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HomeMy WebLinkAbout9048880654 Preparedby and WhenRecordedReturnTo: Penny Jones First National Bank-West PO Box 3110 Alpine, WY 83128 RECEIVED 11/3o/2004 at 4:21 PM RECEIVING # 904888 BOOK: 573 PAGE: 654 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, VVY .......................... -[Space Above This Line For Recordi;~ g l)ata] ........................... LOAN NO. 04526053295 MORTGAGE DEF INIT ION S Words used in multiple sections of this document are defined belm~ and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words ,sod in this document are also provided in Section 16. (A) '~Becurity Instrument" means this document, which is dated NOVEMBER 24, 2004 together with all Riders to this document. (B) "Borrower" is REED JILL ANNE CALLACO, a unmarried person AND CHRISTOPHER STALL Borrower is the mortgagor under this Security Instrument. (C) "Lender" is FIRST NATIONAL BANK - WEST (ALPINE BRANCH) Lender isa A NATIONAL BANKING ASSOCIATION unqler the laws of THE UNITED STATES Lender' s address is 100 GREYS RIVER ROAD ALPINE, WY 83128 Lender is the mortgagee under this Security Instrument. organized and existing (D) "Note" means the promissory note signed by Borrower and dated NOVEMBER 24, 2004 The Note states that Borrower owes Lender ONE HUNDRED FORTY-THREE THOUSAND FIVE HUNDREI) AND 00/100 Dollars (U.S. $ 143,500.00 ) plus interest. Bor,'owcr has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than DECEMBER 1, 2034 (E) "Property" means the property that is described below under thc heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, ~,n} prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all riders to this Security Instrument that arc executed by Borrower. The following riders are to be executed by Borrower [check box as applicable]: [~] Adjustable Rate Rider ['~ 1-4 Family Rider ]Balloon Rider [~] Condominium Rider Second Home Rider -~ Other(s) [specify] Planned Unit Development Rider Biweekly Payment Rider W( 71),,k Tax Ex WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page I of 12 Form 3051 (01/01) Initials tnitials 0655 (I4) "Applicable Law" means all controlling applicable federal, .~h~tc m~d local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) ~ well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees and Assessment" means all ~uc% ~es, assessments and other charges that ~e imposed on Borrower or the Property by a condo~nium a~¢~ciation, homeowners association or similar organi~tion. (~ "Elec~onic F~ds Tramfer" means ~y transfer of funds, t~thcr than a tran~ction originated by check, draft, or simil~ paper instrument, which is initiated through a~; electronic ter~nal, telephonic instrument, computer, or magnetic tape so ~ to order, instruct, or authorize a financial institution to debit or credit an ac~unt. Such term includes, but is not limited to, point~f-~le tr;,~4'crs automated teller machine transactions, tr~sfers initiated by telephone, wire transfers, and automated clcaringhot~ transfers. ~) '~scrow Items" mean those ite~ that are de~ribed in Section 3 (L) '~iscellaneous Proceed" means any compensation, settlemcm, award of damages, or proceeds paid by any third parw (other th~ insur~ce proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction o~ the ProperS; (ii) condemnation or other taking of all ;~r any part of the Property; (iii) cpnveyance in lieu of conde~ation; or (iv) misrepresentations o~ or omi~si~n~ ,~, to, the value ancot condition of the Property. ~) '~o~gage Insurance" means insurance protecting Lender a~;m~st the nonpayment o~ or default on, the Loan. ~) "Periodic Payment" me~s the regularly scheduled amount duc lk~r (i) principal and interest under the Note, plus (ii) ~y amounts under Section 3 of this Security ~strument. (O) '~ESPA" means the Real Estate Settlement Procedures Act (I 2 il. S.C. ~2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. P~t 3500), ~ they might bc amended l?om time to time, or ~y additional or successor legislation or regulation that governs the ~me subject matter. As used in this Security hstru~nt, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage 1o~" even if the Lo~ does not qualify as a "federally related mortgage h~an" under ~SPA. (P) '~uccessor in Interest of Borrower" me~s ~y party that has taken title to the Property, whether or not that par~ h~ assumed Borrower's obligations under the Note ~or thin Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment o1' the l.oan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's ct~vcnants and agreements under this Security Instrument and the Note. For this purpose, Borrower does berth) mortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale, the following described property located in the To~n of Tha~l-l~ [Type of Recording Jurisdictiot~l of LINCOLN : [Name of Recording Jurisdiction] Lot 6 of Star Valley Raanch Plat 12, Lincoln County, Wyoming as described on the official plat thereoL WYOMING - Single Family - Fannie Mae/Freddie Mac UNI~OI~I INSTRUMI.;%r Page 2 of 12 Form 3051 (01/01) Initials ~ ' 'J~"~ I 0 30488S which currently has the address of 106 SOLITUDE DRIVE, TIIAYNE [Str~tl Wyoming 83127 (" Property Address" ): i~p co~] [Ci~] TOGETHER WITH all the improvements now or'he~'eaftcr erected on the. property, and all easements, appurtenances, and fixtures now or hereafter a part of the properb. Al replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised ol' thc estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property s tmcncumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to thc Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants f,~r national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform sect ' t) instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepaymem Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay l'tmds l'~l' Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall bc made in U.S. currency. However, if any check or other instrument received by Lender as payment under thc N,,tc or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent p,)mcnts due under the Note and this Security Instrument be made in one or more of the following forms,, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at thc location designated in the Note or at such other location as may be designated by Lender in accordance with thc notice provisions in Section 15. Lender may return any payment(s) or partial payment(s) if the payment(s) or p:,'tial payments are insufficient to bring the Loan current. Lender may accept any payment(s) or partial payment(s) insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to roi'usc such payment(s) or partial payments in the future, but Lender is not obligated to apply such payments at thc time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender nccd not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment(s) to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to thc outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrm~cr might have now or in the future against Lender shall relieve Borrower fi.om making payments due under thc Note and this Security Instrument or performing the covenants and agreements secured by this Security h]strumcnt. 2. Application of Payments or Proceeds. Except as otherxvisc described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. guch payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment fi.om Borrower for a delinquent I'criodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to thc delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may appl3 ,ny payment received fi.om Borrower to the repayment of the Periodic Payments if, and to the extent that, each t,,t3 mcnt can be paid in full. To the extent that WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 3 of 12 Form 3051 (01/01) Initials Initials~ any excess exists after the payment is applied to the full payment tff ~mc or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall tlc applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscell'anc,ms Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, ol'thc Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender o~ thc day Periodic'Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide lk,r pa) ment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Sccm'itv Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Propcrt)', if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage ln~ul'm~cc premmms, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance prom roms In accordance with the provisions of Section 10. These items are called "Escrow Items." At originati,m ~,r at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and ,.\~scssmcnts, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. I{,~rroxvcr shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall p:~) I.cnder the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for an3 t~r all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrt,xx Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall ~ay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds h'.~s been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment x~ ithin such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as thc phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, [mr~,ualll to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its right~ tinder Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender :my such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given m accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such :tmounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amoum (a) sulHcient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed thc :na×imum amounl a lender can require under RESPA. Lender shall estimate the amount of Funds due on the b:~iq of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with \ pplicable Law. The Funds shall be held in an institution whose deposits are instn'cd by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits arc scl insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items m~ later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds. ;mnually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in xvriting or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower an) interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall bc paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required bb' RESPA. If there is a surplus of Funds held in escrow, as defined under RI!SPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shorta~4c of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, :md I~orrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in m~ more than twelve monthly payments. If there is a deficiency of Funds held in escrow, as defined under RI.15;I'..\, l.cnder shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary tt~ make up the deficiency in accordance with RESPA, but in no more than twelve monthly payments. upon payment in full of all sums secured by this 'Security h~trumcnt, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrumem. leasehold payments or ground rents on the WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 4 of 12 Form 3051 (01/01) Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Ncctkqn 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; .(b) contests .he lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opm ion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures fi.om the holder of the lien an agreement satisfactory to Lender subordinatin,.2 the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien \Vithin 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more or' thc actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvemcms now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, lb~- which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borroxxcr subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably, l.ender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood /,mc determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might all'oct such determination or certification. Borrower shall also be responsible for the payment of any fees imp,~scd b3 the Federal Emergency Management Agency in connection with the review of any flood zone determinamm resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described abox c. I.cnder may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no ~bliuation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender. but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, ag[dnst any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Ilorrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed thc cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear imcrcst at the Note rate fi.om the date of disbursement and shall be payable, with such interest, upon notice Ii'tun Ixnder to Borrower requesting payment. All insurance policies required by Lender and renewals of such p{flicies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, ;md shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold thc pt~licics and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid i,l~cmiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by I.ender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shrill name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to thc nsul'ance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless I.cndcr and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance xxas required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is cc~mon]ically feasible and Lender's security is not lessened. During such repair and restoration period, Lender sh., I have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Propcrt) to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of pr~grcss payments as the work is completed. Unless an agreement is made in writing or Applicable Law rcquit'es interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest t>r earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not bc p:fid oul of the insurance proceeds and shall be WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUME,¥1' Page 5 of 12 Form 3051 (01/01) O 04SSS the sole obligation of Borrower. If the restoration or repair is m~t ccCmomically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to thc sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. .quch insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may flit, negotiate ;md settle any available insurance claim and related matters. If Borrower does not respond within 30 days to ,, m)ticc l?om Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle thc claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower' s rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and Co) any other ~1' [lorrower' s rights (other than the right to any refund of unearned premiums paid by Borrower) under all instmmcc policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may usc the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and usc thc lh'operty as Borrower's principal residence within sixty days after the execution of this Security Instrument :md shall continue to occupy the Property as Borrower's principal residence for at least one year after the date or' ~ccupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or t,nlcss extenuating circumstances exist which are beyond Borrower' s control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or co,nmit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain thc Property in order to prevent the Property fi.om deteriorating or decreasing in value due to its condition. Uolcss it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall prtmq~tly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds arc paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If thc insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is m,t relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the lh'tq~crty Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such rc;ts~m ;,ble cause. 8. Borrower's Loan Application. Borrower shall be in dct'ault il; during the Loan application process, Borrower or any persons or entities acting at the direction of Bor,'oxxcr or with Borrower' s knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material ~prcsentations include, but are not limited to, representations concerning Borrower's occupancy of the Property a~ Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Righis Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained n this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in thc Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for co,adcmn,aion or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enfi~rcc lax~s or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatcx cr is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security In_strmncnt, including protecting and/or assessing the value of the Property, and securing and/or repairing the Propcrb l~cnder' s actions can include, but are not limited to: (a) paying any sums secured by a lien which has priorib m'cr this Security Instrument; (b) appearing in court; and (c) paying reasonable attorney's fees to protect its mtcrc~t in the Property and/or rights under this Security Instrument, including its secured position in a bankruptc) pr~}cccding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change h,cks, replace or board up doors and windows, drain water fi.om pipes, eliminate building or other code violations t,r dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Secti~,n ¢). l~cnder does not have to do so and is not WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMKN F Page 6 of t2 Form 3051 (01/01) Initials , 0680 under any duty or obligation to do so. It is agreed that Lender incur, m~ liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall beck,mc additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at thc Nt,tc rate from the date of disbursement and shall be payable, with such interest, upon notice fi.om Lender to Bom,x~cr requesting payment. If this Security Instrument is on a leasehold, Borrower shall c{~,ply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fcc title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage lnsuruncc as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be availal)lc Ii'om the mortgage insurer that previously provided such insurance and Borrower was required to make separatcl> designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required t~, t,btain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantiall: equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, fi.om an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower .,hztll continue to pay to Lendei' the amount of the separately designated payments that were due when the insurance c,,vcrage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve 'n lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the l~,~an is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such Ires 'cscrve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and liar the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, ami Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until the Lender's requirement ft,' Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects B,m~xvcr' s obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases thc Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a part) tt~ the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in Ik)rcc from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments u~ing any source of funds that the mortgage insurer may have available (which may include funds obtained from N l,,rtgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Nt~tc, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directl5 ~,r indirectly) amounts that derive from (or might be characterized as)a portion of Borrower's payments for IX.h,rtgage Insurance, in exchange for sharing or modifying the mortgage insurer' s risk, or reducing losses. If such ;~grccment provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the prcmmms paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts th:it Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loon. Such agreements ~ill ,tot increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower m any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any ofl~er law. These rights may include the right to receive certain disclosures, to request and obtain cant'ell:trion of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive .'t refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termiuation. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All glisccllaneous Proceeds are hereby assigned to and shall be paid to Lender. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMEN I' Page 7 of 12 Form 3051 (01/01) Initials Initials O O46i'S S 0661 If the Property ]s damaged, such Miscellaneous Proceeds .sh:dl I~c applied to restoration or repair of the Property, if the restoration or repair is economically feasible anti I tinier' s security is not lessened. During such repair and restoration period, Lender shall have the right to hold ~uch Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work h'.~ hccn completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lend,'r mz~y pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work i~ c~mplcted. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such ,~li~ccllzmeous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Misccll:,~cm~s Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, thc Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then th~c~ with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided l~u' in Section 2. In the event of a total taking, destruction, or loss in value of thc 'mperty, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value ol~ thc Property in which the fair market value of the Property immediately before the partial taking, destruction, or It~ss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediatcl} hclbrc the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, thc .~ums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multildied by the following fi.action: (a) the total amount of the sums secured immediately before the partial taking, d~.~h'uction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taki~g, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value tH' thc Property in which the fair market value of the Property immediately before the partial taking, destruction, or h~ss in value is less than the amount of the sums secured immediately before the partial taking, destruction, ,,r loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall bc _pplicd to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice hv l.cnclcr to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle :~ ckdm k~r damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, I tinier is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Pmpcrt) or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means thc third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other mutcx'i~d impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower cut~ cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the acti~t~ ~' proceeding to be dismissed with a ruling that, in Lender' s judgment, precludes forfeiture of the Property or other material impairment of Lender' s interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender' s interest in the Property m c hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration t,r rc pair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release H~c liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence pn~cccdings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise m,~clil'~ amortization of the sums secured by this Security Instrument by reason of any demand made by the origi~al I~on-ower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender' s acceptance of payments fi.om third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise o1' any right or remedy. 13. Joint and Several Liability; Co-signers; Successors anti Xssigns Bound. Borrower covenants and WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMIkNT Page 8 of 12 Form 3051 (01/01) Initials___.~ ,0662 agrees that Borrower' s obligations and liability shall be joint and sci ct'al, ltowever, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer" l: (al is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in thc Ih'opcrty under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured Ill this Security Instrument; and (el agrees that Lender and any other Borrower can agree to extend, mod!fy, forbc'.,' .r make any accommodations with regard to the terms of this Security Instrument or the Note without the co-s~gnc¢ .~ consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is appro/cd Ib l~ender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shal. ~,t hc released from Borrower's obligations and liability under this Security Instrument unless Lender agrees t,~ such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for scrx icc~ pcrlb,'med in connection with Borrower's default, for the purpose of protecting Lender' s interest in the Propcrt)' and rights under this Security Instrument, including, but not limited to, attorneys fees, property inspection and / ah~ation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender mt,.~ net charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan chargc~, aim that law is finally interpreted so that the interest or other loan charges collected or to be collected in connecti~,n x~ ith the Loan exceed the permitted limits, then: (al any such loan charge shall be reduced by the amount nccc~sar3 to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing thc principa owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the rcth~ctim~ will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge s provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Securit, Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actuall3 delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute n,ticc to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Propcrt) Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall prt)mptly notif3 Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower' ~ change of address, then Borrower shall only report a change of address through that specified procedure. There m;~y be only one designated notice address under this Security Instrument at any one time. Any notice to Lender ~hall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender ha~ designated another address by notice to Borrower. Any notice in connection with this Security Instrumcm .q~all not be deemed to have been given to Lender until actually received by Lender. If any notice required by thi~ ,qccurity Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the ccrrcsponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is h,catcd. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In thc, event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, sttch c,,tallict shall not affect other provisions of this Security Instrument or the Note which can be given effect with.ut the coaflicting provision. As used in this Security Instrument: (al words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the .~in~ttlar shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any ~,hligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of thc Nt,tc and of this Security Instrument. WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Page 9 of 12 Form 3051 (01/01) Initials__..~..._ Initials [" ~ ~ 18. Transfer of the Proper~y or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installmcm sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date t~ ,, purchaser. If all or any part of the Property or any Interest in the Propert3 is ~old or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or translbrrcd) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured h) tl~is Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower nodcc of acceleration. The notice shall provide a period of not less than 30 days.fi.om the date the notice is given n accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If l{orrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permiucd h~ this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If l~;.rrowcr meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument di~cuntinucd at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power ~t' .~alc contained in this Security Instrument; Co) such other period as Applicable Law might specify for the terminalion of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditiuns are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and thc .Note as if no acceleration had occurred; Co) cures any default of any other covenants or agreements; (c) pays all c~pcnses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fcc~. ~ropcrty inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in thc Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in thc Property and rights under this Security Instrument, and Borrower'- uhligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may rcqmrc Ihat Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected hx I.ender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits arc insured by a federal agency, instrun~cntality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However,~.this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Gricva,~ce. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or m,rc times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Scr~ icc,'") that collects Periodic Payments due under the Note and this Security Instrument and performs other m,,rtgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Ioan Servicer, Borrower will be given written notice of the change which will state the name and address of thc ncx~ Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced bx a I,oan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower xxil remain with the Loan Servicer or be transferred to a successor Loan Servicer(s) and are not assumed by thc Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined u, an3 judicial action (as either an individual litigant or the member of a class) that arises fi.om the other party's :~ctiuns pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or an~ duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other part5 ~x~ ith such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded thc other party hereto a reasonable period after the giving of such notice to take corrective action. If Appliculflc I.aw provides a time period which must elapse before certain action can be taken, that time period will bc deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given ti, t~orrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 1,~ ~hall be deemed to satisfy the notice and WYOMING - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENr Page 10 of 12 Form 3051 (01/01) Initials Inif ........ opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "l [a>'ardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastc~ t~3 Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petrolct.n products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the l'r~q~crty is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental t'ondition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, di~l){~sal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on .r i, thc Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that i, in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to thc presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of thc l'mpcrty. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses ami to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) an3 ~nvcstigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private part3 involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual kn.wlcdge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release ol' a llazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified Iw any governmental or regulatory authority, or any private party, that any removal or other remediation of an) I la/ardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial atriums m accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Envirtmmcntal Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further c.x chant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to lb,'rower prior to acceleration following Borrower's breach of any covenant or agreement in this Securit) Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). Thc tmtice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 da)s from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums seem'cd by this Security Instrument and sale of the Property. The notice shall further inform Borrower of thc right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a def.'mit or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums sec,red by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in puts,lng the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. l,emler shall publish the notice of sale, and the Property shall be sold in the manner prescribed by :~plfiicable law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall lie applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons leg:ally entitled to it 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender ma~ charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for sc~ vices rendered and the charging of the fee is WYOMING - Single Family - Fannie Mae/Freddie Mac UNI]FORM INSTRIhMI.~NT Pagell of 12 Form 3051 (01/01) tni'tials~ permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and hx Wyoming. 06,35 virtue of the homestead exemption laws of BY SIGNING BELOW, Borrower accepts and agrees to thc terms and covenants contained in this Security Instrument and in any rider(s) executed by Borrower and recorded with it. __: ~-( /(/1/ (Seal) LL D2~NE CALLACO - ~trowe* Social Secu,'it, Number I ~ t-~ Z- ~C] CHRISTOt*tlER~ STOL - ~aow~ Social Secmitx Number ¢Q¢' ¢~" Social Secmitl Number (Seal) -Borr owo- (Seal) -Borr owc~ Social Sect,'itx Number ........................... qSpaceBelow ThisLineForAcknowledgment] .......................... STATE OF WYOMING ) )SS: COUNTY OF LIHCOLH ) The foregoing instrument was acknowledged before me, a Notarx I'~,blic, on by: JILL ANNE CALLACO, a unmarried person AND Person(s) Acknou I cd~ing NOVEMBER 24. 2004 Date CHRISTOPHER~STALL REED In WITNESS WHEREOF, I have hereunto set my hand and ofiSci,~ ~cal. My Commission expires: WYOMING - Single Family - Fa nnie Ma e/Freddie Mac UNIFORM INSTR [:", I[:x I' Page 12 o£ 12 ----'~otary Public Form 3051 (Oil01) PLANNED UNIT DEVELOPMENT RIDER LOAN NO. 04526053295 THIS PLANNED UNIT DEVELOPMENT RIDER is made this 24TH day of NOVEMBER, 2004 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Securit~ Deed (the "Security Instrument") of the same date given by Iht undersigned (the "Borrower") to secure Borrower's Note to FIRST NATIONAL BANK - WEST {ALPINE BRANCH) ALPINE, WY (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 106 SOLITUDE DRIVE THAYNE, WY 83127 [Property Address] The Property includes, but is not limited to, a parcel of land improved with a dwelling, together with other such parcels and certain common areas and facilities, as described in (the "Declaration"). The Property is part of a planned unit development known as Star Valley Ranch [Name of Planned Unit Dcvcl.pmcnt] (the "PUD"). The Property also includes Borrower's interest in thc homeowners association or equivalent entity owning or managing the common areas and facilities of the PUD (tim "Owners Association") and the uses, benefits and proceeds of Borrower's interest. PUD COVENANTS. In addition to the covenants and agreemcms made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. PUD Obligations. Borrower shall perform all of Borrower's obligations under the PUD's Constituent Documents. The "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Associalion; and (iii) any by-laws or other rules or regulations of the Owners Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or "blanket" policy insuring the Property which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for thc periods, and against loss by fire, hazards included within the term "extended coverage," and any other ha×ards, including, but not limited to, earthquakes and floods, for which Lender requires insurance, then: (i) Lcmlcr waives the provision in Section 3 for the Periodic Payment to Lender of the yearly premium installments for property insurance on the Property; and (ii) MULTISTATE PUD RIDER Single Family Fannie .Mat'/Freddie Mac UNIFORM INSTRUMENT FNMA3150 (10/00) Page I of 2 FORM 3150 1/01 Initials Initials 088,7 Borrower's obligation under Section 5 to maintain property i,~m'ance coverage on the Property is d~emed satisfied to the extent that the required coverage is provided by thc ()whets Association policy. What Lender requires as a condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any laPse in required property insurance coverage provided by the master or blanket policy. In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to common areas and facilities of the PUD, '.m3 proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply thc proceeds to the sums secured by the Security Instrument, whether or not then due, with the excess, if any, paid ,~ Borrower. C. Public Liability Insurance. Borrower shall take such m'tit)n~ as may be reasonable to insure that the Owners Association maintains a public liability insurance polk'y acceptable in form, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim ft~r damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property or the common areas and facilities of the PUD, or for any conveyance in lieu of comlcmnation, are hereby assigned and shall be paid to the Lender. Such proceeds shall be applied by Lender to thc sums secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after ~otice to Lender and with Lender's prior written consent, either partition or subdivide the Property or con~cnt to: (i) the adandonment or termination of the PUD, except for abandonment or termination required by lax~ in thc case of substantial destruction by fire or other casualty or in the case of taking by condemnation or eminent domain; (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the c~prc,s benefit of Lender; (iii) termination of professional management and assumption of self-management of thc Owners Association; or (iv) any action which would have the effect of rendering the public liability in~ul'ance coverage maintained by the Owners Association unacceptable to Lender. F. Remedies. If Borrower does not pay PUD dues and assc~s ncllts when due, then Lender may pay them. Any amounts disbursed by Lender under this paragraph F shall bCCOlne additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to othc~ terms of payment, these amounts shall'bear interest from the date of disbursement at the Note rate and shall bc payable, with interest, upon notice from Lender to Borrower requesting payment. BY SIGNING BELOW, Borrower accepts and agrees to the terms ami provisions contained in this PUD Rider. -Borrower CHRISTOPHER~STALL REED (Seal) . (Seal) -Borrower -Borrower [Sign Original Only] MULTISTATE PUD RIDER FNMA3150 (10/00) Single Family Fannie Mae l:reddie Mac UN~ORM INSTRUMENT Page 2 of 2 FORM 3150 1/01 MORTGAGE ADDEN[)UM The following is an Addendum to the MortF,~c. The addendum shall be incorporated into, and recorded with, the Mo,-tg~gc TAX EXEMPT FINANCIi'IG RIDER This Tax-Exempt Financing Rider is i.ncorpormv~l into and shall be deemed to amend the terms Ot' the Mortgage to which it is ~ t.ched. In. ~iddition to the covenants and agreements m;.tc in the Security instrument, Borrower and Lender further covenant and agrcv :is follows: Lender, or such Of its successors or assigns a~'; may, by separate instrument, assume responsibility for assuring complia~mc by the Borrower with the provisions of this Tax Exempt Financing Rich% may require immediate payment in full of all sums secured by this Sccuriw Instrument if: a) All of part of the Property sold or m h.rwise transferred (other than by devise, descent or operation uf I,xwl by Borrower to a purchaser or other transferee: Who cannot reasonably be expected to occupy the property as a principal resident within., rcasanable time after the sale or transfer, all as provided n~ Section 143(c) and (i) {2} of the Internal Revenue Code; or ii) Who has had a present o~t~t.tship interest in a principal residence during any part t~l iht, three year period ending on the date of the sale or tran.'d-t,r, all as provided in Section 143{d) and (i) {2) of the Interl.d Revenue Code; or iii) At an acquisition cost which ts greater than 90 percent of the average area purchase price {gl'cater than 110 percent for targeted area residences), all :ts provided in Section 143(e) and (i) {2} of the Internal Revenue Code; or iv) Whose family income excccth~ applicable income limits as provided in Section 143(t) a~.t (d (2} of the Internal Revenue Code. b) Borrower fails to occupy the prtq~t'rty described in the Security Instrument without prior written (:~)nsent of the lender or its successors or assigns described m the beginning of this Tax Exempt Financing Rider, or c) Borrower omits or m/srepresems a fact that is material with respect to the provisions of Sectit.~ 143 of the Internal Revenue Code in an application for thc lo~m secured by this Security Instrument. References are to the Internal Revenue Code ~s ;~mcncled, in effect on the date of execution of the Security Instrument a~ul are deemed to include the implementing regulations. BY SIGNING BELOW, Borrower accepts and ag] t:~:s to the terms and provisions in this Tax-Exempt Financing Rider. I , ./~.. 0668 MPP 210-B (Revised 12/95)