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HomeMy WebLinkAbout904562-~1248 Remm To: THE JACKSON STATE BANK & TRUST 112 CENTER ST.. P 0 BOX 1788. JACKSON. WY 83001 Prepared By: Ashlee Wilhite 90N562- RECEIVED LINCOLN COUNTY CLERK NevI2 PN 4:10 ..... kRER. [Space Above This Line For Recording Data] MORTGAGE .5¢ 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 tl~c. usage of words used in this document are also provided in Section 16, (A) "Security Instrument" means this document, which is dated together with all Riders to this document. (B) "Borrower" is Darren C. Rudd and Arlene L. Rudo, tenants by the entireties November 5, 2004 husband and wife, as Borrower is the mortgagor under this Security Instrument. (C) "Lender" is THE JACKSON STATE BANK & TRUST Lender is a State Bank organized and existing under the laws of THE STATE RUDD, REFI 78365266 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ~®-6(WY) {ooos~ Page 1 of 15 MW 05/00.01 Initials: VMP MORTGAGE FORMS - (8001521-7291 OF WYOMING Form 3051 1/01 Lender's address is 112 CENTER ST., P 0 BOX 1788, ,JACKSON. WY 83001 Lender is the mortgagee under this Security Instrument (D) "Note" means the promissory note signed by Borrower and dated November 5. 2004 The Note states that Borrower owes Lender TWO Hundred N-i n~:[y Two Thousand and no/100 Dollars (u.s. $ 292. 000.00 ) plus interest. Borrower has pmlnised to pay this debt in regular Periodic Payments and to pay the debt in full not later than Decellll)()F 1. 2034 (E) "Property" means the property that is described below under 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 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 [--] VA Rider ~] Biweekly Payment Rider [_~ Other(s) [specify] 0t3 "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the cfi'crt of law) as well as all applicable final, non-appealable judicial opinions. (I) "Cornmunity Association Dues, Fees, and Assessments" mumps all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a ctmdo,ninium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of IMnds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated tlmmgh 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 limited to, ptfint-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 c~verages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) mis,'cp,'cscntations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (lq) "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. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that goverus the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements m~d restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. RUDD. REFI 78365266 0 Initials: (~-6(WY) 100051 Page 2 of 15 Form 3051 1/01 09045 52 0483 (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 Nolo and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument Secures to Lender: (i) the repayment oi' tile 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 docs hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, die following described property located in the Wyoming of Teton : [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] Lot 4 Henry's Mountain Estates, Lincoln Cougar, y, Wyoming according to that plat filed in the Office of the Lincol~ County Clerk on November 4, 1996. Instrument No. 828555, Plat No. 371. Parcel ID Number: 3519131004900 102 Anne Rd. Etna ("Property Address"): which currently has the address of [Snreet] Ici,yl , Wyoming 83118 [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. \11 of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully sciscd of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that fl~c Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform c.vclmnts for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenam and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Sccurily 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 RUDD. REFI 78365266 0 Initials: (~)~-6(WY) 10005! Page 3 of 15 Form 3051 1/01 Security Instrument is returned to Lender unpaid, Lender ma~, ,'Ctltfire that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn'upon an mstitutiDn whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accorda.cc with 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 parlial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice t~} Hs 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 funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower, If not applied earlier, ,,ch t'unds will be applied to the outstanding principal balance under the Note immediately prior to forech~sure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Bt~rl'ower from making payments due under the Note and this Security Instrument or performing the covcna,.s and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as ~therwise described in this Section 2, all payments accepted and applied by Lender shall be applied in fl~c following 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 mnomus due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinh,ent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment max he 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, :md to the 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 lalc 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 Proceeds to principal due under the Note shall not extend or postpone the due date, or change thc amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Ftmds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments ~.' 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 kcmlcr in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Scdion 10. These items are called "Escrow Items." At origination or at any time during the term of the lx)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 l'umish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Ftmds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items :ti 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 RUDD, REFI 78365266 0 Initials: (~-6(WY) (O00sl Rag. 4 of 15 Form 3051 1/01 09045 0485 due for any Escrow Items for which payment of Funds has bccn 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 recoil)tS shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrun~cnt, 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 un(Itt Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrmv Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an am(mm (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to cxcccd the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Ftmds 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 dcln)sits 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 tile Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for bedding 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, kcndcr shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender c:m 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 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 there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accorthmcc with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrmv, 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 H~cm 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 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 RUDD. REFI 78365266 0 (~-6(WY) 10005) Page 5 of ~5 Form 3051 1/01 0486 lien. Within 10 days of the date on which that notice is given, Itorrower 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 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 widfin tl~e term."extended coverage," and any other hazards including, but not limited to, earthquakes and littorals, 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 tlc chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not hc exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a oncqime charge for flood zone determination and certification services and subsequent charges each time rcm'appings or similar changes occur which reasonably might affect such determination or certification. B{~rrower shall also be responsible for the payment of any fees imposed by the Federal Emergency M:magcmcnt Agency in connection with the review of any flood zone determination resulting from an object ion 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 dmn was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Inslrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals oF such policies shall be subject to Lender's right to disapprove such policies, shall include a standard m~rtgage 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 t(~ l~cnder all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance ct)vcragc, 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 thc 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 restoration or repair of the Property, if the restor:tti,m 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 insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided dmt such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and rcst(,'ation in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adju,~tcrs, 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 h~strument, whether or not then due, with RUDD. REFI 78365266 0 Initials: ~-6(WY) (00051 Paga 6 of 15 Form 3051 1/01 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, ncgouate and settle any available insurance claim and related matters. If Borrower does not respond within 30 clays to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30~day period will begin when the notice is given. In either event, or il' Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofi~r 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 Instrumcm, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use thc Properly as Borrower's principal residence within 60 days after the execution of this Security h~stmment and shall continue to occupy the Property as Borrower's principal residence for at least one year afro,' 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 I','~q~erty; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Properb m 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 nt~t 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, ,ir the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only ii' Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and rust,,ralion 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 B,,rrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 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) iu connection with the Loan. Material representations include, but are not limited to, representatious concerning 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 contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, lbr 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 Iender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of tl~e 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 RUDD. REFI 78365266 0 Initials: {~-6(WY) 1ooo51 Page 7 of 15 Form 3051 1/01 0904562; 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 Pr()l)erty includes, but is not limited to, entering the Property to make repairs, change locks, replace or bt}at'd up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, l.cnder does not 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 interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon nt~t~cc from 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 Instn'ance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to hc available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance px-cvim~sly 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 Mortgage 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 l.cndcr 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 amotmt and tbr the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Bom)wet shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable 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 l-Ct tuircd by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate i~rovided 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 Borrower 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 their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insm'cr 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 oi thc 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 reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. ROOD, REFI 78365266 0 (~-6{WY) Iooo§} Page 8 of ~5 Form 3051 1/01 0489 (b) Any such agreements will not affect the rights Borrm~ er has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act o1' 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 termi,mled 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; Forfeiturt.. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds ~hall 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 thc right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property m ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a sones rd' 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 Bmrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not ecom, totally feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the st,,m secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrm~ ct. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss iu valtJc of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrulneut, 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 rd' the Property in which the fair market value of the Property immediately before the partial taking, dcslruction, or loss in value is equal to 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 Lcntlcr otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by thc amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount o1' II~c sulns secured immediately before the partial taking, destruction, or loss in value divided by (b) thc fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in 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 Miscellancotm 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 au award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date thc notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration 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 od~er material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes fl~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 impaim~cnt 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. RUDD. REFI 78365266 0 Initials: (~)~-6(WY) 10005) Page 9 of 15 Form 3051 1/01 0904562 ,, '( 049 0 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 tl~is 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 of Borrower or to refuse to extend time lbr payment or otherwise modify amortization of the sums secured by this Security Instrument b3 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 am~)unt 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 uud 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 N~)te (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the cmsigner's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated t() 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 lnslrumcnt shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on thc 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 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 Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. 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 right (~F action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in ctmnection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by 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 n,~ticc to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender spcci fits a procedure for reporting Borrower's change of address, then Borrower shall only report a change or' 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 I)3, notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security hasn'ument is also required under Applicable Law, the Applicable Law requirement will satisfy the corrcq)onding requirement under this Security Instrument. RUDD. REFI 78365266 0 Initials: (~-6(WY} (ooos) Page lO of 15 Form 3051 1/01 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 ,'my requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a lmdfibition against agreement by contract. In the event that any provision or clause of this Security Instrumcn. 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 thc masculine gender shall mean and include corresponding neuter words or words of the feminine gender: (h) 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 cop3 ~t' 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 intercsl m II~e Property, including, but not limited to, those beneficial interests transferred in a bond for deed, ctmtract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Ih,Tower at a future date to a purchaser. If all or any part of the Property or any Interest in the Px't)pcrty is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is s{~ltl or transferred) without Lender's prior written consent, Lender may require immediate payment in lull of all sums secured by this Security Instrument. However, this option shall not be exercised b~ l.cnder if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Bom~wcr notice of acceleration. The notice shall provide a period of not less than 30 days from the date the m~tlCC 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 Born ~x~ ct. 19, Borrower's Right to Reinstate After Accelerati,n. Il' Borrower meets certain conditions, Borrower shall have the right to have enforcement of this $ccm'ity Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Propcrt3 pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable l.aw might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment cnFm'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) CUFCS 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 Vahlalion Ices, 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 that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligatitm to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require thru 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, iastrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Insmnnent and obligations secured hereby shall remain fully effective as if no acceleration had occurred, l towever, 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 (;ricvance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold ~mc or more times without prior notice to Borrower. A sale might result in a change in the entity (km,wn as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security lnslrmuent 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 ~t' 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 hc made and any other information RESPA RUDD. REFI 78365266 0 Initials: ~)~-6(WY) (0o051 Page 11 of 15 Form 3051 1/01 requires in connection with a notice of transfer of servicing. Il' Iht Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of thc N~,tc, thc mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be.transt'cn'cd to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise prov'ided by the Note purchaser. Neither Borrower nor Lender may commence, join, or hc joined to any judicial action (as either an individual litigant or the member of a class) that arises from thc other party's actions pursuant to this Security Instrument or that alleges that the other party has brc;Ichcd 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) or' such alleged breach and afforded the other party hereto a reasonable period after the giving ol' snc'h notice to take corrective action. If Applicable Law provides a time period which must elapse hcI't~rc ct:train action can be taken, that time period will be deemed to be reasonable for purposes of this pa,'agraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and tile 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 It~xic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos t~r lk~rmaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jtni~diction where the Property is located that relate to health, safety or environmental protection; (c) "E,l¥ir, mmental Cleanup" includes any response action, remedial action, or removal action, as defined in Envir~mnental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute ~, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, diN~t~sal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, ~,n ~r in tile Property. Borrower 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, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on tile Property of small quantities of Hazardous Substances that are generally recognized to be al~propriate to normal residential uses and to maintenance of the Property (including, but not limited to, h;vardous substances in consumer products). Borrower shall promptly give Lender written notice of (;~) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which B~r,'ower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition c",nlscd by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private pm'ty, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, l~orrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nt~ihing herein shall create any obligation on Lender for an Environmental Cleanup. RUDD, REFI 78365266 0 Ini6~ls: (~II~-6(WY} (OOOS) Page 12 of 15 Form 3051 1/01 0493 NON-UNIFORM COVENANTS. Borrower and Lender l'm'thcr covenant and agree as follows: 22, Acceleration; Remedies. Lender shall give notice to ih,Tower 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 res.l~ 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 ma) require inunediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable La~v. I~ender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if differt, nt, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the nmnnrr provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sohl in il~e manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Stwtwity 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 l.cnder may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to , third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming7 RUDD. REFI 78365266 0 Initials: (~-6(WY) (00051 Page 13 of 15 Form 3051 1101 09045 ;2 ('0494 BY SIGNING BELOW, Borrower accepts and agrees to fi~c terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: ~,~7~ _,~.~..: .... ~ '~ (Seal) Darren C. Rudd -Bo=ower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower RUDD, REFI (~6(WY) ¢0o05) 78365266 Page 14 of 15 Form 3051 0 1/01 0904562 O495 STATE OF WYOMING, Teton County ss: The foregoing instrument was acknowledged before me this November 5. 2004 byDarren C. Rudd and Arlene L. Rudd ' husbatl(l and wife, as tenants by the enti reties My Commission Expires: //~/3 ~'~ ~ 7 Notary Public RUDD, REFI 78365266 0 (~-6(WY) (ooos) Page 15 of 15 Form 3051 1/01