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HomeMy WebLinkAbout904763Return To: HOMECOMINGS FINANCIAL NETWORK, lNG ONE MERIDIAN CROSSING, STE 100 MINNEAPOLIS, MN 55423 Loan Number: 042-234967-0 Prepared By: HomeComings Financial Network 14850 Quorum Drive, Suite 500 Dallas, TX 75254 .,. ,..99 [Space Above This Line For R~ .... ,h,,~ Ihlh, I MORTGA{' ' ~,IIN 100062604223496706 DEFINITIONS RECEIVED 11122/:'~ ,.I at 4:46 PM RECEIVING # BOOK: 573 '.',.~;E: 299 JEANNE ....... ~NER LINCOLN COUNTY CI Words used in multiple sections of this document are Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding II~ also provided in Section 16. I~clmv and other words are defined in ,.,,_,c t,l' words used in this document are (A) "Security Instrument" meansthis document, which is d.~ .. together with all Riders to this document. (B) "Borrower" is RICK STOKER MERRITT AND AMY MERRITT, HUSBA:: Nt)VEMBER 16TH, 2004 ~,~D WIFE Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, ,, M ERS is a separate corporation that is acting solely as a nominee for Lender and Lender's succv> ,., :md assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and exi ~ . under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, M1 .l':' ~1 202~,, tel. (888) 679-MERS. WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRlil , ~,~1 WITH MERS MFWY7770 (11/00) / 042-234967-0 ,n ~ VMP MORTGAGE FORMS - (800)521-7291 Form 3051 1/01 (D) "Lender" is HOMECOMINGS FINANCIAL NETWORF Lender is a CORPORATION organized and existing under the laws of DELAWARE' Lender's address is 14850 QUORUM DRIVE, SUITE 5 DALLAS, TX 75254 (E) "Note" means the promissory note signed by Borrowera..~ Idcd NOVEMBER 16TH, 2004 The Note states that Borrower owes Lender ONE HUNDRE~ ,/I'EEN THOUSAND AND NO/1 00 (U.S. $ 113,000.00 ) plus interest. Borrower h. Payments and to pay the debt in full not later thanDECEMBI.:~ (F) "Property" means the property that is described below Property." (G) "Loan" means the debt evidenced by the Note, plus int due under the Note, and all sums due under this Security In~,l Dollars ,mi~cd to pay this debt in regular Periodic 2034 thc heading "Transfer of Rights in the ,,,~ prepayment charges and late charges ll~tCIII, phis interest. (H) "Riders" means all Riders to this Security Instrument ll,,t t. c executed by Borrower. The following Riders are to be executed by Borrower [check box as applical .I ~ Adjustable Rate Rider ~ Condominium Rider ~-~ Balloon Rider ~ Planned Unit Developmenl [~ VA Rider ~ Biweekly Payment Rider Second Home Rider 1-4 Family Rider Other(s) [specify] (I) "Applicable Law" means all controlling applicable I[.,t~ :d. s~ate and local statutes, regulations, ordinances and administrative rules and orders (thathave thc ~ c~ of law) as well as all applicable final, non-appealable judidal opinions. (J) "Community Association Dues, Fees, and Assessments", .... ,us all dues, fees, assessments and other charges that are imposed on Borrower or the Property 1,,. ,. ctmdmninium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of ~., ,I tM~cr than a transaction originated by check, draft, or similar paper instrument, which is initiate, ,, mtd~ an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instrm I. ~ ~t authorize a financial institution to debit or credit an account. Such term includes, but is not limited . p,fint-of-sale transfers, automatedteller machine transactions, transfers initiated by telephone, xs. IlaBMcrs, and automated dearinghouse transfers. (L) "Escrow Items" means those items that are describedin ,'~,.,t ~,~. 3~ (M) "Miscellaneous Proceeds" means any compensation, sc Itl, ~'nt award of damages, or proceeds paid by any third party (other than insurance proceeds paid undc r. I~ ~., wc rages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemna ...... r ,~ther taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) .~ ~.~ q,'cscntationsof, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lend .,~amst the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled am~m,, t ~ Ira. l't)r (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security I, ~, ,m cnt. (P) "RESPA" means the Real Estate SettlementProcedures.:,., ~ t 12 t I.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 35111~i ,,s they might be amended from time to time, or any additional or successor legislation or regulation Il,, I ~.t ,vc rns the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirem ~.~ .:, nd restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan dot.~. ~, ,1 tlmdify as a "federally related mortgage loan" under RESPA. MFWY7770 (11/00) / 042-234967-0 (~-6A(WY) {ooo5).o~ (Q) "Successor in Interest of Borrower" means any party th.d I~.,~ I~kcn title to the Property, whether or not that party has assumed Borrower's obligations under thc :., ,~ ~. ,nd/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrumentsecures to Lender: (i) the repaymenl ~,i Ih,~ I.~a n, and all renewals, extensions and modifications of the Note; and (ii) the performance of 1;~ ,, ~ ,w~q"s covenants and agreements under this Security Instrumentand the Note. For this purpose, Bon, to MERS (solely as nominee for Lender and Lender's and assigns of MERS, with power of sale, th, in the COUNTY of LINC_ [Type of Recording Jurisdiction] Legal description attached hereto and made d, ,cs hereby mortgage, grant and convey · ,s and assigns) and to the successors Ih~wing described property located : . N amc t~ f Recording Jurisdiction] .. t hereof ParcellD Number: 12-3219-25-4-00-092.00 470 LINCOLN STREET AFTON ("Proper~ Address"): which currently has the address of , [Street] , Wyoming 8 3110 [Zil: Codel TOGETHER WITH all the improvements now or ~, ,..dt~q erected on the property, and all easements, appurtenances, and fLxtures now or hereafter a . . . ,f thc property. All replacements and additions shall also be covered by this Security Instrumem. II ~fl' thc foregoing is referred to in this Security Instrument as the "Property." Borrower understamh. ,,,, I .~t,~ cos that MERS holds only legal title to the interests granted by Borrower in this Security Instrum~ ,, bm. il' necessary to comply with law or custom, MERS (as nominee for Lender and Lender's success,, ,,M ;~s.~igns) has the right: to exercise any or all of those interests, including, but not limited to, the rit,!~l I,, I~u'cclose and sell the Property; and to take any action required of Lender including, but not limit Instrument. BORROWERCOVENANTS that Borrower is lawfully the right to mortgage, grant and convey the Property and th:~ encumbrancesof record. Borrower warrants and will defend claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform ,~ covenants with limited variations by jurisdiction to constitm~ property. ,, releasing and canceling this Security d t~l' the estate hereby conveyed and has ,,- I'rtq~erty is unencumbered, except for ~:r:tllv Iht title to the Property against all for national use and non-uniform ~rm security instrument covering real MFWY7770 (11/00) / 042-234967-0 ~¥6AIWY) IO00SLo~ Page 3 of 15 Form 3051 1/01 0302 UNIFORMCOVENANTS. Borrower and Lender cove n.~ ,~ t ,,mi agree as follows: 1. Payment of Principal, Interest, Escrow Items. ~'~ ~:lxrmt'nt Charges, and Late Charges. Borrower shall pay when due the principal of, and interes~ .... ~i~c debt evidenced by the Note and any prepaymentcharges and late charges due under the Note. Bt.~, ,,~.~ shzdl also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and ~h~ '~ curltv Instrumentshall be made in U.S. currency. However, if any check or otherinstrumentreceivcd I I.cnclcr as payment under the Note or this Security Instrumentis returned to Lender unpaid, Lender m :~,. , t luirc that any or all subsequentpayments due under the Note and this Security Instrument be made ,, ,,.cm more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certili~ ,t ,'h~,c'k. bank check, treasurer's check or cashier's check, provided any such check is drawn upon :,, .~,. ~ilutitm whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic I ~ Tran~l'cr. Payments are deemed received by Lender when receiv, ,', ~ , hc It,cation designated in the Note or at such other location as may be designatedby Lender in accord ~,,, ,' wil h the notice provisions in Section 15. Lender may return any payment or partial payment if the I','. ,,t, m ~,i partial payments are insufficient to bring the Loan current. Lender may accept any payment o~' I "~i.~[ payment insufficient to bring the Loan current, without waiver of any rights hereunderor prejudic,. ~, ~,, sights to refuse such payment or partial paymentsin the future, but Lenderis not obligated to appl.~ **, ~ i~:lvments at the time such payments are accepted. If each Periodic Payment is applied as of its sd, lulc.t[ 'due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplicd ~,~ ,}~ u m il Borrower makes payment to bring the Loan current. If Borrower does not do so within a reason. ,I.I,~ pc r iod of time, Lender shah either apply such funds or returnthem to Borrower. If not applied earlier [~, I Itmds will be applied to the outstanding principal balance under the Note immediately prior to for~'~ 1,, ,,re. No offset or claim which Borrower might have now or in the future against Lender shall relier, i: , r~m cr from making payments due under the Note and this Security Instrument or performing the covc~.~ ~,l.,, mi agreementssecured by this Security Instrument. 2. Application of Payments or Proceeds. Except ,,, II~'rwise described in this Section 2, all payments accepted and applied by Lender shall be applied i~, , ~t I',fllowing order of priority: (a) interest due under the Note; (b) principal due under the Note; (c), ..... t~ms duc under Section 3. Such payments shall be applied to each Periodic Payment in the order in x~ I,~, h , hccame due. Any remaining amounts shall be applied first to late charges, second to any other am,,,,t~l~ dtlc under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a cl~'l~.l~,mt l'criodic Payment which includes a sufficient amount to pay any late charge due, the payment ,~,, I},, :,pplied to the delinquent payment and the late charge. If more than one Periodic Payment is outsta.,l~,~,,, I.c. ndcr may apply any payment received from Borrower to the repayment of the Periodic Payments il~ .,~,d It~ Ibc extent that, each payment can be paid in full. To the extent that any excess exists after the p~t~. ,~,..I is applied to the full payment of one or more Periodic Payments, such excess may be applied to an)' 1, ~,~ ,ll:tlgcs due. Voluntary prepaymentsshall be applied first to any prepayment charges and then as dest'~ il ~,d in thc Note. Any application of payments, insurance proceeds, or fx l i , ~ I I:l n c ous Proceeds to principal due under the Note shall not extend or postpone the due date, or chan?, t l,~' :lmount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to 1., ,~,t,.~ tm tl~e day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Fum I~, } t t~ provide for payment of amounts due for: (a) taxes and assessments and other items which can at~,~} i~s i~,hy over this Security Instrumentas a lien or encumbranceon the Property; (b) leaseholdpaymem , !,l tmmt rents on the Property, if any; (c) premiums for any and all insurance required by Lender tsti,l, I Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to I , ~,,l,'r in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of ~,,, l i,}n 10. These items are called "Escrow Items." At origination or at any time during the term of iht' t , ,,m, I~cnder may require that Community Association Dues, Fees, and Assessments, if any, be escr, ...... I Iw Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall proml,ll, I~ n:~sh to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the I ,,,. I., It,' Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all I{,,, ,,,,,v llcms. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Itc.~ .~t ~m¥ time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay d i,.~,'t 13., Macn and where payable, the amounts MFWY7770 (11/00) / 042-234967-0 i~l~: t~'//// (~-6A(WY) (ooos).Ol P.~= 4of ~§ ~' Form 3051 1/01 0 )04'7 58 due for any Escrow Items for which payment of Funds has b,., ~, ~,,, :~ ix'cd by Lender and, if Lenderrequires, shah furnish to Lender receipts evidencing such payment w il h i,, ,, u t' h ti m e period as Lender may require. Borrower's obligation to make such payments and to provith. ,, ,',.iI~ s shall for all purposes be deemed to be a covenant and agreementcontained in this Security instrtl~,,, ~1, :t ~ Ibc phrase"covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escr, .... I~,'ms directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, I_,.,~, I,.~ m~ty exercise its rights under Section 9 and pay such amount and Borrower shah then be obligated ,~,t~.~ ,qcctitm 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all E~., ~, ,,,,, Ilk:ms at any time by a notice given in accordance with Section 15 and, upon such revocation, Bt,,, ,.,, ,~r ~hall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an ~ .... ~ml I ;~) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not t .... :,'ccd thc maximum amount a lender can require under RESPA. Lender shall estimate the amount t)l I t~Htls due on the basis of current data and reasonable estimates of expenditures of future Escrow Item~...~ ,,I hcrwise in accordance with Applicable Law. The Funds shah be held in an institation whose ,1~ i,,,-,i~s arc insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an in t,t ~i, m whose deposits are so insured) or in any FederalHomeLoan Bank. Lender shah apply the Funds t,, l'~tv Ibc Escrow Items no later than the time specified under RESPA. Lender shah not charge Borrower I, ,, I~,}hling and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Item s, ~,, ~l,;ss Lc rater pays Borrower interest on the Funds and Applicable Law permits Lender to make such a ch :,, .,. t l n less an agreementis made in writing or Applicable Law requires interest to be paid on the Funds, I , , ~, l['t .q~all not be required to pay Borrower any interest or earnings on the Funds. Borrower and Len&~ , .~ ;?'cc in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, x,,il,, mt charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as dcti~,,,I trader RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. ii ~ii~.lc ix a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as re, i~ ~i ~,'~11~5' RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in acc~,,, h, ~t cc with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in c %, ,, ,x~, ;~s defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall t' ". it, Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no mor~~ t t~:,~ 12 monthly payments. Upon payment in full of all sums secured by this Secm ii .~ Ileal r umcnt, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shah pay aH taxes, ~:: ~ ?,mcnls, charges, fines, and impositions attributable to the Property which can attain priority over th i- ,, ~t~ r ity Instrument, leasehold payments or ground rents on the Property, if any, and CommunityAssoci;~ ;, ,, ~ I )uts, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall I~,. Ih,'m in the manner provided in Section 3. Borrower shall promptly discharge any lien which ha~ t" i,,~it y re'er this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obliga~i,,~ ~'~'t~rcd by the lien in a manner acceptable to Lender, but only so long as Borroweris performing such :,,'~','mcnt; (b) contests the lien in good faith by, or defends against enforcementof the lien in, legal proc, ~ ,lm!y.~ which in Lender's opinion operate to prevent the enforcement of the lien while those proceeding~ ~,~ ,~ i~,n ding, but only until such proceedings are concluded; or (c) secures from the holder of the lien an ;~ .... ~,~,'m satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determinesth:~l ~; i>:~rt of the Property is subject to a lien which can attain priority over this Security Instrument, Lenth ~ ,,~ :~;' give Borrower a notice identifying the MFWY7770 (11/00) / 042-234967-0 (~-6AlWY! looos).ol P.s*sof~s /~ ]/~ Form 3051 1/01 lien. Within 10 days of the date on which that notice is give n, ~ ;,,~ ~wc r 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 ch:~...,. I,.' a real estate tax verification and/or reporting service used by Lender in connection with this Lt~:~ 5. Property Insurance. Borrower shall keep the imprL,x,.~,~.nl s m~w eXisting or hereafter erected on the Property insured against loss by fire, hazards included x~ it I~i~ ~hc Icrm "extended coverage," and any other hazards including, but not limited to, earthquakesand t l,,,,,l~, fi)r which Lender requires insurance. This insurance shall be maintained in the amounts (includi,? ,l~.duc~iblc levels) and for the periods that Lender requires. What Lender requires pursuant to the pre ct., i i~, ><nrc n c es can change during the term of the Loan. The insurance carrier providing the insurance sh:dl t~. ~'ht)scn by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall ~,,,i I,c exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, ~:il!~ ~: (~t) a one-time charge for flood zone determination, certification and tracking services; or (b) a tm.. lime: charge for flood zone determination and certification services and subsequent charges each time ,~ ,,~:[l~l)i~gs or similar changes occur which reasonably might affect such determination or certification, i;,,,~{,x~cr shall also be responsible for the payment of any fees imposed by the Federal Emergency ~, I:~:,~,c mcnt Agency in connection with the review of any flood zone determination resulting from an ob j~ ,'li,~, by Borrower. If Borrower fails to maintain any of the coverages dc:,, ~ il,,:d above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lcn,i. ~ i~ trader no obligation to purchase any particular type or amount of coverage. Therefore, such cox',' r.,~,, ~,h:dl cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or ~1 , ,hi cnts of the Property, against any risk, hazard or liability and might provide greater or lesser covcf:,~,~, t l~:m was previously in effect. Borrower acknowledges that the cost of the insurance coverage so ob~:,i~,,I might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts d i. I,~ ~,.tl by Lender under this Section 5 shall become additional debt of Borrower secured by this Security I,,. ~ ~ ~m~ c at. These amounts shall bear interest at the Note rate from the date of disbursement and shall bcp:,., :d ,k., with such interest, upon notice from Lender to Borrower requesting payment. AU insurance polities requiredby Lender and renewal~, ,~ :.m'h policies shall be subject to Lender's right to disapprove such policies, shall include a standard ~,,l~,:~gc clause, and shall name Lender as mortgagee and/oras an additionalloss payee. Lender shall h:~ ~hc right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give. I,, I.~:mlcr all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance t, ,'..~'~:~gc, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy ~.i,.~11 incltitte a standard mortgage clause and shall name Lender as mortgagee and/or as an additional lo..~:, In the event of loss, Borrower shall give prompt notit:,. I~, thc i,surance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. I ,, I~ :,~ l~cnder and Borrower otherwise agree in writing, any insurance proceeds, whether or not the undo ri'. i~, ~, ins, r an ce was required by Lender, shall be applied to restoration or repair of the Property, ff the rcsl,~ :~li,,~}~r repair is economically feasible and Lender's security is not lessened. During such repair and rc~,,, :,t i, m period, Lender shall have the right to hold such insurance proceeds until Lender has had an opp,, I~,~i~v Itl inspect such Property to ensure the work has been completed to Lender's satisfaction, provid,.,i th:~l such inspection shall be undertaken promptly. Lender may disburse proceeds for the repaks and ,~ ..t,,r':tlionin a single payment or in a series of progress payments as the work is completed. Unless an ag ~ ~'~',lis made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lem l~ ~ ..h:dl m)t be required to pay Borrower any interest or earnings on such proceeds. F.ees for public z~di~.icr~, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds ami :,lt~ll I,c the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lend,'~ , .,[.c',t'ity would be lessened, the insurance proceeds shall be applied to the sums secured by this Securil, I~,t rumcnt, whether or not then due, with MFWY7770 (11/00) / 042-234967-0 ir~ltials: (~-6A(WY) (oo0s).Ol Page6o, lS -aL~/~//V~ Fo,m 3051 1/01 the excess, if any, paid to Borrower. Such insuranceprocecd 11 bc applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file. ,,. ~,,,i ia t c and settle any available insurance claim and related matters. If Borrower does not respond will ~,~ da vs to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender n ..... ~,otialc and settle the claim. The 30-day period will begin when the notice is given. In either eve,,, , ~ Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lcd, iaI Borrower's rights to any insurance proceedsin an amountnot to exceed the amounts unpaid un~l tit,. Nt~tc or this Security Instrument, and (b) any other of Borrower's rights (other than the right ~ ..... refund of unearned premiums paid by Borrower) under all insurance policies covering the Propen . ,,,,,,,far as such rights are applicable to the coverage of the Property. Lender may use the insurance proc.. , I. c it h c rio repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrt ..... ~tt, x~ hcthcr or not then due. 6. Occupancy. Borrower shall occupy, establish, an,l ~,.,. Ibc Property as Borrower's principal residence within 60 days after the execution of this Securit ~ i,, .i ~ mn cnt and shall continue to occupy the Property as Borrower's principal residence for at least one y, ,, ,,l~,. r thc date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be t~,,,~ ,:,,mably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of tin. ~'c,,I)erly; Inspections. Borrower shah not destroy, damage or impair the Property, allow the Prop~ ,~, ~,, deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Prop~ ,~. Ih ,rmwer shall maintain the Property in order to prevent the Property from deteriorating or decrea~i,,. ~,~ vah,c due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration i ,~ economically feasible, Borrower shall promptly repair the Property if damaged to avoid furth~.~ ,h ~crioration or damage. If insurance or condemnationproceeds are paid in connection with damage, i~, ,,~- Ibc taking of, the Property, Borrower shall be responsible for repairing or restoring the Property t,~,l, it Lender has released proceeds for such purposes. Lender may disburse proceedsfor the repairs and r~ ~ ,~ :~ hm in a single payment or in a series of progress payments as the work is completed. If the insuranc~ ,,, ~, mdcmnationproceeds are not sufficient to repair or restore the Property, Borrower is not relieved o l ~,,~wcr's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries up,,~, ,~1 inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the iml~, ,., ~m. n ls tm the Property. Lender shah give Borrower notice at the time of or prior to such an interior in. i' ,~l i~ m .~pccit~ing such reasonable cause. 8. Borrower's Loan Application. Borrower shall bc ~,, &'fault if, during the Loan application process, Borrower or any persons or entities acting at th, ~!i,c,.litm of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or i, .... ~':~ c in formation or statementsto Lender (or failed to provide Lender with material informatiot~; ~ ctmncction with the Loan. Material representationsindude, but are not limited to, represental~,~,~ ,,,m'crning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property ami t:i.,4hl~ Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreementsc,,, ~,~ i,,c d in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender',, i~t,., c ~ in the Property and/or rights under this Security Instrument(such as a proceeding in bankruptcy. 1,~, ,l,alc, for condemnationor forfeiture, for enforcement of a lien which may attain priority over thi:~ . ~m ity Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, I I,~ ~ I ~'ndcr may do and pay for whatever is reasonable or appropriate to protect Lender's interest in ~1,, I'~,,pcrty and rights under this Security Instrument, including protecting and/orassessing the value ,,l i1,~ I'mpcrty, and securing and/orrepairing the Property. Lender's actions can include, but are not lim il~. t I, ~: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) apl, .... i,,? in court; and (c) paying reasonable MFWY7770 (11/00) / 042-234967-0 I~,ti~ts: ~~ (~-6A(WY) {ooos).o~ P.g= 7 of ~s A/~h^ Form 3051 1/01 attorneys' fees to protect its interest in the Property and/on h. I~, ~mlc r this Security Instrument, including its secured position in a bankruptcy proceeding. Securing l l~, t'r~pcrty includes, but is not limited to, entering the Property to make repairs, change locks, replace. ~,~ t,, ,aid up doors and windows, drain water from pipes, eliminate building or other code violations or d:~,,~., ~, ms c{~nditions, and have utilities turned on or off. Although Lender may take action under this Secti~,,, ',. I.cmlcr does not have to do so and is not under any duty or obligation to do so. It is agreed that Lend , ~, t~'~ no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section ', , hMI become additional debt of Borrower secured by this Security Instrument. These amounts shall 1,,..~, ~I~'rcsl at the Note rate from the date of disbursement and shall be payable, with such interest, uptm ,,, ,I i~ fi'mn Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrow,.~ Itdl[ ctm~ply with all the provisions of the lease. If Borrower acquires fee title to the Property, the lea:,, I,,, hlan d ~l~e fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage I,~ .~ancc as a condition of making the Loan, Borrower shall pay the premiumsrequired to maintain the I~1,~ t ,.:,~c: I nsu rancein effect. If, for any reason, the Mortgage Insurance coverage requiredby Lender ceases ~, 1~,~ ~txailable from the mortgage insurer that previously provided such insurance and Borrower was req u i, ~,1 I,} make separately designated payments toward the premiums for Mortgage Insurance, Borrowe~ : I,~11 pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insuranc~ i,~,.xit,usly in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insm.,~,~. previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equi,,h.nt Mmtgage Insurance coverage is not available, Borrower shall continue to pay to Lender the am tm~,~ ,,I ~ h c separately designated payments that were due when the insurance coverage ceased to be in eft'c, ~ I ~:ndcr will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mo~i,.:,~,,. Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is uhi~, ~:~ ~:ly p~ticl in full, and Lender shall not be required to pay Borrower any interest or earnings on such h ~.~ ~.~c rye. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the am,, ~ ~,l and for the period that Lender requires) provided by an insurer selected by Lender again become.~ ~ :~il:d~lc, is obtained, and Lender requires separatelydesignatedpayments toward the premiums for Mt~ I~.~..,~. Insurance. If Lender requiredMortgage Insurance as a condition of making the Loan and Borrowc~' ,.:~ required to make separately designated payments toward the premiums for Mortgage Insurance, fl, ~, ~,,x~'r shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a ~,,:~-~d'undable loss reserve, until Lender's requirementfor Mortgage Insurance ends in accordancewith :~ ,~., writ t c n agreementbetween Borrower and Lender providing for such termination or until termination i~.; ~ ~., lui ~cd by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at th,. ~:~t ~. i~mvided in the Note. Mortgage Insurance reimburses Lender (or any entity ~1,,~ Imrchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed l;,,rmwcr is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such i~ t,~:mcc in force from time to time, and may enter into agreementswith other parties that share or modify I I~ i~ ~isk, or reducelosses. These agreements are on terms and conditions that are satisfactory to the mortg.~,~ i~u rcr and the other party (or parties)to these agreements. These agreementsmay require the mortga!,, i~ u ~c r Io make payments using any source of funds that the mortgage insurer may have available (whk. h ~,,~v include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchase ~ ,,i I h c Note, another insurer, any reinsurer, any other entity, or any affdiate of any of the foregoing, ma~ ,, ~ ~'ivc (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Bo~ ~,,..., ~'~ payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's ~i h, ~r reducing losses. If such agreement provides that an afl'fflate of Lender takes a share of the i~.,,~ ~'s risk in exchange for a share of the premiums paid to the insurer, the arrangement is often tenm, I, :~ pt irc reinsurance." Further: (a) Any such agreements will not affect the amom,~:~ H~at lhwrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Sm-h :~,.rt~cments will not increase the amount Borrower will owe for Mortgage Insurance, and they will n.t~ i~, i lit. Ihwrm~e~r~ refund. MFWY7770 (11/00) / 042-234967-0 *r~it*a~s:~ (~-6AlWYllooosl.m P.geaof~S k ~x Form 3051 1/01 (b) Any such agreements will not affect the rights I;,,, ,,~c,' has - if any - with respect to the Mortgage Insurance under the Homeowners Protection A,, ,,r 1998 or any other law. These rights may include the right to receive certain disclosures, t,} ,,,,ira, si and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance te,-,, .... :Hc(I autmnatically, and/or to receive a refund of any Mortgage Insurance premiums that were Iht..~'nt'd itt the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeit,,,,. \11 Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Procc~.,i ~ .t,:ttl I)c applied to restoration or repair of the Property, if the restoration or repair is economically 1'~.:, ;I,I,. itnd Lender's security is not lessened. During such repair and restorationperiod, Lender shall havc ~t,. ,i?ht tt~ hold such MiscellaneousProceeds until Lender has had an opportunity to inspect such Propers.. t~, ~'nsurc the work has been comPleted to Lender's satisfaction, provided that such inspection shall be ,~, ~, t, ~'l~, k c n promptly. Lender may pay for the repairs and restoration in a single disbursement or in a :,,, ,~, t,l' progress payments as the work is completed. Unless an agreementis made in writing or Applk', 1,1,. l~;t\v requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to p~,) !;,,~,,,wcr any interest or earnings on such Miscellaneous Proceeds. If the restorationor repair is not ec,,. ,,,, i,'~,llv l'casible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to l i, t,,,,s'sccuredby this Security Instrument, whether or not then due, with the excess, if any, paid to B(}, ~ ,.,,. ~ ,'. ,%uch Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss i, ..~l,,,: t,f the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Secu, i~. I,~,.~ t mn cnt, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in x, i,~, , ~1' thc Property in which the fair market value of the Property immediately before the partial taking, ,i.-.i ~uclion, or loss in value is equal to or greater than the amount of the sums secured by this Securi~,. I,~,~ mncnt immediately before the partial taking, destruction, or loss in value, unless Borrower and I .,,,I,'r ,~ hcrwise agree in writing, the sums secured by this Security Instrument shall be reduced by l i~. im~ount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount ,,I I Iw .~tuns secured immediately before the partial taking, destruction, or loss in value divided by it,/ ~hc fair market value of the Property immediately before the partial taking, destruction, or loss in x~, Im~. Any balance shall be paid to Borrower. In the event of a partial ta 'king, destruction, or loss in \,:ti t~,. t*l' th'c Property in which the fair market value of the Property immediately before the partial taking, , t, t~m't ion, or loss in value is less than the amount of the sums secured immediately before the partial I,I i~?., destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscetl:~,~., ,u~ I'roceeds shall be applied to the sums secured by this Security Instrument whether or not the sums :,, ~ l lwn clue. If the Property is abandoned by Borrower, or fi, alt~, ~t,,licc by Lender to Borrower that the Opposing Party (as defmed in the next sentence)offers to m,,l ~ :m award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after thc,l.,l~. ~l~c notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to re: t, ,; :,t iou or repair of the Property or to the sums securedby this Security Instrument, whether or not then, I,,~. "( )pposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party ag:fi~, ~ x~li~ma Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceedint, ,.~ I~.1 her civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Propcr~ ,~ ,,~ , ~ It cr material impairment of Lender's interest in the Property or rights under this Security Instrum ~', ~1 Ih ~rrt~wcr can cure such a default and, if accelerationh~ occurred, rOinstate as provided in Section 1'( I~,. c:msing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludt.:. 1, ,, ici1 utc of the Property or other material impairment of Lender's interest in the Property or rights un& ~ II,is Security Instrument. The proceeds of any award or claim for damages that are attributable to the ira i,., i~ m cnt of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to rc,~,,~ :tli,m or repair of the Property shall be applied in the order provided for in Section 2. MFWY7770 (11/00) / 042-234967-0 (~J~-6A{WY) {o0os).0~ P~g,, 9 of ~5 Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender :~.1 a Waiver. Extension of the time for payment or modification of amortizationof the sums secured I,,, I I~i~ ~ccurity Instrumentgrantedby Lender to Borrower or any Successor in Interest of Borrower shall m,~ {,t,c~a~ c to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not I.~ ~ ~'~lttircd to commenceproceedings against any Successor in Interest of Borrower or to refuse to exlc,.I lime for payment or otherwise modify amortizationof the sums securedby this Security Instrument I,,, ~, .~.n of any demandmadeby the original Borrower or any Successors in Interestof Borrower. Any fo~l .... s.mccbv Lenderin exercising any right or remedy including, without limitation, Lender's acceptance ,,I ~,:~? motets from third persons, entities or Successors in Interest of Borrower or in amountsless than thc., t .... u.t d~en due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Success.,', .mi Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be j t~i,.i . ~ d several. However, any Borrower who co-signs this Security Instrument but does not execute thc i~,1,. ('a "co-signer"): (a) is co-signing this Security Instrumentonly to mortgage, grant and convey thc ,.,} , i?~c r's interest in the Property under the terms of this Security Instrument; (b) is not personally oblig:tt~ ,I ~, pay the sums securedby this Security Instrument; and (c) agrees that Lender and any other Bom~x, ~ ~.:~n agree to extend, modify, forbear or make any accommodationswith regard to the terms of this ?,~ ~ .~ iLv Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Succor,-,,, i. Imcrest of Borrower who assumes Borrower's obligations under this Security Instrumentin wril i,,,,. :md is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Insl~ ~ ,t,~ ~,. Bm'rower shall not be released from Borrower's obligations and liability under this Security Instru~.~, .,u nlcss Lender agrees to such release in writing. The covenants and agreements of this Security I., It ~tltwnl shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fec~ i,,t ~crviccs performed in connection with Borrower's default, for the purpose of protecting Lender's i~., ~c.,I in the Property and rights under this Security Instrument, including, but not limited to, attorneys' I~, ,,. 1. opcrty inspection and valuation fees. In regard to any other fees, the absence of express authority i. ~ It i:, 5c curity lnstrumentto charge a specific fee to Borrower shall not be construed as a prohibition on th~', l~.~,~.ing of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrumem ~,, I,v Al~plicable Law. If the Loan is subject to a law which sets maximum loa. ~ t~: ~ !,cs, and that law is finally interpretedso that the interest or other loan charges collected or to be colic, i,,l in connection with the Loan exceed the permittedlimits, then: (a) any such loan charge shall be rctft~, ctl I~y thc amount necessary to reduce the charge to the permittedlimit; and (b) any sums already collec'~,, I I~.m Bc~rrower which exceeded permitted limits will be refunded to Borrower. Lender may choose h, ~ :~1, c this refund by reducing the principal owed under the Note or by making a direct payment to l~,l~,,wcl. If a refund reduces principal, the reduction will be treated as a partial prepayment without .~x prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrm,.~, :}cc'cptance of any such refund made by direct payment to Borrower will constitute a waiver of any ri.~l, i , ,t .el itm Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender i,, ,,m.cclion with this Security Instrument must be in writing. Any notice to Borrower in connection wi~l~ illin, ?qccurity Instrumentshall be deemedto have been given to Borrower when mailed by first class xn.ii ,,~ when actually delivered to Borrower's notice address if sent by other means. Notice to any one Bor~, ,?~ c~ d~all constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The n,,I i,,~ .ddrcss shall be the Property Address unless Borrower has designated a substitute notice address b? ,. ,t icc itl Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender s1~, i li~.~ . procedure for reporting Borrower's change of address, then Borrower shall only report a change ,,I .dclrcss through that specified procedure. There may be only one designated notice address under thi~, '~, c~rity Instrument at any one time. Any notice to Lender shall be given by delivering it or by maili.~, il I,y first class mail to Lender's address stated herein unless Lender has designated another addrc:., I~ m~fice to Borrower. Any notice in connection with this Security Instrument shall not be deemed ~,. ]~:t\'c been given to Lender until actually received by Lender. If any notice requiredby this Security I~, I~[~mcnlis also required under Applicable Law, the Applicable Law requirement will satisfy the cor~ ,i '~'mlint~ requirement under this Security Instrument. MFWY7770 (11/00) / 042-234967-0 (~-6AIWY) 1ooo5}.Ol Page 10 of 15 Form 3051 1/01 16. Governing Law; Severability; Rules of Constr~,~mn. This Security Instrument shall be governed by federal law and the law of the jurisdiction in x~,. ,. thc l'roperty is located. All rights and obligations contained in this Security Instrument are subj,- . ~ :mx requirements and limitations of Applicable Law. Applicable Law might explicitly or implicit l I, ,x~ lira parties to agree by contract or it might be silent, but such silence shall not be construed as a I" ~l,il ~ilion against agreementby contract. In the event that any provision or clause of this Security Instr,~ .... ~1 ,~r thc Note conflicts with Applicable Law, such conflict shah not affect other provisions of this S~. ,,, ~x Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of thy ,~s.~..culin~ gender shall mean and include corresponding neuter words or words of the feminine gendv~ !,, wnrds in the singular shah mean and include the plural and vice versa; and (c) the word "may" gi,. ~,lc discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one cop) , ,i ~hc Nme and of this Security Instrument. 18. Transfer of the Property or a Beneficial lntere~i i,, Hom'mver. As used in this Section 18, "Interest in the Property" means any legal or beneficial interc. . ~hc l'mperty, including, but not limited to, those beneficial interests transferredin a bond for deed, o ,,,~ .... 't I'or deed, installment sales contract or escrow agreement, the intent of which is the transfer of title I~.. 1;~ ,,,,~wcr at a future date to a purchaser. If all or any part of the Property or any Interestin the I~ ~v i~ sold or transferred(or if Borrower is not a naturalperson and a beneficial interestin Borrower i: [d ~,r {ransferred)without Lender's prior written consent, Lender may require immediate payment in ... o1' all sums secured by this Security Instrument. However, this option shall not be exercised I;x I mit,' if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shah give Boll,,.., ~ n,~licc of acceleration. The notice shah provide a period of not less than 30 days from the date the m,~ . ~ %ix'ch in accordancewith Section 15 within which Borrower must pay all sums secured by this .% ~ ~ Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender n, ,., i,~vokc any remedies permitted by this Security Instrument without further notice or demand on Bo~,, ,,.~ v ~. 19. Borrower's Right to Reinstate After Accelerali~ If Horrower meets certain conditions, Borrower shah have the right to have enforcement of this S,., ,,, h v Instrument discontinued at any time prior to the earliest of: (a)five days before sale of the Prope,l:, t'~'~.u:~nllo any power of sale containedin this Security Instrument; (b) such other period as Applicabk I .,w might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgmenl, ,,I,,rc'ing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums whi, }, Ihcn would be due under this Security Instrumentand the Note as if no accelerationhad occurred; (I,), ~, c~ :my default of any other covenants or agreements; (c) pays aH expenses incurredin enforcing this S~., ,,, il v Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valu.,,;~,~, foci, and other fees incurred for the purpose of protecting Lender's interest in the Property and fL, I, I ~ un dc r this Security Instrument; and (d) takes such action as Lender may reasonably require to assm~ ~1~,1 I.cndcr's interest in the Property and rights under this Security Instrument, and Borrower's obligm i .... I,, i~',~y thc sums secured by this Security Instrument, shall continue unchanged. Lendermay require th:~ ~;,,~ rower pay such reinstatementsums and expenses in one or more of the following forms, as selected I- I cmlcr: (a) cash; (b) money order; (c) certified cheek, bank check, treasurer's check or cashier's chv~ I i,rm'idcd any such check is drawn upon an institution whose deposits are insured by a federal agencx. ~,~ ~, umcntality or entity; or (d) Electronic Funds Transfer. Uponreinstatementby Borrower, this Secut'~i., {~ Ii umcntand obligations secured hereby shah remain fully effective as if no acceleration had occurrc,I l l,,wcvcr, 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 (.~ i,~ ante. The Note or a partial interestin the Note (together with this Security Instrument) can be sohl ..... ~ or more times without prior notice to Borrower. A sale might result in a change in the entity ([.~,. ,... n ~t~ tim "Loan Servicer") that collects Periodic Payments due under the Note and this Security In:.l, ,,.~cmand performs other mortgage loan servicing obligations under the Note, this Security Instrumcm ,i,,I ..\pplicable Law. There also might be one or more changes of the Loan Servicer unrelatedto a sale ,,i i[~,. N ol c. If there is a change of the Loan Servicer, Borrower will be given written notice of the change ~.. i~.'l~ will state the name and address of the new Loan Servicer, the address to which payments should I,. ~,,.,Ic and any other information RESPA MFWY7770 (11/00) / 042-234967-0 ...... (~-6A(WY} (ooo5).Ol Page 11 of 15 Form 3051 1/01 requires in connection with a notice of transfer of servicing. Il i I,~* Nolc is sold and thereafterthe Loan is serviced by a Loan Servicer other than the purchaser of the r.~, .~. ~hc mortgage loan servicing obligations to Borrower will remainwith the Loan Servicer or be translL.~ ~ ~ d I, ~ it ,uccessor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided bx ii,_ Nt~lc purchaser. Neither Borrower nor Lender may commence, join, or I.~ i' ,i ned to any judicial action (as either an individual litigant or the member of a class) that arises fr~,~ I1~: ~hcr party's actions pursuant to this Security Instrumentor that alleges that the other party has br~'..,'l, d ~my provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or I ~ ~, I~ ~ h:~ notified the other party (with such notice given in compliance with the requirementsof Section I ~ ~ , d' ~uch alleged breach and afforded the other party hereto a reasonable period after the giving .I ~, h notice to take corrective action. If Applicable Law provides a time period which must elapse I,. I.. ~. certain action can be taken, that time period will be deemed to be reasonable for purposes of thi~ i,.~:q,~rzqd~. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section '.~ ,~nd ibc notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy ~!.~ m,ticc and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Sectioh '1:(:0 "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollut:~: ~ wastes by EnvironmentalLaw and the following substances: gasoline, kerosene, other flammable ,~ ~,,~ic pctroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbes~,, , .~ l, ,rmaldehyde, and radioactive materials; (b) "Environmental Law" means federallaws and laws of thc' i,~, .J ici itm where the Property is located that relate to health, safety or environmental protection; (c) "Em .... ~, mom al Cleanup" includes any response action, remedial action, or removal action, as defined in En':~,,~m c mai Law; and (d) an "Environmental Condition" means a condition that can cause, contribute ~ .... ~r od~erwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, th:[ ,~ v.d, .qorage, or release of any Hazardous Substances, or threatento release any Hazardous Substances, ,,, ~ ,,~ m I h c Proper ty. Borrower shall not do, nor allow anyone else to do, anything affecting the Properl.x t., I ~h~d is in violation of any Environmental Law, (b) which createsan EnvironmentalCondition, or (c) x~ h, h, duc lo the presence, use, or releaseof a Hazardous Substance, creates a condition that adversely aft'ocli . ~hc v~due of the Property. The preceding two sentences shall not apply to the presence, use, or st~.:,,,,, ,,n thc Property of small quantities of Hazardous Substances that are generally recognized to be ~q,i~, q. ialc ~o normal residential uses and to maintenance of the Property (including, but not limited to, h:~.,~l~ m~ substances in consumer products). Borrower shall promptly give Lender written notice of I., i :~, v investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency o~ I' ~ i,,.~l c party involving the Property and any Hazardous Substance or Environmental Law of which I;,,~,,xvcr has actual knowledge, (b) any EnvironmentalCondition, including but not limited to, any ~l~ll~!,, Ice,king, discharge, releaseor threatof release of any Hazardous Substance, and (c) any condition ~:,.,~'d by the presence, use or release of a Hazardous Substance which adversely affects the value of tl~. t '~ ,1~, ri y. I f Borrower learns, or is notified by any governmental or regulatory authority, or any private I~:,~1~, Ih~d any removal or other remediation of any HazardousSubstance affecting the Property is necessa~ :, I;,,rr,~wer shall promptly take all necessary remedial actions in accordance with Environmental Law. N,,~ I~y.. herein shall create any obligation on Lender for an Envlromnental Cleanup. MFWY7770 (11/00) / 042-234967-0 (~-6A{WY) Iooos}.m Pa9' 12 of 15 ..~,~ Form 3051 1/01 NON-UNIFORMCOVENANTS. Borrower and Lender I'u, i t,, ~ t't ~vcnant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice h, ~:,,rr,,wcr prior to acceleration following Borrower's breach of any covenant or agreement in thi~ ':~.cu,'ily Instrument (but not prior to acceleration under Section 18 unless Applicable Law provide-. ,,i hcrwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a ,k,l,., md less than 30 days from the date the notice is given to Borrower, by which the default mum I~, ctwcd; and (d) that failure to cure the default on or before the date specified in the notice may rt, s~,!i in acceleration of the sums secured by this Security Instrument and sale of the Property. The nmi,, ~hall rurtber inform Borrower of the right to reinstate after acceleration and the right to bring a, ,.,,q action to assert the non-existence of a default or any other defense of Borrower to acceleration :,,,1 ~,alc. Ir the default is not cured on or before the date specified in the notice, Lender at its option, .... ,'cquire i~nmediate payment in full of all sums secured by this Security Instrument without furtlt,., ,h'maml and may invoke the power of sale and any other remedies permitted by Applicable L;m. i.t.ndcr shall be entitled to collect all expenses incurred in pursuing the remedies provided in this :., ,qi,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 ,,,,licc of intent to foreclose to Borrower and to the person in possession of the Property, if dilTe,-t.,,~, i. accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the ma,,, ,- prmided in Section 15. Lender sball publish the notice of sale, and the Property shall be sohl i~: Iht. manner prescribed by Applicable Law. Lender or its designee may purchase the Property at ;t,, ~ ..ale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of H,. salt', including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Nc,.,t.il3 Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this S~., ~,i, v Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation cost~ t ~'mlcr may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid h, , hi~ d p:trty for services renderedand the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all right:, ~.,mq and by virtue of the homestead exemption laws of Wyoming. MFWY7770 (11/00) / 042-234967-0 (~-6AIWY} (ooosLo'l Pa9' 13of 15 ~}'V~ Form 3051 1/01 BY SIGNING BELOW, Borrower accepts and agrees I ...... 'rms and covenants contained in this Security Instrument and in any Rider executed by Borrower ..~ ..... rdcd with it. Witnesses: (Seal) RICE ?'.k;R MERRITT -Borrower /dvly [,: ,, ~, J TT -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower MFWY7770 (11/00) ! 042-234967-0 (~<~6AIWYI Iooosl.o~ Page14of15 Form 3051 1/01 STATE OF WYOMING, The foregoing instrument was acknowledged before mt: ~1,, by RICK STOKER MERRITT AND AMY MERRITT, HUSBAI~ L [fi d~f--~,--County ss: 16th day of November 2004 .I) WIFE My Commission Expires: ~ 80NNIE HARMON - Nula~ ruuL,~ ~ /dP/ Notary ~.1 ,I MFWY7770 (11/00) / 042-234967-0 (~-6AIWYI Page 15 of 15 Form 3051 1/01 Leg ]~>escription Part of Section 25, T32N RllgW County, Wyoming being more partic~ BEGINNING at a point which is tract of land contained in Quitc 17, 1998 in Book 407PR on page 6'7 County Clerk, said point being 42 of the Southwest corner of thence East, 83 rods, more or le~ of the said tract to the west sid thence North, along the west s±d rods, more or less to an ea>~ north line of the said tract- thence West 83 rods, more or les~; and the north line of said corner of said tract; thence South along the west line more or less, to the POINT LESS AND EXCEPT land contained November 6, 1978 in Book 150PR o~ the Lincoln County Clerk. the 6th P.M., Lincoln ~]y described as follows: ~outhwesn corner of the Deed recorded February the records of Lincoln North and 184 rods East ~-<'~tion 25; and, running tlong the southerly line Lincoln Street; Lincoln Street, 8 . _y extension of the 1 ~ng said exnension 'u~o the northwest said tract, 8 rods, ~>~itclaim Deed recorded 429 of the records of