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HomeMy WebLinkAbout90497131319 (Ol) After Recording Return To: CHERRY CREEK MORTGAGE CO., INC. 7600 EAST ORCHARD ROAD, #250N' GREENWOOD VILLAGE, COLORADO 80111 RECEIVED 12/2/2004 at !:34 PM RECEIVING # 904971 BOOK: 573 PAGE: 787 JEANNE WAGNER L!NCOLN COUNTY CLERK, KEMMERER, WY DEFINITIONS [Space Above This Line ,~or Record iug Data] MORTGAGE Loan Number 40500107 MIN# 100030200405001072 Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain roles regarding the usage of words used in this document arc :tlso provided in Section 16. (A) "Security Instrument" means this document, which is dated NOVESlilER 29, 2004, together with all Riders to this document. (B) "Borrower" is JONATHAN D. MERRYMAN, A SINGLE MAN and LISA R. KENNEDY, A SINGLE WOMAN. Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MER$ is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the mo,'tgagee trader this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an ad&ess and telephone number of P.O. Box 2026, Flint MI 48501-2026, tel. (888) 679-MERS. , (D) "Lender" is CHERRY CREEK MORTGAGE CO., INC., Lender is a CORPORATION organized and existing under the laws of COLORADO. Lender's address is 7600 EAST ORCHARI) ROAD, #250N, GREENVCOOD VILLAGE, COLORADO 80111, (E) "Note" means the promissory note signed by Borrower and dated NOVESIBER 29, 2004. The Note states that Borrower owes Lender TWO HUNDRED TWENTY THOUSAND AND 00/100ihs Dt~llars (U.S.$220,000.00) plus ~nterest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in lhll not later than DECEMBER 1, 2034. (5'3 "-%'operty" means the property that is desdribed below under the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prcpa3 mcnt charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (lq) "Riders" means all Riders to this Security Instrument that are execmcd by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [] Adjustable Rate Rider [] Condominium Rider [] Second Home Rider [] Balloon Rider [] Planned Unit Dev. elopmem Rider [] 1-4 Filmily Rider []Biweekly Payment Rider []Prepayment Rider WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Borrower lnitials~. ~ Q~ Form 3t}51 1/01 (page 1 of ll pages) fl) "Applicable Law" means all controlling applicable federal, suite and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (,D "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, holncowncrs association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other th;tll a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit 6r dredit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section .5) for: (i)damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of thc Prt~pcrty. (N) "Mortgage Insurance" means insurance protecting Lender against thc litmpaylnellt of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due Ibr ,l~ l~rincipal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (19_ U..q.C. § 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to rune, or any additional or successor legislation or regulation that governs the same subject matter As used in this Securit) Instnnnent, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loall" cvcu it~ the Loan does not qualify as a "federally related mortgage loan" under RESPA. (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrumc,tt. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan. ami all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS tsoMy as uominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power o~ sale, the tbllowing described property located in the County of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording Jurisdiction l LOT 65, RIVERVIEW MEADOWS SECOND ADDITION TO THE TOWN OF ALPINE, LINCOLN COUNTY, WYOMING WITmN THE SE 1/4 OF SECTION 30, T37N, RI I SW, ACCORDING TO THAT PLAT FILED FEBRUARY 11, 1994, PLAT NO. 264-D, INSTR[ *~IENT NO. 778568. This is a First Real Estate Mortgage recording concurrently with a Second Real Estate Mortgage in favor of Cherry Creek Mortgage Co., Inc., dated November 29, 2004, in the original amQunt of $41,250.00. which currently has the address of 704 PALISADES LANE ALPINE , Wyoming 83128 [City] [Zip Code] [Strcctl ("Prtq~crty' Address"): Form 30 1/01 (page 2 of l l pages) WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT 0789 T~)GETHER WITH all the improvements now or hereafter erected o~ fl~c property, ~d all easements, appurten~ce& ~d fixtures now or herea~er a part of the property. All replacements ~d additions shall also be covered by this Security [nst~ment. All of the foregoing is referred to in this Security ]nst~ment as the "Pr~q~cr~) ' Borrower underst~ds ~d agrees that MERS holds only legal title to the. interests grated by Borrower ~n this Securit} h~smm]ent, but, if necessary to comply with law or custom, MERS (as nominee for Lendez ~d Lender's successors and assigns) has the right: to exercise ~y or all of those imeres~s, including, but not limited to, ~e right to foreclose ~d sell thc Property; and to t~e ~y action required of Lender including, but not li~ted to, releasing ~d c~celing this Security ]nst~m~m. ~ORROWER COVENANTS thz~ Borrower is law~lly seised of thc cst.~t~ hereby conveyed ~d has the right to mortgage, gr~t ~d convey the Property ~d ~hat the Property is unencumbered, cxccp~ tbr encumbrmuces of record. Bozrower warr~ts ~d will defend gener~ly the title to the ?roperty against all claims and dcm:~nds, subject to ~y encumbrm~ces of record. THIS S~CURITY INSTRUMENT combines unifo~ coven~ts tbr m~tional use and non-unifo~ coven~ts with limited variations by jurisdiction to constitute a unifo~ security inst~ment covcri~ ~ real property. UNIFORM COVENANTS. Borrower ~d Lender coven~t and agree as follows: 1. Pa~ent of ~incipal, Interest, Escrow Items, ~epa~enl Charges, ~md La~e Charge. Borrower shall pay when due the principal of, ~d interest on, the debt evidenced by the Note and an) prepayment charges and late charges due under the Note. 3orrower shall also pay Mnds for Escrow Items pursuit to Secti~t~ 3 Payments due under the Note and this Security i'nstmment shall be made in U.S. currency. However, if ~y check or ofl~cr it~mm~ent received by Lender as payment under the Note or this Security Inst~ment is returned to Lender unpaid, Lender may rcqt:irc lhat any or all subsequent payments due under the Note ~d this Security Instrument be made in one or more of the followin,~ Ibrms, as selected by Lender: (a) cash; (b) money order; (c) certified check, b~ check, treasurer's check or cashier's check, 1)rovidcd any such check is drawn upon an institution whose deposits ~e ~nsured by a federal agency, inst~mentality, or entity; or (ti) Electronic Funds Tr~sfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accord~ce with the notice provisions in Scc ti~n 15 payment if the payment or partifl payments ~e insufficient to bring the Loat~ c't~rt'ent. Lender may return ~y payment or partial Lender may accept any payment or partial payment insufficient to bring the Lo~ current, without waiver of ~y rights hcreuuder or prejudice to its rights to reMse such payment or partial payments in the hture, but Lender is not obligated to :till,13, such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date. then Lender need not pay interest on unapplied Mnds. Lender may hold such unapplied Mnds until Borrower m~es paymcm to bring the Loan current If Borrower does not do so within a reasonable p~iod of time, Lender shall either apply such ftmcls or return them to Borrower. If not applied earlier, such Mnds will be applied to the outst~ding principal balance under ~l~e Note i~ediately prior to foreclosure. No offset or claim which Borrower ~ght have now or in the hmre against Lc:~dcr shall relieve Borrower from m~ing payments due under the Note ~d this Security Instrument or perfor~ng the covcna~t~ and agreements secured by this Security Instrument. 2. Application of Pa~ents or ~oceeds. Except as otherwise described in this Section 2, all payments accepted ~d applied by Lender shall be applied in the following order of priority: (a) intcrcs~ due under the Note; (b) principal due under the Note; (c) ~ounts due under Section 3. Such payments shall be apl)lied to each Periodic Payment in the order in which it became due. Any remaining ~ounts shall be applied first to late charges, sec(~nd to any other ~ounts due under this Security Instrument, ~d then to reduce the principal bal~ce of the Note. If Lender receives a payment from Borrower for a delinquent Periodic. Pa3 meut which includes a sufficient ~ount to pay =y late charge due, the payment may be applied to the delinquent payxncnt and the late charge. If more th~ one Periodic Payment is outst~ding, Lender may apply =y payment received from 8orrox~ er to the repayment of the Periodic Payments if, ~d to the extent that, each payment c~ be paid in ~11. To the extent that an2, excess exists after the payment is applied to the Mll payment of one or more Periodic Payments, such excess may be applied ~o any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insur~ce proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or chmqge the ~ount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in ~11, a sum (the "Funds") to provide for payment of ~om~ts clt~c l~r: (a) taxes ~d assessments ~d other items which c~ attain priority over this Security Inst~ment as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if ~y; (c) prenhums for ~y and all insur:,~ce required by Lender under Section 5; ~d (d) Mortgage Insur~ce pre, urns, if ~y, cr ~y sums payable by Borrower to Lender i~ lieu of the payment of Mortgage Insur~ce premiums in accord~ce with the provisions of Section 10. These items arc called "Escrow Ite~." At origination or at ~y time during the te~ of the Lo~, Lender may require that Co--unity Association Dues, Fees, ~d Assessments, if ~y, be WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Borrowerlnitials 10~~ ~ Form 3 1/01 (page 3 of ll pages) escrowed by Borrower, and such dues, lees and assessments Lender all notices of amounts to be paid under this Section shall bc :tn Escrow Item. Borrower shall promptly furnish to Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escroxx llcms. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waix'cr may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounls duc for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation' to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its righls trader Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amotmt. Lender may revoke the waiver as to any or all Escrow Items at any time by a notic~ given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Scclion 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable cslimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so iusurcd) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPAi Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, m' verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall uot be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESf'..\, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, I'incs, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcelncnl ol' the lieu while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holtlcr of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower :t notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien o,' tz~kc one or lnore of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real esl:tic tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This inst:rancc shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender ,'cquires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing Iht insurance shall be chosen by Borrower subject to Lender's right to disappi-ove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower Borrower Initials .~ (~ VqYO1VllNO--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 1 1/01 (page 4 of 11 pages) ...... 0791,' to pay, in connection with this Loan, either: (a) a one-time charge fi~r/]ood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination anti certification services and subsequent charges each time remappings or si~lar ch~ges occur which reasonably ~ght affect such dc~termination or certification. Borrower shall also be responsible for the payment of ~y fees imposed by the Federal Emergcnc~ Management Agency in connection with the review of ~y flood zone deter~nation resulting from ~ objection by Borrower If Borrower fails to maintain ~y of the coverages described above, l.cnder may obtain insur~ce coverage, at Lender's option ~d Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or mighl not protcc~ l]orl'ower, Borrower's equity in the Property, or the contents of the Property, against ~y risk, hazard or liability ~d ~ght pi'ox idc greater or lesser coverage th~ was previously in effect. Borrower ac~owledges that the cost of the insurance coverage s(~ obtained might signific~dy exceed the cost of insur~ce that Borrower could have obtained. Any mounts disbursed ID Lender under this Section 5 shall become additional debt of Borrower secured by this Sec~rit-y Instrument. These mounts shall bear interest at the Note rate from the date of disbursement ~d shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insur~ce policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a st~dard mortgage clause, ~d shall n~e Lender as mortgagee and/or as ~ additional loss payee. ~nder shall have the right to hold the policies and renew~ certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid pre~u~ ~d renewal notices. If Borrower obtains any I~rm of insur~ce coverage, not otherwise required by Lender, for d~age to, or destruction of, the Property, such ptdicy ~hall include a st~dard mortgage clause ~d shall n~e Lender as mortgagee ~d/or as ~ additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. U~ess Lender ~d Borrower othe~isc ~t~rec iu writing, ~y insur~ce proceeds, whether or not the underlying insur~ce was required by Lender, shall be applied to rc~loratlon or repair of the Property, if the restoration or repair is econo~cally feasible ~d Lender's security is not lessened. During such repair ~d restoration period, Lender shall have the right to hold such insur~ce proceeds until Lender has had an oppt~rttmity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undert~en promptly. Lender may disburse proceeds for the repmrs ~d restoration in a single payment or in a series or' progress payments as the work ~s completed. Unless ~ agreement is made in writing or Applicable Law requires interest to be paid on such insur~ce proceeds, Lender shall not be required to pay Borrower ~y interest or earnings on such proceeds. Fees fi)r lmblic adjusters, or other third parties, retained by Borrower shall not be paid out of the insur~ce proceeds ~d shall be thc sole obligation of Borrower. If the restoration or repair is not econo~cally feasible or Lender's security would be lessened the iusur~ce proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with thc excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower ab~dons the Property, Lender may file, negotiate and sci tlc any available insur~ce claim ~d related matters. If Borrower does not respond within 30 days to a notice I?om Lender that tl~c insurance carrier has offered to settle a claim, then Lender may negotiate ~d settle the claim. The 30-day period will begin when thc notice is given. In either event, or if Lender acquires the Property under Section 22 or othe~ise, Borrower hereby assigns m Lender (a) Borrower's rights to any insurance proceeds in an ~ount not to exceed the amounts unpaid under the No~c ~r this Security Instrument, ~d (b)~y other of Borrower's rights (other than the right to ~y re,nd of unearned prcmimns paid by Borrower)under all insur~cepolicies covering the Property, insofar as such rights are applicable to the cover: ~c of the Property. Lender may use the insur~ce proceeds either to repair or restore the Property or to pay ~ounts unpaid trader d~c Note or this Security Instrument, whether or not then due. 6. Occupancy. BorroWer shall occupy, establish, ~d use the Propert3 ,t, Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occu P3 thc Property as Borrower's principal residence for at least one year after the date of occup~cy, u~ess Lender otherwise agrees in wr~ung, which consent shall not be unreasonably withheld, or unless extenuating circumst~ces exist which ~e beyond Borrower', control. 7. ~ervation, Maintenance and ~otection of the ~operty; Inspections. Borrower shall not destroy, d~age or impair the Property, allow the Property to deteriorate or co~t waste on Ihe Property. Whether or not Borrower is residing in the Property, Boxower shall maintain the Property in order to prevent the PropcrD~ from deteriorating or decreasing in value due to its condition. Unless it is dete~ned pursuit to Section 5 that repair or rcstorauon is not econo~cally feasible, Borrower shall promptly repair the Property if d~aged to avoid ~rther deterioration or damage. If insur~ce or condemation proceeds are paid in co~ection with dmage to, or the t~ing of, the Property, Borrower shall be responsible for repairing or restoring the Propeny only if Mnder has released proceeds for such pu~oses. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insur~ce or condemation proceeds are not sufficient to repair or restore the Property, Borrower ~s not relieved of Borrower's obligation for the completion of such repair or restoration. VVYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3'051 1/01 (page 5 of ll pages) Lender or its agent may make reasonable entries upon and inspect~.~ ~,I' the Property. If it has reasonable cause, Lender may inspect the interior of the ~mprovements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default il', d,,'i~tg the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information)in connection with the Loan. Material representations include, but' are n~,t limited to,. representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security lnslrta~ciu, (b) there is a legal proceeding that n'fight significantly affect Lender's interest in the Property and/or rights nnder tills Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement .1' a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abamlt,~cd the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in tl~c Pr~)perty and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing a~d/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lie, which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its i,.erest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy pr,,cccding, Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or bt~al'd up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities tt, rned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not umlcr any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under lhis Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from thc dale of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall ct,~ply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge m~less Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance a~ a c~.~di,tion of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. 11', for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that l)rcvi~)usly provided such insurance and Borrower was required to make separately designated payments toward the premiums l't,r Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to thc M~.'tgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage lnsm':tl~CC previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance c~\'crage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that wc,'e due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the I~.~,al~ is nltimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve, I~cmlcr can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately de~i?ated 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 lnst,':,~ce, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable 1,~ ,'eserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases ~hc Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage l,~surance. Mortgage insurers evaluate their total risk on all such insurance in fo.'ce 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 parties3 tt, fl~ese agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). Borrower Initials /'~ff'~ (~ WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3 1/01 (page 6 ofll pages) '07'33 As a result of'these agreements, Lender, any purchaser of the Note, auolher insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounls that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange t'or sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides thai an affiliate of Lender takc~ ~ share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed 'cap irc reinsurance "Further: (a) Any such agreements wi~ r. ot affect ~he amounts ~hat Bo:'rower has agreed to pay for ~'~ortgage ~nsuran,~e, or any. other terms of the Loan. Such agyeemer_ts will not increase-the amounl Borrower will owe for Mortgage Ir-sure'nee, they will not entitle Borrower :o any re?und. (b) Any such agreements wEl not affeel the ' r~ga~s Borrnwer has - il' any - with respec~ to the Mortgage i~urance under the ~omeowners Protection Act ~2 1998 or any other ~aw. Thcse rights may inc,~ude the right :o receive certain disclosures, to request and obtain cance21afion zf the Mortgage Insurance, to have the Mortgage Insurence terminated cancellationaUt°maticallY'or termination.and/°r to receive a refund of any Mortgage Ir-surancc premiums that were unearned at the time of such 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscclkmeous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall bc applied to restoration or repmrofthe Property, if the restoration or repair is economically feasible and Lender's security is not lc~,cned. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursemcm or m a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Laxx requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest cr earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or no~ ~hcn due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, ~he Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with fl~e excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Propcr~y in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destrucqion, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrumenl shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of thc ~ums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of thc Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Properly in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is lcs~ Ihan the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender ofl~erwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument wlw~hcr or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrowe~ that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, 8~n'rower/'ails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply Ibc Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by' this Security Instrument, whether m' not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any a~ti0n or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a defat~lt and, if acceleration bas occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's jt~dgment, precludes forfeiture of the Property or other material impairment of Lender'~ interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages tha! are attributable to the impairment of Lender'~ imcrest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied.to restoration or repau' of the Property shall be applied in the order provided for in Section 2. WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT _;:::'~ 2.?:._1 Borrower lnitials~ ~~ __ Form 3051 1/0~ (page 7ofllpages) 0795 12. Borrower Not Released; Forbearance By Lender Not a %¥aiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted bx l.cuder [o Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest o~ lh~m)wer or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance b/ l.cnder in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, cmities 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 of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However. any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signeff'): (a) is co-signing this Securilx Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument: (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interesl of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall t~N'ain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obliu'at~ons and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agrcclncms 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 services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to a% edger 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 may not charge fees that are expressly prohibited by this Security hist rtmIenI or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and lhat law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to thc permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct p% mcnt to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15, Notices. All notices given by Borrower or Lender in connection wi~h this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrumenl shall be dccmcd to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address il' scm by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires odierwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to kender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for tel)erring Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one .time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another adth'css by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to l~cndcr until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable l.:m the Applicable Law requirement will satisfy the corresponding 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 located. All rights and obligauons contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable l.aw might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed tis a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and t)f this Security Instrument. Borrower lnitials~ (~ WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUM i".NT Form 31151 1/01 (page 8 of 11 pages) 15. Transfer of the .Property or a Beneficial Interest in Borrower. :\s used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but nol limited to, those beneficial interests transferred in a bond for deed, contract for deed, installmem sales contract or escrow a~rcc~llc~lt, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any .~nterest in the Property is sold or mmsferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without l.cndcr's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrtm~em. ltowever, 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 notice of ~ccelcration. The notice shall provide a period of not less than 30 days from the date the notice ts given in accordance wilh Scclion 15 within which Borrower must pay all sums secured by this Security ~nstrument. If Borrower fails to pay these ~mns prior to the expiration of this period, Lender may invoke any remedies permitted by this Security !nstrument withom further nolicc or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Bomm cr meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at an), time lmor to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrumc~i. (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a .it~dgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then woulcl bc due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other coven: his or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable auorneys' fees, pr6perty inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's liner-est iu the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to ass m-c that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, batik check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured % a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security hlstrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred However this r~ght to reinstate shall not apply in the case of acceleration under Section 18. ' 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The N~tc or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice m Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments dt~e under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also mighl be one or more changes of the Loan Servicer unrelated to a sale of thc Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA rcqtm'es in connection with a notice of transfer of servicing, If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the I.oan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided b) the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges thai the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with the reqtfirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period, after the giving of such m~tice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, th~,l time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure gfvcu to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall bc deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, t?ollutants, or wastes by Environmental Law and the f(~llowing substances: gasoline, kerosene, other flammable or toxic petroleum 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 Property is 2ocated that relate to health, safety or environmental protection; (c) "l~nvironmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Laxx· and (d) an "Enwronmental' Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Borrower lnitials~ ~ Form 2g)51 1/01 '(page 9 of l l pages) Borrower shall not cause or permit the presence, use, disposal, storage, t~r release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, Ib~ which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance. crc:tics ~ condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, usc or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate It/ normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer prodt~cts). Borrower shall promptly give Lender written notice of (a) any invesligatitm, claim, demand, lawsuit or other action by any govenunental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Conditi,n including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, aud ~c} a~]y condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Pr, petty. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take :ill necessary remedial actions in accordance witk Environmental Law. Nothing herein shall create any obligation on Lender ~.,- an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant ami agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borro~ver p,'itn' to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not p,'io,- to accelerntion under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (e) a date, not less than 30 days from the date the notice is given to Borro~ver, b) 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 secured by this Security Instrument and sale of the Property. The notice shall lin'thee iuform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existe,we of n default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the dnte specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Securit) lustrument without further demand and may invoke the power of sale and any other remedies permitted by Apldicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Sectitm 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 Lnw. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee nmy lntrchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a} to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrumeut; :md (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a I'cc Ibr releasing this Security Instrument. but only if the fee is paid to a third party for services rendered and the charging of thc fc'c is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by v,luc of the homestead exemption laws of Wyoming. WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRU~ I E NT Borrower Initials /~ ~ Form 1 1/01 (page 10 of l l pages) 0'7'37 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: .(Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower State of WYOMING [Space Below This Line For Ackmm Icdg,nent] (Seal) ) County of -'"~.~.,~.~ ) R. KENNEDy,The foregoingA SINGLEinstmmentWOMANWaS acknowledgedthis 6'~bef°reff't4~me by JONATlt.-~%day of~,o CC/I)' Q~ /,, A . .MER]~YMAN' A SINGLE M.3~. N and LISA Witness my hand and official seal. ~"4"~t-4.~ , · & My Commission Expires: (Print or type name) County of ~ State of Tetoh ~ Wyoming ~ Exp_lres 9/12/2_0_07_ W-YOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT !.;: 1:5 ~ii:~ '~ Form 3051 1/01 (page 11 of l l pages) ,-O798 Loan Number 40500107 ADJUSTABLE RATE RIDER - INTEREST ONLY (LIBOR Six-Month Index (As Published by The Wall Street Journal)--Rate Caps Accrued Interest Only for Fixed Rate Pcriml) THIS ADJUSTABLE RATE RIDER is made this 29TH da) ot NOVEMBER, 2004, and is incorporated into and shall be deemed to amend and supplement the Mortg',tgc, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned t" Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to CHERRY CREEK MORTGAGE CO., INC. ("Lender") of the same date and covering the property described in II~c Security Instrument and located at: 704 PALISADES LANE, ALPINE~ WYOMING 83128 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOIl ('IIANGES IN THE 1NTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LISII'I'S TIlE AMOUNT BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND TI IF~ MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenams and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CIIAN(;ES The Note provides for an initial interest rate of 5.8750%. Thc Not: provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CIIANGES (A) Change Dates The interest rate I will pay may change on the firs~ day of I)ECESIBER, 2009, and on that day every 6TH month thereafter. Each date on xvhid~ my interest rate could change is called a "Change Date." (B) The Index Beginning with the first Change Date, my interest r,,c will be based on an Index. The "Index" is the average of interbank offered rates for six month U.S. dollar-denominated deposits in the London market as published by The ll'~d! Street Journal. The most recent Index figure available as of the first business day of thc month immediately preceding the month in which the Change Date occurs is called the "Currcnl Index." If the Index is no longer available, or is no longer puhlishcd~ the Note Holder will choose a new index that is based upon comparable information. Thc Note ttolder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AND ONE-QUARTER percentage points (2.25005:t ~ to the Current Index. The Note Holder will then round the result of this addition to thc nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 411)t below, this rounded anaount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount ol' thc monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments The result of this calculation will be the new amount of my monthly pay nlcnt. 1tOI I't }Wel Initials _ CCMC IO RIDER Page I of 3 /r Revision 04/01/2003 0799 (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first C'h',tngc Date will not be greater than 10.8750% or less than 2.2500%. Thereafter, my imcrcsl rate will never be increased or decreased on any single Change Date by more t.han ONE percentage points (1.0000%) from the rate of interest I have been paying for the preceding months. My interest rate will never be greater than 10.8750%. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly phyment beginning on the first monthly payment date after the Change Date until the amount 'of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective d~ tc of any change. The notice will include information required by law to be given to me and als~ tt~c title and telephone number of a person who will answer any question I may have regarding thc notice. TRANSFER OF T}[E PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 18 of the Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial Interest in Ih}rrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial mlcrcst in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent or' which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in thc Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest i~ Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this t~ption shall not be exercised by Lender if such exercise is prohibited by Applicable Law Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were beine Inade to the transferee; and (b) Lender reasonably determines that L ' - . ~ ender s security wdl not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and dlis Security Instrument unless Lender releases Borrower in writing. If Lender exercises the 6ption to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide ~ period of not less than 30 days from the date the notice is given in accordance with Section 15 widfin which gorrower must pay all sums secured by this Security Instrument. If Borrox~cr fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. CCMC I0 RIDER Page 2 of 3 0800 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. ;~:5~__ (Seal) J/~'N,~TH3,N D. MI':RRShf,~N /' -Borrower L~ R. KENNEI)Y ~ -Borrower CCMC IO RIDER Page 3 of 3 Revision 04/01/2003 Prepayment Penalty Rider (Multi-State Soft Prepay Pc,cdtv) This Prepayment Rider is made this 29TH'day of - NOVEMilER , 20 4 and is ,, incorporated into and deemed to amend and supplement the/~lortu'a'uc, l)~'d ~t' Trust, (t~e '~ecurity Instrument ) of the same date given by the undersigned (the "Borrower") to secure Borrower's Note (tbe "Note") to Cherry Creek Mortgage Company, Inc. (the "Lender") of the same da te and cm'ct'ing the property described in the Security Insta'ument and located at: 704 PALISADES LANE, ALPINE. ~VYOMING 83128 _, (the "Property" ~ Amended Covenants. Not withstanding anything m the conn'ary set forth in the Note or Security Instrument, Borrower and Lender covenant, and asrcc, as follows: Borrower has the right to make payments of principal al any time before they are due. A payment of principal only is known as a "prepayment'. A ' Ihll prepayment" is the prepayment of the entire unpaid principal due under the Note. A payment of tmlx' part of the unpaid principal us know as a "partial prepayment". - If, within the 3 -year period beginning ~ith the date Borrower executes the Note (the "Penalty Period"), Borrower makes a full prepaymunl m' partial prepayment in any twelve (12) month period that exceeds 20% of the original princilntl loan amount, Borrower will pay a prepayment charge as consideration for the Note Holtlcr's ,'wceptance of such prepayment. The prepayment charge will equal the amount of interest lhal would accrue during a six (6) month period on the amount prepaid that exceeds 20% of lite original principal balance of the Note, calculated at the rate of interest in effect under iht Icrms of the Note at the time of the prepayment, unless otherwise prohibited by applicable hm' m' regulation. No prepayment charge will be assessed for any prepayment occurring after the Penalty Period Notwithstanding the foregoing, in the event of a full prelmyment concurrent with a bona fide sale of the Property to an unrelated third party afire' H~e first -0- year(s) of the term of the Note, no prepayment penalty will be assessed. Iu lh:~l cveni, you nmst provide the Note Holder with evidence accgptable to the Note Holder of such sale. For purposes of this exception to the prepayment charge, a sale of the property to a persou m- e, lity with whom you have personal or business relationship (such as a family member, builder, developer or employer) will be presumed NOT to be a bona fide sale of the Property to an unrelalctl Ihird party. Rider.BY signing below, Borrower accepts and agrees to the terms ,'md covenants contained in this Prepayment DATE: NOVEMBER 29, 2004 603C Multi-State Rider (Product Solutions) 09/01/01