA. OLOFSON / LAURA J. OLOFSON (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower 470LOFSON. KO7 (~6(WY) (ooo5) Page 14 of 15 Form 3051 1/01 STATE OF WYOMING, The foregoing instrument was acknowledged before me by KURT A. OLOFSON and LAURA J. OLOFSON August 19. County ss: 2004 My Commission Expires: 470LOFSON. KO7 ~-61WYI Page 15 of 15 Form 3051 1t01 SOUTHWEST TITLE CO 30? 8?? 9682 P.09 ALTA COMMITMENT - 1982 - WY SCI-I'EDULE C . 045 01 Commitment No.' FA 12056 OM The land referred to in this commitment is situated in the State of Wyoming, County of Lincoln, and is described as follows: Parcel 1 A portion of the Spackman property referred to in the Deed recorded in Book 348PR on page 273, with the Office of the Clerk of Lincoln County, Wyoming within the NW~NE~ of Section 16, T32N RllgW of the 6th P.M., Lincoln County, Wyoming the metes and bound being more particularly described as follows: BEGINNING at an Aluminum Cap on an Iron Pipe, said point being 366.64 feet, N 0~37'43'' E, along the West line of said. NW~/fNE~, from the B.L.M. Type Monument marking the Lloyd B. Baker PE/LS 698, 1994 Location for the Southwest corner of said NW~E~; thence N 0o37'43,, E, along said west line, 273.44 feet to an Iron Pipe; thence S 89035'55'' E, parallel with the North line of said NW~NE~, 572.43 feet to an Aluminum Cap on an Iron Pipe; thence S 43°41'05', E, 159.10 feet to an Aluminum Cap on an Iron Pipe; thence N 55°46'26'' E, 62.76 feet to an Aluminum Cap on an Iron Pipe; thence S 0°37'43'' W, parallel with said West line, 194.83 feet to an Aluminum Cap on an Iron Pipe; thence N 89°35'55" W, parallel with said North line, 735.08 feet to the POINT OF BEGINNING. Parcel 2 The right of access as reserved in instrument recorded February 5, 2003 in Book 511PR on page 829 of the records of the Lincoln County Clerk.