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Home My WebLink About904977RemrnTo: WELLS FARGO HOME MORTGAGE 3601 MINNESOTA DR. SUITE 200 BLOOMINGTON, MN 55435 08i2. Prepared By: WELLS FARGO BANK, Moa. 1919 DOUGLAS,, 681010000 OMAHA, NE [Space Above Tiffs Line For Recordhtg MORTGAGE RECEIVED 12/2/2004 at 4:16 PM RECEIVING # 904977 BOOK: 573 PAGE: 812 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY DEFINITIONS ..... Words used in multiple sections of this document are defined bchm' and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated NOVEMBER 3 0, 2004 , together with all Riders to this document. Oi) "Borrower" is RAYMOND C. HANCI( AND ALICIA H. HANCK, HUSBAND AND WIFE ? Borrower is the mortgagor under this Security Instrument. (C) "Lender" is WELLS FARGO BANK, N.A. Lender is a NATIONAL ASSOCIATION organized and existing under the laws of THE UNITED STATES 0048643753 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT {~;}®-6(WY) Looosl Pa~e 1 of lS Initial.: VMP MORTGAGE FORMS - 18001521,-7291 Form 3051 1/01 Lender's address is P.o. Box 10304, DES MOINES, IA 503060304 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated NOVENBER 3 0, 9. 004 The Note states that Borrower owes Lender ONg HmqDRV. D I~.IGHTY THOUB3flNID Alq'D 00/100 Dollars (U.S. $ ***'180,000. O0 ) plus interest. Borrower has prmniscd to pay this debt in regular Periodic Payments and to pay the debt in full not later than D~..C~..I~BER 01, 2 0 3 4 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (IV) "Loan" means the debt evidenced by the Note, plus interest, any 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 [~ Condominium Rider ~-~ Second Home Rider [---] Balloon Rider ['--] Plamted Unit Development Rider [-~ 1-4 Family Rider ~-] VA Rider ~-] Biweekly Payment Rider [-~ Other(s) [specify] (l:l) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect (~I' law) as well as all applicable final, non-appealable judicial opinions. (1) "Community Association Dues, Fees, and Assessments" mea,ts all clues, fees, assessments and other charges that are imposed on Borrower or the Ptoperty by a c{mdmninimn association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds., mhcr than a transaction originated by check, draft, or similar paper instrument, which is initiated th,'~tmh an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, m' authorize a financial institution to debit or credit an account, Such term includes, but is not limited to, p{dnt-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire tnmsf~rs, and automated clearinghouse transfers. (IQ "Escrow Items" means those items that are described in Sectim~ 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the c{~verages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condenmation m' other taking of all or any part of the Property; (iii) conveyance in lieu of conde~nnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount duc fin' (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrumcm. (O) "RESPA" means the Real Estate Settlement Procedures Act tl 2 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (~-6(WY) tooost Page 2 of 15 mma~s ..z~)/¥ Form 3051 11Ol 0814 (P) "Successor in Interest of Borrower" tneans any party that It:ts taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/'or this SeCurity Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of thc l.oan, and 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 lnortgage, grant and convey to Lender and Lender's successors and assigns, with power of sale. th~ fi)llowing described property located in the COUNTY of LARAMIE : [Type of Recording Jurisdiction] . Nanlc of Recording lurisdiction] LOTS 11 AND 12 OF STAR VALLEY RANCH PLAT 15, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. *SEE ADJUSTABLE RATE RIDER TAX STATEMENTS SHOULD BE SENT TO: 10304, DES MOINES, IA 503060304 WELLS FARGO HOME MORTGAGE, P.O. BOX Parcel ID Number: 12351819301077&65.00 260 SNOW FOREST DRIVE THAYNE ("Property Address"): which currently has the address of [Street] [('i~yl , Wyoming 83127 [Zip Code] TOGETHER WITH all the improvements now or herc:tftcr erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part ~I' the property. All 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 seisccl (~t' the estate hereby conveyed and has the right to mortgage, gram and convey the Property and that thc Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a tmitbrn~ security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as tbllows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest tm, thc debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this $ccm'ity Iostrument shall be nmde in U.S. currency. However, if any check or other instrument received by l.cndcr as pay~nent under the Note or this 0904 7 b Security Instrument is returned to Lender unpaid, Lender my rec. uirc that any or all subsequent payments due under the Note and this Security Instrument be made in ().cm 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 instml[ion 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 wi th the no:ice provisions in Section 15. Lender may return any payment, or partial payment if the paymcm .t- partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial lxtyment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such pa3 ments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled clt~ date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds un Iil Borrower ~nakes payment to bring the Loan current. If Borrower does not do so within a reasonable period of ti~ne. Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclost.-c. No offset or claim which Borrower might have now or in the future against Lender shall relieve Bott. wet from making payments due under the Note and this Security Instrument or performing the covenants :md a.reemeuts secured by this Security Instrument. ~ 2. Application of Payments or Proceeds. Except as othcrx~is~ described in this Section 2, all payments accepted and applied by Lender shall be applied in the fid lowing order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment iu the order in which il became due. Any remaining amounts shall be applied first to late charges, second to any other amounts cluc under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinqucm Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lcmlcr may apply any payment received from Borrower to the repayment of the Periodic Payments if, and ,} tl~c extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due Voluntary prepayments shall be applied first to any prepayment charges and then as described i, thc Note. Any application of payments, insurance proceeds, or Miscelhme~ms Proceeds to principal due under the Note shall not extend or postpone the due date, or change the alii(rant, of die Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender mi the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") io provide for pay]nent of amounts due for: (a) taxes and assessments and other items which can attain pri()rity .vet tiffs Security Instrument as a lien or encumbrance on the Property; (19) leasehold payments or gmtmd rents on file Property, if any; (c) premiums for any and all insurance required by Lender under Scctim~ 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender i. lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Sectio~ 10. These ire]ns are called "Escrow Items." At origination or at any time during the term of the Loan. Lender nkay require that Commmfity Association Dues, Fees, and Assessments, if any, be escrowed by Bm'rower. and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish [o Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds fi)r Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Jt~:ms. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver. Borrower shall pay directly, wh~t) and where payable, the amounts 6(WY) Ioooel Page 4 of 1 Form 3051 1/01 due 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 paymem 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, :ts 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 rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amoum. Lender may revoke thc waiver as to any or all Escrow Items at any time by a notice 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 Section 3. Lender may, at any time, collect and hold Funds in an amoum (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed tile nkaximum amount a lender can require under RESPA. Lender shall estinkate the amount of Fmlds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or (~thcrwise in accordance with Applicable Law. The Funds shall be held in an institution whose dcp~sits arc insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institttti(m whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay tl~ Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for h{dding and applying the Funds, annually 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 writing or Applicable Law requires interest to be paid on the Funds, Lender shall not 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, withmtt charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined ultdcr RESPA, 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 escrm~, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay m I~ender the amount necessary to make up the deficiency in accordance with RESPA, but in no more tha~L 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, fines, and impositions attributable to the Property which can attain priority over this S~curity 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 iten~' are Escrow Items, Borrower shall pay t l~cm itl the nta~mer provided in Section 3. Borrower shall promptly discharge any lien which has primity 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 enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the 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 (~-6(WY) (ooos! Page 5 of 15 //~,~. Form 3051 1/01 0817 lien. Within 10 days of the date on which that notice is given, B.rrmver shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge fin' a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included withi, the term "extended coverage," and auy other hazards including, but not limited to, earthquakes and fl(}l~ds, fin' 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 scmtenccs can change during the term of the Loan. The insurance carrier providing the insurance shall bc chosen by Borrower subject to Lender's right to disapprove Borrower's choice, wltich fight shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: {a) a one-time charge for flood zone determination, certification and tracking services; or (b) a onc-time charge for flood zone determination and certification services and subsequent charges each time ten c~ppiogs or similar changes occur which reasonably might affect such determination or certification. Bm'rower shall also be responsible for the payment of any fees imposed by the Federal Emergency Managcutem Agency in connection with the review of any flood zone determination resulting from an objectim~ l)3, Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amoum of coverage. Therefore, such coverage shall cover Lender, but might or nfight not protect Borrower, Borrower's equity in the Property, or fl~c c{mtents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might sigtfificantly exceed the 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 interest at the Note rate from the date of disbursement and shall be payable wifl~ such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's fight to disapprove such policies, shall include a standard mm-tgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give m I~ender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the iusurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying ~lsurance was required by Lender, shall be applied to restoration or repair of the Property, if the restorafm~ m' repair is economically feasible and Lender's security is not lessened. During such repair and restol'atim~ period, Lender shall have the fight to hold such insurance proceeds until Lender has had an opporttmit3 m inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restm",ttion in a single payment or in a series of progress payments as the work is completed. Unless an agreement is nu~de in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by fids Security Instrument, whether or not then due, with (~-6(WY) (ooos} Page 6 of '~s ,, ~) Form 3051 1/01 :. .... 0818 the excess, if any, paid to Borrower. Such insurance proceeds sl~'all be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, ,c,,~,tiatc and settle any available insurance claim and related matters. If Borrower does not respond withi, 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender ma3 ,cg{It~ate and settle the claim. The 30-day period will begin when the notice is given. In either event, i.' if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender ta) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under tl~c Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to a.y refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, it~st~far as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds t:ith~:r 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 the Property as Borrower's principal residence within 60 days after the execution of this Security Insm, ment and shall continue to occupy the Property as Borrower's principal residence for at least one year al'ret the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unrcas~,,ably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the P,'operty; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property t(~ deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, ll~,-rower shall maintain the Property in order to prevent the Property from deteriorating or decreasing i, value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is ,~t cconondcally feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in cmmection with damage m, ~.' the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property ooly il' 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 the insurance or c{mdcmoation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of B~rrmvcr's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and iaspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements ou the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspecti~m specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be ill dd'ault if, during the Loan application process, Borrower or any persons or entities acting at the dirccti~m of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or i,accl,'ate il~tbrmation or statements to Lender (or failed to provide Lender with material information) i~l com~ection with the Loan. Material representations include, but are not limited to, representations c(mcerning 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 co,tai ned in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest i, the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, tbr condemnation or forfeiture, for enforcement of a lien which may attain priority over this SCCtlrity Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, fl~cn I.cndcr may do and pay for whatever is reasonable or appropriate to protect Lender's interest in thc 'mperty and rights under this Security Instrument, including protecting and/or assessing the value of thc Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited ,~: (a) paying any sums secured by a lien wlfich has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable (~6(WY) Iooos) P.ge 7 of 16 Form 3051 1/01 attorneys' fees to protect its interest in the Property and/or rights trader this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Pr{q)el'ty includes, but is not limited to, entering the Property to make repairs, change locks, replace m' b~ta,'d up doors and windows, drain water from pipes, eliminate building or other code violations o.r dangcm,s conditions, and have utilities turned on or off. Although Lender may take action under this Section 9 l.c,der does not'have to do so and is not under any duty or obligation to do so. It is agreed that Lender i.curs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument These amounts shall beat- imcrest at the Note rate from the date of disbursement and shall be payable, with such interest, upon mince fi'om Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shz, II cmnply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leaselmld and the tee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Inst,'anco 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 bc available from the mortgage insurer that previously provided such insurance and Borrower was required r{~ make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall p:ty the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance prcx'im~sly iu effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance prcvim~sly in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalcm Mm'tgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount .I' the separately designated payments that were due when the insurance coverage ceased to be in effect. I~cmder will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimatcl) paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amou,t and ~r tile period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage [nstmmce. 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, Bommcr shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-rcftmdable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any wt-ttten agreement between Borrower and Lender providing for such termination or until termination is rcquilcd 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 pttrchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Bm'r, mer is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insunmcc in force from time to time, and may enter into agreements with other parties that share or modify thcir risk, or reduce losses, These agreements are on terms and conditions that are satisfactory to the mortgage insm'cr and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which ma) iaclude funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of thc Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "capri vc reinsurance." Further: (a) Any such agreements will not affect the amounts lh:tt Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not en title Borrower to any refund. (b) Any such agreements will not affect the rights Borro~cr has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Acl o1' 1998 or any other law. These rights may include the right to receive certain disclosures, to reques! and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance ternd,latcd aotomatically, and/or to receive a refund of any Mortgage Insurance premiums that were uoearned at the time 0f such cancellation or termination. 11. Assi~ment of Miscellaneous ~oceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If ~e Property is da~ged, such Miscellaneous Proceeds shall be applied to restoration or repair of · e Propeay, if ~e restoration or repair is econo~cally feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have thc right to hold such Miscellaneous Proceeds until Lender has had an oppormMty to inspect such Property t. ensure fl}e work has been completed to ~nder's satisfaction, provided ~at such inspection shall be undertake, promptly. Lender my pay for ~e repairs and restoration in a single disbursement or in a series {}f progress payments as ~e work is completed. UMess an agreement is rode in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, ~nder shall not be required to pay B{,'r. wcr any interest or earMngs on such Miscellaneous Proceeds. If ~e restoration or repair is not economically feasible or Lender's security would be lessened, ~e Miscellaneous Proceeds shall be applied to fl~e st..s secured by ~is Security Instrument, whe~er or not ~en due, wi~ ~e excess, if any, paid to Bomm cr Such Miscellaneous Proceeds shall be applied in fl}e order provided for in Section 2. In ~e event of a total m~ng, destruction, or loss in value {}f the Property, ~e Miscellaneous Proceeds shall be applied to ~e su~ secured by tiffs Security h~strt.nent, whefl}er or not ~en due, wi~ · e excess, if any, paid to BoEower. In ~e evem of a partial ta~ng, destruction, or loss in value ~d' the Property in which ~e fair mrket value of ~e Property i~nediately before ~e partial taking, dcsli'ttcti{m, or loss in value is equal to or greater ~an ~e amoum of ~e sums secured by ~is Security Instrument inm}ediately before ~e partial raking, destruction, or loss in value, uMess Bo~ower and Lc,der {~thcrwise agree in writing, ~e su~ secured by ~is Security Instrument shall be reduced by thc :ttllr}tlilt of ~e Miscellaneous Proceeds multiplied by ~e following fraction: (a) ~e total amount of thc sums secured in~ediately before ~e paaial taking, destruction, or loss in value divided by (b) ~e thi r ii}arkct value of ~e Property i~nediately before ~e partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In ~e event of a partial taking, destruction, or loss in value of the Property in which ~e fair mrket value of ~e Property i~nediately before ~e partial taking, destructim}, or loss in value is less ~an ~e amoum of ~e su~ secured i~mediately before ~e partial taking, destruction, or loss in value, uMess Borrower and Lender ofl}erwise agree in writing, ~e Miscellanc. us Proceeds shall be applied to ~e su~ secured by ~is Security I~tmment whefl~er or not ~e sums are thcll due. If ~e Property is abandoned by BoEower, or if. after n{~ticc by Lender to BoEower ~at ~e Opposing Party (as defined in ~e next sentence) offers to nmkc an award to settle a claim for damges, BoEower fails to respond to Lender wiflfin 30 days after fl}e date thc notice is given, Lender is au~ofized to collect and apply ~e Miscellaneous Proceeds eider to restoration or repair of ~e Property or to ~e su~ secured by ~is Security I~tmment, whe~er or not flxen duc. "Opposing Party" mea~ ~e ~ird party · at owes Bo~ower Miscellaneous Proceeds or ~e party against whmn Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whcth<r civil or cri~ml, is begun ~at, in Lender's judgment, could result in forfeiture of ~e Property m ~}ther nmterial impaiment of Lender's interest in ~e Property or rights under ~is Security I~tmment. Bm'rower can cure such a default and, if acceleration has occuEed, rei~tate as provided in Section 19, by causing the action or proceeding to be dis~ssed wi~ a ruling ~at, in Lender's judgment, precludes fi.'fcitt.-~ or' flxe Property or o~er mtefial impaiment of Lender's interest in fl~e Property or rights under this Security Instrument. The proceeds of any award or claim for damges ~at are attributable to ~e impairment of Lender's interest in ~e Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds ~at are not applied to restoratim} or repair of ~e Property ~all be applied in ~e order provided for in Section 2. (~-6(WY) (ooo5) Page g of 15 /,~, Form 3051 1/01 08"I- 11. Borrower Not Released; l*orbearance By Lender Not a Waiver. Extension of ~e time for payment or modification of amorti~tion of ~e su~ secured by this Security I~t~ment granted by Lender to Borrower or any ~ccessor in Interest of Borrower shall not ~pcrate to release ~e liability of Borrower or any Successors in Interest of Borrower. Lender shall not be rCcluircd to con~ence proceedings agai~t any ~ccessor in Interest of Borrower or to re~se to extend tim~ /hr pay~nent or o&erwise modi~ amortization of &e su~ secured by &is Security lmtmment by ~casm~ of auy de~mnd ~de by ~e ofigiml Bo~ower or any ~ccessors in Interest of Borrower. Any forbearzmcc by Leuder in exercising any right or remedy including, wihout Ii.ration, Lender's acceptance of pa~ mcnts frown ~ird persons, entities or ~ccessors in Interest of Borrower or in amounts less &an ~e ammmt then due, shall not be a waiver of or preclude &e exercise of any right 0r renmdy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Bo~ower covemnts and agrees &at Bo~ower's obligations and liability shall be joint and several. However, any Bo~ower who co-sigm ~is Security Instrument but does not execute ~e Nme (:~ "co-signer"): (a) is co-sig~ng ~is Security Imtmment o~y to mortgage, grant and convey ~e co-si?~r's interest in &e Property under ~e tern of ~s Security I~tmment; (b) is not perso~lly obligated t~ pay ~e sums secured by ~is Security Imtmment; and (c) agrees ~at Lender and any o&er Borrower can agree to extend, modi~, forbear or rake any acco~odatiom wi~ regard to ~e tern of &is Security Instrument or ~e Note wi&out ~e co-signer's consem. Subject to ~e provisiom of Section 18, any ~ccessor in Interest of Borrower who assumes Bo~ower's obligatiom under ~s Security Imtmment in writing, ami is approved by ~nder, shall obtain all of Bo~ower's rights and benefits under ~is Security Instmmcm. Bm'rower shall not be released from Bo~ower's obligatio~ aM liability under &is Security Instmmc~ tmlcss Lender agrees to such release in writing. The covemnts and agreements of ~is Security Instrument shall bind (except as provided in Section 20) and benefit ~e successors and assigm of Lender. 14. Loan Charge. Lender my charge Borrower fees fi~r services performed in co~ection wi& Borrower's default, for ~e pu~ose of protecting Lender's interest i~ the Property and rights under &is Security Imtmment, including, but not linfited to, attorneys' t~es. property inspection and valuation fees. In regard to any o&er fees, ~e absence of express au&ority in this Security Instrument to charge a specific fee to Borrower ~all not be construed as a prohibition on file chargi~g of such t~e. Lender ~y not charge fees ~at are expressly prohibited by &is Security Instrument or by ,X pplicable Law. If ~e Loan is subject to a law which sets ~ximum loan charecs, and fl~at law is fimlly inte~reted so · at &e interest or o&er loan charges collected or to be collected~n cmmection wi~ ~e Loan exceed ~e per~tted li~ts, ~en: (a) any such loan charge shall be reduced by the amount necessa~ to reduce ~e charge to ~e pe~tted li~t; and (b) any sm~ already collected fi't~ m Borrower which exceeded per~tted li~ts will be re~nded to Bo~ower. Lender ~my choose to make this re.nd by reducing ~e principal owed under ~e Note or by raking a direct payment to Bornm'cr. It' a re.nd reduces principal, &e reduction will be treated as a partial prepayment wi~out any prepayment charge (whe~er or not a prepayment charge is provided for under ~e Note). Borrower's acceptance of auy such re.nd rode by direct payment to Bo~ower will constitute a waiver of any fight of action Borrower nfight have arising out of such overcharge. 15. Notlc~. All notices given by Bo~ower or Lender in cmmcction wifla ~is Security I~tmment nmst be in writing. Any notice to Borrower in co~ection wifl~ this Security Instrument shall be deemed to have been given to Borrower when ~miled by first class mil m' wht~ actually delivered to Borrower's notice address if sent by o~er meam. Notice to any one Borrower shall constitute notice to all Bo~owers u~ess Applicable Law expressly requires o~erwise. The notice address shall be ~e Property Address uffiess Borrower has desigmted a substitute notice address by notice m Lender. Borrower shall promptly noti~ Lender of Borrower's change of address. If Lender specifics ;t procedure for reporting Borrower's change of address, ~en Bo~ower shall offiy report a change of address through ~at specified procedure. There my be o~y one desigmted notice address under ~is Security Instrument at any one time. Any notice to Lender ~all be given by delivering it or by roiling it by Ih'st class lmil to Lender's address stated herein uffiess Lender has desigmted ano~er address by nouce to Borrower. Any notice in co~ection wi~ ~is Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by ~is Security Instrumcm is also required under Applicable Law, ~e Applicable Law requirement will satisfy ~e corresponding requirement under ~s Security Instrument. I[~-6(WY) 100051 Pa~e tO of 16 Form 3051 1/01 09 4 77 08:.22 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 obligations contained in this Security Instrument are subject t{~ rely req_uirements and li~nitations of Applicable Law. Applicable Law might explicitly or implicitly alh)w the parties to agree by contract or it might be silent, but such silence shall not be construed as a pr~,hibitim~ 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 m:tsculine 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 s~)lc discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of thc Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Bo,'rower. 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, cra.tact lbr deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by B~.'rmvcr at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is stdd m- transferred) without Lender's prior written consent, Lender may require inunediate payment in l'ull t~l' ,'dl stuns secured by this Security Instrument. However, this option shall not be exercised by l~cndcr if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower nmice of acceleration. The notice shall provide a period of not less than 30 days from the date the nonce is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender max invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower, 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security h~strument discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment cnfi~rcing this Security Instrmnent. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) ct.cs :,ny default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuatim~ fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure th:ti Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligatim~ t{~ pay the stuns secured by this Security Instrument, shall continue unchanged. Lender may require that Bt~rrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by l.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 are insured by a federal agency, i.strumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Inst rumcnt and obligations secured hereby shall remain fully effective as if no acceleration had occurred, thru'ever, 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 Grievance. The Note or a partial interest in the Note (together with this Security Instrumen0 can be sold (mc ~r more times without prior notice to Borrower. A sale might result in a change in the entity (knmvn :ts the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Insm, ncnt and performs other mortgage loan servicing obligations under the Note, this Security Instrulnent, a~d Applicable Law. There also might 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 m:tde and any other information RESPA (~-6(WY) [ooos) Page 1~ of is Form 3051 1/01 requires in connection with a notice of transfer of servicing. If d~c 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 Loan Servicer or be transferred., a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided'by fl~e N.tc purchaser. Neither Borrower nor Lender may commence, join, or be j.i.cd to any judicial action (as either an individual litigant or the member of a class) that arises from thc .ther party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of. this Security Instrument, until such Borrower or Lende~ has notified the other party (with such notice given in compliance with the requirements of Section 15~ .f such alleged breach and afforded the other party hereto a reasonable period after the giving of s.ch ..rice to take corrective action. If Applicable Law provides a time period which must elapse boil,re certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 :md the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the .<)tice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: ta~ "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or li)r.,ddehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdicd.n where the Property is located that relate to health, safety or environmental protection; (c)"Env.'o.me.ial' Cleanup" includes any response action, remedial action, or removal action, as defined in Enviro.me.tal Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, ~, .therwise trigger an Enviromnental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on .r i. the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) dmt is in violation of any Environmental Law. (b) which creates an Environmental Condition, or (c) which, duc to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects thc value of the Property, The preceding two sentences shall not apply to the presence, use, or storage on £he 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 products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Bor,'~wer has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or oilier remediafion of any Hazardous Substance affecting the Property is necessary, Bo,'rower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. 6(WY) (ooos! Pag. ~2 of ~6 Form 3051 1/01 ,-0824 NON-UNIFORM COVENANTS. Borrower and Lender flmher covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Bor,'ower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides olherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must he 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 fi, rther inform Borrower of the right to reinstate after acceleration' and the right to bring a Cmlrt action to assert the non-existence of a default or any other defense of Borrower to acceleration ami sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without furthe,' demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lemler shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Seclion 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give nolice 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 p,'ovided in Section 15. Lender shall publish the notice of sale, and the Property shall be sohl i, the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at nm sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of lhe sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Secm'ily Instrument; and (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 nmy charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights trader and by virtue of the homestead exemption laws of Wyoming. (~I~-6{WY) 100051 Page 13 of 15 Form 3051 1/01 081:'5 BY SIGNING BELOW, Borrower accepts and agrees to tile [crms aud covenants contained in this Security Instrument and in any Rider executed by Borrower and recto'dod with it. Witnesses: RAYMOND C. HANCK -Borrower ALICIA H. HANCK (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~)~6{WY) (ooosl Page 14 of 15 Form 3051 1/01 STATE OF WYOMING, The foregning il~lljq~ment w~s ocknnwledged before me ti ~i:, by ]?J~.Yl~lqI) C. ~ICI( ~ .ILLICIA lt. tt~ff__K County ss: My Commi~gion Expixes: Nmary hJl,li, ~G(WY) pa~ 15 of lg Form 3051 1/01 FIXED/ADJUSTABLE RATE RIDER (One-Year Treasury Index - Rah, Caps) THIS FIXED/ADJUSTABLE RATE RIDER is nmde this 3 0 TH da), of NOVEMBER, 2 0 0 4 and is incorporated into and shall be deemed to amend and stq3plcnlcnt the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by file undersigned ("Borrower") to secure Borrower's Fixed/Adjustable Rate Note (the "Note") to WELLS FARGO BANK, N.A. ("Lender") of the same date and covering the property described il Iht Security Instrument and located at: 260 SNOW FOREST DRIVE, TI{AYNE, WY 83127 [Property Address] THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further cove~mnt and agree as fi~llmvs: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CI i A N(; ES The Note provides for an initial fixed interest rate of 4.3 7 5 %. The Note also provides for a change in the initial fixed rate to an adjustable interest rate, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PA YSIENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adj.stable interest rate on the first day of DECEMBER, 2011 , and the adjustable interest rate I will pay may change on that day every 12th month thereafter. The date on Milch my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate timid change, is called a "Change Date." 0048643753 MULTISTATE FIXED/ADJUSTABLE RATE RIDER - ONE-YEAR TREASURY INDEX- Single Family - Fannie Mae Uniform Instrument Pagell~}~;843R1 of 4 (0006)lnitials:FOrm 3J,8~,1/OIj~..A~ IIJ,IJllllllrlJIIJIIJ lililllllJllillill,31,1llllYllllllllllllllrrl II IJ/Irrlll/lllll~l/lllrllllJIlll VMP MORTGAGE FORMS - {800}521-7291 (B) The Index Beginning with the first Change Date, my adjustable interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. The midst recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder 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 THREI~-QUARTERS percentage points ( 2.750 %) to the Current Index. The Note lhflder will then round the result of this addition to the nearest one-eighth of oue percentage point (0.125 ~J ,. Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate umil the next Change Date. The Note Holder will then determine the amount of the mm~thly payntent that would be sufficient to repay the unpaid principal that I am expected to owe at the Cham, e Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of ihis calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Ch:rage Date will not be greater than 9.37 5 ' % or less than 2. '750 '~ Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more than two percentage points from the rate of interest I have been paying for the preceding 12 mmths. My interest rate will never be greater than 9.3 7 5 % 0g) Effective Date of Changes My new interest rate will become effective on each Change l)ate. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or nmil to me a notice of an) ch:rages in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable imcrcst rate before the effective date of any change; The notice will include the amoum of my monthly payn~ent, any infom~ation required by law to be given to me and also the title and telephone number of a persm~ who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower's initial fixed interest rate changes to ;m adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrunient shall read as follows: ~;843R (0006) Page 2 of 4 Form 3182 1/01 Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or benefici al t utc r~:st in the Property, including, but not limited to, those beneficial interests transferred in a bond fi)r deed, contract for deed, installment sales contract or escrow agreement, the intent ~t 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 the l'r~perty is sold or transferred (or if Borrower is not a natural person and a beneficial interest i~ Bm'rower 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 optitm 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 acceleration. The notice shall provide a period of not less than 30 days fi'~m~ the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to thc expiration of this period, Lender may invoke any remedies permitted by this Security Instrun~ent without further notice or denmnd on Borrower. 2. When Borrower's initial fixed interest rate changes to a~t adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security last rument described in Section B1 above shall then cease to be in effect, and the provisions of Uniform Coven:mt 18 of the Security Instrument shall be amended to read as follows: Transfer of 'the Property or a Beneficial Interest in Bo,'rower. As used in this Section 18, "Interest in the Property" means any legal or beneficial ~mcrest in the Property, including, but not li~nited to, those beneficial interests transferred in a bmod for deed, contract for deed, installment sales contract or escrow agreement, the intent ~1' 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 the Pr{q)crty is sold or transferred (or if Borrower is not a natural person and a beneficial interest i~ Bm'rower 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 optimt shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender als~ shall not exercise this option if: .(a) Borrower causes to be submitted to Lender information required by Lender to evaluate the ~ntended transferee as if a new loan were being made m th~ transferee; and (b) Lender reasonably determines that Lender's security will not be in~p:tircd 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 nkqde in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument mfless Lender releases Borrower in writing. B If Lender exercises the option to require immediate payment in full, Lender shall give orrower notice of acceleration. The notice shall provide a periled of not less than 30 days from the date the notice is given in accordance with Section 15 withit~ which Borrower must pay all 1[~}~843R (0006) Page 3 of 4 Form 3182 1/01 sums secured by this Security Instrument. If Borrower fiiils to pay these sums prior to the expiration of this period, Lender may iuvoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and~ovenants contained in this Fixed/Adjustable Rate Rider. ~ (Seal) ~:z, (Seal) mi~6~-e, mulci -Borrower ~.Y6~ $. "~,%CiF' - -~orrowe~ (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (~843R (0006) Page 4 of 4 Form 3182 1/01