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HomeMy WebLinkAbout904527After Recording Return To: CHERRY CREEK MORTGAGE CO., INC. 7600 EAST ORCHARD ROAD, #250N GREENWOOD VILLAGE, COLORADO 80111 90L 527 RECEIVED LINCOLN COUNTY CLERK [Space Above This Line For Recording Data] MORTGAGE Loan Number 40500106 MINg 100030200405001064 DEFINITIONS Words used in multiple sections of this document are defined below and {,thor words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain roles regarding the usage of words used in this document arc also provided in Section 16. (A) "Security Instrument" means this document, which is dated NOVEMBER 8, 2004, together with all Riders to this document. 01) "Borrower" is CRAIG PAVLICK, AN UNMARRIED MAN and SALLY ANN PAVLICK, AN UNMARRIED WOMAN. Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an addres~ and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. (D) "Lender" is CHERRY CREEK MORTGAGE CO., INC.. Lender is a CORPORATION organized and existing under the laws of COLORADO. Lender's address is 7600 EAST ORCHARD ROAD, #250N, GREENWOOD VILLAGE, COLORADO 80111. (E) "Note" means the promissory note signed by Borrower and dated NOVEMBER 8, 2004. The Note states that Borrower owes Lender ONE HUNDRED FORTY-TWO THOUSAND FIVE HUNDI{ED AND 00/100ths Dollars (U.S.$142,500.00) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than DECEMBER 1, 2034. (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (H) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [] Adjustable Rate Rider [] Condominium Rider [] Second Home Rider [] Balloon Rider [] Planned Unit Development Rider [] 1-4 Family Rider [] Biweekly Payment Rider WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 (page 1 of ll pages) 09045;87 i. ',i 03 6 0 (1) "Applicable Law" means all controlling applicable federal, sta~c and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "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 instrmnent, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or dredit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid bY any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i)damage to, or destruction of, the Property; (ii) condenmation or other taking of all or any pan 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. (N) "Mortgage Insurance" means insurance protecting Lender against thc nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this seCurity Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. § 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 same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage ~t ;.tll cvon if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note 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 does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property located in the County of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] COMMENCING NORTH 900' WEST, 473 FEET AND SOUTH 0 0' EAST, 305 FEET FROM THE NORTHWEST CORNER OF THE SOUTHEAST QUARTER OF TIlE SOUTHWEST QUARTER (SE1/4SWl/4), SECTION TWENTY-NINE (29), TOWNSHIP THIRTY-S E V EN (37) NORTH, RANGE 118 WEST OF THE 6TH P.M., WYOMING, THE POINT OF BEGINNING; THENCE SOUTH 0 0' EAST, 110 FEET; THENCE NORTH 77 10' EAST, 90 Fl{ET; THENCE FOLLOWING AN ARC WITH A 70' RADIUS WITH A 77 CENTRAL ANGLE FOR A DISTANCE OF 94.7 FEET ON THE ARC; THENCE NORTH 0 0' EAST, 50 FEET; TIIENCE SOUTH 77 10' WEST, 150 FEET TO THE POINT OF BEGINNING. which currently has the address of 195 LAKEVIEW DRIVE [Street] ALPINE . Wyoming 83128- ( Pro ~c ty Address"): [City] [Zip Code] Borrower Initials WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 (page 2 of l l pages) 0:9045;8'7 TOGETHER WITH all the improvements now or hereafter erected on thc 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 "Propel'ry." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell thc Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except lbr encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and de,namls, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for natioual use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as Ibllows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Chnrgcs, a,,d Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also 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 Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may rCtluirc that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following Ibrms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the locatitm designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Scc~iou 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 partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to 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 dale, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such fuuds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance nude,' the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due 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 descril~ed in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under 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 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, and to the extent that, each payment can be paid in full. To the extent that auy 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 Miscellaneous P,'occcds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Paymcms. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to proVide for payment of amounts duc lyf: (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 kcudcr in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items arc called "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 Borrower Initials., ~..~/~f WYOMINg--Single Family--Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form 30~;1 1/01 (page $ ofll pages) O904 5 ' '- 0 o 6 2 escrowed by Borrower, and such dues, fees and assessments shall be an F. scrow 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 l~ems. 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 due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation 'to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement 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 under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Sectiou 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section B. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to 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 otherwise 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 to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower 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 annual accounting of the Funds as ,'cquircd 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 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 a,not,nt 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 to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in 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, 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, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly 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 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 t)f 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 satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines thal lilly 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 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 for a real eslate tax verification and/or reporting service used by Lender in connection with this Loan. ~. Property Insurance. Borrower shall keep the improvements now cxisling 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 floods, for which Lender requires insurance. This insura,}ce shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUlVlENT Form 3051 1/01 (page 4 ofll pages) WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRU%fENT to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such detcr~nmafion or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no 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 contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by l.cnder 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 ~o 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 mortgage 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 l.cnder requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obl,qins a~y form of insurance coverage, 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 to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to rcsloralion or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. Duriug such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opporluni~y to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall bc undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid ou such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees lbr 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, Ihe insurance 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. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a 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 thc notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns ~o l.ender (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 rights (other than the right to any refund of unearned premiums paid by Borrower)under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under Ihe Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy tbc Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on thc 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, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes, keudcr 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 not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Form 30Sl 1/01 (page 5 of ll pages) Lender or its agent may make reasonable entries upon and inspections ,I 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 ~ interior inspection sp~i~ing such reasonable ~aus~. ~. ~orrower's Loan ~pplicatiom Bo~o~er sh~l be in default if~ during the Lo~ application process, Bo~o~er or ~y persons or entities ~ting at the direction of Borrower or with Borrower's knowledge or ~ons~nt gave mat~ri~ly false, ~sleading, or inaccurate info~ation or statements to Lender (or failed to provide Lender ~ith matefi~ info~tion)in co~e~tion ~ith the Lo~. Materi~ representations include, but ~e not limited oc~up~cy of the Prope~y as Bo~o~er's pfincip~ residence. 9. ~otection of Lender's Inter~t in the ~operty and ~ghts Under lifts Security Instrument. If (a) Borrower fails to perfo~ the coven~ts ~d agreements contained in this Security Instrument, (b) there is a leg~ proceeding that ~ght signifie~tly affect Lender's interest in the Property ~d/or rights under this Security Inst~ment (such as a proceeding in b~ptcy, probate, for conde~ation or forfeiture, for enforcement oi' a lien which may attain priority over this Security Inst~ment or to enforce laws or regulations), or (c) Borrower has aband.ned the Property, then Lender may do ~d pay for whatever is reasonable or appropriate to protect ~nder's interest in thc Property ~d rights under this Security Inst~ment, including protecting ~d/or assessing the v~ue of the Propeay, ~d securing and/or repairing the Property. Lender's actions c~ include, but are not li~ted to: (a) paying ~y su~ secured by a lien which has priority over this Security Inst~ment; (b) appe~ing in coua; ~d (c) paying reasonable attorneys' fees to protect i~s interest in the Property ~d/or rights under this Security Inst~ment, including its secured position in a b~ptcy proceeding. Securing the Property includes, but is not li~ted to, entering the Prope~y to m~e repairs, ch~ge locks, replace or board up doors and windows, drain water from pipes, eli~nate building or other code violations or d~gerous conditions, ~d have utilities turned on or off. Although Lender may t~e action under this Section 9, ~nder does not have to do so ~d is not under any duty or obligation to do so. It is agreed that ~nder incurs no liability for not t~ing ~y or ~1 actions authorized under this ~cction 9. Any ~ounts disbursed by ~nder under this Section 9 sh~l become additional debt of Bo~ower secured by this Security Instrument. ~ese ~ounts sh~l be~ interest at the Note rate from the date of disbursement ~d sh~l be payable, with such ~terest, upon notice from ~nder to Borrower requesting payment. If this Security Inst~ment is on a leasehold, Borrower sh~l comply with all the provisions of the lease. If Borrower acquires fee title to the Propeay, the leasehold ~d the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage ~surance. If ~nder required Moagage Insur~ce as a c(mdition of m~ing the Lo~, Borrower sh~l pay the pre~u~ required to maintain the Mo~gage Insur~ce in effect. If, fi~r ~y reason, the Mortgage Insur~ce coverage required by ~nder ce~es to be available from the mo~gage insurer that previously provided such insur~ce ~d Borrower was required to m~e sep~ately designated payments toward the pre.urns l'.r Mortgage Insur~ce, Borrower shall pay the pre~u~ required to obtain coverage subst~ti~ly equiv~ent to the Mortgage Insur~ce previously in effect, at a cost subst~ti~ly equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from ~ alternate mo~gage insurer selected by Lender. If subst~ti~ly equiv~ent Mo~gage Insur~ce coverage is not available, Borrower sh~l continue to pay to ~nder the ~ount of the sep~ately designated payments that wcrc du~ when the insur~ce coverage ceased to be in effect. Lender will accept, use ~d retain these payments as a non-re~ndablc loss reserve in lieu of Mortgage Insur~ce. Such loss rescue shall be non-re~ndable, notwithst~ding the fact that the Loan is ultimately paid in ~11, ~d Lender shall not be required to pay Borrower ~y interest or earnings on such loss rescue. Lender can no longer require loss rescue payments if Mo~gage Insur~ce coverage (in the ~ount ~d for the period that Lender r~quir~s) provided by ~ insurer selected by Lender again becomes available, is obtained, ~d ~nder requires sep~ately desigl~atcd payments towed the premiu~ for Mo~gage Insur~ce. If ~nder required Mortgage Insur~ce as a condition of making the Lo~ and Borrower was required to m~e sep~ately designated payments toward the pre~u~ for Mongage Insurance, Borrower shall pay the pre~u~ required to maintain Mortgage Insur~ce in effect, or to provide a non-re~ndable loss reserve, until Lender's requirement for Moagage Insur~ce ends in accord~ce with ~y written agreement between Borrower and Lender providing for such te~nation or until te~nation is required by Applicable Law. Nothing in this Section 10 al'l%'cts Borrower's obligation to pay interest at the rate provided in the Note. Mo~gage Insur~ce reimburses Lender (or ~y entity that purchases th~ Note) for certain losses it may incur if Borrower does not repay the ~ as agreed. Bo~ower is not a p~y to the Mo~gage Insurance, Mo~gage insurers ev~uate their tot~ risk on all such insur~ce in lbrcc fi'om time to time, ~d may enter into agreements with other p~ies that shoe or modi~ their risk, or reduce losses, These agreements are on te~ ~d conditions that are satisfacto~ to the mo~gage insurer ~d the other pa~y (or panics)to the~ agreements. ~ese agreements may require the moRgage insurer to m~e payments using ~y source of ~nds that the mortgage insurer may have available (which may include ~nds obtained from Mongage Insur~ce pre~u~). Borrower Initials C~.~ ,,~ ~O~G--Single Family-Fannie MaeWreddie Mae ~FO~ INSTR~ENT Form ~051 1/01 ~age ~ ofll pages) ;'0365 As a result of these agreements, Lender, any purchaser of the Note, an~lhcr insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) am~tm~s fl~at derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for ~haring 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 ret ~surance "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. (b) Any such agreements will not affect the rights Borrower has - it' any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights nmy include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insnrance, 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 alii)lied 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 to ensure the work has been completed to Lender's satisfaction, provided ~hat such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursemc~t or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not thc~ 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, tile Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with th~~ excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Prol)crty in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal tt~ or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of thc Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss 'in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be 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 notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, B,~rrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply thc Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whefl~cr 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 Lc~tdcr'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 the action or proceeding to be dismissed with a ruling that, in Lender's .jt~dgment, precludes forfeiture 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 inlerest 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. WYOMING--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Borrower Initials ~'~/~f ~ Form3051 1/01 (page 7 of ll pages) 0:904aP-, :? 0366 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 operate 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 oi' Borrower or to refuse to extend 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 forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third 'persons, entities or Successors in Interest of Borrower or in amounts less than the amount 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 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 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 Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless 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 for services pertbrmed 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 off,er 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 Instrmnent 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 amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to B~u'mwer. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. Ifa 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 right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be dccmcd to have been given to Borrower when mailed by first 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 rept~ning 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 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 to have been given to Lcq~dcr until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable l.aw, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Ii~strun~ent 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 l.aw 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 th~ 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 sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note ',md of this Security Instrument. ~ Borrower Inkials c~/~f WYOMING--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 (page 8 ofll pages) O O45; ? - 03 B 7 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 for deed, installment sales contract or escrow agrccmcut, 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 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 'Instrun:cut. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If 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 nonce or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) 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 Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would bc duc under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's intc,'cst in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to as~t,'c 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) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. Thc Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments duc 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 thc Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the l.oall Servicer or be transferred to 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 j,dicial 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 breached 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 n~ticc 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 opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall bc tlcclncd to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardotts Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and thc lbllowing substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, v~latile solvents, materials containing asbestos or formaldehyde, 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) "Euvironmental 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 CIcam, p. Borrower lnitia,s ¢.~/~//~ ~ WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 (page 9 ofll pages) Borrower shall not cause or permit the presence, use, disposal, storage, t),' i'clcase of any Hazardous Substances. or threaten to release any Hazardous Substances, on or in the Property. Borrowcr shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, crea~cs a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, usc, or storage on 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, hazardous substances in consumer pre)ducts). 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 a~d any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any Spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) al~y condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Pr,petty, If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal ,r other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all ~ccessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covena~, 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 in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of ail sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicalfle Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Sectiou 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 sold in the manne~: 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 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 may charge Borrower a fcc lbr releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fcc is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Borrower Initials ~.~..~.~ ~ Form 3051 1/01 (page 10 of ll pages) ,-0369 BY SIGNING BELOW. Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: ( CRAI(-~ P,WLICK (Seal) -Borrower SALLY ,$NN PAVLICK (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower [Space Below This Line For Acknou ledgment] State ot~~~ItflX Pennsyl vani a ) ss County of ~l';~a~l'~lq( ~/~ O~'rCcqe~ M~o-~q )- 1 The foregoing instrument was acknowledged before me by 3(Jff~ XfA.X ~,~[] ~ 7A~ YtYi~ )j0l.~yCqaVn~ SALLY ANN PAVLICK, AN UNMARRIED WOMAN this g~./~ da3 of ]VDt~elD ]ge~.e__ . c:~90(/ Witness my hand and official seal. (Seal) My Commission Expires: ]~ - o~._~ - O 7 Notary Public (Print or type name) COMMOI'%,VEAI.TH OF PENNSYLVANIA NO'~AfllAL SEAt. LILLIA?,J D. AGUILAR. NOTARY PUBLIC EAST NORRITON MONTGOMERY COUNTY MY COM~,'IlSSION EXPIRES DEC. 23, 200;' J WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 (page 11 of l l pages) 0370 SECOND HOME RIDER Loan Number 40500106 THIS SECOND HOME RIDER is made this 8TH day of NOVEMBER, 2004, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower," whether 'there are one or more persons undersigned) to secure Borrower's Note to CHERRY CREEK MORTGAGE CO., INC. (the "Lender") of the same date and covering the Property described in the Security Ii~stl-ument (the "Property"), which is located at: 195 LAKEVIEW DRIVEl ALPINE~ WYOMING 83128- [Property Address] In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree that Sections 6 and 8 of the Security lnsmmm~t are deleted and are replaced by the following: 6. Occupancy. Borrower shall occupy, and shall only use, the Property as Borrower's second home. Borrower shall keep the Property available for Borrower'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 that requires Borrower either to rent the Property or give a management firm or any other person any control over the occupancy or use of thc Property. 8. Borrower's Loan Application. Borrower shall be in default 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 the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's second home. BY Rider. SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Second Home {/~'{/~"/ (Seal) CRAIG PAVIACK -Borrower ..... ~ :-c...?:..,,~ _ _ (Seal) SALLY ANN [~ V 1.1 CK - -Borrower (Seal) -Borrower MULTISTATE SECOND HOME RIDER--Single Family--Fannie Mae/Freddie Mac tlNIFORM INSTRUMENT Form 3890 1/01 (page 1 of 1 page) 037 Loan Number 40500106 ADJUSTABLE RATE R l DER (LIBOR Six-Month Index (As Published In The Wall Street Journal)--Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 8TH day o1' NOVEMBER, .2004, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Dccd of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned CBorrowcr")to secure Borrower's Adjustable Rate Note (the "Note") to CItlgRRY CREEK MORTGAGE CO., INC. ("Lender") of the same date and covering the property described in hc Security Instrument and located at: 195 LAKEVIEW DRIV'E, ALPINE, WYOMING 83128- [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR (:IIANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS TllE AMOUNT BORROIVER'S INTEREST RATE CAN CHANGE AT ANY' ONE TIME AND Tile MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenams and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTItLY PAYMENT CHANGES The Note provides for an initial interest rate of 6.2500%. The Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AN-D MONTItLY PASqVIENT CIIANGES (A) Change Dates The interest rate I will pay may change on the first day of DECEMBER, 2006, and on that day every 6TH month thereafter. Each date on wh ida lny interest rate could change is called a "Change Date." (B) The Index Beginning with the first Change Date, my interesl rate will be 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 first business day of the month immediately preceding the month in which the Change Date occurs is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information, The Note Holder will give mc notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AND SEVEN-EIGHTHS percentage points (2.8750%) to the Current Index. The 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 until the next Change Date. The Note Holder will then determine the amount of thc monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. Bo, rower Initials NS'h/~Y MULTISTATE ADJUSTABLE ILa.'l'E R_rDER--LIBOR SIX-MONTH INDEX (AS PUBIJSIIFI) IN TIlE WALL STREETJOURNAL)-Form 3138 1/01 Single Family-Fannie Mae Uniform In.~trument (page I of 3) 0904527 fl)) Lin'fits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 9.2500% or less than 3.2500%. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than ONE pCl'centage points (1.0000%) from the rate of interest I have been paying for the preceding 6 lnO:~ths. My interest rate will never be greater than 11.2500%. 0g) 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 after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. TRANSFER OF TIlE PROPERTY OR A BENEFICIAL INTEIII~ST IN BORROWER Uniform Covenant 18 of the Security Instrument is amended ~t~ read as follows: Transfer of the Property or a Beneficial Interest in Ih~,'rower. 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 intent tff 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 Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest i,~ Borrower is sold or transferred) without Lender's prior written consent, Lender may reqtm'c 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. kcnder also shall not exercise this option if: (a) Borrower causes to be submitted to Lender inlbrmation 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 be 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, Lender 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 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 sums secured by this Security Instrument. If Borrower Iktils to pay these sums prior to the expiration of this period, Lender may invoke an3' remedies pernfitted by this Security Instrument without further notice or demand on Borrower. MULTISTATE ADJUSTABLE RATE RIDER--LIBOR SIX-MONTH INDEX (AS PUBLISIIF. D IN TIlE WALL STREETJOURNAL)-Form 3138 1/01 Single Family-Faaaie Mae Uaitorm Instrument (page 2 of 3) 090452' 0373 BY SIGNING BELOW. Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. CRAIG Vp,~,VLl (:~ ' (Seal) -Borrower SALLY ANN P~VI,ICK - -Borrower MULTISTATE ADJUSTABLE RATE RIDER--LIBOR SIX-MONTH INDEX {AS PUBLISIIED IN 'ITIE WALL STREETJOURNAL)-Form 3138 1/01 Single Family-Fannie Mae Uniform/astrumenl (page 3 of 3)