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HomeMy WebLinkAbout904729~/31113(02) Return To: Accredited Home Lenders, Inc. Attn: Post Closing Dept. 16550 West Bernardo Dr. Bldg 1 San Diego, CA 92127-1870 '% Prepared By: Accredited Home Lenders, Inc. A California Corporation 15090 Avenue of Science San Diego, CA 92128 [Space Above This Line For Recto ,..,: I)ala] MORTGAGI lin 100176104101987382 RECEIVED 11/22,': ,,4 ~ll 11:03 AM RECEIVING # !;o4729 BOOK: 573 ",,GE: 210 JEANNE v,J' ~GNER LINCOLN COUNTY Ct ~ :K KEMMERER, VVY DEFINITIONS Words used in multiple sections of this document are deft,..i ,~c~,,x, and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding th~. ,t,~,c tfl' words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dat~.li h)vembor 15, 2004 together with all Riders to this document. (B) "Borrower"is JED ARLO MILLER AND LISA MILLEi HUSBAND AND WIFE Borrower is the mortgagor under this Security Instrument. , (C) "MERS" is Mortgage Electronic Registration Systems, acting solely as a nominee for Lender and Lender's succes, .. under this Security Instrument. MERS is organized and exi..~tt address and telephone number of P.O. Box 2026, Flint, MI X, lllRS is a separate corporation that is assigns. MERS is the mortgagee t.~dcr the laws of Delaware, and has an .'~}2[,. tel. (888)679-MERS. 0410198738 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUi, . ~, [ WITH MERS \ *This is a , ~®-GA(WY) (ooo~).o2 I ~ \ }' \ concurrent I ...., of,s ,.iu.,.:~~ ii, favor o l ~~,~ x~,/u v- x November ] ~o~^~[~o~.-~00~. 'q~oo0 0o Form 3051 1101 ~ Real Estate Mortgage recording ~,itn a Second Real Estate Mortgage · ~cdited Home Lenders, Inc. dated ~ in the original amount of (D) "Lender" is Accredited Home Lendere, Inc. A Califomia Corporation Lender is a Corporation organized and existing under the laws of the State of Ca! ~ t:ornia Lender's address is 15090 Avenue of Science San Diego, CA 92128 (E) "Note" means the promissory note signed by Borrower anJ .l,,t,.d November 15, 2004 The Note states that Borrower owes Lender two hundred eight,t: thousand and 00/100 Dollars (U.S. $208,000.00 ) plus interest. Borrower has I,' ,~,~i~cd to pay this debt in regular Periodic Payments and to pay the debt in full not later than December i ~ 2034 (F) '~Property" means the property that is described below u~,! ~ thc heading "Transfer of Rights in the Property." (G) '%oan" means the debt evidenced by the Note, plus inte~- t ~,~y prepayment charges and late charges due under the Note, and all sums due under this Security InstrL,~,.~tl. p ltls interest. 0t) "Riders" means all Riders to this Security Instrument th:,~ . executed by Borrower. The following Riders are to be executed by Borrower [check box as applicabk.[ [-X--] Adjustable Rate Rider [~ Condominium Rider i I Second Home Rider F-] Balloon Rider F--] Planned Unit Development I,',.i.~ [ i-I 1-4 Family Rider [~ VA Rider [~ Biweekly payment Rider [ i ] Other(s) [specifyI (I) "Applicable Law" means all controlling applicable fc,l.~.~l .qatc and local statutes, regulations, ordinances and administrative rules and orders (that have the ,.I I,.,.i ,~1' la\v) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" ~,:'~1', :Ill dues, fees, assessments and other charges that are imposed on Borrower or the Property bx ,, ~,,ndominium association, homeowners association or similar organization. (IO "Electronic Funds Transfer" means any transfer of l'tH~,l ~}lhcr than a transaction originated by check, draft, or similar paper instrument, which is initiated ~t~,,u?h an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instrucl ,,~ zmlhorize a financial institution to debit or credit an account. Such term includes, but is not limited ~,, p,~int-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, x~i~, ~:msl'crs, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in $c, (M) "Miscellaneous Proceeds" means any compensation, set th ~,,~.~i, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under II, ,', }x crages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnatic,~ ,,r ~,ther taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) n~i .,:..l~c~cntalions of, or omissions as to, the value and/or condition of the Property. (iN) "Mortgage Insurance" means insurance protecting Lend,.~ t,~:~i~t the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amotHtt ..luc l'or (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security In..~,, (P) "RESPA" means the Real Estate Settlement Procedures ..\, l il 2 tJ.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 35(i~, :~, tt~%~ might be amended from time to time, or any additional or successor legislation or regulation ~1,.~ :,wcrns the same subject matter. As used in this Security Instrument, "RESPA" refers to all requireme~l :t~d ~cstrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does ~,,~ ~ltl:lli fy as a "federally related mortgage loan" under RESPA. (~-6A(WY) (0005).02 Page 2 of ~5 Form 3051 1101 (Q) "Successor in Interest of Borrower" means any party that ~_ ~:~,cn title to the Property, whether or not that party has assumed Borrower's Obligations under the Nox. _ ,~ .,r this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of t ,~m. and all renewals, extensions and modifications of the Note; and (ii) the performance of Bon, ~- covenants and agreements under this Security Instrument and the Note. For this purpose, Borrowc~ ~ ,,.~ hot cby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's succc:~ · mid assigns) and to the successors and assigns of MERS, with power of sale, the i ,xxm~ described property located in the County of LINCOLN · [Type of Recording Jurisdiction] ..... I Recording Jurisdiction] See Legal Description Addendum Page Attached Parcel ID Number: 3219-214-00-546-00 7541 WYOMING HIOHWAY 238 AFTON ( Property Address ): xx hich currently has the address of [Street] \Vyoming 83110 [Zip Code] TOGETHER WITH all the improvements now or here, erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part ~' property. All replacements and additions shall also be covered by this Security Instrument. All tl~c fi~regoing is referred to in this Security Instrument as the "Property." Borrower understands and ~ ~ccs that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, I.~t it' necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors :t,~,! ,~,,·~im~s) has the right: to exercise any or all of those interests, including, but not limited to, the right t,, I,,~,.ci,,sc and sell the Property; and to take any action required of Lender including, but not limited I,. ~,'lcasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seis~.,i , ,~ thc estate hereby conveyed and has the right to mortgage, grant and convey the Property and that th.. i'~,,pcrty is unencumbered, except for encumbrances of record. Borrower warrants and will defend genc,,,ltx linc title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform cove,, ~,t, l~t' national use and non-uniform covenants with limited variations by jurisdiction to constitute a ui}il, ,~ ~1~ security instrument covering real property. (~)~-6 A(W Y)(ooo5),o2 Page 3 o~ 15 0410198738 Form 3051 1101 · UNIFORM COVENANTS. Borrower and Lender covena,t ,l :~gr'ce as follows: 1. Payment of Principal, Interest, Escrow Items, l't,.~}:t),ncnt Charges, and Late Charges. Borrower shall pay when due the principal of, and interest (}~ ~t~,~ debt evidenced by the Note and any prepayment charges and late charges due under the Note. Bott, .... .~ ~,hz,II also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this '-~ , tn it.',' lastrument shall be made in U.S. currency. However, if any check or other instrument received t-,,. I ~'ndcr :ts payment under the Note or this Security Instrument is returned to Lender unpaid, Lender ina3 ~:,!~firc that any or all subsequent payments due under the Note and this Security Instrument be made i~ ,.~c or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified ,~ i~c.ck, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an i~ lilnti,)n whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Fun,l. I i~mM'cr. Payments are deemed received by Lender when received .n ~l~c location designated in the Note or at such other location as may be designated by Lender in accordant, .. ,,,, ilh the notice provisions in Section 15. Lender may return any payment or partial payment if the pay ~ .~ ,~ partial payments are insufficient to bring the Loan current. Lender may accept any payment or p:tt~.,I B~yment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice t,, ~t. t i~_,hts to refuse such payment or partial payments in the future, but Lender is not obligated to apply su, I~ t,~t3 mcnts at the time such payments are accepted. If each Periodic Payment is applied as of its schc, l,~t. ,I chic date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied t'ti~ I t.~til Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonahl · i,..riod of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, ~t~, t~ l'tnlds will be applied to the outstanding principal balance under the Note immediately prior to forech. ~r No offset or claim which Borrower might have now or in the future against Lender shall relieve Ii , ~,,x~cr l?om making payments due under the Note and this Security Instrument or performing the covel~;tlit ,H~d ,grcements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as ,,~i~c, xxi~c described in this Section 2, all payments accepted and applied by Lender shall be applied in n~ I,,ih~x¥ing order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) an,~,n,t, duc t, nder Section 3. Such payments shall be applied to each Periodic Payment in the order in xvhi, !t i~ became due. Any remaining amounts shall be applied first to late charges, second to any other amot,~. ,~t~c trader this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delit,l,,.~t t'criodic Payment which includes a sufficient amount to pay any late charge due, the payment m~r I,,. :tpplicd to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding. I cinder may apply any payment received from Borrower to the repayment of the Periodic Payments if, ,,~ i ~, th~ extent that, each payment can be paid in full. To the extent that any excess exists after the payt,,r,[~ i,, ',}pplied to the full payment of one or more Periodic Payments, such excess may be applied to any h~l~ . I~,~ ~es dt,e. Voluntary prepayments shall be applied first to any prepayment charges and then as described ~,~ i t~c Note. Any application of payments, insurance proceeds, or Mi,,,. l l~t~cou, Proceeds to principal due under the Note shall not extend or postpone the due date, or change ~l~, ,,~, ~tmI, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Ce~,,l ~ ,,n the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Fu,d ~ ~ ~,, p, tMde for payment of amounts due for: (a) taxes and assessments and other items which can attaint I" ,,}rity over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments ,,~ .~,,tmd rents on the Property, if any; (c) premiums for any and all insurance required by Lender undo: ',cction 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lc~ h.~ in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Sc. :~,~, I(). These items are called "Escrow Items." At origination or at any time during the term of the I ~ [,~ I.cncter may require that Community Association Dues, Fees, and Assessments, if any, be escroxx~ 11,~ Ilorrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptl.~ t[~i:d~ t~, Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Fut~.l t~,r l~iscrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Esot .... Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow lten>, ,~ ~,,~ ti,ne. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay dir~, ti'.. x~ hen anc where payable, the amounts (~)~6 A(WY)(ooo~).o2 Page 4 of 1 5 0410198738 ~'~orm 3051 1/01 due for any Escrow Items for which payment of Funds has been shall furnish to Lender receipts evidencing such payment within Borrower's obligation to make such payments and to provide be a covenant and agreement contained in this Security Instmmem is used in Section 9. If Borrower is obligated to pay Escrow Borrower fails to pay the amount due for an Escrow Item, and pay such amount and Borrower shall then be obligated nmi,. amount. Lender may revoke the waiver as to any or all Escrow,, accordance with Section 15 and, upon such revocation, Borrm~ such amounts, that are then required under this Section 3. .,I hv Lender and, if Lender requires, ~,, lime period as Lender may require. , ~hall for all purposes be deemed to ~l~c phrase "covenant and agreement" directly, pursuant to a waiver, and .,~, exercise its rights under Section 9 · ~o~ o to repay to Lender any such ' '~}, at any time by a notice given in I,:~ll pay to Lender all Funds, and in Lender may, at any time, collect and hold Funds in an amot,~ ~.t~ st~i'licient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to cs, ...,t thc maximum amount a lender can require under RESPA. Lender shall estimate the amount of Fm~,l. d~c on the basis of current data and reasonable estimates of expenditures of future Escrow Items or ,,~1~,.~ x~i~c in accordance with Applicable Law. The Funds shall be held in an institution whose dep<,-~l. :,'c insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an insti~ul,, ~, xx hose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pax tI~,, tiscrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for h,,l~l~}~, ~md applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unk- , Icnder pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. ~ ,tk,ss ;m agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lend.. t~.tll not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender cml .,..~ ,.c i~ writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, wi~h,..,~ ch:,',.,c, an annual accounting of the Funds as required by RESPA. ~ If there is a surplus of Funds held in escrow, as defined u~.l,.i RI..'SPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there i, :~ shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as requirc,I t,:, i~I'i~;PA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordant,, x,. ith I{[~SPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escroxx..t, dclincd under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay t,, I ,'~tdcr tile amount necessary to make up the deficiency in accordance with RESPA, but in no more than I ' ~, ,~hly payments. Upon payment in full of all sums secured by this Security hr.t~ n lcqlt Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessn,. ~1.,~ charges, fines, and impositions attributable to the Property which can attain priority over this Sect~. ,t,, Instrument, leasehold payments or ground rents on the Property, if any, and Community Association I~,~ .i.. I:ccs, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay th,.~ ~ thc manner provided in Section 3. Borrower shall promptly discharge any lien which has priorit ,~x cr this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation soy ~ ,, I bx tile lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreeing, ~ {i~) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedins: ,,.. I,i,'h in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are t~,.~ ~, ~.,_,. Imf only until such proceedings are concluded; or (c) secures from the holder of the lien an agreem,.~,t <ttisl'actory to Lender subordinating the lien to this Security Instrument. If Lender determines that an.~ I,,~1 ,>I' thc Property is subject to a lien which can attain priority over this Security Instrument, Lender max :,~x ,. l l,,rrower a notice identifying the (~}~-6 A(WY)(000~).02 Page 5 oi 15 0410198738 Form 3051 1/01 0215 lien. Within 10 days of the date on which that notice is given, B ..... , 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 char? . ,., real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvc~,~,.~:,, ,o~ existing or hereafter erected on the Property insured against loss by fire, hazards included wi~l~ Itc term "extended coverage," and any other hazards including, but not limited to, earthquakes and I1 .... lbr which Lender requires insurance. This insurance shall be maintained in the amounts (including d,.,h~ctihlc levels) and for the periods that Lender requires. What Lender requires pursuant to the precedi,: ...;:cnccs can change during the term of the Loan. The insurance carrier providing the insurance shall t-,c ,l,,,,cn by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall nol t,v c×crcised unreasonably. Lender may require Borrower to pay, in connection with this Loan, eithv~ ~:~) 'a one-time charge for flood zone determination, certification and tracking services; or (b) a one :~,,. charge for flood zone determination and certification services and subsequent charges each time ~c~.,13l~i~l~s or similar changes occur which reasonably might affect such determination or certification. II,,~,,xxcr shall also be responsible for the payment of any fees imposed by the Federal Emergency Mm~.t).clllclll Agency in connection with the review of any flood zone determination resulting from an object i,.,~ I,x Borrower. If Borrower fails to maintain any of the coverages desc'ri!.,',l :d)ove, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender ~. trader no obligation to purchase any particular type or amount of coverage. Therefore, such coverW· It;tll cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or thc ,,.,~tcmN oC the Property, against any risk, ha?ard or liability and might provide greater or lesser coverw, ~lt,,~ was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtai~,.,l might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts di~t,~t~ ~.,1 hy l.ender under this Section 5 shall become additional debt of Borrower secured by this Security 1~-.~ ~cnt. These amounts shall bear interest at the Note rate from the date of disbursement and shall be pa3 ,:,l,'. with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals {d' ..~:h policies shall be subject to Lender's right to disapprove such policies, shall include a standard nl~,~l,,.r ~ clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have tl~,, right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give t,, I ~.n,lcr all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance o_,x, :,~ ,c. not otherwise required by Lender, for damage to, or destruction of, the Property, such policy s}~;,ll ix~cltMc a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss pa:, ~. In the event of loss, Borrower shall give prompt notice t,, ~1,,.. i~surance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. tied.. ,., 1 cndcr and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlyi~, i~r,m anco was required by Lender, shall be applied to restoration or repair of the Property, if the restor;,~ ~. ~ ,,r repair is economically feasible and Lender's security is not lessened. During such repair and resto~ :t~ ~,,~ period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportm~,~' t,~ inspect such Property to ensure the work has been completed to Lender's satisfaction, provided il,.: -,uch inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and re,:. ~.~i,,n in a single payment or in a series of progress payments as the work is completed. Unless an agrcc~,,.~t~ i, made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender ~ I,.~11 ,,,t be required to pay Borrower any interest or earnings on such proceeds. Fees for public adju..t.q .. ,~r other third parties, retained by Borrower shall not be paid out of the insurance proceeds and ,tl.tll [~c thc sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender'., .,., t~rity would be lessened, the insurance proceeds shall be applied to the sums secured by this Security 1,, t~ . m~cnt, whether or not then due, with (~-6A(WY)(ooo5).o:~ ~'a~oof~5 ~.._/~ Form 3051 1/01 the excess, if any, paid to Borrower. Such insurance proceeds sh Section 2. If Borrower abandons the Property, Lender may file, m., claim and related matters. If Borrower does not respond within, insurance carrier has offered to settle a claim, then Lender max period will begin when the notice is given. In either event, ,,~ Section 22 or otherwise, Borrower hereby assigns to Lende~ proceeds in an amount not to exceed the amounts unpaid unde~ (b) any other of Borrower's rights (other than the right to ali Borrower) under all insurance policies covering the Property, , coverage of the Property. Lender may use the insurance proceetl to pay amounts unpaid under the Note or this Security Instrume~i. 6. Occupancy. Borrower shall occupy, establish, and ,~ I)c :~pplied in the order provided for in ,~c and settle any available insurance ~l:tvs to a notice from Lender that the t~:llc and settle the claim. The 30-day I cndcr acquires the Property under .. llorrower's rights to any insurance ~ ~,~tc or this Security Instrument, and .cl'tmO of unearned premiums paid by ~:t~ as such rights are applicable to the ~tr~c~' to repair or restore the Property or t~cth~'r or not then due. ~c l'roperty as Borrower's principal residence within 60 days after the execution of this Security h~-~c~t and shall continue to occupy the Property as Borrower's principal residence for at least one year :~ ..~ thc dar e of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unrc ~:d,lv withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Ih-,, ~crL~; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Propert> ,Mcr orate or commit waste on the Property. Whether or not Borrower is residing in the Propert>. !;.,~ r,,x~er shall maintain the Property in order to prevent the Property from deteriorating or decreasing ~ ~,,~lt~c due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is ~, .t ,:c,momically feasible, Borrower shall promptly repair the Property if damaged to avoid further ,I, ~, ~i,,r:ltion or damage. If insurance or condemnation proceeds are paid in connection with damage to. ~,~ ibc taking of, the Property, Borrower shall be responsible for repairing or restoring the Property onl, ~I I c~ldcr has released proceeds for such purposes. Lender may disburse proceeds for the repairs and rest,.~ ~,t i,,~t in a single payment or in a series of progress payments as the work is completed. If the insurance ot ~,,~dcmnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of B,.~ ,xxcr's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon ~.~ ts~pcctions of the Property. If it has reasonable cause, Lender may inspect the interior of the improx ~.~,.~tls ,m the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspecl ~, ~ ~.l~cci lying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be it~ ~!.:l~tt,lt it; during the Loan application process, Borrower or any persons or entities acting at the tli~,~, li,,t~ t~l' Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inac, ~ :tt,, infi~rmation or statements to Lender (or failed to provide Lender with material information) ~ ,~,mlcction with the Loan. Material representations include, but are not limited to, representation, ~, ,tl~crtling Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and I?.i;,i~l~ I~nder this Security Instrument. If (a) Borrower fails to perform the covenants and agreements conl:~i~...,l i~t this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's i~t, ,,.,t itl the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, pi, ,! ,I,-. l'or condemnation or forfeiture, for enforcement of a lien which may attain priority over this S.:,t~titx ltlstrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, thc~ I ,~,iCl' may do and pay for whatever is reasonable or appropriate to protect Lender's interest in thc I'r,,l,crty and rights under this Security Instrument, including protecting and/or assessing the value of tl~ I'~',,pcrty, and securing and/or repairing the Property. Lender's actions can include, but are not limited I ,. (:tt paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing, i~ court; and (c) paying reasonable I ~ ~1~/~~410198738 (~-6A(WY) (0005).02 Page7 of ~5 Form 3051 1/01 attorneys' fees to protect its interest in the Property and/or righ~ ,,.,,I,:~ this Security Instrument, including its secured position in a bankruptcy proceeding. Securing th~. l'~,,l~crty includes, but is not limited to, entering the Property to make repairs, change locks, replace or i,~, ~,t up doors and windows, drain water from pipes, eliminate building or other code violations or dan? ,,~t, c~mditions, and have utilities turned on or off. Although Lender may take action under this Section u ! ,'~dcr docs not have to do so and is not under any duty or obligation to do so. It is agreed that Lender ,~. ~ :, no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 -.t~,1t I~ccume additional debt of Borrower secured by this Security Instrument. These amounts shall beat ~,.~,q at the Note rate from the date of disbursement and shall be payable, with such interest, upon n~.~,,'.. ['t'onl Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower si, It ~',~mply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leaseh,.!,i .tt~,l thc tee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage In-,,~ ,~,'c us a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mort:~,, ,. l t~,urance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to I,..,~:tihd~l~ from the mortgage insurer that previously provided such insurance and Borrower was requirc,l ~., m:tl, c separately designated payments toward the premiums for Mortgage Insurance, Borrower sh:,~r I'~0 the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance t"~'"' i,,tt~ly in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insuring,, I ~,:x iously in effect, from an alternate mortgage insurer selected by Lender. If substantially equiv:,!, ,~ \h~rtgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amoum , ~ i l~c ~cparately designated payments that were due when the insurance coverage ceased to be in effect. I ..~,dcr will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mort~,u lu~urance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultinu~. 1,. i)uid in tull, and Lender shall not be required to pay Borrower any interest or earnings on such loss ~, ~,~rx c. l.ender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amout~ .~t~d l l.)r the period that Lender requires) provided by an insurer selected by Lender again becomes ax:,il,,l~lc, is obtained, and Lender requires separately designated payments toward the premiums for Mortg:t:.. l~:aH'ance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower xx,, ~*quircd to make separately designated payments toward the premiums for Mortgage Insurance, Bon,,,.,.,.~ ~hall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a nu~ I .ItuMuble loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with a~ r, ,, ~iltcn agreement between Borrower and Lender providing for such termination or until termination is re-,it, t~.d by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the ra~. I'~,'x idcd in the Note. Mortgage Insurance reimburses Lender (or any entity th:~t t,tuc[lztsCS the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. 1'~ ~,~xxcr is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insu~ ~ ~, iu f()rce from time to time, and may enter into agreements with other parties that share or modify thc~ ~ ~:.t.,, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage, }~ m'cr und the other party (or parties) to these agreements. These agreements may require the mortgage i l~ u tc.t h) make payments using any source of funds that the mortgage insurer may have available (which ~t,, iucludc funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser t,l ~t,,.. ,V~tc, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may r,',, ix c ~directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borroxx,~, i~:~ymcnts for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's ri.l~ ,,t reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insu~, ~'., risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "c,~l,~x c roi n surance." Further: (a) Any such agreements will not affect the amounl~ lh:~l tlorrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such :t,2rct'nlcnlts will not increase the amount Borrower will owe for Mortgage Insurance, and they will no~ t..~i~lc Ilorrower to any refund. (b) Any such agreements will not affect the rights Bm'r,,~,.r has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act ~,~ l,,;s or any other law. These rights may include the right to receive certain disclosures, to r,,~,,.,,~ and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance termin:.~,,l automatically, and/or to receive a refund of any Mortgage Insurance premiums that were uneal',cd at Ihe time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds the Property, if the restoration or repair is economically feasil, During such repair and restoration period, Lender shall have thc until Lender has had an opportunity to inspect such Property .Lender's satisfaction, provided that such inspection shall be un~,.: ~\liscellaneous Proceeds are hereby I,c applied to restoration or repair of ~,~ I.cnder's security is not lessened. i~ hold such Miscellaneous Proceeds u c thc work has been completed to ,.~ promptly. Lender may pay for the repairs and restoration in a single disbursement or in a seri~ progress payments as the work is completed. Unless an agreement is made in writing or Applicabl,- ~ ,,. requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay B, ~scr any interest or earmngs on such Miscellaneous Proceeds. If the restoration or repair is not econot~ , fi.'asible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the :,~, ,toured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borroxx,, %~ch Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in x:,l.~. ,,l' thc Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security I~ ~ t,tltcnl, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in valu... ~ ~t~c Property in which the fair market value of the Property immediately before the partial taking, d~. ,~,. ~i,,n, or loss in value is equal to or greater than the amount of the sums secured by this Security t,~ t~ ttltlcllt immediately before the partial taking, destruction, or loss in value, unless Borrower and Len,l .... Ihcrwise agree in writing, the sums secured by this Security Instrument shall be reduced by thc .t~,,m~t of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of ti..t,ms secured immediately before the partial taking, destruction, or loss in value divided by (b) ~t.. lhir mm'ket value of the Property immediately before the partial taking, destruction, or loss in value ",~,, b:flance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value. ,.~ ~l'~c Property in which the fair market value of the Property immediately before the partial taking, de~,.'ti,~, or loss in value is less than the amount of the sums secured immediately before the partial taki~, dc,~ruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellanc,,~ I'~t~cccds shall be applied to the sums secured by this Security Instrument whether or not the sums are t l~: ,,, I t~c. If the Property is abandoned by Borrower, or if, after ,[ ~ti,'c by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make .~ :~w:,'d to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the dat~. ~1~.: ~t,tice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restot,ti,,,, or repair of the Property or to the sums secured by this Security Instrument, whether or not then du,. '6 ~ppt>sing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against .. !,.,~n Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, x~l~,~tl}cr civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property , .... ti,ct material impairment of Lender's interest in the Property or rights under this Security Instrument. 1:. ,~,,xxct' can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, I, .',tttsing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes f,,~. ~tt~t'c of the Property or other material impairment of Lender's interest in the Property or rights under t!~ 5, ccurity Instrument. The proceeds of any award or claim for damages that are attributable to the impai~=~:t~t t,l~ l.ender' s interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restor:~li ,~t ~,r repair of the Property shall be applied in the order provided for in Section 2. ,~ ,~,,,~._~ 0410198738 (~i~-6A(WY) (0005).o2 Page9 of ~5 .~'~ Form 3051 1/01 o o4va 12. Borrower Not Released; Forbearance By Lender h,,~ a Waiver. Extension of the time for payment or modification of amortization of the sums secured bx ~ ",ccurity Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not ,,I ~- ~tc to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not bt. ~ .l~,i, cd to commence proceedings against any Successor in Interest of Borrower or to refuse to extend ~i,~,c for payment or otherwise modify amortization of the sums secured by this Security Instrument by ~ ..... ~ t,l' any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbc~,~.~.c by Lender in exercising any right or remedy including, without limitation, Lender's acceptance o1' I' ,,~.c~}ts fi'mn third persons, entities or Successors in Interest of Borrower or in amounts less than the a~ .~,,~l then clue, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successorx :~..I Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joinl'm,,I several. However, any Borrower who co-signs this Security Instrument but does not execute the N,~[ l,t "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-.-~ ~,-t' s interest in the Property under the terms of this Security Instrument; (b) is not personally obligat~:d t,, pay tile sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrowc~ · .~,~ aTrce to extend, modify, forbear or make any accommodations with regard to the terms of this Sc~..~ t~x Instrument or the Note without the co-signer' s consent. Subject to the provisions of Section 18, any Success,, ~,~ I~tcrest of Borrower who assumes Borrower's obligations under this Security Instrument in writin.., :,~d is :~pproved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrtm~ ~,1 I I,~rrower shall not be released from Borrower's obligations and liability under this Security Instrum~.t,l t~lc~s l,ender agrees to such release in writing. The covenants and agreements of this Security Insl~t.~,,,:~l shall bind (except as provided in Section 20)and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees Il, .c~xiccs performed in connection with Borrower's default, for the purpose of protecting Lender's im, ~..~ i~ ~l~e Property and rights under this Security Instrument, including, but not limited to, attorneys' lb~. t,~,,pcrty inspection and valuation fees. In regard to any other fees, the absence of express authority in tit i '-,ccttri!y Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the clt:,i, iil!~ of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or I, \t,plicable Law. If the Loan is subject to a law which sets maximum loan ch,, i,c~,, and that law is finally interpreted so that the interest or other loan charges collected or to be collecl~.,I ~ c',mnection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduc~..t t,,, Iht amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected ~,, ,~,~ l~orrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to n~,l ,. It,i~ refund by reducing the principal owed under the Note or by making a direct payment to Bo~ ,,.,.r. If a refund reduces principal, the reduction will be treated as a partial prepayment without mt' l~cpayment charge (whether or not a prepayment charge is provided for under the Note). Borrower'~ ~,, CClWance of any such refund made by direct payment to Borrower will constitute a waiver of any righ~ ,,~ m'tioli Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in,,,~lncclion with this Security Instrument must be in writing. Any notice to Borrower in connection with tt~ ~,cctu-ity Instrument shall be deemed to have been given to Borrower when mailed by first class mail , ~ ,.xhcn actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrm~,~ ,It:tll constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notk, ,~l,h'css shall be the Property Address unless Borrower has designated a substitute notice address by ,.,~,,. to l,cnder. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specii~, :~ procedure for reporting Borrower's change of address, then Borrower shall only report a change o l'.,~l,l~c~s th,'ough that specified procedure. There may be only one designated notice address under this ~-;,-. ,~ iix Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing i~ h,, Iii'st class mail to Lender's address stated herein unless Lender has designated another address ~. tt~,ticc to Borrower. Any notice in connection with this Security Instrument shall not be deemed t,~ I't ,x ~. bccn given to Lender until actually received by Lender. If any notice required by this Security Inq, ,.~c.I is also required under Applicable Law, the Applicable Law requirement will satisfy the corrc:,l,~,,,t~tg requirement under this Security Instrument. (~)~-$ A(W Y)(ooo~).o~ PagelO of 15 0410198738 Form 3051 1101 . .. 16. Governing Law; Severability; Rules of Construc~i~. Ibis Security Instrument shall be governed by federal law and the law of the jurisdiction in whi, i~ ~1,~. I'rol2erty is located. All rights and obligations contained in this Security Instrument are subjec~ ~:, :~tx ~'cquirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly :~!l. ,,..~ ih~. p~rties to agree by contract or it might be silent, but such silence shall not be construed as a pro i~i,~ti,,~ ~tgainst agreement by contract. In the event that any provision or clause of this Security Instrum~',~, ,,~ th~ Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Sect,~ i~, I~t~trument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the t**~ ,~,li~~ gender shall mean and include corresponding neuter words or words of the feminine gender; ~1, ,.~,,rds in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives ~,,Ic dis<'retion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy o~'~i,~. ~,~. and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest i, l;,,c,'osver. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest i~, t~.~. I'~',~perty, including, but not limited to, those beneficial interests transferred in a bond for deed, corn, ~. ~ I; ,~' d~ed, installment sales contract or escrow agreement, the intent of which is the transfer of title by I~, ,~..,x~.r ~t a future date to a purchaser. If all or any part of the Properly or any Interest in the Prot.-, ~,, i~ st~ld or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is s,.I,i ,,~ ~r~tsferred) without Lender's prior written consent, Lender may require immediate payment in Itel! ~,1' :~ll sums secured by this Security Instrument. However, this option shall not be exercised by I .,,,k:r if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borroxx,., .... t it'e of acceleration. The notice shall provide a period of not less than 30 days from the date the nod~,. ?~ ~i~c~ in accordance with Section 15 within which Borrower must pay all sums secured by this Sec~, i~ i~s~rt~ment. If Borrower fails to pay these sums prior to the expiration of this period, Lender ma.~ ~,~,,l<c ~my remedies permitted by this Security Instrument without further notice or demand on Borrox~ ~.~. 19. Borrower's Right to Reinstate After Accelerations. !l l~,rrower meets certain conditions, Borrower shall have the right to have enforcement of this Sect,~ i~, I~strt~ment discontinued at any time prior to the earliest of: (a) five days before sale of the Property l,~t .t~t to any power of sale contained in this Security Instrument; (b) such other period as Applicable I :t-.., ~ight specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment e~,l~,~.i~ this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums whicl~ t!,,:,l would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) c~ ,., :~v default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Sectt~ i~ I~,,Irument, including, but not limited to, reasonable attorneys' fees, property inspection and valuati~,~, ~>~:~. a~d other fees incurred for the purpose of protecting Lender's interest in the Property and righ~ ~,~,l~'r this Security Instrument; and (d) takes such action as Lender may reasonably require to assure ~/~ ,~ I c.l~dcr's interest in the Property and rights under this Security Instrument, and Borrower's obligatio~ ,, i~:, d~e sums secured by this Security Instrument, shall continue unchanged. Lender may require that Is. ~,,,,x~,l' pay such reinstatement sums and expenses in one or more of the following forms, as selected b.. I ~'~J~'r: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check I,~,'x idcd any such check is drawn upon an institution whose deposits are insured by a federal agency, i~, t~ ~,t~,~tmtity or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security l~ ~ t~cm und obligations secured hereby shall remain fully effective as if no acceleration had occurred. I I,..~c~.r, 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 G~i~ .. :,~ct~. The Note or a partial interest in the Note (together with this Security Instrument) can be sold t,~=,. ,,, ~t~re times without prior notice to Borrower. A sale might result in a change in the entity (kn~Y....:~ :,~ d~e "Loan Servicer") that collects Periodic Payments due under the Note and this Security Inst~, ~tt :~1 performs other mortgage loan servicing obligations under the Note, this Security Instrument, ~,~.i \l~l~licable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of~l~ :'.~,,te. If there is a change of the Loan Servicer, Borrower will be given written notice of the change xvl,~ i, x,, ill state the name and address of the new Loan Servicer, the address to which payments should be ,~:~.k: .~t~t any other information RESPA ,.,~,~1~ C 0410198738 (~-6A(WY) (0005).02 Page 11 oi' 15 Form 3051 1/01 requires in connection with a notice of transfer of servicing. serviced by a Loan Servicer other than the purchaser of the to Borrower will remain with the Loan Servicer or be transfen assumed by the Note purchaser unless otherwise provided by Neither Borrower nor Lender may commence, join, or ;~,tc is sold and thereafter the Loan is i~c mortgage loan servicing obligations ,, successor Loan Servicer and are not tc imrchaser. ~cd to any judicial action (as either an individual litigant or the member of a class) that arises front ~!~,. ,~thcr party's actions pursuant to this Security Instrument or that alleges that the other party has bre:,, i. ,I :~Lv provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lc~,!~ Itas notified the other party (with such notice given in compliance with the requirements of Section I , ,,I such alleged breach and afforded the other party hereto a reasonable period after the giving el **, I~ notice to take corrective action. If Applicable Law provides a time period which must elapse bcl, ~,. certain action can be taken, that time period will be deemed to be reasonable for purposes of thi~ I .~,~?raph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section ." .tt~c[ the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy d~,. ~t.4icc and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 'l i',t) "llazardous Substances" are those substances defined as toxic or ba?ardous substances, pollutant-,, ~ xxastcs by Environmental Law and the following substances: gasoline, kerosene, other flammable o~ ,~ i,. petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbesto~ ,,. I~,maldchyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the j tt~ . t it-lit,l where the Property is located that relate to health, safety or environmental protection; (c) "Em ~ ~,~c,t:d Cleanup" includes any response action, remedial action, or removal action, as defined in Em i~ .~.,tc~dal lx~w; and (d) an "Environmental Condition" means a condition that can cause, contribute ~,, ~' ~thcrwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, di~,t , .d. ,tt,rage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, t,~ ,.~ i~ ll~e Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property I:t~ ~lt,t~ is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) wl~i. I, ,h~c to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affect ~1 ~. x,~due of the Property. The preceding two sentences shall not apply to the presence, use, or stor:~.. ,,~t the Property of small quantities of Hazardous Substances that are generally recognized to be at-,i ~..i.~ i:~tc to normal residential uses and to maintenance of the Property (including, but not limited to, ha~:,. ~ .t,., substances in consumer products). Borrower shall promptly give Lender written notice of (:t~ .,,. investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or i,~ ~,..ttc part>, involving the Property and any Ha?ardous Substance or Environmental Law of which l~,~,,,,xcr has actual 'knowledge, (b) any Environmental Condition, including but not limited to, any spill~:, leaking, discharge, release or threat of release of any Ha?ardous Substance, and (c) any condition c:,,t ,.J by the presence, use or release of a Hazardous Substance which adversely affects the value of the l',,,i,c~ty. If Borrower learns, or is notified by any governmental or regulatory authority, or any private i~,,~ t, ihat aay removal or other remediation of any Hazardous Substance affecting the Property is necessary. I; .~,wcr shall promptly take all necessary remedial actions in accordance with Environmental Law. Nt,tl~., herein shall create any obligation on Lender for an Environmental Cleanup. (~-6 A(WY)(ooos).o2 Page12 of 15 10198738 m 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender fil~ ~1,~, o,vcnant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to I;,~,',mcr prior to acceleration following Borrower's breach of any covenant or agreement in this ~.i~., ariD, Instrument (but not prior to acceleration under Section 18 unless Applicable Law provide, ,,lhc,'x~isc). The notice shall specify: (a) the default; (b) the action required to cure the default; (e) a d:~:, not less than 30 days from the date the notice is given to Borrower, by which the default must I,,..~ ,~'cd; and (d) that failure to cure the default on or before the date specified in the notice may resuti i, :~ccclcration of the sums secured by this Security Instrument and sale of the Property. The notit, c ,..l~:~ll further inform Borrower of the right to reinstate after acceleration and the right to bring a c,,,,, ~ ;tclion to assert the non-existence of a default or any other defense of Borrower to acceleration am! :.:He. If the default is not cured on or before the date specified in the notice, Lender at its option m;~', ,'cquire immediate payment in full of all sums secured by this Security Instrument without furthe, .i,.m:md and may invoke the power of sale and any other remedies permitted by Applicable La~. i ~'mler shall be entitled to collect ali expenses incurred in pursuing the remedies provided in this .',t,'~i,n 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give .,~cc .1' intent to foreclose to Borrower and to the person in possession of the Property, if differe~i: i,~ ;~ccordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manm.~ I""x ided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold i, ~,c ,harmer prescribed by Applicable Law. Lender or its designee may purchase the Property at a~,..:~lc. The proceeds of the sale shall be applied in the following order: (a) to all expenses of tl,t..;,Ic, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this St.c,~i(~ Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Se~ ,i., l:~strument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs I ,'~tdcr may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to ,, ~l~i~ d party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights ~:~,,tcr and by virtue of the homestead exemption laws of Wyoming. 6A(WY) (0005).02 /410198738 BY SIGNING BELOW, Borrower accepts and agrees l,, ~l,,. Icrms and covenants contained in this Security Instrument and in any Rider executed by Borrower anti ~ ,',~tdcd with it. Witnesses: (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~)<~6 A(W Y)(0005).02 Page 14 ot 15 0410198738 Form 3051 1101 ;..i;!:::. ",; ;9:;:;. .',:,;.:,:,:. ..',;;';:;.; '"-:'X'. .:.:.:.:.:,:.:. STATE OF WYOMING, The foregoing instrument was acknowledged before me this by JED ARLO MILLER, LISA MILLER Teton County ss: dav of November, 2004 My Commission Expires: 9-15-07 Notary Public ~' ~ ,f ~.,~ ._State of h, ;i~, ~ Wyoming :~ ::,,;:;~lon Ex~lres Sept. 15, 2007 (~-6 A(WY)(ooo5),o2 Page15 of 15 Form 3 0 $1 0410198738 1/01 ADJUSTABLE RATI-'! II 1:, )I.R7 ill ' ~ r (LIBOR Six-Month Index (As Published In The I I',,,//, ' 'c,,, JournaI)-Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 15th day'of Now:,,d;or. 2004, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trt ~ ,~' :~ccurity Deed (the "Security Instrument") of the same date given by the undersigned ("Borrower"~ ccm'c Borrower's Adjustable Rate Note (the "Note")to AccmdRed Home Lenders, Inc., A California CorlJ,;~.~tion {'Tender") of the same date and covering the property described in the Security Instrument and located 7541 WYOMING HIGHWAY AFTON, WY 83110 [Property Address l THE NOTE CONTAINS PROVISIONS ALLOWING I, ,R ¢'11ANGES IN THE INTEREST RATE AND THE MONTHLY PAYMEN'I. I I11'/NOTE LIMITS THE AMOUNT BORROWER'S INTEREST RATE CAN t I i \Ntil~ AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST I' \ ADDITIONAL COVENANTS. In addition to the covenants and a:~.'~'~cnls made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT ( I I.\N(;ES The Note provides for an initial interest rate of 7.490%. The Note i,~, ,~ idc> lbr changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT ('.~ \NGES (A) Change Dates The interest rate I will pay may change on the 1 st day of Decembe~ 2006 alld on the let day of every sixth month thereafter. Each date on which my interest rate could change i:, ,~ll,',l a "Change Date." (B) The Index Beginning with the first Change Date, my interest rate will be based, ~,, zt~ index. The "Index" is the average of interbank offered rates for six month U:S. dollar-denominated deposits ~, ~hc I.ondon market ("LIBOR"), as published in The Wall Street Journal. The most recent Index figure axe ~l.tl}lc as of the first business day of the month immediately preceding the month in which the Change Date oc~ t~,, i~, called the "Current Index." If the Index is no longer available, the Note Holder will choose a nc,. ~,,tcx that is based upon comparable information. The Note Holder will give me notice of this choice. MIN # 100176104101987382 MILLER ARMRIDRI.UFF Page 1 of 3 AHL modified FannieMae 3138 (1101) (C) Calculation of Ch anges Before each Change Date, the Note Holder will calculate my new Hundredth(s) percentage points (5.990%) to the Current Index. The addition to the nearest one-eighth of one percentage point (0.1.25%). below, this rounded amount will be my new interest rate until the nex The Note Holder will then determine the amount of the monthly p,,, unpaid principal that I am expected to owe at the Change Date in full in substantially equal payments. The result of this calculation will be (D) Limits on Interest Rate Changes ,~-~r;ac by adding Five And Ninety-nine - I hdder will then round the result of this . .ct m tile limits stated in Section 4(D) ~,...,c Date. ~ that would be sufficient to repay the ., Nlalurity Date at my new interest rate ),cx, amount of my monthly payment. The interest rate I am required to pay at the first Change Date will ~, ,t t,c s'rcatcr than 8.990% or less than 7.490%. Thereafter, my interest rate will never be increased or decre, ,~. I ,~ any single Change Date by more than One And One-half percentage points ( 1.500%} from the rate of intc~, ~ I I~'avc been paying for the preceding six months. My interest rate will never be greater than 14.490% or less ti~,,~ (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I .,. ~ll i,.~x, tt~e amount of my new monthly payment beginning on the first monthly payment date after the Chanm. I ~ ~lc tmlil 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 ~,~ ,,,x inlcrest rate and the amount of my monthly payment before the effective date of any change. The notice ,,,. iii i~clucte information required by law to be given to me and also the title and telephone number of a person who x~ iii ~m,,wcr any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFI~ '~ \ I INTEREST IN BORROWER ' Uniform Covenant 18 of the Secruity Instrument is amended 1~, ~ ~,t 'as lbllows: Transfer of the Property or a Beneficial Interest in Bor~ ~,,, ct. II'all or any part of the Property or any interest in it is sold or transferred (or if a benoit, i ~1 /merest in Borrower is sold or transferred and Borrower is not a natural person) without Len&, l,tior written consent, Lender may, at its option, require immediate payment in full of all SL,~ 'cttrcd by this Security Instrument. However, this option shall not be exercised by Lc~. !. ~ il ~,t~ch exercise is prohibited by applicable law. MIN # ARMRIDR2.UFF If Lender exercises the option to require immediate paymc~t~ ~ I'.ll, l.ender sh~ll give Borrower notice of acceleration. The notice shall provide a period of not I th',tn 30 days from the date the notice is delivered or mailed within which Borrower must pay ,,ii ,Ins secured by this Security Instrument. If Borrower fails to pay these sums prior to the exl~ ~ ~Ji, ,t} o1' this period, Lender may invoke any remedies permitted by this Security Instrument will,, .:..~ I ttt tiler' notice or demand on ~ Borrower. 100176104101987382 MILLER Loa~410198738 Page 2 of 3 AHL modified FannieMae 3138 (1/01) BY SIGNING BELOW, Borrower accepts and agrees JBorr~wer v JED~ARLO MILLER Date (..~/I_ISA , ,. terms and covenants contained in Date Borrower Date Borrox~ ,.~ Date Borrower Date Borrox~ ~'r Date Borrower Date Borro~x ~ ~ Date MIN # 100176104101987382 ARMRIDR3.UFF MILLER Page 3 of 3 Loan # 0410198738 AHL modified FannieMae 3138 (1/01) Borrower Name(s): JED ARLO MILLER, LISA MILLER Property Address: 7541 WYOMING HIGHWAY 238 AFTON, WY 83110 Legal Description: Lender: Accredits,/ - ~o~ Lenders, Inc. A Califor~,r ,;orporation 15090 Aw. ,~ of Science. San Die9 A 92128 Loan #:04 ~JI98738 S112NE114SE114, SECTION 21 AND SII2NW114SWII4 OF SE',; ~ ION 22 AND BEGINNING AT A POINT WHICH IS THE NORTHEAST CORNER OF NWI/4SW ~/~, SECTION 22 AND RUNNING THENCE SOUTH 40 RODS; THENCE WEST 1 ROD; THENCi- ~ORTH 40 RODS; THENCE EAST 1 RODS TO THE POINT OF BEGINNING. ALL IN TOWNSHIP 3:, ~!ORTH, RANGE 119 WEST OF THE SIXTH PRINCIPAL MERIDIAN. MIN # 100176104101987382 AHL 610101.UFF MILLER Page I of 1 / //Loan # O41O198738