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HomeMy WebLinkAbout903807903k. 3 I RECEIVED LINCOLN COUNTY CLERK POT - 5 3:5 0 AflerRecording RetumTo: LIME FINANCIAL 5885 SW MEADOWS ROAD, 600 LAKE OSWEGO, OR 97035 STE U56 b4 Prepared By: AMY SCHELLING LIME FINANCIAL 5885 SW MEADOWS RO~%D, 600 LAKE OSWEGO, OR 97035 STE [Space Above This Line For Rec.,'ding Data] MORTGAGE PEARSON Loan #: 100006214 Parcel #: 12-3418-29-4-06-008.00 NflN: 100206401000062497 DEFINITIONS Words used in multiple sections of this document are defined hch~w and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain roles regarding the usage of w~,rds used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is d:tlct OCTOBER 1, 2004. together with all Riders to this document. (B) "Borrower" is CAROLYN E. PEARSON AND JEFF E. PEARSON, AS TENANTS BY THE ENTIRETY. Borrower is the mortgagor under this Security lnsl ru men [. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors m~d assigns. MERS is the beneficiary under this Security Instrument. MERS is organized and existing trader thc laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026. tel. (888) 679-MERS. (D) "Lender" is LIME FINANCIAL SERVICES, LTD I.cmlcr is a CORPORATION organized and existing under the laws of OREGON. Lender's address is 5885 sw MEADOWS ROAD, STE 600, LAKE OSWEGO, OR 97035. (E) "Note" means the promissory note signed by Borrowe.' :,nd dated OCTOBER 1, 2004. The Note states that Borrower owes Lender ONE HUNDRED EIGHTY-SEVEN THOUSAND NINE HUNDRED FIFTY AND 00/100 Dollars (U.S. $187,950.00) plus imcrcsl. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not lak'r fha ~ OCTOBER 1, 2034. (F) "Property" means the property that is described below umlcr the heading "Transfer of Rights in the WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTIll M ICNT 360 (1 of 13 pages) Form 3051 1/01 NOTE: This serves to::correct that certain Horrgage recorded October 5, 2004 in Book 569PR on page 202-A of the records of the Lincoln COunty Clerk to add the complete Adjustable Rate Rider. ~, F;ECEIVED Li';': ', ,'"~, _:.,"' (':OUNTY CLERK 90380';/ 0203 100006214 0905807 L, t' 01 B X 0cJ0:34 Property." (G) "Loan" means the debt evidenced by the Note, plus interest any prepayment charges and late charges due under the Note, and all sums due under this Security Instrumcnl, plus interest. (H) "Riders" means all Riders to this Security Instrument thai arc executed by Borrower. The followin$ Riders are to be executed by Borrower [check box as applicable]: [] Adjustable Rate Rider [] Balloon Rider [] 1-4 Family Rider [] Condominium Rider [] Planned Unit Development Rider [] Other(s) [specify] [] Second Home Rider [] Biweekly Payment Rider (I) "Applicable Law" means all controlling applicable Federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the cfi'cc, o£ law) as well. as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by , condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, ~thcr than a transaction originated by check, draft, or similar paper instrument, which is initiated through a~ 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-~ff-s,lc transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and aut~maated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Scctitm 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award Of damages, or proceeds paid by any third party (other than insurance proceeds paid under dw coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or ~,mcr taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresent:m~ms of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender aMainst the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount duc for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act t 12 U.S.C Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500) .... d~cy might be amended from time to time, or any additional or successor legislation or regulation that go~crns the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and rcqricuons that are imposed in regard to a "federally related mortgage loan" even if the Loan does not tlualil'y as a "federally related mortgage loan" under RESPA. (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note andA~r this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment rd' thc Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrm~cr's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower tlt~cs hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors mid agsigllS) and to the successors and assigns of MERS, and Lender's successors and assigns, with power of sale, the following described property located in the COUNTY (Type of Recording Jurisdiction) of T.IN¢OLN (Name of Recording Jurisdiction): SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF. which currently has the address of 240 B STREET, BEDFORD, Wyoming 83112 ("Property Address"). WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRU[ I ENT 360 (2 of 13 pages) Form 3051 1/01 100006214 TOGETHER WITH all the improvements now or hereafter ct'coted on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the propc~ ry. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is rc!'crred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds ~mly legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; :tnd to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully sc, iscd of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and thai thc 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. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute ~t trait'otto security instrument covering real prOperty. UNIFORM COVENANTS. Borrower and Lender covc,~.,mt and agree as follows: 1. Payment of Principal, Interest, Escrow. Items, l','cpayn~ent Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, Ifc debt evidenced by the Note and any prepayment charges and late charges due under the Note. Bom,wet shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Nccm'ity Instrument shall be made in U.S. currency. However, if any check or other instrument received by l.cndcr as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent'payments due under the Note and this Security Instrument be made in one t~' more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the pa)~ncnt or partial payments are insufficient to bring the Loan current. Lender may accept any payment or pm'rial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to it~ dghts 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 duc date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Ih~m~wer makes payment to bring the Loan current. If Borrower does not do so within a reasonable period o1' time, Lender shall either apply such funds or return them to Borrowen If not applied earlier, such funds will bc applied to the outstanding principal balance under the Note immediately prior to foreclosure. No off,ct or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreement~ secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in thc l't~llowJ ng order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts tluc ulldcr Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due trader this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delimluent Periodic Payment which includes a WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRt,.MENT 360 (3 of 13 pages) Form 3051 1/01 0903807 '. 0163 09034Li:i. sufficient amount to pay any late charge due, the payment may bc ;q, plied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, l.cmlcr may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to II~c extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess 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 N li~ccllaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change thc amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to I.cndcr on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") tt~ provide for payment of amounts due for: (a) taxes and assessments and other items which can attain prit.'ity t~ver this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the [,n.,,'mcnt of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are czdlcd "Escrow Items," At origination or at any time during the term of the Loan, Lender may require thai Ctmmmnity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, revs and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amtmnts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender w:dves 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 any time. Any such waiver may only be in ~riting. In the event of such waiver, Borrower shall pay directly, when and where payable, the amohnts due fi.' any Escrow. Items for which payment of Funds has been waived by Lender and, if Lender requires, shall I'tu'nish to Lender receipts evidencing such payment within such time period as Lender may require. Bol-rt~xx cr's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covcllztld and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in ~cction 9. If Borrower is obligated to pay Escrow Items directly, purSuant to a waiver, and Borrower fail~ t~ pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such an~tmnt and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender m:~y revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 mid, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then recltti~cd 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 (b) nt~t t{) exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of lrmlds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items ,.' .therwise in accordance with Applicable Law. The Funds shall be held in an institution whose &posits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an in~tilution 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 fi.' h~dding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, tmlcss Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lendc~ 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 ch:.'ge, an annual accounting of the Funds as required by RESPA, If there is a surplus of Funds held in escrow, as clcl].cd under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage 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 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 WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INST R U,M E NT 360 (4 of 13 pages) Form 3051 1/01 0: 03807 notify Bo~ower as required by ~SPA, and Bo~ower shall pay lt~ l.cnder the amount necess~y to make up the deficiency in accordance with ~SPA, but in no more than 12 m~mthly payments. Upon payment in hll of all sums secured by this Security Instrument, Lender shall promptly refund to Bo~ower any Funds held by Lenden 4. Charges; Lie~. Bo~ower shall pay all taxes, a.scssmcnts, charges, fines, and impositions attributable to the Property which can attain priority over thi, Nccurity Instrument, leasehold payments or ground rents on the Property, if any, and Commu~ Associati.~ 13uts, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Bo~ower shall pay tbcm i~ the manner provided in Section 3. Bo~ower shall promptly discharge any lien which has prit,rity over this Security Instrument unless Bo~ower: (a) agrees in writing to the payment of the obligation ~cct,'cd by the lien in a manner acceptable to Lender. but only so long as Bo~ower is performing such agreen~.n~; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings x~ hich in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pc.dj.g, but only until such proceedings ~e concluded; or (c) secures from the holder of the lien an agreen~c~t satisfactory to Lender subordinating the lien to this Security Instrument. If Lender dete~nes that any part ~)f the Property is subject to a lien which can attain priority over ~is Security Instrument, Lender may gi~c Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Bon'oxvc~' shall satisfy the lien or take one or more of the actions set fonh above in this Section 4. Lender may require Bo~ower to pay a one-time charge l'or a real estate tax verification ancot reporting service used by Lender in connection with this Loan. 5. Property Insurance. Bo~ower shall keep the imprt~vc~cnts now existing or hereafter erected on the Property insured against loss by fire, haz~ds included within thc term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, I'~r 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 sente,ccs can change during the tern of the Loan. The insurance c~er providing the insurance shall be chosen hy Borrower subject to Lender's right to disapprove Bo~ower's choice, which right shall not be exercised um-ca~onably. Lender may require Bo~ower to pay, in connection with this Loan, either: (a) a one-time charge ft)r flood zone determination, certification and trachng services; or (b) a one-time charge for flood zone determination and certification services and subsequent ch~ges each time remappings or si~l~ changes ()tour which reasonably might affect such dete~nation or certification. Bo~ower shall also be responsible f.r the payment of any fees imposed by the Federal Emergency Management Agency in connection with thc review of any flood zone determination resulting from an objection by Bo~ower. If Bo~ower fails to maintain any of the coverages dcsc~ ibcd above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any paaicul~ type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Bo~ower, Bo~ower's equity in the Property, or the contc~}t~ ol' the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously .in effect. Bo~ower ac~owledges that the cost of the insurance coverage so obtai~cd might significantly exceed the cost of insurance that Bo~ower could have obtained. Any amounts di~bttrscd by Lender under ~is Section 5 shall become additionfl debt of Bo~ower secured by this Security Instrument. These amounts shall be~ interest at the Note rate from the date of disbursement and shall be payable, x~ ith such interest, upon notice from Lender to Bo~ower requesting payment. All insurance policies required by Lender and renewal, rd' such policies shall be subject ta Lender's right to disapprove such policies, shall include a stand~d m~,rtgage clause, and shall name Lender as moagagee ~or as an additional loss payee. Lender shall have Ifc right to hold the policies and renewal certificates. If Lender requkes, Bo~ower shall promptly give tt, l~ender all receipts of paid pre~ums and renewal notices. If Bo~ower obtains any fo~ of insurance coverage, not otherwise required by Lender, for damage to, or des~uction of, the ProperS, such policy shall inch~cle a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Bo~ower shall give prompt notice t~ the insurance c~fier and Lender. Lender WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRU MENT 360 (5 o fl3 pages) Form 3051 1/01 osoasOv 100006214 may make proof of loss if not made promptly by Borrower. Unlc~ Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying in~m'ance was required by Lender, shall be applied to restoration or repair of the Property, if the restor.titm or repair is economically feasible and Lender's security is not lessened. During such repair and restt,~.tion period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity h~ 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 for the repairs and restoration in . ~ingle payment or in a series of progress payments as the work is completed. Unless an agreement is re.dc in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not bc 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 obligatitm tff 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 lhen due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order prmqded for in Section 2. If Borrower abandons the Property, Lender may file, ncgc~tiate 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 if I.cnder acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Bon'owcr's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or thi~ Security Instrument, and (b) any other of Borrower's rights (other than the fight to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights arc applicable to ~he coverage of the Property. Lender may use the insurance proceeds either to repair or resh~rc the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then duc. 6. Occupancy. Borrower shall occupy, establish, and usc the Property as Borrower's principal residence within 60 days after the execution of this Security l,strument 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 um'casonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of Ihe l'roperty; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to dclcriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower sh:~ll 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 instmmcc or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrtiwcl shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a ~crics of progress payments as the work is completed. If the insurance or condemnation proceeds are nol ,ut'l]cient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the complcti,m of such repair or restoration. Lender or its agent may make reasonable entries tll)t}l ~tlld inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the imprm'cments on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspecti~m .specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall bcm delhuh if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccm'atc intbrmation or statements to Lender (or failed to provide Lender with material information) in connecti~m with the Loan. Material representations include, but are not limited to, representations concerning B~rrower's occupancy of 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 perform the covenants and agreements cont,ined in this Security Instrument, (b) there WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTi(tlMKNT 360 (6 of 13 pages) Form 3051 1/01 is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, pre,hate, 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, thou I.cnder may do and pay for whatever is reasonable or appropriate to protect Lender's interest in thc Pnq)erty and rights under this Security Instrument, including protecting and/or assessing the value of thc Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (',t) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court: ',md (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Sectu'it5 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 x~imMws, drain water from 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, Lender does not h;~xc to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability I',~r not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Sectiou t) shall become additional debt of Borrower secured by this Security Instrument. These amounts shall be',t~' interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon n,~tice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. Borrower shall not surrender the leasehold estate, and interests herein conveyed or terminate or cancel the ground lease. Borrower shall not, without the express wriltcn consent of:Lender, alter or amend the ground lease. If Borrower acquires fee title to the Property, thc leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10, Mortgage Insurance. If Lender required Mortg:tgc Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain Iht lXlurtgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was reqtfircd to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pa> the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in c tTcct, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in cf feet, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insur:mcc coverage is not available, Borrower shall 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, u~c 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 l'tlll, 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 amount and for the period that l.ender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's rctltfircment for Mortgage Insurance ends in accordance with any written agreement between Borrower and l.cndcr 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 Ihat purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrmvcr is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such inNurance m force from time to time, and may enter into agreements with other parties that share or modify d~cir risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage ~nsurer and the other party (or parties) to WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTIIUMENT 360 (7 of 13 pages) Form 3051 1/01 these agreements, These agreements may require the mortgage it~t.'cr to make payments using any source of funds that the mortgage insurer may have available (which m',ty include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchasc~' ~1' the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may ~cccive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrm~ cr's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, ~.' ~cducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in cx~'hange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Ft.'ther: (a) Any such agreements will not affect the amm,,,l~ Ihat Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Suclt agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will nol enlitle Borrower to any refund. (b) Any such agreements will not affect the rights Ih.-'ower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act o[ 1998 or any other law. These rights may include the right to receive certain disclosures, to reques~ ami obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated aut.,natically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the lime o1' such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeit.re. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proccc& shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible ',md l~¢nder's security is not lessened. During such repair and restoration period, Lender shall have'the right t~ hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensm-c ibc work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken l.'t.nptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress i¥,~ymcnts as the work is completed. Unless an agreement is made in writing or Applicable Law requires intel'cst t~ be paid on such Miscellaneous.Proceeds, Lender shall not be required to pay Borrower any interest or e~.'.ing.~ on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's scct.'ity would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security l.~tmment, whether or not then due. with the excess, if any, paid to Borrower. Such Miscellaneous Procee& ~hall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in valu~ of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security h~slrument, whether or not then due, with the excess, if any. paid to Borrower. In the event of a partial taking, destruction, or loss in ,,alu¢ of the Property in 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 Instmillcnl immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherx~ i~c agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of thc Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums sect.'cd 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 bc pzfid m Borrower. In the event of a partial taking, destruction, or loss in xahtc 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 Miscelhmcous 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, al'let notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages. Borrower fails to respond to Lender within 30 days after the date thc notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restor~,i,m or repair of the Property or to the sums WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRt 360 (8 of 13 pages) Form 3051 1/01 o96a o ,. 0 68 0£10 10000621.,~ secured by this Security Instrument, whether or not then due. "()plmsing 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, whcqher civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or t,lhcr material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing thc action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of thc I*~'~)l,Ct'ty or other material impairment of Lender's interest in the Property or rights under this Security Ins,'tm~ent. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to rcx,,ration or repmr of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lende,' N{~i a Waiver. Extension of the time for payment or modification of amortization of the sums secured b3 It~i~ Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not ,,pcrate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be req,ircd to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time fi,' i~z~3 ment or otherwise modify amortization of the sums secured by this Security Instrument by reason of an3 .lelnand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance b} I.cmler in exercising any right or remedy including, without limitation. Lender's acceptance of payment, I'~m~ third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then chic. shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successm's a,tl Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be jotul :md several. However, any Borrower who co-signs this Security Instrument but does not execute the Note la "ct)-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's imcrest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the s.mx secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree tt~ extend, modify, forbear or make any accommodations with regard to the terms of this Security Inslrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Succe~st,r 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 Instrument Borrower shall not be released from Borrower's obligations and liability under this Security Instrument mdess Lender agrees to such release in writing. The covenants and agreements of this Security Instmmcm shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fee~ flu' 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 Nccm'ity Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the chargi~g ~1' such fee. 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 lo~.~ charges, 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 fi'mn Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make Ihis refund by reducing the pnncipal owed under the Note or by making a direct payment to Borrower. If ,, rcftmd reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge twhether or not a prepayment charge is provided for under the Note). BorroWer's acceptance of any such rtl'trod made by direct payment to Borrower WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTR t!MI,;NT 360 (9 of 13 pages) Form 3051 1/01 , k. 0169 100006214 will constitute a waiver of any right of action Borrower might h;~ c arising out of such overcharge. IS. Notices. All notices given by Borrower or Lender in connection with this Security Inst~ment must be in writing. Any notice to Bo~ower in connection with this Security Instrument shall be deemed to have been given to Bo~ower when mailed by first class mail or ~ hen actually delivered to Bo~ower's notice address if sent by other means. Notice to any one Borrower ~h;~ll constitute notice to all Bo~owers unless Applicable Law expressly requires otherwise. The notice a&hvss shall be the Property Address unless Bo~ower has designated a substitute notice address by notice to Lender. Bo~ower shall promptly noti~ Lender of Bo~ower's change of address. If Lender specifies a pr,~ccdurc for reporting Bo~ower's change of address, then Bo~ower shall only report a change of address that,ugh that specified procedure. There may be only one designated notice address under this Secu~ty Inst~mcnl at any one time. Any notice to Lender shall be given by delive~ng it or by mailing it by first class mail to l.c,dcr's address stated herein unless Lender has designated another address by notice to Bo~ower. Any notice in connection with this Secn~ty Instrument shall not be deemed to have been given to Lender until actually received by Lenden If any notice required by this Secu6ty Ins~ument is also required under Applicable Law, thc Applicable Law requirement will satisfy the co~esponding requirement under this Secu~ty Instrument. 16. Governing Law; Severability; Rules of ConMruclion. This Security Inst~ment shall be governed by federal law and the law of the jurisdiction in which the Propeay is located. All rights and obligations contained in this Secu~ty Instrument ~e subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this SecuJty Instrument or thc Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Secu6iy Instru,ncnt or the Note which can be given effect without the conflicting provision. As used in this Secu~ty Inst~ment: (a) words of thc masculine gender shall me~ and include co~esponding neuter words or words of the feminine gender; (b) words in the singul~ shall mean and include the plural and vice versa; and (c) the word "may" gives ~,,lc discretion without any obligation to take any action. 17. Borrower's Copy. Bo~ower shall be given one copy of the Note and of this Secu~ty Insmument. 18. ~ansfer of the Property or a Beneficial Interest iu Burrowen As used in this Section 18, "Interest in the Propeay" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transfe~ed in a bond for deed, co.t~':~ct fin' deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by lh,rrower at a future date to a purchasen If all or any p~ of the Property or any Interest in the I'aq,ct'ty is sold or transfe~ed (or if Borrower is not a natural person and a beneficial interest in Bo~ower i~ st~lcl or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by I.cnder if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Bom,x~ cr notice of acceleration. The notice shall provide a period of not less than 30 days from the date ~e notice is given in accordance with Section 15 within which Bo~ower must pay M1 sums secured by this Secm'i~y Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies pe~tted by this Security Ins~ment without further notice or demand on Bo~owen 19. Borrower's ~ght to Reinstate After Acceleralim~. If Borrower meets ce~ain conditions, Bo~ower shall have the right to have enforcement of this Security Instrument discontinued at ~y time prior to the e~liest of(a) five days before sale of the Property purstmnt to any power of sale contained in this Security Ins~ument; (b) such other period as Applicable Law might specify for the te~ination of Bo~ower's right to reinstate; or (c) en~ of a judgment enfoming this Scct.'ity Instrument. Those conditions am that Bo~ower: (a) pays ~nder all sums which then would be due trader this Security Instrument and the Note as if no acceleration had occu~ed; ¢) cures any default of any t~thcr covenants or agreements; (c) pays all expenses incu~ed in enforcing this Secud~ Instrument, including, but not limited to, reasonable attorneys' WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRt ,NI ENT 360 (10 of 13 pages) Form 3051 1/01 fees, property inspection and valuation fees, and other fees inct,,~'cd roi' the purpose of protecting Lender's interest in the Property and rights under this Security Instrumcm; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Propcn.~ ami rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Sccmity Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums aim expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) cci'l if lcd check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institulit)tl whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Trm~sfcr. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall rem;., fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the ca~c of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice o1'¢ ;rievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold ,mc or more times without prior notice to Borrower. A sale might result in a change in the entity (known ~,~ thc "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrumenl a~M performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note Il' there is a change of the Loan Servicer, Borrower will be given written notice of the change which will s~.aic the name and address of the new 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 l(~an servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor l.oan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. .' Neither Borrower nor Lender may commence, join, o,- be joined to any judicial action (as either an individual litigant or the member of a class) that arises from thc ,,lher party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notilk, d thc other party (with such notice givgn 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 correctix c 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 ol~pt),'ttmity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower lmrsuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provi~itms of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants. {,' wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or t{~x i c petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or l't,maldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the j urisdiclit m where the Property is located that relate to health, safety or environmental protection; (c) "Environmc,t',fl Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental l.aw; 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 Hazardous Substances, or threaten to release any Hazardous Substances, tm t},' in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that ix in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects thc value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on thc Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to m n'mal residential uses and to maintenance of the Property (including, but not limited to, hazardous substance~ in consumer products). Borrower shall promptly give Lender written notice of (;t) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or p~'ivate party involving the Property and any Hazardous Substance or Environmental Law of which B~.'rower has actual knowledge, (b) any WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTI{I I,M ENT 360 (11 ofl3pagesJ Form 3051 1/01 t0£13 Environmental Condition, including but not limited to, any spillit~g, le:lking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition catt,,cd by the presence, use or release of a Hazardous 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, [hal any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower ~,l~:lll promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender I'm'[her covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower 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 pro~ ides ofl~erwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c} a dale, not less than 30 days from the date the notice is given to Borrower, by which the default must he cured; and (d) that failure to cure the default on or before the date specified in the notice ma), i'esul! in acceleration of the sums secured by this Security Instrument and sale of the Property. The nolice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court nc[ion to assert the non-existence of a default or any other defense of Borrower to acceleration and snle. If the default is not cured on or before the date specified in the notice, Lender at its option ma.~ 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 other remedies permitted by Applicable La~v. I~ender 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 indite of intent to foreclose to Borrower and to the person in possession of the Property, if different, iu accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner pruvided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in Ihe ma,mcr prescribed by Applicable 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, hut not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and Ic) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs, l.ender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to d third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. BY SIGNING BELOW, Borrower accepts and agrees to file Icl'ms and covenants contained in this Security I):lstmment and in any Ride_,pe,gecuted by Borrower and rec~ ~rdcd with it. WYOMING - Single Family - Fannie Mae/Freddie Mae UNIFORM INSTRU.X II :N'I' 360 (12 of 13 pages) Form 3051 1/01 0172 , ,- 0 i4 100006214 (Space Below This Line for Ackmm lodgment) STATE OF Wyoming ) COUNTY OF Lincoln 1 ss The foregoing instrument was acknowledged before me by _ 1st dayof October, 2004 Witness and and official seal, Notary Public L My Commission Expires: February 2006 and Jeff E. Pearson Carolyn E. Pearsog ,this STATE OF WYOMING j )ss COUNTY OF LINCOLN ) The and Wi t~~~l foregoing instrument Jeff E. Pearson this Notary p~blic My Commission Expires: was ~cknowledged befnre me by Car6~yn E. Pearson /~,~ day_ , of October, 2004 seal. C°UN~o~ ,~ S~o~ ~,NCO~ WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUM 360 (13 of 13 pages) Form 3051 1/01 0908S07 '0173 ADJUSTABLE RATE RIDER (LIBOR Six-Month Index (As Published In The I~'.ll Street Journal)-Rate Caps) PEARSON Loan #: 100006214 MIN: 100206401000062497 THIS ADJUSTABLE RATE RIDER is made this IST day of OCTOBER, 2004 and is incorporated into and shall be deemed to amend and supplemcm Ibc Mortgage, Deed of Trust. or Security Deed (the "Security Instrument") of the same date given b) d~c undersigned ("Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to LIME FINANCIAL SERVICES, LTD. ("Lender") of the same date and covering the propertydescribed in the Seem'it) Instrument and located at: 240 B STREET, BEDFORD, WY 83112 [Property Address]. THE NOTE CONTAINS PROVISIONS ALLOWIN(; FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT BORROWER'S INTEREST RATE CAN t ~l IANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST I'AY. ADDITIONAL COVENANTS. In addition to the covcmmts and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as ft ~1 lt)w s: A. INTEREST RATE AND MONTHLY PAYMENT CHANG The Note provides for an initial interest rate of 6. 700~. The Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANG (A) Change Dates The interest rate I will pay may change on the first day ~d' OCTOBER, 2006 and on that day every 6TH month thereafter. Each date on which my interest rate could ch:rage is called a "Change Date." (B) The Index Beginning with the first Change Date, my interest rate w~ll be based on an Index. The "Index" is the average of interbank offered rates for six month U.S. dollar-dcm>minated deposits in the London market MULTISTATE ADJUSTABLE RATE RIDER-LIBOR SIX-MONTH INDEX ,,,, puhhshcd in The Wall Street Journal) -Single Family- Fannie Mae UNIFORM INSTRUMENT 745 (1 of 3pages) Form 3138 1/01 ODOaSO? (,017 4 ' 0£16 100006214 "LIBOR"), as published in The Wall Street Journal. The most recent Index figure available as of the first business day of the month immediately preceding the month in whid~ the Change Date occurs is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding SIX AND FORTY-FIVE HUNDREDTHS percentage points (6. 450%) It, ~l~e Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth rd' ~,nc percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount ~ ill Dc my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Cha.gc l')ate in full on the Maturity Date at my new interest rate in substantially equal payments. The result of thi~ calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Chan~c l)ate will not be greater than 9. 700% or less than 6. 700%. Thereafter, my interest rate will never be inc,'cascd or decreased on any single Change Date by more than ONE percentage points (1. 000%) from thc rate of interest I have been paying for the preceding 6 months. My interest rate will never be greater than 12.700 %. (E) Effective Date of Changes My new interest rate will become effective on '~ach Change Date. I will. pay the amount of my new monthly payment beginning on the first monthly payment date al'let the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice ~1' any changes in my interest rate and the amount of my monthly payment before the effective date of an) change. The notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 18 of the Security Instrument is amended to rc:M :ts follows: Transfer of the Property or a Beneficial Intt,,'est in Borrower. As used in this Section 18, "Interest in the Property" means any legal t,' I,cncficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Inlcrcst in the Property is sold or transferred (or if Borrower is not a natural person and a bc.cficial interest in Borrower is sold or transferred) without Lender's prior written conscm, Lender may require immediate payment in full of all sums secured by this Security In.qrumcnt. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to hc submitted to Lender information required by Lender to evaluate the intended transferee .~ il' a new loan were being made to the transferee; and (b) Lender reasonably determines [ha~ l.ender's security will not be impaired by the loan assumption and that the risk of a brcz,ch of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumpti{m Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreemcms made in the Note and in this MULTISTATE ADJUSTABLE RATE RIDER-LIBOR SD{-MONTH INDEX ,,~ ~t, blished in The Wall Street Journal) -Single Family- Fannie Mae UNIFORM INSTRUMENT 745 (2 of 3pages) Form 3138 1/01 0175 100006214 Security Instrument. Borrower will continue to be t~bligaled under the Note and this Security Instrument unless Lender releases Borrower i,~ w~'iting. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of accelbration. The notice shall provide a period of not less than 30 days from the date the notice is given in accor&mcc with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Ix'ndcr may invoke any remedies permitted by this Security Instrument without further m,ticc or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees .~ the Icrms and covenants contained in this Adjustable Rate Rider. - ~SON ~ - MULTISTATE ADJUSTABLE RATE RJI)ER-LIBOR SIX-MONTH INDEX (;ts published in The Wall Street Journal) -Single Family- Fannie Mae UNIFORM INSTRUMENT 745 (3 of 3 pages) Form 3138 1/01 LEGAL DESCRIpFI'I()N Lot 3 of Block 6 of the Bedford Townsite, Lincoln (_'ounty, Wyoming as described on the official plat thereof. LESS AND EXCEPT the land contained in Quit Claim Dccd recorded August 2, 2001 in Book 469PR on page 905 of the records of the Lincoln County Clerk.