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HomeMy WebLinkAbout9039200693226619 Return To: Prepared By: FIELDSTONE MORTGAGE COMPANY 11000 BROKEN LAND PKWY, #600 COT. TA, 21044 9 0 3 9 2 0 STEPHEN WINHOLTZ FIELDSTONE MORTGAGE COMPANY RECEIVED LINOOLN COUNTY OLERK 0t, oc'r 19 Pi,1 3:,'3.6 [Space Above This Line For Rcc.r(ling Data] MORTGAGE MIN 100052606932266199 DEFINITIONS Words used in multiple sections of this document are defined I~clo~, and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of wtn'ds used in lhis 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 October 14, 2004 KADE K. HEBDON AND DEIRDRE E. HEBDON,, HUSBAND AND WIFE Bon-ower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. NIl/RS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors anti ~gns MERS is the mortgagee under this Security Instrument. MERS is organized and existing under Ihe laws or' Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, icl. tSS8) 679-MERS. WYOMING -Single Family- Fannie Mae/Freddie Mac UNIFORM (~I~®-~A(WY) (ooo~) VMP MORTGAGE FORMS - (800)521-7291 INSTRUMENT WITH MERS Form 3051 1/01 09 0353 (D) "Lender" is FIELDSTONE MORTGAGE COMPANY Lender is a CORPORATION organized and existing unde,' the laws of MARYLAND Lender's address is 11000 BROKEN LAND PKWY, #600 COLUMBIA, MD 21044 (E) "Note" means the promissory note signed by Borrower and daled October fourteenth, 200.4 The Note states that Borrower owes Lender ONE HUNDRED T~IOUSAND SEVEN HUNDRED TWENTY FIVE & 00/100 Dollars (U.S. $ 100,725.00 ) plus interest. Bo]Tower ha5 promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than NOVEMBER 1, 2034 (F) "Property" means the property that is described belox~ under Ihe heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus imcrest, any prepayment charges and late charges due under the Note, and all sums due under this Security Inslrttmenl, plus interest. (H) "Riders" means all Riders to this Security Instrument tha~ are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicablc]: [--~ Adjustable Rate Rider ['---] Balloon Rider [---] VA Rider [~ Condominium Rider [~ Second Home Rider [---'] Planned Unit Development Rider [--'] 1-4 Family Rider ['--] Biweekly Payment Rider [---] Other(s) [specify] (I) "Applicable Law" means all controlling applicable federal, slate and local statutes, regulations, ordinances and administrative rules and orders (that have thc cl'l'~ct oC law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessmenls" me;ms all dues, fees, assessments and other charges that are imposed on Borrower or the Property hy a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of ftmds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an elech'onic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authori×c a linancial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, atttomated teller machine transactions, transfers initiated by telephone, wire transfers, and aulomated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Seclion 3. (M) "Miscellaneous Proceeds" means any compensation, senlemenl, award 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 Propel-ty; (ii) condemnation or od~er taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresenladons of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amotmt due £or (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security lnslrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), 'as d~ey might be amended from time to time, or any additional or successor legislation or regulation that gox cms 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. (I~-6A(WY) (0005) Page 2of 15 Form 3051 1/01 0:903 20 . 055 4 (Q) "Successor in Interest of Borrower" means any party ihal has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and'or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repaymem ol' Ire Loan, and all renewals, extensions and modifications of the Note;' and (ii) the performance of Borrox~er's covenants and agreements tinder this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the' successors and assigns of MERS, with power of sale, thc I'ollowing described property located in the COUNTY of Lincoln : [Type of Recording lurisdiction] [Name of Recording Jurisdiction] All that tract or parcel of land as shown on Schedule "A" attached hereto which is incorporated herein and made a part hereof. ParcelID Number: 89261 US HIGHWAY 89 AFTON ("Property Address"): 1232190140020600 which cun'ently has the address of [Street] [City] , Wyoming 83110 [Zip Code] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. AIl replacements and additions shall also be covered by this Security Instrument. All of the foregoing i~ rcl'~n'ed to in this Security Instrument as the Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply wi(h law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the fight: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Properly; and to take any action required of Lender including, but not limited to, releasing and canceling this Securily Insh'ument BORROWER COVENANTS that Bon'ower is lawfull5 ~ci.scd ot' the estate hereby conveyed and has the right to mortgage, grant and convey the Property and fi~at (lie 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 c~vcnants for national use and non-uniform covenants with limited variations by jurisdiction to constitu(e a uni[brm security instrument covering real property. (~)~-6A(WY) (0005) Page 3 of 15 Form 3051 1/01 0693226619 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, l','qmyment 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 tinder the N6te. Bommer shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrhment shall be made in U.S. currency. However, if any check or other instrument received h.,, t..ender as payment tinder the Note or this Security Instrument is returned to Lender unpaid, Lender ma3 require that any or all subsequent payments due under the Note and this Security Instrument be made in one or 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 dcposils are insured by a federal agency, instrumentality, or entity; or (d) Electrnnic Funds Transfer. Payments are deemed received by Lender when received a~ the location designated in the Note or at such other location as may be designated by Lender in accordance with Ire notice provisions in Section 15. Lender may return any payment or partial payment if the paymeal or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial i~ayment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights ~o re time such payment or partial payments in the fitture, 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 due date, then lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied lo the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower fi'om making paymenls due tinder the Note and this Security Instrument or performing the covenants and agreements secured by tills Security Instrument. 2. Application of Payments or Proceeds. Except as otherxvise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Seclion 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may he applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, I.cnder may apply any payment received fi'om Borrower to the repayment of the Periodic Payments if, and to H~c. extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the fiHl payment of one or more Periodic Payments, such excess may be applied to any late clmrges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in tho Note. Any application of payments, insurance proceeds, or Miscdlaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amottnt, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Prope~xy, if any; (c) premiums for any and all insurance required by Lender under Section 5; mid (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the pa3ment of' Mortgage Insurance 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 tha~ (7ommunity Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, Fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of anmtuHs Io be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waixcs Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligalion to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in wriling. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due For any Escrow Items for which payment of Form 3051 1/01 0693226619 9089; 0 O&SG Funds has been waived by Lender and, if Lender requires, shall I'urnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a cox cmmt and agreement contained in this Security Instrument, as the phrase "covenant and agn'eement" is used m Sc~ction 9. If. Bon'ower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fi~il~ icl pay the amount due for an Escrow Item, Lender may exercise ~ts fights under Section 9 and pay such ammml and Borrower shall then be obligated under Section 9 to repay to Lender any such amoun! 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 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under lhis Section 3. Lender may, at any time, collect and hold Funds in an amoum (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) no~ h~ exceed the maximum amount a lender can require nnder RESPA Lender shall estimate the amount o1' Ftmcls due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or c~d~erwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits arc insm'ed by a federal agency, instrumentality, or entity (including Lender, if Lender is an ~nstitution whose d~)~slls are so ~nsured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrox~ Items no later than the time specified tinder RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pa>s 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, Lender shall nt~t be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in wrilmg, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as delin~d m~der RESPA, Lender shall account to Borrower for the excess fiinds in accordance with RESPA ll' there is a shortage of Funds held in escrow, as defined tinder RESPA, Lender shall notify Bon'ower 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 tinder RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in fidl of all sums secured by this Security Inslrunaent, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions a~-ibutable to the Property which can attain pfiofity over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Associalkm Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay Ihem in lhe manner provided in Section 3. Borrower shall promptly discharge any lien which has prim'ity over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreemenl; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures fi'om the holder of the lien an agreement satislhc~ory Io Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Prt~perty is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 Initials: Form 3051 1/01 0693226619 0357 days of the date on which that notice is given, Borrower sh~,ll satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time .charge lbr a real estate tax verification and/or reporting service used by Lender in connection with this Loan.' .. 5. Property Insurance. Borrower shall keep the improvc'menls now existing or hereafter erected on the Property insured against loss by fire, hazards included within the lerm "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, l'or which Lender requires insurance. This insurance shall be maintained in the amounts (including ded,clible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding senlc~ces can change during the re]Tn of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's fight to disapprove Borrower's choice, which right shall not be exercised nnreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge l'or flood zone determination and certification services and subsequent charges each time remappings or .q~nilm' changes occur which reasonably might affect 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 deterrnination 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. Lend~.r is under no obligation to purchase any particular type or amount 6f coverage. Therefore, such coverage ~hall cove]' Lender, but might or might not protect Borrower, Borrower's equity in the Prope~y, or the comcn~s 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 ob,tined might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts di~bttrsed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Insh',ment. These amounts shall bear interest at the Note rate fi'om the date of disbursement and shall be payable, with such interest, upon notice from Lender to Bon'ower requesting payment. All insurance policies required by Lender and renewals o1' s,ch policies shall be subject to Lender's fight to disapprove such Policies, Shall include a standard mortgage clanse, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall haxe (he right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly givc Io [.ender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coYerage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice ,~ the insurance can'ier 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 res(oration or repair is economically feasible and Lender's security is not lessened. During such repair and res(or;,ion period, Lender shall have the right to hold such insurance proceeds until Lender has had an opporttmi(y to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment 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 insurance proceeds, Lender shall no( be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligalitm ol' Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessenc, d, (he insnrance proceeds shall be applied to (~}~-6A(wy) (0005) Paga6of~5 Form 3051 1/01 o9oa92o .. (' 0S58 0693226619 the sums secured by this Security Instrument, whether or no~ then title, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the o,'&.r provided for in Section 2. If Borrower abandons the Propel't),, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond wiihin 30 da~= to a notice fi'om 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 Lentk~r acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rtghls lo any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Sect,'i~3 Instrument, and (b) any other of Borrower's rights (other than the right to any retired of unearned premium~ paid by Borrower) under all insurance policies covering the Property, insofm' as such rights are applical~le to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the PropertT¢ 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 thc Property as Borrower's principal residence within 60 days after the execution of this Security Instrumem and shall continue to occupy the Property as Borrower's principal residence for at least one year after thc date or' 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 Properly to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower ~hall maintain the Property in order to prevent the Properly 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 insltrance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Bo,'rower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for stroh purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series oF progress payments as the work is completed. If the insurance or condemnation proceeds are uot su¢ficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the complclion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the imp,'ovements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspeclion specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in delhult it', during the Loan application process, Borrower or any persons or entities acting at the direction ol' Borrower or with Bon'ower's knowledge or consent gave materially false, misleading, or inaccurate inl`ormation or statements to Lender (or failed to provide Lender with material information) in connection with th= l.oan. Material representations include, but are not limited to, representations concerning Borrower's occttpm~cy 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 contained in this Security Instrument, (b) there 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, prorate, roi' condemnation or forfeiture; for enforcement of a lien which may attain priority over this Sect~rity Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, allen Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in tile Property and rights under this Security Instrument, including protecting and/or assessing the value o1' thu ?roperty, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (;0 paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable Form 3051 1101 ,, 0-359 0693226619 attol'neys' fees to protect its interest in the Property and/or righls under Ihis Security Insh'ument, including its secured position in a bankruptcy proceeding. Securing the Propcl'ty includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water fi'om pipes, eliminate building or other code violations or dangerous conditions, and helve utilities turned on or off. Although Lender may take action under this Section 9, Lender does nol have'to do so and is not under any duty or obligation to do so. It is agreed that Lender incur, no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section t) shall become additional debt of Borrower secured by this Security Instrument. These amounts shall [~u~:~l' interest at the Note rate fi'om'the date of disbursement and shall be payable, with such interest, upon nolice fi'om Lender to Borrower 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 Ihe fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the .'Xl~rlgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to he available fi'om the mortgage insurer that previously provided such insurance and Borrower was reqttir~d 1o make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall p%' the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previousl> in el'l'ect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in el'l'ect, £rom an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insttrancc coverage is not available, Bon'ower shall continue to pay to Lender the amount of the separately design;~cd p%,ments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and rclain lhese payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall bc non-ref'undable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be reqt~ircd Io pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve p%'ments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided b) 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 condilion of' making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums requh'ed to maintain Mortgage Insurancu. in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance c~ds i~ accordance with any written agreement between Borrower and Lender providing for such termination or tmdl termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation Io pay inlerest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity tlmt purchases the Note) for certain losses it may incur if Bon'ower does not repay the Loan as agreed. Borrower is nol a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such i~st,'ance in force from time to time, and may enter into agreements with other parties that share or modify thu'ir risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may includ~ ['unds obtained fi'om Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser ol' II~e Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may reccdve (directly or indirectly) amounts that derive fi'om (or might be characterized as) a portion of Borrower's p%'ments fbr Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or redttcit~g losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exch;lnge f'or a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." ]:tlrlhel': (a) Any such agreements will not affect the amonnls that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will ,mt cutitle Borrower to any refund. 0693226619 0560 (b) Any such agreements will not affect the rights Bm'rower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request anti obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated anl~mmtically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the lime of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceed~ .qmll be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessehed. During such repmr and restoration period, Lender shall have the righl m hold such Miscellaneous Proceeds until Lender has had an opportunity to ~nspect such Property to en~t~re the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken p,'omptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progres.~ pa> ments as the work is completed. Unless an agreement is made in writing or Applicable Law requires in(crc.,! to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Bon'ower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's secm'i(y would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Securily Insh'ument, whether or not then due, with the excess, if any, paid to Bmxower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in vah~e ol' the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrumc~at whether or not then due, with the excess, if any, paid to Borrower. In the event of a pm'tial taking, destruction, or loss in x al(re ol~ the Property in which the fair market value of the Propet/y immediately before the partial taking, destrttction, or loss in value is equal to or greater than the amount of the sums secured by this Security In.qrmnent immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender olhcrwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fi'action: (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 ?roperty immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrcm er. In the event of a partial taking, destruction, or loss in x'aluc oF Ire Properly in which the fair market value of the Property immediately before the partial taking, de,lruction, or loss in value is less than the amount of the sums secured immediately before the partial raking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscell',meous 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 Bon:ower, or if, after m~icc· by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award Io settle a claim for damages, Bon'ower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair ~1' the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Parl3" 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. Bon'ower 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 o~ t~th~r material impairment of Lender's interest in the Property or rights under this Security Instrument. Bon'ower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing Ire aclion or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of Iht Property or other material impai~Tnent of Lender's interest in the Prope~Xy or rights under this Security Inhirttment. The proceeds of any award or claim for damages that are a~'ibutable to the impairment of Lender'~ interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to res(ore,lion or repair of the Prope~/y shall be applied in the order provided for in Section 2. ~-6A(VVY) (0005) PageOof 15 Form 3051 1/01 0693226619 12, Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of' the time f'or payment or modification of amortization of' the sums secured by Ibis Security InslTument granted by Lender to Borrower or any Successor in Interest of Borrower shall nol ~q~erate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall.not be rc'qttired to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time lbr payment or Otherwise modify amortization of the sums secured by this Security Instrument by reason of ;m> demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by l.ender in exercising any right or remedy including, without limitation, Lender's acceptance of paymem.-. I'rom fifird persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or pi'eclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors .'~ml Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joim and several. However, any Borrower who co-signs this Security Instrument but does not execute the Nole (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's inlcresl in the Propen'y tinder the telTns of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree k) extend, modify, forbear or make any accommodations with regard to the terms of this Security Inslrmnent or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor m lnlu, rest 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 tinder this Security Insh'umenl unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrumuml shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fee,~ I'm' 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 attthority in Ibis Security Instrument to charge a specific fee to Borrower shall not be consn'ued as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by ..\ptdicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collcclcd in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by Ihe amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected fi-om Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this ,cl'und by reducing the principal owed under the Note or by making a direct payment to Borrower. If a r~-l'und reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for tinder the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with thi.~ Security Inslrument shall be deemed to have been given to Borrower when mailed by first class mail or x~ h~n actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower ~hall conslilute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice ~kldres,s shall be the Property Address unless Borrower has designated a substitute notice address by notice It~ I.ender. 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. There may be only One designated notice address under this Security Insla'umem al any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Icnder's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, Ifc Applicable Law requirement will satisfy the corresponding requirement tinder this Security Instrument. Initials: ~ 0o62 0693226619 16. Governing Law; Severability; Rules of Construclim~. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which lhe l'roperty is located. All rights and obligations contained in this Security Instrument are subject to any requircmenls and limitations of Applicable Law. Applicable Law might exphcitly or implicitly allow th~ parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by c6ntract. In the event that any provision or clause of this Security Instrument or the Note con llicls with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or fl~c Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of thc masculine gender shall mean hnd include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's CoPy. Borrower shall be given one copy ol' d~e Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, conm~ct lbr deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower al a future date to a purchaser. If all or any part of the Property or any Interest in the Properly is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or trans£erred) without Lender's prior written consent, Lender may require immediate payment in full of' ~11 sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such e×crcise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Bom>\\er 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 Securily Instrument. If Borrower fails to pay these snms prior to the expiration of this period, Lender may in\okc any remedies permitted by this Security Instrument without fiirther notice or demand on Borrower. 19. Borrower's Right to Reinstale After Acceler;~tion. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Secm'ily Instrument discontinued at any time prior to the earliest off (a) five days before sale of the Propen'y pt~rsuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law mighl specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this .Secm'ib, Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due untl~r 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 the Property and rights under this Security Instrumcmt; aud (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Properly and rights under this Security Insn'ument, and Borrower's obligation to pay the sums secured by this Sccttrity Instrument, shall continne unchanged. Lender may require that Borrower pay such reinstatement sums lind expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) ccrlilqed check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an inslihdion whose deposits are insured by a federal agency, insn'umentality or entity; or (d) Electronic Funds Transl'er. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall rem~tin l'ully effective as if no acceleration had occmTed. However, this right to reinstate shall not apply in the c',~se ot' acceleration tinder Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more limes without prior notice to Borrower. A sale might result in a change in the entity (known as the "Lom~ Servicer") that collects Periodic Payments due tinder the Note and this Security Instrument and performs od~er mortgage loan servicing obligations under the Note, this Security InstTument, and Applicable Law. 'l'here also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other inf'ormalion RESPA requires in connection with a 090:3920 , 0 63 0693226619 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 ~d~ligalions to Borrower will remain with the Loan Servicer or be transfen:ed to a successor Loan Servicc~ ami are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from tile od~er party's actions pursuant to this Security Instrument or that alleges that the other party has breached any l~rovision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has nolilied the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take con'ec~ive aclion. If Applicable Law provides a time period which must elapse before certain action can be taken, lhal time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration g~ven to Bon'owcr pursuant to Section 18 shall be deemed to satisfy the notice and opportunity Jo take corrective action prox isions o~' this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutanl~, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or Ioxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or fimnaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection: (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environment~d Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Bon'ower shall not do, nor allow anyone else to do, anything affecting the Property (a) thai is 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 affecl~ ~l~e value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on ~l~c Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substance~ in consumer products). Borrower shall promptly give Lender written notice of (~) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or prixat~ party involving the Property and any Hazardous Substance or Environmental Law of which B{m'ower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a 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, that any removal or other remediation of any Hazardous Substance affecting the Properly is necessary, Borrox~ c.r shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing heft'in shall create any obligation on Lender for an Environmental Cleanup. (~)~-6A(VVY) (0005) Page 12 of 15 ~ Form 3051 1/01 0693226619 .,0364 090 920 NON-UNIFORM COVENANTS. Borrower and Lender l'urlher covenant and agree as follows: 22. Acceleration; Remedies. Lender shall giv.e notice to Bm'rower prior to acceleration following Borrower's breach of any covenant or agreemimt in ihis 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 dale, not less than 30 days from the date the notice is given to Borrower, by which the default musl he cured; and (d) that failure to cure the default on or before the date specified in the notice ma)' result in acceleration of the sums secured by this Security Instrument and sale of the Property. The m~ice shall further inform Borrower of the right to reinstate after acceleration and the right to bring :, emu't action to assert the non-existence of a default or any other defense of Borrower to acceleration :md sale. If the default is not cured on or before the date specified in the notice, Lender at its optim~ may require immediate payment in full of all sums secured by this Security Instrument without furlher demand and may invoke the power of sale and any other remedies permitted by Applicable l.a%v, kender 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 m}tice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the re:tuner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in lhc manner prescribed by Applicable Law. Lender or its designee may purchase the Property at an)' s:,lc. 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' fees; (b) to all sums secured by this Security lnslrulnent; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation cosls. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid ,~ a third proxy for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights trader and by virtue of the homestead exemption laws of Wyoming. Inltial$~ (~-6A(WY) (0005) Page 13of15 Form 3051 1/01 0693226619 BY SIGNING BELOW, Bon'ower accepts and agrees ~o fl~e terms and covenants contained in this Security Insn'ument and in any Rider executed by Borrower ami rccorded with it. Witnesses: ~>/~ "~ (Seal) KADE K. HEBDON -Borrower DEIRDRE E. HEBDON (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~I~6A(WY) (0005) Paoe 14of15 Form 3051 1101 090 :920 0366 0693226619 STATE OF WYOMING, Lincoln The foregoing instrument was acknowledged before me ;l~is by KADE K. HEBDON DEIRDRE E. HEBDON County ss: 14th day of October 2004 My Commission Expires.~d~/~/ (~-6A(WY) (0005) Page lsofls Form 3051 1/01 OS}O ;dO SCHEDULE "A" Part of Section 1, T32N Rll9W of the 6th P.M., Lincoln County, Wyoming more particularly described as follows: Beginning at the Southeast corner of the NE~SE~ of said Section 1 and running thence North 10 rods; thence West 16 rods; thence South 10 rods; thence East 16 rods to the point of beginning. 0693226619 0: 03 20 0568 ADJUSTABLE RATE RIDER (LIBOR 6 Month Index (As Published In Th~, II~d/S'tJ'eet Journa0 - Rate Caps) THIS ADJUSTABLE RATE RIDER is made this fourteenth day of October, 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 undersigned ("Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to FIELDSTONE MORTGAGE COMPANY ("Lender") of the same date and covering the properi) described in the located at: 89261 US ~IG~WAY 89, AFTON, Wyoming fl3110 SeCurity Instrument and [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT, THE NOTE LIMITS THE AMOUNT BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY, ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as lbllows: A. INTEREST RATE AND MONTHLY PAYMENT CHA N G ES The Note provides for an initial interest rate of 6. 500 %. The Note provides for changes in the interes! rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANG ES (A) Change Dates The interest rate I will pay may change on the first day of November 2006 , and on that day every SIXTI-I month thereafter. Each dale on ~vhich my interest rate could change is called a "Change Date." MULTISTATE ADJUSTABLE RATE RIDER-LIBOR 6 MONTH INDEX (AS PUBLISHED IN THE WALL STREET JOURNAL )-Single Family-Fannie Mae Uniform Instrument (~838R (0005) Form 3138 1/01 of 4 Initials: ~ vPaJ; ~40 RTGAGE FORMS. (800)5~ 0369 (B) The Index Beginning with the first Change Date, my interest rate x~ ill he based on an Index. The "Index" is the average of interbank offered rates for 6 month U.S. dollar-denominated deposits in the London market ("LIBOR"), as published in The Wall Street Journal. The mos~ recent Index figure available as of the first business day of the month immediately preceding the month in which the Change Date occurs is called the "Current Index." If the Index is no longer available, the Note Holder xxill choose a new index that is based upon comparable information. The Note Holder will give me notice rd' Ibis choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding SiX g. ND Olqlil-QtllkR'i'gR percentage points ( 6. 250 %) to the Current Index. The Note ttolder will then round the res!d! of this addition to the nearest one-eighth of one percentage point (0. 12591,). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of thu monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result o1' d~is 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 lb'si Change Date will not be greater than 9. 500 % or less than 6. 500 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than ON'Ii: percentage points ( l. 000 %) from the rate of interest I have heen pnying for the preceding 6 months. My interest rate will never be greater than 12. 500 %. (E) Effective Date of Changes H¥ interest rate will never be less than 6.500%. My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment dmc al'tc-r 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 of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. Thc* notice will include infmrnation reqnired by law to be given to me and also the title and telephone number o¢ a person who will answer any question I may have regarding the notice. (~838R (0005) Page 2 of 4 ~ Form 3138 1/01 0370 B. TRANSFER OF THE PROPERTY OR A BENEFICIAl. I NTI£REST IN BORROWER Uniforrn Covenant 18 of the Security Instrument ~s amended ,)read ElS follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section !8, "Interest in the Property" means any legal or beneficial imcrcsl m the Property, including, but not limited to, those beneficial interests transferred in a bond l'~)r deed, contract for deed, installment sales contract or escrow agreement, the intent of which i, the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interes! in thc Property is sold or transferred (or if Borrower is not a natural person and a beneficial imerest m Bo~Tower ~s sold or transferred) without Lender's prior written consent, Lender may reqttH'c immediate payment in full of all sums secured by this Security Instrument. However, this option ,hall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender al,o >hall not exercise this option if: (a) Borrower causes to be submitted to Lender informatitm required by Lender to evaluate the intended transferee as if a new loan were being made to II~e m]nsferee; and (b) Lender reasonably determines that Lender's security will not be impaired b) the loan assumption and that the risk ora breach of any covenant or agreement in this Security Inslrtimenl 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 assumption, l~cmler also may require the transferee to sign an assumption agreement that is acceptable to Lender and Ihat obligates the transferee to keep all the promises and agreements made in the Note and in Ihis Secm'ity Instrument. Borrower will continue to be obligated under the Note and this Securit3 Instrument unless Lender releases Borrower in writing. If Lender exercises the option to reqnire immedi:,e payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days fi'om the date the notice is given in accordance with Section 15 wiflain which Borrower must pay all sums secured by this Security Instrument. If Borrower I]fils lo pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. (~838R (0005) Page 3 of 4 ~ Form 3138 1/01 0S0 20 057 BY SIGNING BELOW, Borrower accepts and agrees to tile lem~s and covenants contained in this Adjustable Rate Rider. -Borrower K/ff)E K. HEBDON -Borrower -Borrower DEIRDRE E. HEBDON -Borrower (Seal) (Seal) -Borrower -Borrower .(Seal) (Seal) -Borrower -Borrower (~838R (0005) Page 4 of 4 Form 3138 1/01