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HomeMy WebLinkAbout904236Return To: NEW CENTURY NORTfiAfiE CORPORATION 18400 VO" KARMA", SUITE 1000 IRVINE, CA 92612 Prep~edBy: NEW CENTURY HORTGAGE CORPORATION BECEIVED LINCOLN COUNTY CLERK OkNrW-! PH h:l'? JEANi'q E WA(;NER [Space Above This Line For Rec.r,ling l)ata]. MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined bclmv and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated together with all Riders to this document. (B) "Borrower"is BEN GOE AND NICOLE GOE , husband~affd ~z±fe 2004 Borrower is the mortgagor under this Security Instrument. (C) "Lender" is NEW CENTURY MORTGAGE CORPORATION Lenderis a CORPORATION organized and existing under the laws of CALI FORNIA WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INST R U MEN T iI~I®-6(WY) {ooo5) Page 1 o! 15 Initials: VMP MORTGAGE FORMS - (800)521-7291 0001901969 Form30S1 1/01 0904236 L.; 0300 Lender's address is 18400 VON KARHAN. SUITE 1000 IRVINE, CA 92612 Lender is the mortgagee under this Security Instrument: (D) "Note" means the promissory note signedby Borrower and dated October 26, 2004 The Note states that Borrower owes Lender Two Hundred Fifty lhousand and Ho/100 --- Dollars (U.S. $ 250,000.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than No ye m h e r 1, 2 034 (E) "Property" means the property that is described belo~ trader the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrumc. nt, plus interest. (G) "Riders" means all Riders to this Security Instrument d~at are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicablcl: ~-~ Adjustable Rate Rider [--] Condominium Rider ~ Second Home Rider ~ Balloon Rider ~] Planned Unit Development Rider ~ 1-4 Family Rider F--] VA Rider ~ Biweekly Payment Rider ~1 Other(s) [specify] Prepayment Rider Arm Rider Addendum (H) "Applicable Law" means all controlling applicable L'dcral, state and local statutes, regulations, ordinances and administrative rules and orders (that have thc crfcct of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condmninium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authori/c a financial institution to debit or credit an account. Such term includes, but is not limited to, point-or-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Scclion 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under thc coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or t)ther raking of all or any part of the Property: (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amotmt due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Inslrumcnt. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the stone 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 ff the Loan does not qualify as a "federally related mortgage loan" under RESPA. i.i,a~.: j/fi'..//¢' 0001901969 (~-6(WY) (ooos) Page 2 of 15 ~ Form 3051 1/01 (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower th~cs hereby mortgage, grant and· convey to Lender and Lender's successors and assigns, with power of sa[c, the following described property located in the COUNTY of LINCOLN : [Type of Recording Jurisdiction] Name of Recording Jurisdiction] LOT 9 OF TRAIL CREEK SUBDIVISION, LINCOLN COUNTY, WYOHING AS DESCRIBED ON THE OFFICIAL PLAT FILED APRIL 3, 2002 AS INSTRUHENT NO. 880072 OF THE RECORDS ON THE LINCOLN COUNTY CLERK. Parcel ID Number: 12-3619-15-3-00-383 47 KARA STREET , ALPINE ("Property Address"): which currently has the address of [Street] I c'ityl , Wyoming 8 312 8 [Zip Codel TOGETHER WITH all the improvements now or hereaflcr erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is ,'el'erred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully scised 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 c{~vcnants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covenng real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prvpa3ment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, thc debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and thi~ Security Instrument shall be made in U.S. currency. However, ff any check or other instrument received b> Lender as payment under the Note or this Initials.'~ 0001901969 (~-6(WY) (ooo5) Page a of 15 Form 3051 1/01 030,?0 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 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 deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at tho location designated in the Note or at such other location as may be designated by Lender in accordam'c with the notice provisions in Section 15. Lender may return any payment or partial payment if the paymc, nt or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any fights hereunder or prejudice to its rights lo refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments git the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, thou 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, Ixmdcr shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or clailn which Borrower might have now or in the future against Lender shall relieve Borrower from making pay,ucnts due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the followi,g order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under dais 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 bc applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, l.entler may apply any payment received from Borrower to the repayment of the Periodic Payments if, and lo thc extent that, each payment can be paid in full. To the extent that any excess exists after the payment is aplfiicd 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 tls,: Note. Any application of payments, insurance proceeds, or Miscclkmoous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender tm the clay 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 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 payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are cai lcd "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fccs and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligatkm 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 /, 0001901969 Initial , ~-6(WY) (ooo5) Page 4 of 15 Form 3051 1/01 090423, (030 3 Funds has been waived by Lender and, if Lender requires, shall l'urnish to Lender receipts evidencing such payment within such time period as Lender may requke. Borrmvcr's obligation to make such payments and to provide receipts shall for all purposes be deemed to.be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in S~ction 9. If 'Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails lo pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such alnottnt and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender ,nay 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 this Section 3. Lender may, at any time, collect and hold Funds in an amtmnt (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not t{~ cxcccd the lnaximum amount a lender can require under RESPA. Lender shall estimate the amount of Irtmds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or ~thc r wise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits arc insurcd by a federal agency, instrumentality, or entity (including Lender, d Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow llcms no later than the time specified under RESPA. Lender shall not charge Borrower for holding and :q~plying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an anmtal accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as del'incd 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 notify Borrower as required by RESPA, and Borrower shall pay m Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security lnstrmnent, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, ff any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay thc,n in the ~nanner provided in Section 3. Borrower shall prompdy discharge any lien which has priority 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 agrecmcnt; (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, hut only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfi~ctt~ry to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 ioi.~,l~ .,,~ff~:fi'/' f'"'/ 0001901 969 (~}~-6(WY) (ooo5) Page 5 of ~5 Form 3051 1/01 0304 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. : Lender may require Borrower to pay a one-time charge fi~r a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within thc term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, I't)r which Lender requires insurance. This insurance shall be maintained in the mounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be choscu hy Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or Co) a one-time charge ft~r l'lood zone determination and certification services and subsequent charges each time remappings or simikl,' changes occur which reasonably might affect such determination or certification. Borrower shall also bc responsible for the payment of any fees imposed by the Federal Emergency Management Agency in ctmncction with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contcms of the Property, against any risk, hazard or liability and might provide greater or lesser coverage Ihan was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrunacnt. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mm~gage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give lo Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coxcrage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall iuclude a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to thc insurance carder and Lender. Lender may make.proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration tlr repak is economically feasible and Lender's security is not lessened. During such repair and resloration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration ill a single payment or in a series of progress payments as the work is completed. Unless an agreement is made ill writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, tile insurance proceeds shall be applied to initiats.~¢ 0001901969 (~i~-6(WY) (ooos) Pa!t* ~ of ~S Form 3051 1/01 0:904236 L 0 3 0 5 the sums secured by this Security Instrument, whether or nt, then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may.f'de, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 tla}.~ lo 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 Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's fights (other than the right to any refund of unearned premimns paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or [his Security Instrument, whether or not then due. 6, Occupancy. Borrower shall occupy, establish, and use II~c 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 of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's consol. 7. Preservation, Maintenance and Protection of the l',',perty; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Bt~rrmver shall be responsible for repairing or restoring the Property only if Lender has released proceeds for st~ch 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 noi s,fficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspectkm specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in clef atilt 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 inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with thc Loan. Material representations include, but are not limited to, representations concerning Borrower's occup:mcy 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 conlamed 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, lm~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, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in thc Property and rights under this Security Instrument, including protecting and/or assessing the value of lie Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited Io: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable ~,,~,s~,,~,~'~' 0001901969 ~-6(WY) (ooos) Page7of ~s Form 3051 1/01 03,.38 attorneys' fees to protect its interest in the Property and/or righls under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up th)ors and windows, 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 tlt~¢s not have to do so and is not under any duty or obhgation to do so. It is agreed that Lender incurs m) liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower sh:dl comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases I~ be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in cf f oct, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously itl cf feet, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance 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, use and train these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall bc non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer requke loss reserve payn~ents if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the 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 thc i~rcmiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance ill effeCt, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance et~ds in accordance with any written agreement between Borrower and Lender providing for such termination ~r until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation tt~ pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that pm'chases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insmance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer tt) make payments using any source of funds that the mortgage insurer may have available (which may inch~tlc funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of Iht Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's paymclnS for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that 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 not entitle Borrower to any refund. ioitial~//J~''¢ 0001901969 (~'6(WY) (ooos) pageaof ~s ~ Form 3051 1/01 (b) Any such agreements will not affect the rights II.mm'er has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act or 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated autmn: dically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time .1' such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeitm'e. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds sh:dl be applied to restoration or repmr of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken pro,, pdy. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest t~ be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's ~ccm-~ty would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security l.sm,ment, whether or not then due, with the excess, if any. paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument. whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in vzd,c t~f the Property in which the fair market value of the Property immediately before the partial taking, dest,'ttclion, or loss in value is equal to or greater than the amount of the sums secured by this Security Insm, nent immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise 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 secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in vah~c of the Property in which the fak 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 Miscelhmc~ms Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums arc thou due. If the Property is abandoned by Borrower, or if. after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award ~t~ settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair t~l~ the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. 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 Property or other material impairment of Lender's interest in the Property or rights under this Security lnsm.nent. 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 restoration or repair of the Property shall be applied in the order provided for in Section 2. initial$;~'~ 0001901969 (~-6(WY) (ooos) Page 9 of 15 '/ Form 3051 1/01 '. 0308 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not Cq~crate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall' not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time l'or payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments h'om third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then duc, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's intcrc, st in the Property under the terms 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 ~t~ extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in h~lcrcst of Borrower who assumes Borrower's obligations under this Security Instrument in writing, aml 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 Instrumc. nt unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrun~cnt shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in thi~ Sccudty Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of 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 loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collc~c'tcd in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced Hy the mnonnt necessary to reduce the charge to the permitted limit; and (b) any sums already collected from l~orrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this roi'trod by reducing the principal owed under the Note or by making a direct payment to Borrower. If a tel'trod reduces principal, the reduction will be treated as a partial prepayment without any prepayment cha~gc (whether or not a prepayment charge is provided for under 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 hztv~ ;~'ising oat of such overcharge. 15. Notices. All notices given by Borrower or Lender in comlccdon with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by ftrst class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall 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 Instrument ;ti any one time. Any notice to Lender shall be given by delivering it or by mailing it by f~rst class mail to Lcmler'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 Lag,, Ibc Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. ///.~"~ 0001901969 Initials: ' ~-6(WY) (ooo5) Page ~o of ~5 Form 3051 1/01 16. Governing Law; Severability; Rules of Constructi, n. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirctnents 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 Security Instrument or the Note conllicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the ~'t>te which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of thc masculine gender shall mean and 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' ~he 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, contract I'or 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 Interest in the Prt)l)crty is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold t)r transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrm~ er notice of acceleration. The notice shall provide a period of not less than 30 days from the date the mince is given in accordance 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, Lender may invt~ke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Secm'ily Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; Co) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Sccm'ity Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; Co) cures any default of an), t)ther covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, includi~g, hut not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incm'rcd for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; a~ld (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following formS, as selected by Lender: (a) cash; (b) money order; (c) ccrtil'ied 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 Transt'cr. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall rem~in fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the ca,c, t)f acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrumen0 can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Lt)a, Servicer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also 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 nan~e ;md address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a (~)~-6(WY) (ooos) Page ~ o~ ~5 0001 901 969 Form 3051 1/01 notice of transfer of servicing. If the Note is sold and thereafter thc I.oan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan~ Servicer and m'e not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or bc joined to any judicial action (as either an individual litigant or the member of a class) that arises from thc ether 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 nolil'ied the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time Period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and Olq~Ortunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action proviskms 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, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic peu'oleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or l'ormaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environ,hemal Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, dispt~xal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, Co) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affeck; 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 ntnmal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consmner products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any HazardOus Substance or Envkonmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of thc Property. If Borrower learns, or is notified by any governmenlal or regulatory authority, or any private party, fl~at any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Bon'owcr shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmenlal Cleanup. initial ,,/~/,~~ 0001901969 (~-6(WY) (ooo5) Paola ~ of ~s ?~'/~-'~' Form 3051 1/01 ',0311 NON-UNIFORM COVENANTS. Borrower and Lender ftJ['d~cr covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice t, Ihu'rower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides .therwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) u date, not less than 30 days from the date the notice is given to Borrower, by which the default musl be cured; and (d) that failure to cure the default on or before the date specified in the notice may resull in acceleration of the sums secured by this Security Instrument and sale of the Property. The imlicc shall further inform Borrower of the right to reinstate after acceleration and the right to bring a cm,-I 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 option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable La~. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give n,lice 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 mariner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in Ihe manner 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, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrmnent; 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 costs l.ender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a 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. ~i~i~/v~~' 0001901969 (~-6(WY) (ooos) Page 13of 15 ~ Form 3051 1/01 0904236 031.,2 BY SIGNING BELOW, Borrower accepts and agrees Itl thc terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Wimesses: (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (~I~<~6(WY) (ooo5) Page 14 of 15 0001901969 Form 3051 1/01 0313 STATE OF~, ~ The foregoing instrument was acknowledged before me this by x County ss: My Commission Expires: Notary l)uhlic (~-6(WY) (ooo~) Page 15 of 15 nitlals~ 0001901969 J ~ Form 3051 1/01 ~ 0314 State of Idaho } }SS. County of On thi~ ~ay4f, in the year 2004, before me, a Nota~ Public in and for said state, personally appeared ~own or identified to me to be t~ l~,er~son whose name is subscribed to the within instrument and acknowledged to me thaf'~'(crqted the same. IN WITNESS WHEREOF I have hereunto set my hand and affixed 1 the day and year first above written. ~,.{ [ ~dU .,- -. .......... -,, :-.- ,/ ~,~/2 ~?,~ '"'7"' _ ~ov'"='~;~'~ ~ Nots ry Publict }~St~e~f Idaho x =~. _{ ~, ~ ~ Residing at: : ~ ~ .C, :~ = Commission Expires: ,, ........... · ~S.~ 'ttltllnllllltl~ C:,, i:'.*~io13 Expi~ 10/11108 ADJUSTABLE RATE RIDER (LIBOR Six-Month Index (As Published In Thc Wal! Street Journal) - Rate Caps) 2 YEAR RATE LOCK THIS ADJUSTABLE RATE RIDER is made this 26th day of October 2004 , and is incorporated into and shall be deemed to amend and SUl~plcment 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 NEIV CENTURY },tORTfiAfiE CORPORATION ("Lender") of the same date and covering the property described located at: 47 KARA STREET , ALPINE, IVY 83128 in the 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 covcll:llltS and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as ftdlows: A. INTEREST RATE AND MONTHLY PAYMENT CHA N The Note provides for an initial interest rate of 8.2 § 0 0 %. The Note provides for changes in the interest 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 6th month thereafter. Each date on which my interest rate could chang~ is called a "Change Date." 0001901969 MULTISTATE ADJUSTABLE RATE RIDER-LIBOR SIX-MONTH INDEX (AS PUBLISHED IN THE WALL STREET JOURNA L) -Single Family-Fannie Mae Uniform Insl rum ent I[~838R (0006) Form 31~ VMP MORTGAGE FORMS- (ErffO)521-7291 o o4a36 (B) The Index Beginning with the first Change Date, my interest rate will he based on an Index. The "Index" is the average of interbank offered rates for six month U.S. dollar-denominated deposits in the London market ("LIBOR"), as published in The Wall Street Journal. The most recent Index figure available as of the fkst business day of the month immediately preceding the month i, which tl~e 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 o¢ this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding Fi ve and Fi fty-F i ve Hundredths percentage points ( 5.5500 %) to the Current Index. Thc Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate tmiil tl~e next Change Date. The Note Holder will then determine the amount of thc n,onthly 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' this 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 Change Date will not be greater than 9. 7500 % or less than 8. 2500 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than One and 0he-}la I f percentage points ( 1.500 %) from the rate of interest I have been paying for the preceding 6 months. My interest rate will never be greater than 15.2500 %. (E) Effective Date of Changes 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 date artcr the Change Date until the amount of my monthly payment changes again. CF) 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 information required 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 (0006) Page 2 of 4 Initials/~ 0001901969 Form 3138 1/01 0317 B. TRANSFER OF THE PROPERTY OR A BENEFICIAl_ INTEREST IN BORROWER Uniform Covenant 18 of the Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in die 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 fide by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in he Property is sold or transferred (or if Borrower is not a natural person and a beneficial inlcrcst in Borrower is sold or transferred) without Lender's prior written consent, Lender may requirc immediate payment in full of all sums secured by this Security Instrument. However, this optioa shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender alst~ shall not exercise this option if: (a) Borrower causes to be submitted to Lender information rcquired by Lender to evaluate the intended transferee as if a new loan were being made to thc transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by thc loan assumption and that the risk of a breacl} of any covenant or agreement in this Security Instrmnent is acceptable to Lender. To the extent permitted by Applicable Law, Lemlcr may charge a reasonable fee as a condition to Lender's consent to the loan assumption. 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 agreements made in the Note and in tills Security Instrument. Borrower will continue to be obligated under the Note and this Securily Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a l~criod of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower l'ails to 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 (0006) Page 3 of 4 I nitial~"~,~ 0001901969 Form 3138 1/01 BY SIGNING BELOW, Borrower accepts and agrees tc~ the terms and covenants contained in this Adjustable Rate Rider. It~~ (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower 0001901969 (~838R (0006) Page 4 of 4 Form 3138 1/01 Loan Numbeq~ 001901969 PREPAYMENT RII)ER ADJUSTABLE RATE LOAN This Prepayment Rider is made this 26th day of October 2004 and is incorporated into and shall be deemed to amend and supplement the Promissory Note (the "Note") and Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure repayment of Borrower's Note to NEW CENTURY HORTfiAfiE CORPORATION (the"Lender"). To the extent that the provisions of this Prepayment Rider are inconsistent with the provisions of the Note and/or Security Instrument, the provisions of this rider shall prevail over and shall supersede any such inconsistent provisions of the Note and/or Security Instrument. In addition to the covenants and agreements made in thc Note and Security Instrument, the Borrower and Lender further covenant and agree as roi lows: 5. BORROWERS RIGHT TO PREPAY I have the right to make prepayments of principal any time before they are due. A payment of principal only is known as a "prepayment". When I make a prepayment, I will tell the Note Holder in writing I am doing so. The Note Holder will use all of my prepayments to reduce the amount of principal that I owe under this Note. If I make a partial prepayment, there will be no changes in the due dates of my monthly payments unless: the Note Holder agrees in writing to those changes. My partial prepayment may reduce the amount of my monthly payments after the first Change Date following my partial prepayment. If within 2 year(s) from the date of execution of the Security Instrument, I make a full prepayment or, in certain cases a partial prepayment, and the total of such prepayment(s) in any 12-month period exceeds TWENTY PERCENT (20%) of the original principal amount of this loan, I will pay a prepayment charge in an amount equal to the payment of 6 months advance interest on the amount by which the total of my prepayment(s) within that 12-month period exceeds TWENTY PERCENT (20%) of the original principal amount of the loan. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants c°n~Tin this~ym.~ider' ~ '{~ ~~Q.~. ,.~./ ~ BEN flOE HI'COLE GOE- NCMC RE-103Jfd Generic Prepayment Rider Je o51702 RE 103 Revised (020800) Loan Number 0001901969 ADJUSTABLE RATE RIDER ADDENDUM (Libor Index - Rate Caps) This Adjustable Rate Rider is made this 26th day of October 2004 and is incorporated into and shall be deemed to amend and supplement the Promissory Note (the "Note") and Mortgage, Deed of Trust or Security Deed (the "Security Instrument") and Adjustable Rate Rider (the "Rider") of the same date given by the undersigned (the "Borrower") to secure repayment of [k)rrower's Note to NEN CENTURY HORTGAGE CORPORATION (the "Lender"). Property securing repayment of the Note is described in the Security Instrument and located at: 47 KARA STREET , ALPINE, WYOI~INfi 83128 (Property Address) To the extent that the provisions of this Adjustable Rate Rider Addendum are inconsistent with the provisions of the Note and/or Security Instrument and/or Rider, the provisions of this Addendum shall prevail over and supersede any such inconsistent provisions of the Note and/or Security Instrument and/or Rider. In addition to the covenants and agreements made in the Note, Security Instrument, and Rider, Borrower and Lender further covenant and agree as follows: 4. (D) LIMITS ON INTEREST RATE CHANGES The interest rate I am required to pay at the first change date will not be greater than 9. 7500 % or less than 8. 2500 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than One and 0ne-Ha I f percentage point(s) ( 1.500 %) from the rate of interest I have been paying for the preceding 6 months. My interest rate will never be greater than 15. 2500 % or less than 8. 2500 %. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider Addendum. '¢ New Century Mortgage ridrnlnJfd JP 051702 RE ~02 (082296)