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HomeMy WebLinkAbout904254RetumTo: WELLS FARGO HOME MORTGAGE 3601 MINNESOTA DR. SUITE 200 BLOOMINGTON, MN 55435 RECEIVED LINCOLN COUNTY CLERK Prepared By: WELLS FARGO B~IK, N.Ao JEANNE 4420 AUBURN BLVD,, CA 958410000 SACRAMENTO, [Space Above This Line For Recm'di.g Data] MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding die usage.of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated OCTOBER 27, 2004 together with all Riders to this document.,.~,.'! ' (B) "Borrower" is THOMAS W. BRUNDAGE AND JUDY ~'. BRUNDAGE, HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. (C) "Lender"is WELLS FARGO BANK, N.A. Lender is a NATIONAL ASSOCIATION organized and existing under the laws of THE UNITED STATES 0047828116 WYOMINO-Single Famil¥,-l=annie [Vlae/Freddio Mac UNIFORM INSTRUMENT Form 3051 1/01 Lender's addressis P.O. BOX 10304, DES MOINES, IA 503060304 0440 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrbwer and datcdOCTOBER 27, 2004 The Note states that Borrower owes Lender ONE I-IUNDRED SEVENTY TWO TI-IOUS3aN-D FOUR HUNDRED TWENTY FIVE AND 00/100 Dollars (U.S, $ *** '172,425.00 ) plus interest. Borrower has prmniscd to pay this debt in regular Periodic Payments and to pay the debt in full not later than NOVEmSER 01, 2 034 0g) "Property" means the property that is described below umlcr 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 Instrument, 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 applicable I: F~ Adjustable Rate Rider ~-] Condominium Rider [x~ Second Home Rider ~ Balloon Rider F-~ Planned Unit Development Rider ~ 1-4 Family Rider [--] VA Rider ~ Biweekly Payment Rider [-~ Od~er(s) [specifyl (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the cl'l'cct of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" mc:ms all dues, fees, assessments and other charges that are imposed on Borrower or the Property by ,t condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of fi, Ms, other than a transaction originated by check, draft, or similar paper instrument, which is initiated thrtmgh an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, m' authorize a financial institution to debit or credit an account. Such term includes, but is not linfited t~, point-of-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 Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under thc ct~verages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnatim~ m' other taking 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 file nonpayment of, or default on, the Loan. ON) "Periodic Payment" means the regularly scheduled amoum (ltl ~ t'or (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act ( 12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500~, as they nfight be amended from time to time, or any additional or successor legislation or regulation that governs fl~e same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements .'md restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does ,~ qualify as a "federally related mortgage loan" under RESPA. (~I~-6(WY) (ooos) P~. 2 of 15 Form 3051 1/01 ; .::' 044I (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 ()1' thc Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the tbllowing described property located in the COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording/urisdiction] *SEE LEGAL DESCRIPTION ATTACHED HERETO* APN: 34182730102300 *SEE ADJUSTABLE RATE RIDER THIS IS A PURCHASE MONEY SECURITY INSTRUMENT. TAX STATEMENTS SHOULD BE SENT TO: WELLS FARGO HOME MORTGAGE, 10304, DES MOINES, IA 503060304 P.O. BOX Parcel ID Number: 25 YELLOWSTONE DRIVE THAYNE ("Property Address"): which currently has the address of [Street] Wyoming 8 312 7 [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. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of file estate hereby conveyed and has the right to mortgage, grant and convey the Property and that th~ 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 cra'chants /'or national use and non-uniform covenants with limited variations by jurisdiction to constitute a ttniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepaymeut Charges, and Late Charges. Borrower shall pay when due the principal of, and interest m~, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Bon'ow;:r shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by l.cnder as payment under the Note or this (~-6IWY) (ooo6) P,g, 3 of 16 Form 3051 1/01 Security Instrument is returned to Lender unpaid, Lender ma> require that any or all subsequent payments due under the Note and this Security Instrument be made in (mc or more of the following forms, as selected by Lender: (a) cash; Co) money order; (c). certified check, ba]tk 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 a[ tltc location designated in the Note or at such other location as may be designated by Lender in accordance wi th the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or patti:ti payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice [(~ its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied fmtds 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 to the outstanding principal balance under the Note immediately prior to forecl{~,surc. No offset or claim which Borrower might have now or in the future against Lender shall relieve Bmrower from making payments due under the Note and this Security Instrument or performing the coven:mrs :md agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as mhc,'wise described in this Section 2, all payments accepted and applied by Lender shall be applied in tile fi)llowing order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) am~mnts 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 amtmnts 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 be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, ;tnd to file extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Misccll:meous Proceeds to principal due under the Note shall not extend or postpone the due date, or change thc :m~mnt, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shah pay to Lemler on file day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Fuads") 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; Co) leasehold payments m' 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 $cctim~ 10. These items are called "Escrow Items." At origination or at any time during the term of thc l~an, Lender may require that Community 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 Ihrnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Ftmds lhr Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escr~w Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts ~-6(WY) (ooo~} ~g~ 4 o~ ~ Form 30!51 1/01 0443 due for any Escrow Items for which paymem of Funds has b~cn waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment withi, such tilue period as Lender may require. Borrower's obligation to make such payments and to provide rcccq~ts shall for all purposes be deemed to be a covenant and agreemem contained in this Security' instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated trader Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escr~x~ Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borruwcr 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 alllOUlll (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not tu exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherxvise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds tu p:ty the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower t't)r hokling and applying the Funds, ammally analyzing the escrow account, or verifying the Escrow Itenxs, tmhzss 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, witlumt charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If th~rc 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 accm'd',mce with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrox~, .qs defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay [o Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more th',m 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, asscssmeuts, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Associatbn Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay d~cm in the tnanner 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 obligatiun secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings arc pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that 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 I~I~-6(WY) looosl Page 6 of lS Form 3051 1/01 lien. Within 10 days of the date on which that notice is given, Bm'rower 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 hu' 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 the term "extended coverage," and any other hazards including, but not limited to, earthquakes and tight,ds, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall bc chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall n~t bc exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, eithc,': (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time rcmappings or similar changes occur which reasonably might affect such determination or certification. Bm'rower shall also be responsible for the payment of any fees imposed by the Federal Emergency M:m:tgement Agency in connection with the review of any flood zone determination resulting from an objectm~ 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 thc contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbtu-scd by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of ~uch 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 thc right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to l~cnder all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance c~wcrage, 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 tt~ thc insurauce carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unicos Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restm':aion period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to iospect 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 rcstm'ation in a single payment or in a series of progress payments as the work is completed. Unless an agrecmc,~t is made in 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 adjt,slcrs, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with (~)~-6(WY} (ooos~ P~g. ~ of is Form 3051 1/01 ,', 0445 the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, neg()tiate a~d settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carder has offered to settle a claim, then Lender ma, negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, m it' 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 un(Icl thc Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any relhnd of unearned prentiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrulncnt, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and usc the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consem shall not be um'c',~stmably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Ih'operty; 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 econonfically 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, m' d~e taking of, the Property, Borrower shall be responsible for repairing or restoring the Property old) if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restm'ation in a single payment or in a series of progress paymems as the work is completed. If the insurance m' c{mde~nmation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Bm'tower'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 impmx'cmcnts on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall bc in default if, during the Loan application process, Borrower or any persons or entities acting at d~c direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate intbrmation or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representatioHs c(mcerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contai ned 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, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then 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 or' thc Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable Initials::~ (~l~-6(WY) (ooo~} Pag, 7 of 16 Form 3051 1/01 OSO4;aS4 '- ,- 0 4 4 6 attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing thc Property includes, but is not limited to, entering the Property to make repairs, change locks, replace m' b~ard up doors and windows, drain water from pipes, eliminate building or other code violations or dam2crous conditions, and have utilities turned on or off. Although Lender may take action under this Section b, Lender does .riot have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear imcrest at the Note rate from the date of disbursement and shall be payable, with such interest, upon nmic< 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 leaseh~,ld and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage I nsu r;mce as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortg'agc ll~surance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to tic available from the mortgage insurer that previously provided such insurance and Borrower was required to nntke 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 effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent IVlortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount ~f the separately designated payments that were due when the insurance coverage ceased to be in effect. Lcl~der will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the an~otmt 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 Mortg~tge Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a nm~-rcftmdable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is rcqui red by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Bm'rower is not a party to the Mortgage Insurance. Mortgage insurers evaluate' their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify thcir 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 it~surer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser ~f the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reduciug 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 flint 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. Initia[~ //("/ Form 3051 1/01 (~-6(WY) Iooos} Pag, 8 of ~ S ~] 0904254 044 ? (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act ,ff 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time 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 Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property t~ ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undc'rtaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Bm'rower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not ecommucally feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to file sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided forin Section 2. In the event of a total taking, destruction, or loss in value of file Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value· ~d' the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amoum of the sums secured by this Security h~strument i~nmediately 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 amemnt of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of thc sunls secured immediately before the partial taking, destruction, or loss in value divided by (b) the fid r market value of the Property immediately before the partial taking, destruction, or loss in value. Any bah,cc shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value ~d' thc Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after nmice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restm-atim~ or repair of the Property or to the sums secured by this Security Instrument, whether or not then duc. "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. Bm'rower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes fi~rfciture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. 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. (~-6(WY) (ooos} Page s of ~5 Form 3051 1/01 0 04254 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured b) ~his Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not ~)pcrate to release the liability of Borrower or any Successors m Interest of Borrower. Lender shall no[ bc required to conLmence proceedings against any Successor in Interest of Borrower or to refuse to extc,d time for 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 forbc:mmce by Lender in exercising any right or remedy including, without liatitation, Lender's acceptance t~f payments from third persons, entities or Successors in Interest of Borrower or in amounts less than thc :tm{>tu~t then due, 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 aud several. However, any Borrower who co-signs this Security Instrument but does not execute the N~,tc (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, gram and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to 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 Successm' in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writi,g, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrun~eut. Borrower shall not be released from Borrower's obligations and liability under this Security Instrumc||t uuless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees f,.' 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' fcc.s, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security 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 collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the ainount necessary to reduce the charge to the permitted limit; and (b) any sums already collected fi'mn Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Bt)rrt)\VCl'. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any rig l~t ~ f action Borrower nfight have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in cmmection with this Security Instrument must be in writing. Any notice to Borrower in connection with dds Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail m' when actually delivered to Borrower's notice address if sent by other means. Notice to any one Bormxvcr shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The n. tic~ address shall be the Property Address unless Borrower has designated a substitute notice address by .mice 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 or' address d~rough that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed t. have been given to Lender until actually received by Lender. If any notice required by this Security htstrumcnt is also required under Applicable Law, the Applicable Law requirement will satisfy the corrcsptmding requirement under this Security Instrument. (~i~-6(WY) 1ooo5) P~ 10 of 15 Form 3051 1/01 044 9 16. Governing Law; Severability; Rules of Construction. 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 requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitb alh)w the parties to agree by contract or it might be silent, but such silence shall not be construed as a pn~hibition against agreement by contract. In the event that any provision or clause of this Security Instnm~cnt or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include 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 sCale discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy oI' th~ 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, cmaract Ibr 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 Propc,'ty is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is staid or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by I~ender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Bomm'cr notice of acceleration. The notice shall provide a period of not less than 30 days from the date the n,ticc 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 invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. lt' Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law nfight specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment cnfin'cing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuatim~ tees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure th:a Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligatim~ to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require dzat Bm'rower pay such reinstatement sums and expenses in one or more of the following forms, as selected hy Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, inm'umentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. Ih~wever, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold <m~ or more times without prior notice to Borrower. A sale might result in a change in the entity (known as tl~e "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrmncnt 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 name and address of the new Loan Servicer, the address to which payments should bc made and any other information RESPA (~-6{WY} {ooos) Page 11 of 15 m~ti~"~~Form 3051 1/01 0 04 54 O450 requires in connection with a notice of transfer of servicing. If thc Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the N,~tc, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred tl~ a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has bread~cd any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse bcf. rc certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy thc notice and opportunity to take corrective action provisions 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 petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or fl)rmaldehyde, and radioactive materials; CO) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Enviromnental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or.release of any Hazardous Substances, or threaten to release any Hazardous Substances, on ~,r 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 affect~ the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage Im the 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, haz',~rdous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous substance or Environmental Law of which B~rrower has actual knowledge, Co) 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 I'mpcrty. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, l~t~rrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. (~)~-6{WY) Iooosl Page ~2 of ~s ~//] ~ Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender l'urthcr covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result itt acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration :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 L:m'. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice 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 manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sohl in lite nmnner prescribed by Applicable Law. Lender or its designee may purchase the Property at am 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 Instrument; 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. Lender nmy 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 t, nder and by virtue of the homestead exemption laws of Wyoming. Initial~~ (~)~-6(WY} (ooo5) Page 13 of 15 Form 3051 1/01 0 04254 BY SIGNING BELOW, Borrower accepts and agrees ti) thc terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: THOMAS W. BRUNDAGE "~--~-~ -Borrower (Scad -Bo~ower (Scad -Borrower (Scad -Bo~ower (Seal) -Borrower (Seal) -Bo~ower (SeaD -Borrower (~6(WY)(ooos! Page 14 of 16 Form 3051 1/01 0~04254 LI:: STATE OF ;~WOM~'~G, The foregoing instrument was acknowledged before me tiffs by THOMAS W. BRUNDAGE AND /UJ:DY~--~~~ E- -', · 0453 (~-6G(WY) Iooo~) P~,, ~ s of ~ ~ Form 3051 1/01 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT O454 State of California - co t,o, On('~b t'- (~. '~ before ' ~ - --Date I' ' personally appeared'~~ ~)~ ~/Z~[cLc,? i':... )L~, ~~ O~ , ~ personally known to me ~proved lo me on the basis of satisfactoW evidence to ~e uae person(s) whose name(s)~ subscribed to the within instrument and acknowledged to me that hc/sh~xecuted the same n hiC. b~ authorized capacity(les), and that by 4"ri~Rte~ sign~t~ure~,s] on the instrument the person(s), or the entlly upon behalf of which the person(s) acted executed the instrument. OPTIONAL Though the information below is not required by law, it may prove valuable l¢ per~e~s relying on the document and could prevent fraudulent removal and reattachment of this fu to another document. Description of Attached Document Title or Type of Document: ~/'~)¢'~ Document Date: ~)~-.~g ~'- Signer(s) Other Than Named Above: Number of Pages: Capacity(les) Claimed by Signer Signer's Name: ~2',~, .f~ [] Individual [] Corporate Officer -- Title(s): [] Partner--[] Limited [] General [] Attorney-in-Fact E: Trustee [] Guardian or Conservator [] Other: Top of thumb here Signer Is Representing:. 1999 National Notary Association · 9350 De Sore Ave.. RO. Box 2402 · Chatsworth, CA 91313-2402 · www n,,I ;. ,,t,~ y ulg Prod No. 5907 Reorder: Call Toll-Free 1-800-876-6827 FIXED/ADJUSTABLE RATE RIDER (One-Year Treasury Index - Rate Cai)s) THIS FIXED/ADJUSTABLE RATE RIDER is made this 2 7 TH day of OCTOBER, 2 0 0 4 , and is incorporated into and shall be deemed to amend and st|pplcment the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned ("Borrower") to secure Borrower's Fixed/Adjustable Rate Note (the "Note") to WELLS FARGO BA/~K, N.A. ("Lender") of the same date and covering the property described iii the Security Instrument and located at: 25 YELLOWSTONE DRIVE, THAYNE, WY 83127 [Property Address] THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE, THE NOTE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenanis and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as fi)lh)ws: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CI I A NG ES The Note provides for an initial fixed interest rate of 4.6 2 5 %. The Note also provides for a change in the initial fixed rate to an adjustable interest rate, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PA YM ENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of NOVEMBER, 2009 , and the adjustable ~merest rate I will pay may change on that day every 12th month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate ctmld change, is called a "Change Date." 0047828116 MULTISTATE FIXED/ADJUSTABLE RATE RIDER - ONE-YEAR TREASURY INDEX- Single Family Fannie Mae Uniform Instrument VMP MORTGAGE FORMS (8001621 72 (B) The Index Beginning with the first Change Date, my adjustable interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury ,~ecuritics adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index" If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calc,l',~te my new interest rate by adding TWO .AND THREE-QUARTERS percentage points ( 2.750 %) to the Current Index. The Note Ihflder 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 amoum will be my new interest rate tmti thc ,text Change Date. The Note Holder will then determine the amount of the m~,,,hl y payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Cha~g~ Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of thix 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 Cha.ge Date will not be greater than 9.625 % or less than 2.750 %. Thereafter. my adjustable interest rate will never be increased or decreased on any single Change Date by more than two percentage points from the rate of interest I have been paying for the preceding 12 t~.mths. My interest rate will never be greater than 9. 625 %. (E) Effective Date of Changes My new interest rate will become effective on each Cha.gc Date I will pay the amount of my new monthly payment beginning on the first monthly payment date :d'ter 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 cha,tges in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable i.~c,'cst rate before the effective date of any change. The notice will include the amount of my monthly paymc.t, any information required by law to be given to me and also the title and telephone number of a perso~t who will answer any question I may have regarding the notice. B. TRANSFER OF TltE PROPERTY OR A BENEFICIAL INTER EST IN BORROWER 1. Until Borrower's initial fixed interest rate changes to .. adjustable interest rate under the terms stated in Section A above. Uniform Covenant 18 of the Security I.strument shall read as follows: I~)~843FI (0006) Page 2 of 4 Form 3182 1/01 0457 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 for deed, installment sales contract or escrow agreement, the intc,t ot' 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 ~hc Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this Cq.ilm shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Bm-rower notice of acceleration. The notice shall provide a period of not less than 30 days h'mn the date the notice is given in accordance with Section 15 within which Borrower must pay all stuns secured by this Security Instrument. If Borrower fails to pay these sums prior m the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument w~thout further notice or demand on Borrower. 2. When Borrower's initial fixed interest rate changes t. :t. adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Secm'ity Instrument described in Section B1 above shall then cease to be in effect, and the provisions of Uniform C.\'el~ant 18 of the Security Instrument shall be amended to read as follows: Transfer of the Property or a Beneficial Interes! 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 i, a bond for deed, contract for deed, installment sales contract or escrow agreement, the intc,t 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 tl~c Property is sold or transferred (or if Borrower is not a natural j~erson and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may req.irw immediate payment in full of all sums secured by this Security Instrument. However, this t~l~ ion shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also .~hall not exercise this option if: (a) Borrower causes to be submitted to Lender infonmttit.~ required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not bc impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lendc~ may charge a reasonable fee as a cond t~on to Lender s consent to the loan assumption. Lender also may reqmre the transferee to s~gn an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the N~,c and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security 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 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 (~;843R (0006) Page 3 of 4 Form 3182 1/01 sums secured by this Security Instrument. If Borrower fails 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. BY SIGNING BELOW, Borrower accepts and agrees to thc terms and covenants contained in this Fixed/Adjustable Rate Rider. ~ ~o_____(Seal) :7'~- /~]-J"~~ ~)(Seal) T'I'I(~I~IJx. S W. BRLIlqDAGg'~---"~6~ -Borrower MY ?',, BRUNDAGE (~ -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~843R (0006) Page 4 of 4 Form 3182 1/01 0 04254 SECOND HOME RIDER THIS SECOND HOME RIDER is made this 27TH day of OCTOBER, 2004 , and is incorporated into and shall be deemed to amend and suppletnent the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the sa,ne date given by the undersigned (the "Borrower" whether there are one or more persons undc,'signed) to secure Borrower's Note to WELLS FARGO BANK, N.A. (the "Lender") of the same date and covering the Property dcsc,'ibed in the Security Instrument (the "Property"), which is located at: 25 YELLOWSTONE DRIVE, THAYNE, WY 83127 [Property Address] In addition to the covenants and agreements made in rte .qccurity Instrument, Borrower and Lender further covenant and agree that Sections 6 and 8 Of the Security Instrument are deleted and are replaced by the following: 6. Occupancy. Borrower shall occupy, and shall only usc, the Property as Borrower's second home. Borrower shall keep the Property available for Borrt~wcr's exclusive use and enjoyment at all times, and shall not subject the Property to any timesharing or other shared ownership arrangement or to any rental pool or agreement thal requires Borrower either to rent the Property or give a management firm or any other person a,3 cm~trol over the occupancy or use of the Property. 8. Borrower's Loan Application. Borrower shall be in dcfimh if, during the Loan application process, Borrower or any persons or entities acting ;~t 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 Inalcrial infornkation) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's second home. 0047828116 MULTISTATE SECOND HOME RIDER - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT (~36!5R (0011) ~ 3~9ojJe~ Page ! of 2 initials:~(~~ VMP MORTGAGE FORMS-(800 521-7291 // ~'- ,0460 BY SIGNING BELOW, Borrower accepts and agrees to tl~c terms and provisions contained in this Second Home Rider. THOMAS W. --(Seal) - Borrower . (Seal) (Seal) - Borrower = Borrower (SeaD (Scad -Bo~ower -Bo~ower ($eaD (SeaD -Borrower -Borrower (~365R (0011) Page 2 of 2 Form 3890 1/01 0~04;~4 ~. d 046 ~. Legal Description Lot 46 of Bridger View Ranches, Lincoln County, Wyoming as described on the official plat thereof