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HomeMy WebLinkAbout904635Return To: 0711 Olympus Mortgage Company 600 City Parkway West, Ste 800, Orange, CA 92868 Prepared By: Olympus Mortgage Company Claudia Perez 600 City Parkway West, Suite 800,Orange, CA 92868 RECEIVED 11/16/2004 at 4:20 PM RECE VING # 904635 BOOK: 572 PAGE: 711 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY [Space Above This Line For Room'(ling Data] MORTGAGI; DEFINITIONS Words used in multiple sections of this document are defined bchm and other words are def'med in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of xxtml, used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated October 8, 2004 together with all Riders to this document. (B) "Borrower" is RAYMOND W. GANDENBERGER and JADEEN GANDENBERGER Borrower is the mortgagor under this Security Instrument. (C) "Lender" is Olympus Mortgage Company WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT 10/06/2004 3:56:22 AM6WY (0311) /&~.--'-~ ~' VMP Mortgage Solutions (800)521-7291 Form 305t 0094643889 -70104 ,/ I I , ' ' , I 000000946438890301621601 - :, 0712 Lender is a Corporation organized and existing under the laws of Delaware Lender's addressis 600 City Parkway West, Ste 800 Orange, CA 92868 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated October 8, 2004 The Note states that Borrower owes Lender sixty-one thousand two hundred and 00/100 Dollars (U.S. $ 61,200.00 ) plus interest. Borrower has lmmfised to pay this debt in regular Periodic Payments and to pay the debt in full not later than November 1, 2034 0g) "Property" means the property that is described below trader lhe heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus intercsl, any prepayment charges and late charges due under the Note, and all sums due under this Security Instnm~cm phis interest. (G) "Riders" means all Riders to this Security Instrument that [u'c 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 Ride,' I__-~ 1-4 Family Rider [--~ VA Rider [--] Biweekly Payment Rider ~ Other(s) [specify] (I-I) "Applicable Law" means all controlling applicable £c&.,'~d. state and local statutes, regulations, ordinances and administrative roles and orders (that have the cfi'cot o[ law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" mc:ms all dues, fees, assessments and other charges that are imposed on Borrower or the Property by , condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, t,thcr than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instmmem, computer, or magnetic tape so as to order, instruct, or autho,'iz~- ,~ 'mancial institution to debit or credit an account. Such term includes, but is not limited to, point-or-,ale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and :mtolnated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Sect ion 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 cm'c,'ages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation o~ other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) n~i~,'cprcsentations of, or omisstons as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means ~nsurance protecting Lende~ ~gainst the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount title l'or (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Insh'mncnt. 0094643889-70104 10/06/2004 3:56:22 000000946438890301621602 0 04G85 071.3 (O) "RESPA" means the Real Estate Settlement Procedures Aci ti2 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), ak Ihey ~night be amended from time to time, or any additional or successor legislation or regulation that governs Ihe same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and lc.qrictmns that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qu',llify as a "federally related mortgage loan" under RESPA. (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 Noic ;md'or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment oF thc Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borro,c~'s covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower &~c~ hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sam the fi~llowing described property located in the County of LINCOLN : [Type of Recording Jurisdiction] t Name of Recording Jurisdiction] Legal Description Attached Hereto and Made ~ Part Hereof. Parcel ID Number: 12-3219-16-4-00-549-00 6490 STATE HIGHWAY 238 AFTON ("Property Address"): which currently has the address of [Street] Wyoming 83110 [Zip Code] TOGETHER WITH all the improvements now or hereaflc~ erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. :\ 11 replacements and additions shall also be covered by this Security Instrument. All of the foregotng is ~ct'crrcd to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully .scihcd of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and thai thc Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. AM6VVY (0311) 10/06/2004 3:56:22 Page 3 of 1~,,,~ "i. , Inmals~' 6 .-/O/~O~/Oy Forrn 3051 'L~094643889 - 70104 1101 000000~4§4388~0301 §21603 0 04G85 ,,.0714 THIS SECURITY INSTRUMENT combines uniform cox chants for national use and non-uniform covenants with limited variations by jurisdiction to constitute it Lmiform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prtl)a3 ment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on. thc debt evidenced by the Note and any prepayment charges and late charges due under the Note. Bomm cr shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Nccurity Instrument shall be made in U.S. currency. However, if any check or other instrument received by Icnder as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one m' 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 dCl)osits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received a~ fl~e location designated in the Note or at such other location as may be designated by Lender in accordance xx ith the notice provisions m Section 15. Lender may return any payment or partial payment if the paymcm or partial payments are insufficient to bring the Loan current. Lender may accept any payment or parlml payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to ns ~ights 1o refuse such payment or partial payments in the future, but Lender is not obligated to apply such pa3 ments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled duc date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Ilnrrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, kender shall either apply such funds or return them to Borrower. If not applied earlier, such funds xx ~tl bc applied to the outstanding principal balance under the Note immediately prior to foreclosure. No ol't'scl 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 agreemcm~ seem'ed by this Security Instrument. 2. Application of Payments or Proceeds. Except as tdhcrwise described in this Section 2, all payments accepted and applied by Lender shall be applied in thc l'dlmving order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts duc 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 dne undci this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinqL~cnt Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may bc ~q, plied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, l.cndcr may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to thc c×tent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges title. Voluntary prepayments shall be applied first to any prepayment charges and then as described in Irc Note. Any application of payments, insurance proceeds, or Miscellanctms Proceeds to principal due under the Note shall not extend or postpone the due date, or change the alllnunt, t)f the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender ,n thc day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priorit3 over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the pa3 tncnt of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are cztllcd "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that (',mmunity Association Dues, Fees, and 0094643889-70104 10/06/2004 3:56:22 000000946438890301621604 Assessments, if any, be escrowed by Borrower, and such dues. IL. cs and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices o1' amonnts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless cndcr 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 at any time. Any such wmver may onl) hc ill writing. In'the event of such waiver, Borrower shall pay directly, when and where payable, the am{,tnns due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender rcqtm'es, 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 bc deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant ;md agreement" is used in Section 9. If Borrower ~s obligated to pay Escrow Items directly, pursuam ~t~ ~ waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights tmtlcr Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to I.c~dcr ally such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice g yen in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and n such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an am~mn. {a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to c×cccd 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 mhcrwise in accordance with Applicable Law. The Funds shall be held in an institution whose dq,~sns are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an instllunon whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to P:L~ thc Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower fol- htflding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, tmlcbs Lender pays Borrower interest on the Funds andApplicable Law permits Lender to make such a charge. [ hfless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender .q~all not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree m writing, however, that interest shall be paid on the Funds. Lender shall give to Borrowe& without chmgc, rill annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined trade! RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If thct c is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as reqt, ircd by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accor&mcc 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 k~ I tinier 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 In.~l rument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assc,_~ments, charges, fines, and impositions attributable to the Property which can attain priority over this S~ctn'ity Instrument, leasehold payments or ground rents on the Property, if any, and Community Associatk, n lJues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them ill the manner provided in Section 3. Borrower shall promptly discharge any lien which has prlt~ty over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation scorn'cd by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agrccn~cnt; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings x~ rich m Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the 0094643889-70104 10/06/2004 3:56:22 I I ' , ! ' ' 000000946438890301621605 0904G 5 lien to this Security Instrument. If Lender determines that any p',n'~ of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may g~vc Borrower a notice identifying the lien. Within 10 days of the date on which that notice Is given, Borrtm cr 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 cha~rge for ,, real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within 0w ~crm "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, I't~ which Lender requires insurance. This insurance shall be maintained in the amounts (including deducliblc 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 fight shall not be excrci,cd unreasonably, Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-lime' charge for flood zone determination, certification and tracking services; or (b) a one-time charge fin' ll,~ml zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also bc responsible for the payment of any fees imposed by the Federal Emergency Management Agency in cotmcctton with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages descnbcd 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 ~hall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contc~n,~ o l' 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 disbtn.~rd by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals oF such policies shall be subject to Lender's fight to disapprove such policies, shall include a standard mt~tguge clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have ~hc right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Icnder all receipts of paid premiums and renewal notices. If Borrower obtains any 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 thc insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unlc~ I.cnder and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying instnm~ce was required by Lender, shall be applied to restoration or repair of the Property, if the restor:tti,,n or repair is economically feasible and Lender's security is not lessened. During such repair and restor,ttion period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and rcsttu'ation in a single payment or in a series of progress payments as the work is completed. Unless an agrccn~cn! 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 adjusters, or other third parties, retained by Borrower shall no.t .be paid out of the insurance proceeds and shall be the st,lc obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would bc lessened, the 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 thc order provided for in Section 2. AM6VVY (03~) .)~ Page 6of 15 )~--~'~'~]? //~///o~,.-/(~/~/ Form 3051 1,01 0094643889 - 70104 10/06/2004 3:56:22 00000094643889030'1 ~2 ~ 606 0 04635 If Borrower abandons the Property, Lender may file, negomnc and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to ~ noti ce from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acqu.'es the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds m an amount not to exceed the amounts unpaid under the Note or this Security h~,lrument, and (b) any other of Borrower's rights (other than the fight to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable Io the coverage of the Property. Lender may use the insurance proceeds either to repatr or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and usc the Property as Borrower's principal residence within 60 days after the execution of this Security Insntm~ent and shall continue to occupy the Property as Borrower's principal residence for at least one year afte,' the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreas~mably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7, Preservation, Maintenance and Protection of the Pr.pe,'ty; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrowe~ shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value duc to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not econom~call3 I'casiblc, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage If ~nsurance or condenmation proceeds are paid in connection with damage to, or the taking of, the Property, B~,'mxver shall be responsible for repairmg or restoring the Property only if Lender has released proceeds i,' such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sulticient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completi~,n 0 l's ktch repair or restoration. Lender or its agent may make reasonable entries upon ami 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 inspect i~m spcc i£ying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in de fault il', during the Loan application process, Borrower or any persons or entities acting at the direction of lb,'rower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate infommtitm m' statements to Lender (or failed to provide Lender with material information) in connection with the l.,~a n. Material representations include, but are not limited to, representations concerning Borrower's occupancy t~l' tile Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Righls Ilnder this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contzt ined in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest m the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, proNttc, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Scct.ity Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, theu 1.ender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in thc l'rq3erty and rights under this Security Instrument, including protecting and/or assessing the value of the h'operty, 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 attorneys° fees to protect its interest in the Property and/or rights under this Securit3 Insmm~ent, including its secured position in a bankruptcy proceeding. Securing the Property includes, but ,:, not limited to, entering the Property to make repairs, change locks, replace or board up doors and wimh~xxs, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although ,o.,,, /o/cio/ 0094643889-70104 10/06/2004 3:56:22 000000~4~43889030'1 ~2'1t307 Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liabilit) iht m)t 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 bea i,tcrest at the.Note rate from the date of disbursement and shall be payable, with such interest, upon m~tice flora Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and Ibc fcc title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage l,~,m'anc¢ as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mm-tgagc Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases ~o be available from the mortgage insurer that previously provided such insurance and Borrower was required I,~ make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pa)' Ibc premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously i~ ell'cot, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in cfi'cot, fi'om an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and 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 ca~ no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the pc~it~tl that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained and l.ender requires separately designated payments toward the premiums for Mortgage Insurance. If I crater required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the i*rcmiums 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 required by Applicable Law. Nolhing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that pm'chases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is ,o~ a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such instmmce in force from time to time, and may enter into agreements with other parties that share or modify thci~ risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insm'er and the other party (or parties) to these agreements. These agreements may require the mortgage lllsttrcr to make payments using any source of funds that the mortgage insurer may have available (which m~ty include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of 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 paymcms for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing l~sscs. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange I'm' a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Ftu'ther: (a) Any such agreements will not affect the amounts th:it 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. AM6WY [0311) '~")1~ Page 8of IS ~'"*~ /~'~_//~,/4;;f~/' Form3051 1,01 0094643889-70104 10/06/2004 3:56:22 000000946438890301621608 ,.07}9 (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act or' 1998 or any other law. These rights may include the right to receive certain disclosures, to reqnes~ ami obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated auhmmlically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at Ibc time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. :\1t Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and I.cndm"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 thc work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken pl,,mptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires imcrest 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 o~ l.cnder's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. 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 linc Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instmmem, xx hcther or not then due, with the excess, if any, 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, destruct ion, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrumcnl immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherxx isc agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of thc Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market v:tluo of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid Lo Borrower. In the event of a partial taking, destruction, or loss in vah~c 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 Miscellanctms 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, Borrower fails to respond to Lender within 30 days after the date the notice is g~vcn, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair et' the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom B~rrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, x~ bother civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing thc actmn or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of thc Property or other material impairment of Lender's interest in the Property or rights under this Security Instrtm~cnt. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's mtcresl m the Property are hereby assigned and shall be paid to Lender. 0094643889-70104 10/06/2004 3:56:22 000000946438890301621609 0904 85 0720 All Miscellaneous Proceeds that are not applied to restoratitm or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Noi a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Sec urity Instrument granted by Lender to Borrower or any Successor in Interest of Borrower ~hall not opclatc 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 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 Icndcr in exercising any right or remedy including, without limitation, Lender's acceptance of paymems I'l't~lll third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then duc, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the ct-signer'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 Inslrtmacnt or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in lntc~csl of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and ix approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instmmcm. Borrower shall not be released from Borrower's obligations and liability under this Security Insu-umcm unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument ~lmll bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees fi,' services performed in connection with Borrower's default, for the purpose of protecting Lender's imc~cst 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 Sccuri(y Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the char~in~ oF such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Appl icable Law. If the Loan is subject to a law which sets maximum loan char~cs, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in cmmection 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 fi'om Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make (his reftmd by reducing the principal owed under the Note or by making a direct payment to Borrower. If a ~cl'und reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any .~uch 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 Sccm ity 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 notice t~ I.cnder. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a pr(,ccdurc for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument a~ 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 AM6VVY (0311) Page 10 of 15 0094643889-70104 10/06/2004 3:56:22 000000946438890301621610 Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until :~cttmlly 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 Consiruction. I'his Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Pi-openly is located. All rights and obligations contained in this Security Instrument are subject to any requircmcms and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to ,gtco by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicl~ xx ith Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the N,,Ic which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the m:l~culine gender shall mean and include corresponding neuter words or words of the feminine gender; (l~) 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 o1' fl~c Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest i, Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest m ~hc ?roperty, including, but not limited to, those beneficial interests transferred in a bond for deed, contract ['t)l' deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Bom)wet at a future date to a purchaser. If all or any part of the Property or any Interest in the Pre pc~ b' is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is suhl .r transferred) without Lender's prior written consent, Lender may require immediate payment in l'ull o1' all sums secured by this Security Instrument. However, this option shall not be exercised by l.cndcr if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrowc~ n~)tice of acceleration. The notice shall provide a period of not less than 30 days from the date the noucc is given in accordance with Section 15 within which Borrower must pay all sums secured by this Securi~ ). Insu'ument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. Il' Borrower meets certain conditions, Borrower shall have the right to have enforcement of this S ecuri~3 I~st,'ument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursu',un to any power of sale contained in this Security Instrument; (b) such other period as Applicable l_a~x might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing t l~is Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would b~~ duc under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any t~ther 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 IL, c~ 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 thc l'roperty and rights under this Security Instrument, and Borrower's obligation to pay the sums secured h3 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) moncx 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 obli~:niuns secured hereby shall remain fully effective as if no acceleration had occurred. However, this right ~,~ reinstate shall not apply in the case of acceleration under Section 18. AM6WY (o311) ~~J P age~ offs 0094643889-70104 10/06/2004 3:56:22 000000946438890301621611 O 04G:35 0722 20i Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrumen0 can be sold o.c t~r more times without prior notice to Borrower. A sale might result in a change in the entity (known a~ thc "Loan Servicer") that collects Periodic Paymems due under the Note and this Security Instrument ~llltl [)crFnlTlls other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable l.aw. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note Il' d~e,'e 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 ~t~ltl and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage h~;~ n servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor I.~an Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or bc joined to any judicial action (as either an individual litigant or the member of a class) that arises fi'om thc 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 l.cndcr has notified the other party (with such notice given in compliance with the requirements of Section 15) oF st,ch alleged breach and afforded the other party hereto a reasonable period after the giving of such n()licc to take corrective action. If Applicable Law provides a time period which must elapse before certain acnon can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The nt,~icc oF acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity t(~ 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, pollutant~, t,r wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or l',~rmatdchyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the ju,isdiction where the Property is located that relate to health, safety or environmental protection; (c) "Envi~,,nental Cleanup" includes any response action, remedial action, or removal action, as defined in Envi,,,inncntal Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or olhc~ wise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disp,~sal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on ~r in the Properly. 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 thc value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on thc l'roperty of small quantities of Hazardous Substances that are generally recognized to be appropriate to ,~,,'mal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consmner products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or p,ivatc party involving the Property and any Hazardous Substance or Environmental Law of which B,,~ower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of thc l'r,q,crty. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrt~wcr shall promptly take all necessary remedial actions in accordance with Environmental Law. NodHng herein shall create any obligation on Lender for an Environmental Cleanup. 0094643889-70104 10/06/2004 3:56:22 000000946438890301621612 0 04G85 0723 NOI'I-UNYFORM COVENANTS. Borrower and Lender finthcr covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice lo 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 dale, not less than 30 days from the date the notice is given to Borrower, by which the default taus! he cured; and (d) that failure to cure the default on or before the date specified in the notice may rcs,l! ia acceleration of the sums secured by this Security Instrument and sale of the Property. The nodcc shall further inform Borrower of the right to reinstate after acceleration and the right to bring a com'l aclion 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 all sums secured by this Security Instrument without furlhcr demand and may invoke the power of sale and any other remedies permitted by Applicable L,.m~. I~ender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this ~ection 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give lint!ce of intent to foreclose to Borrower and to the person in possession of the Property, if diffcrcm, 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 (hc 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, inclutliug, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; aud (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 t,~ ,, Ih!rd party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights undc~ a nd by virtue of the homestead exemption laws of Wyoming. AM6VVY (03~ ~) Page13of15 ~]/~/~//' Form 305i 110i 0094643889-70104 10/06/2004 3:56:22 000000946438890301621613 i_ BY SIGNING BELOW, Borrower accepts and agrees to thc terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and ~cc.t'ded with it. Witnesses: D E ib'l GANDE NB ER~'E-R - ~/ -l~orrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower AM 6WY (0311) 10/06/2004 3:56:22 Page 14 of 15 Form 3051 1101 0094643889 -70104 000000946438890301621614 '07£5 STATE OF WYOMING, County ss: The foregoing instrument was acknowledged before me th,s _ ~of--~, ~ by Day/Month/Year My Commission Expires: 000000946438890301621615 4OO- 15WY (4/02) Page 15 of 15 0094643889 - 70104 10/06/2004 3:56:22 PM 0904635 BORROWER NAME: LOAN NUMBER: 0094643889 - 70104 07,36 LEGAL DESCRIPTION A portion of the NW~SE~ of Section 16, T32N Rll9W of the 6th P.M., Lincoln County, Wyoming being more particularly described as follows: Beginning at an iron pipe set at a point in the east line of said NW~SE~, said point being 517.60 feet S 0o37'30'' W, along said East line, from the BLM type monument found marking the Marlowe A. Scherbel PLS 5368, 1994 location for the northeast corner of said NW~SE~; thence S 0o37'30'' W, continuing along said east line 141.08 feet to an iron pipe sen; thence S 86°59'34'' W, to and rou~{hly along an existing east-west fence, 167.24 feet, to an iron pipe set; thence N 0o34'09'' E, roughly alo]lg as existing north- south fence, 142.58 feet to ail iron pipe set; thence N 87o30'27'' E, roughly along an existing east- west fence and it's eastern prolongation, 167.24 feet, to the point of beginning. -I 11111 000000946438890301621616 LGL3LTR [09/03) 0727 ADJUSTABLE RATE RIDER (LIBOR Six-Month-Index (as Published in the Wall Street Journal)- Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 8th day of October, 2004 and is incorporated into and shall be deemed to amend and supplement tim Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to Olympus Mortgage Company (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 6490 STATE HIGHWAY 238, AFTON, WY 83110 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenam and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 8.600 %. The Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of November, 2006 , and on that day every sixth month thereafter. Each date on which my H~terest rate could change is called a "Change Date." (El) The Index Beginning with the first Change Date, my interest rate will De 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 Wal Street Journal. The most recent Index figure available as of the date 45 days before each Change Date ~s called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable information. The Note Holder will give me notice of this choice. Loan Number: 0094643889 - 70104 Initials.-_), ill }11 000000946438890302150301 610-1 (Rev 1/01) Page 1 of 3 10/06/2004 3:56:22 PM 0 046 5 ,0728 (C) Calculation of Changes Before each Change Date, the Note Holder wil calculate my new interest rate by adding five and one-half percentage points ( 5.500 %) 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 the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the maturity date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 10.600% or less than 8.600%. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than One( 1.000 %) from the rate of interest I have been paying for the preceding six months. My interest rate will never be greater than 14.600)% or less than 8.600)%. (E) Effective Date of Changes My new interest rate will become effective on each Change Date I will pay the amount of my new monthly payment beginning on the first monthly payment date 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 me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Section 18 of the Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in 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 of: which is the transfer of title by Borrower at a future date to a purchaser. Loan Number: 0094643889 - 70104 000000946438890302150302 610-2 (Rev 1/01 ) Page 2 of 3 10/06/2004 3:56:22 PM 0904635 0729 If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borr6wer is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by federal law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information 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 may also 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 fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. · ANDEIXTBERGER lol:r6~,%'r: JAD-I~EN- GANDENB~LffRGER (Seal) (Seal) Borrower Borrower Loan Number: 0094643889 - 70104 IIII Bl !t i B l il l] III 000000946438890302150303 610-3 (Rev 1/01) Page 3 of 3 10/06/2004 3:56:22 PM