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HomeMy WebLinkAbout903248Prepared by and When Recorded Return To: PENNY JONES FI S ' NA ION £J 3 2 8 PO BOX 3110 ALPINE, WY 83128 RECFIVED ' II'.J00I_N 00Ur, ITY ............................ [Space Above This Line For Recording Data] ........................... LO_~I NO. 12626051084 MORTGAGE DEFINITION S Words used in multiple sections of this document are defined bdow 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 together with all Riders to this document. (B) "Borrower" is Wayne Hunter Neal AND Clarissa M. Neal, SEPTEMBER 27, 2004 husband and wife Borrower is the mortgagor under this Security Instrument. (C) "Lender" is FIRST NATIONAL BANK - WEST (ALPINE BRANCH) Lender isa A NATIONAL BANKING ASSOCIATION under the laws of THE UNITED STATES Lender' s address is 100 GREYS RIVER ROAD ALPINE, WY 83128 Lender is the mortgagee under this Security Instrument. organized and existing (D) "Note" means the promissory note signed by Borrower and dated SEPTEMBER 27, 2004 The Note states that Borrower owes Lender ONE HUNDRED THIRTY-NINE THOUSAND NINE HUNDRED AND 00/100 Dollars (U.S. $ 139,900.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than OCTOBER 1, 2034 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (17) "Loan" means the debt evidenced by the Note, plus interest, an3 prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, p~us interest. (G) "Riders" means all riders to this Security Instrument that utc cxccuted by Borrower. The following riders are to be executed by Borrower [check box as applicable]: [~] Adjustable Rate Rider [~ 1-4 Family Rider ----] Balloon Rider Condominium Rider Second ttome Rider Other(s) [specify] Planned Unit Development Rider Biweekly Payment Rider TAX EXEMPT WYOMING - Single Family - Fannie Mae/Freddie Mac [INIFORM INSTRUMEN I' Page I of 12 Form 3051 (01/01) and administrative rules and orders (that have the effect of laxv~ ,~.~ x~cll as all applicable final, non-appealable judicial opinions. (l) "Community Association Dues, Fees and Assessments" means all dues. fees, assessments and other charges that are imposed on Borrower or the Property by a condominium ass~}c~ation, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, t~thcr than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authori;,c ~ financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale trunsl'~rs, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clear nghouse transfers. CK) "Escrow Items" mean those items that are described in Section 3 (L) "Miscellaneous Proceeds" means any compensation, settlement, axx. ard of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all t~r a~q> part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissitm~ as to, the value and/or condition of the Property. 0VI) "Mortgage Insurance" means insurance protecting Lender ;tgmast the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount dm: l'or (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act t 12 U. S.C. §2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended fi'om time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security 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 qualify as a "federally related mortgage loan" under RESPA. (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 5ecurity Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all 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 does 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 [Type of Recording Jurisdiction] of Lincoln : [Name of Recording Jurisdiction] LOT 60 OF STAR VALLEY RANCH PLAT 3, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. WYOMING - Single Fmnily - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 (01/01) Page 2 of 12 which currently has the address of Wyoming 83127 (Zip Code] ,-' 06'39 51 Pine Drive, Thayne , tS~r~q [Ci~,] C Property .'\ddrcss" ): TOGETHER WITH all the improvements now or 'hereafter erected on the.property, and alt easements, appurtenances, and fixtures now or hereafter a part of the propcrt3. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is rclcrrcd to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seiscd o1' thc estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Propert3 is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title t~, thc I'roperty against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants f~,- national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform securit3 instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pa) I'Lmds lk)r l:'.scrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall bc made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent p:Lx mcnts due under the Note and this Security Instrument be made in one or more of the following forms, as sclcctctl by Lender: Ca)cash; Cb)money order; Cc) 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, instrtm)cntality, or entity; or Cd) Electronic Funds Transfer. Payments are deemed received by Lender when received at thc location designated in the Note or at such other location as may be designated by Lender in accordance with tln~ notice provisions in Section 15. Lender may return any payment(s) or partial payment(s) if the payment(s) t~r partial payments are insufficient to bring the Loan current. Lender may accept any payment(s) or partial pa)taunt(s) insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse sLich payment(s) or partial payments in the future, but Lender is not obligated to apply such payments at thc time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes pa3 mom(s) to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender sh~tl[ tither apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to thc 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 ut'idol thc Note and this Security Instrument or performing the covenants and agreements secured by this Securit3 In~LrLtmcnt. 2. Application of Payments or Proceeds. Except as othcrxxisc described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order ol' priority: Ca) interest due under the Note; Cb) principal due under the Note; Cc) amounts due under Sectio~ 3. 5-;uch 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 In.~[rt,~ncnt. and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinqucm I'criodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied t,, tt,c delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apl',l.x any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each i~a3 mcnt can be paid in full. To the extent that WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRt~Xlt-i \1 Page 3 of t2 Form 3051 (01/01) any excess exists after the payment is applied to the full paymcnl ~,1' one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayment~ ?,hal be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Misccli:tnc,~,s Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, t~ thc Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender ~m the da)' Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to pros idc I'~r payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this .'qccm'it) Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Pr~pcrt.,,', if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage lnsm'ance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage lnstu-ancc premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and ,\sscssments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Itcm. I/~,rrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pa5 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 l:-iscrmx Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pzO directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment xx ithin such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, a~ thc phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directl), pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights trader Section 9 and pay such amount 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 gixcn itl 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 amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and Co) not to exceed thc ma×imum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on thc busis or' current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance xx ith Applicable Law. The Funds shall be held in an institution whose deposits arc insut'cd by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose depo.qt~ arc so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items m, latcr than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds. annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower inter'cst on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in xxriting or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower anx interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall bc 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 undcl- R[-iSPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortztgc of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA. dm.I Borrower shall pay to Lender the amount necessaD' to make up the shortage in accordance with RESPA. but in m, more than twelve monthly payments. If there is a deficiency of Funds held in escrow, as defined under RI:t-;P.\. Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount neces,~a? t~ make up the deficiency in accordance with RESPA, but in no more than twelve monthly payments. Upon payment in full of all sums secured by this Securitx Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessmcnt~, ch~u'ges, fines, and impositions attributable to the Property which can attain priority over this Security lnstrun~ctlt. Icasdlold payments or ground rents on the WYOMdNG - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRI \11 \ I Form 3051 (01/01) Page 4 of ~2 Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items .are Escrow Items, Borrower shall pay them in the manner provided in 5;cction 3. Borrower shall promptly discharge any lien which has priorit3 mcr this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured b3 thc lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b.) conk'sts the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinitm operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures fi.om the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. \Vithin 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 oneqime charge Ik3r a real estate tax verification and/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 within thc term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, 1~,' which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Leuder 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 Co) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might afl'ect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection 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 ~bligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Sectkm 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice Ii'om Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such p, licies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, arid shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold thc pt)licies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required b3 l.ender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall uame 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 Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is cctmomically 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 Propct'ty to c~sure the work has been completed to Lender' s satisfaction, provided that such inspection shall be undert~kcn promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series ol' pt'ogress payments as the work is completed. Unless an agreement is made in writing or Applicable Law rcquircs interest to be paid on such insurance proceeds, Lender 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 p~fid out ot' the insurance proceeds and shall be WYOMING - Single Family - Fannie Mae/Freddie !M~c UNIFORM INSTRUMI.:N'I' Page 5 of 12 Form 3051 (01/01) the sole obligation of Borrower. If the restoration or repair is m'u economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to thc sums secured by this Security lnst,-ument, whether or not then due, with 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 noBcc ii'om Len'der that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle thc claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property unde,' 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 Instrument, and (b) any other ¢~1' 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 ma~ 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 use tile Property as Borrower's prinmpal residence within sixty days after the execution of this Security Instrument m~d shall continue to occupy the Property as Borrower's principal residence for at least one year after the date o1' occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating 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 to deteriorate or commit waste on the 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 p,'tm~ptl.5 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 repttMng or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse pn~cccds 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 m~t relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and insp~:ctions of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the I'roperty. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such rcason,'lble cause. 8. Borrower's Loan Application. Borrower shall be in dcl'auh il~ during the Loan application process, Borrower or any persons or entities acting at the direction of Borroxxcr 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 information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights U,ider this Security Instrument. If (a) Borrower fails to pertbrm the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in thc Prt)perty and/or rights nnder this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeitm'e, for enforcement of a lien which may attain priority over this Security Instrument or to enflwcc laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whutc\'er is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security lnstrtm~cnt, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. l.ender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priorib t}x cr this Security Instrument; (b) appearing in court; and (c) paying reasonable attorney's fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptc) procc'eding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change h,d<s, replace or board up doors and windows, drain water fi-om pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9. I.ender does not have to do so and is not WYOMING - Single Family - Fannie Mae/Freddie Mac UNIlVORM INSTRtIMI(?~' I' Form 3051 (01/01) Page 6 o f 12 under any duty or obligation to do so. It is agreed that Lender- incurs ilo liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shal t>~:ctml:: additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at thc Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender. to BorroxYer requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all .the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fcc 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 Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available Ii'om the mortgage insurer that previously provided such insurance and Borrower was required to make separatel) designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalem to the Mortgage Insurance previously in effect, at a cost substantiall~ equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortga,2c_ insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shal continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss ,'eserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the lxmn is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss rese,'ve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and ibr the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtaincd, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. [f Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separateb designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until the Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing t'c)r 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 purchases the Note) for certain losses it may incur' if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modif5, their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other p:trty (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from 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 (directl> or indirectly) amounts that derive from (or might be characterized as) a potTtion of Borrower's payments for Mt~rtgage Insurance, in exchange for sharing or modifying the mortgage insurer' s risk, or 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 premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Burrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will out increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrowe,- has - it' an), - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or an) olher law. These rights may include the right to receive certain disclosures, to request and obtain cn,~ct, llation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or lermination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. WYOMING - Single Family - Fannie Mae/Fretldie Mac UNIFORM 1NSTRUMEzX I Page 7 of 12 Form 3051 (01/01) If the Property is damaged, such Miscellaneous Proceeds sh,dl bc applied to restoration or repair of the Property, if the restoration or repair is economically feasible and l.cndcr' ~ 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 to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender ma2. 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 MiscellLm¢ous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the lVliscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then duc. with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided l'or in Section 2. In the event of a total taking, destruction, or loss in value of thc 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 ora partial taking, destruction, or loss in value o1' thc Property tn which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, thc 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 before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be 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 immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be upplied to the sums secured by this Security Instrument whether or not the sums are 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 an award to settle ~ claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, l.cndcr is authorized 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 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 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. Borrowe,- calq cure such a default 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 forfeiture of the Property or other matsrial impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds or' any award or claim for damages that are attributable to the impairment of Lender' s interest in the Property arc hereby' assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration t~t' repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Exlension of the time for payment or modification of anaortization of the sums secured by this Security Instt'ument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release tine li:;bility of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence prt)ccedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modit',, amortizat on of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors tn Interest of Borrower Any forbearance by Lender in exercising any right or 'cmcdy inch~ding, without limitation, Lender's acceptance ol' payments fi'om third persons, entities or Successors in Int~zrest or' Borro,,ver or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise ot' any' right or remedy. 13. Joint and Several Liability; Co-signers; Successors nmi Assigns Bound. Borrower covenants and WYOMING - Single Family - Fannie Mae/Fredflie Mac UNIFORtM INSTRUMEN'I' Page 8 of 12 Form 3051 (01/01) agrees that Borrower' s obligations and liability shall be .joint and .~c~ cl'Ld. I lowever, an), 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 thc I'roperty under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured h) this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modil~,, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without }he co-signer' s consent. Subject to the provisions of Section 18, any Successor in Interest uf Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is apprux t:d by Lender, shall obtain all of Borrower' s rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees I{~ such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for scrx ices performed in connection with Borrower' s default, for the purpose of protecting Lender's interest in the Pn~pcrt) and rights under this Security Instrument, including, but not limited to, attorneys fees, property inspection und valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to clnm'ee a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lende,' nm~ 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 charucs, 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 thc 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 charec is provided for under the Note). Borrower' s acceptance of any such refund made by direct pay ment to Borroxvcr will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in c~}nncction with this Security Instrument must be in writing. Any notice to Borrower in connection with this Securit~ Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actuall3 delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute nt~nce to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Propcrt) Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address, if Lender specifies a procedure for reporting Borrower' s change of address, then Borrower shall only report a change of address through that specified procedure. 1'here ma) be only one designated notice address under this Security Instrument at any one time. Any notice to Lenc~cr snail be given by delivering it or by mailing it by first class mail to Lender' s address stated herein unless Lender ~as designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required m thi~ Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy thc o,rrcsponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. '1 his Security Instrument shall be governed by federal lax,/ and the law of the jurisdiction in which the Property s h~cated All rights and obligations contained in this Security Instrument are subject to any requirements and lira t:ttions oF AppliCable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contracl ~r il might be silent, but such silence shall not be construed as a prohibition against agreement by contract. ]n mc event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, ~uch ctmlqict shall not affect other provisions of this Security Instrument or the Note which can be given et'fi~ct XviLht)ul tile conflicting provision. As used in this Security Instrument: (a) words of the masculine ~cndcr shall mean and include corresponding neuter words or words of the feminine gender; (b) words in thc sin~Lnar shal mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without :m,. t~blimMon to take any action. 17. Borrower's Copy. Borrower shall be given one copy oI' tl~c Note and o['this Security Instrument. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRLI\IiSN 1 Page 9 oF 12 Form 3051 (01/01) 18. Transfer of the Property or a Beneficial Interest in Bo,'rower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest ill the Propcrt), including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installm,:ut sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to ;t purchaser. If all or any part of the Property or any Interest in the. Propcrt) is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is soid or transllzrrccl) 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 this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If l?,orrower tails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permittccl by this Security Instrument without further notice or demand on Borrower: 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sate contained in this Security Instrument; (b) such other period as Applicable Law might specify for the term ination 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 sums which then would be due under this Security Instrument and 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 and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in tile Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borro~ver's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected hy 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, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, 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 G,-iev:mce. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan .'-;ervicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also migi]t be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of thc Loan Servicer, Borrower will be given written notice of the change which will state the name and address of thc aew Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer(s) 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 fi.om the other party' s actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, (,r an3 duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other pm't)' (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 cor,-ective 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 Bor,'ower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and WYOMING - Single Family - Fa nnie Mae/Freddie Mac tin IFORM 1NSTRU~,I E NT Form 3051 (01/01 ) Page I0 of 12 "0 6 2 7 oppo~.~. ~ective action provisions of this Section 20. 2I. Haza'rd:ous Substances. As used in this Section 21: (a) "[la~'ardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes h) ~h~vironmental Law and the following substances: gasoline, kerosene, other fiammable or toxic petroleum pre,ducts, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or forma!dehyde, 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 anx response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environment:ti Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disp,~sal, storage, or release of any Hazardous 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) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due tt~ Iht presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of thc l'ropcrty. ]'he preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and 1o maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) an> inxestiganon, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party in¥oh'ing 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, rclcuse or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release ot'a kl azardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified hx an) governmental or regulatory authority, or any private party, that any removal or other remediation of an.~ t lttzardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIF ORM COVENANTS. Borrower and Lender further co¥cnant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Bm'rower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 311 {h~ys fro,n 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 result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any olher remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice ~1' 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 manner provided in Secti{m 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by :~pplicable law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' l'ees:, (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons leg:ally entitled to it. 23. Release. Upon payment of all sums secured by this Securit) ht~trtmlci'~t. Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender m[~ ch:u'ge Borrower a tee for releasing this Security Instrument, but only if the fee is paid to a third party tot' ~c. t x ,cc.s rendered and the charging of the fee is WYOMING - Single Family- Fannie Mae/Freddie .Mac UNIFORM INSTRUMF \1 Page 11 of 12 Form 3051 (01/01) 0818 permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and b3 virtue of the homestead exemption laws of Wyoming. BY SIGNING BELOW, Borrower accepts and agrees, to the terms and covenants contained in this Security Instrument and in any rider(s) executed by Borrower and recorded x~ ith it. Wayne Hunter Neal C~a-r~ssa M. NeaI _~S~oa~,l~) Socia, Seou,'it , N ,n be,- 5,20'/23' "73<// Social Security Number (Seal) (Seal) - Borrower Social Security Number ............................. -[Space Below This Line For Acknowledgment] ............................ STATE OF W¥OM'I;NG ) ) SS: COUNTY OF LINCOLN ) The foregoing instrument was acknowledged before me, a Notary ?ublic, on SEPTEMBER 27, 2004 Date by: Wayne Hunter Neal AND husband and wife Clarissa M. Neal, Person(s) Acknowledging In WITNESS WHEREOF, I have hereunto set my hand and official seaL. My Commission exoires: 09/18/07 COUNTY OF ll~l.v~ STATE OF LINCOLN ~ WYOMING WYOMING -Single Family- Fannie Mae/Freddie 'Mac UNIFORM INSTRUsII{N 1' Page 12 of 12 Notary Public Form 3051 (01/01) 0 90 24S 0619 PLANNED UNIT DEVELOPMENT RIDER LOAN NO. 12626051084 THIS PLANNED UNIT DEVELOPMENT RIDER is made this 27TH day of SEPTEMBER, 2004 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the nndersigned (the "Borrower") to secure Borrower's Note to FIRST NATIONAL BANK - WEST (ALPINE BRANCH) A NATIONAL BANKING ASSOCI (the "Lender") of the same date and covering the Property described in the Security Instrmncnt and located at: 51 Pine Drive Thayne, WY 83127 [Property Address] The Property includes, but is not limited to, a parcel of land improved with a dwelling, together with other such parcels and certain common areas and facilities, as described in DECLARATIONS · CONVgl~lq'rs · CONDITIONS, AlqD?:RESTRICTIONS (the "Declaration"). The Property is part of a planned unit development known as STAR VALLEY RANCH [Name of Planned Unit Devcloim~cn£] (the "PUD"). Thc Property also includes Borrower's interest in thc homeowners association or equivalent entity owning or managing the common areas and facilities of the PUD (the "Owners Association") and the uses, benefits and proceeds of Borrower's interest. PUD COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. PUD Obligations. Borrower shall perform all of Borrower's obligations under the PUD's Constituent Documents. The "Constituent Documents" are the (i) Declaration: (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or regulations of thc Owners Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "~naster" or "blanket" policy insuring the Property which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for Ibc periods, and against loss by fire, hazards included within thc term "extended coverage," and any other hazmds, including, but not limited to, earthquakes and floods, for which Lender requires insurance, then: (i) kcmlcr waives the provision in Section 3 for the Periodic Pay~ncnt to Lender of thc yearly premium instalhnents I't~r property insurance on thc Property; and (ii) MULTISTATE PUl) RIDER Single Family Fannie Mae/Ih'eddie Mac UNIFORJVI [NSTRUMENT FNMA3150 (10/00) Page I of 2 FORM 3150 1/01 Initials ,_ 0(;'20 Borrower's obligation undcr Section 5 to maintain property insurance coverage on thc Property is deemed satisfied to the extent that the required coverage is provided by thc Owners Association policy. What Lender requires as a condition of this waiver can change during thc term of thc loan. Borrower shall gtve 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 in lieu of restoration or repair following 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 the proceeds to the sums secured by the Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property or the common areas and facilities of the PUD, or for any conveyance tn lieu of coudcmnation, are hereby assigned and shall be paid to the Lender. Such proceeds shall be applied by Lender to thc sums 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 adandonment or termination of the PUD, except for abandonment or termination required by law in thc case of substantial destruction by fire or other casualty or in the case of taking by condemnation or eminent domain; (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the express benefit of Lender; (iii) termination of professional management and assumption of self-management of thc Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F. Remedies. If Borrower does not pay PUD dues and assessments ~vhen due, then Lender may pay them. 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 amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this PUD Rider. Wayne Hunter Neal (S al) 'il (Seal) -Borrower ~/S -Borrower Cia sa M. Neal (Seal) (Seal) -Borrower -Borrower [Sign Original Only] MULTISTATE PUD RIDER FNMA3150 (10/00) Single Family Fannie Mac/Freddie Mac UNIFORM INSTRUMENT Page 2 of 2 FORM 3150 1/01 0:9032.4 MORTGAGE ADDENDUM The following is an Addendum to the Mortgagt~ The addendum shall be incorporated into and recorded with, the Mortgage. TAX EXEMPT FINANCING RIDER This Tax-Exempt Financing Rider is incorporated toro and shall be deemed to amend the terms of the Mortgage to which it is attached. In addition to the covenants and agreements made in the Security instrument, Borrower and Lender further covenant and agree as follows: Lender, or such of its successors or assigns as may, by separate instrument, assume responsibility for assuring compliance by the Borrower with the provisions of this Tax Exempt Financing Rider, may require immediate payment in full of all sums secured by this Security Instrument if: a} All of part of the Property sold or othcrxvise transferred (other than by devise, descent or operation of law} by Borrower to a purchaser or other transferee: Who cannot reasonably be expected to occupy the property as a principal resident within a reasonable time after the sale or transfer, all as provided in Section 143(c} and (i} (2} of the Internal Revenue Code; or ii} Who has had a present ownership interest in a principal residence during any part of the three year period ending on the date of the sale or transfer, all as provided in Section 143[d} and (i) (2} of the Internal Revenue Code; or iii) At an acquisition cost which is greater than 90 percent of the average area purchase price (greater than 110 percent for targeted area residences}, all as provided in Section 143(e} and (i} (2} of the Internal Revenue Code; or ivl Whose family income exceeds applicable income limits as provided in Section 143(t) and IU (2) of the Internal Revenue Code. b} Borrower fails to occupy the property described in the Security Instrument without prior written consent of the lender or its successors or assigns described at the beginmng of this Tax Exempt Financing Rider, or c} Borrower omits or misrepresents a fact that m materia] with respect to the provisions of Section 143 of the Internal Revenue Code in an application for the loan secr~red by this Security Instrument. References are to the Internal Revenue Code as amended, in effect on the date of execution of the Security Instrument and arc deemed to include the implementing regulations. BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions in this Tax-Exempt Financing R_ider. WAYNE ltUNTER NEAL MPP 210-B (Revised 12/95) CLARISSA M. NEAL ' /0621