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HomeMy WebLinkAbout905092Return To: EquiFirst Corporation Attn: Collateral M 500 Forest Point Circle Charlotte, NC 28273 Prepared By: Tracey Malcom 500 Forest Point Circle, Charlotte, NC 28273 [Space Above This Line For Reco,'di.g Data] MORTGAGE MIN 100200100061459818 DEFINITIONS RECEIVED 12/8/2004 at 4:01 PM RECEIVING # 905092 BOOK: 574 PAGE: 278 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY Words used in multiple sections of this document are defined hclow and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding thc usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dmcd December 2, together with all Riders to this document. (B) "Borrower" is Michael J. Cooper and Rachel M. Cooper, as 2004 joint tenants Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. ,~IERS is a separate corporation that is acting solely as a nominee for Lender and Lender's success~rs and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existi~lg mMcr the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. 614598 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS ®- AIwY ,ooo ,.o VMP MORTGAGE FORMS - (8001521-7291 Form 3051 1/01 0:90,50:92 (D) "Lender" is EquiFirst Corporation Lender is a Corporation organized and existing under the laws of North Carolina Lender's addressis 500 Forest Point Circle, Charlotte, NC 28273 (E) "Note" means the promissory note signed by Borrower aud thtlcd December 2, 2004 The Note states that Borrower owes Lender one hundred eighty thousand and 00/100 Dollars (U.S. $180,000.00 ) plus interest. Borrower has pn,mised to pay this debt in regular Periodic Payments and to pay the debt in full not later than January 1, 2035 (F) "Property" means the property that is described below trader the heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, m,y prepayment charges and late charges due under the Note, and all sums due under this Security Instrumeut, plus interest. (H) "Riders" means all Riders to this Security Instrument tha ~trc executed by Borrower. The following Riders are to be executed by Borrower [check box as applicablcl ~ Adjustable Rate Rider [~ Condominium Rider ~ Second Home Rider {---] Balloon Rider [-~ Planned Unit Development Rider ['_~ 1-4 Family Rider [---] VA Rider [---] Biweekly Payment Rider ~ Other(s) [specify] ARM Floor/ Prepay Rider (I) "Applicable Law" means all controlling applicable fcdcr~,, state and local statutes, regulations, ordinances and administrative rules and orders (that have the cl'l'cct of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by ;, condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of fimds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated d~ough an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited I,~ 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, settlcmcnl, award of damages, or proceeds paid by any third party"(other than insurance proceeds paid under thc coverages 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 condemnation; or (iv) nn.~r~prcsentations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender a~mnst the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount duc for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security (P) "RESPA" means the Real Estate Settlement Procedures Act , 12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500~ ~,~ 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 ami restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does n~t qualify as a "federally related mortgage loan" under RESPA. 614598 (~-6A(WY) 100051.02 Page 2 of 15 Form 3051 1101 (Q) "Successor in Interest of Borrower" means any party thru has taken title to the Property, whether or not that party has assumed Borrower's obligations under the N(~tc ',md/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment t>~ thc hoan, and all renewals, extensions and modifications of the Note; and (ii) the performance of B~m,wcr's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrox~ ~r d{)c~ hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's succcsst~rs and assigns) and to the successors and assigns of MERS, with power of sale, thc I',~llt)wing described property located in the County of Lincoln : [Type of Record ing Jurisdiction] t '%me of Recording lurisdiction] See Attached Exhibit A ParcellD Number: 12-3419-24-4-00-27100 435 Grizzly Road Thayne ("Property Address"): which currently has the address of [Street] ~ ~.~ [ , Wyoming 83127 [Zip Code] TOGETHER WITH all the improvements now or hcrc..,trtcr erected on the property, and all easements, appurtenances, and fixtures now or hereafier a p',trl ot' the property. All replacements and additions shall also be covered by this Security Instrument. ,\11 t~t' the foregoing is referred to in this Security Instrument as the "prOperty.'' Borrower understands mM agrees that MERS holds only legal title to the interests 'grated by Borrower in this Security lnstrumcm, bul, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right t{~ fi)reclose and sell the Property; and to take any action required of Lender including, but not limited ~, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully scisc( ~1' the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that thc Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend gcncndly the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform cm chants for national use and non-uniform covenants with limited variations by jurisdiction to constitute , unil't)r~n security instrument covering real property. 614598 (~)~-6AlWY) (0005).02 Page 3 of 15 Form 3051 1/01 UNIFORM COVENANTS. Borrower and Lender covcn~mt aml agree as follows: 1. Payment of Principal, Interest, Escrow Items, I'rqmyment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest ,m. tho debt evidenced by the Note and any prepayment charges and late charges due under the Note. Bor,'~,xx cr shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Scct,rity Instrument shall be made in U.S. currency. However, if any check or other instrument received Hx I.cnder as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may ~ctluire that may or all subsequent payments due under the Note and this Security Instrument be made m t}~c or lnore of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certific, check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an it~stHul~on whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Ftmds Transfer. Payments are deemed received by Lender when received ~ the location designated in the Note or at such other location as may be designated by Lender in accordallcc wilh the notice provisions in Section 15. Lender may return any payment or partial payment if the pa.x mom or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial l)ayment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice t,~ ~ts rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such )aymcnts at the time such payments are accepted. If each Periodic Payment is applied as of its schcdtllcd due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied fimds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasomd~lc l)criod of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, stroh funds will be applied to the outstanding principal balance under the Note immediately prior to fo,'cch~sIH'c. No offset or claim which Borrower might have now or in the future against Lender shall relieve Ilorrower from making payments due under the Note and this Security Instrument or performing the covcnams m~d agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as ,~lhcrwise described in this Section 2, all payments accepted and applied by Lender shall be applied in thc following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) mn,roms due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which ~t became due. Any remaining amounts shall be applied first to late charges, second to any other amoums due under this Security Instrument, and then to reduce the pnncipal balance of the Note. If Lender receives a payment from Borrower for a dcl imltiCnt Periodic Payment which includes a sufficient amount to pay any late charge due, the payment ma~ be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments il', ~l~tl to the extent that, each payment can be paid in full. To the extent that any excess exists after the paymcm Is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late chnrges due. Voluntary prepayments shall be applied first to any prepayment charges and then as descrit)cd m tile Note. Any application of payments, insurance proceeds, or Misccll~meous Proceeds to principal due under the Note shall not extend or postpone the due date, or change lilt .,tlllOtllll, of the Periodic Payments. 3. Funds' f6r' Escrow Items. Borrower shall pay to Lc~tlcr tm the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds"~ ~o provide for payment of amounts due for: (a) taxes and assessments and other items which can attain l~rlority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments ~r ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender untlcr Sccuon 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to l.cmlcr m lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Sc.ct~,m 10 These items are called "Escrow Items." At origination or at any time during the term of thc l.oan. Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowct by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptl3 I'm'nish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Ftmds Ibr Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escr,~x~ Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items al any tnne. Any such waiver may only be ~n writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts (~)®-6A(WY){OO051.02 Page4of15 Form 3051 1/01 (-. t 0282 due for any Escrow Items for which payment of Funds has bccn w,~vcd 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 ~cccipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Ihstrumcm. 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 rights under Section 9 and pay such amount and Borrower shall then be obligated trader .";cction 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escr,~x~ l~cms 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 amcunl (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not t. cxcccd the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Fu Ms due on the basis of current data and reasonable estimates of expenditures of future Escrow Items er {~d~crw~se in accordance with Applicable Law. The Funds shall be held in an institution whose dc'p~,sils are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay th~ Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for h,dttmg and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, mdc, ss l.cnder pays Borrower interest on the Funds and Applicable Law permits Lender to make such a chm¥c. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, l.cmlcr shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender c',~n agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, x~ idl.ut charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defim, d tmdL*r RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there ~s 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 accorthmcc with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow,., defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay ~ Lender the amount necessary to make up the deficiency in accordance with RESPA,-but in no more th:m 12 monthly payments. Upon payment in full of all sums secured by this Security Im, trumcnt, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assc~smcms, charges, fines, and impositions attributable to the, Property which can attain priority over this Sccuruy Instrument, leasehold payments or ground rents on the Property, if any, and Community Associati~m 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 pri,~r~t5 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 procccding~ which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings arc pcmling, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agrccnicnl satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that :,r, 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 ~-6A(WY) 1ooo5},o2 Page § o~15 Form 3051 1/01 0283 lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may reqmre Borrower to pay a one-time charge fi~r a real estate tax verification and/or reporting service used by Lender in connection with this'Loan. 5. Property Insurance. Borrower shall keep the improvc~cnts now existing or hereafter erected on the Property insured against loss by fire, hazards included within thc lerm "extended coverage," and any other hazards including, but not limited to, earthquakes and th,t~ds, t'or which Lender requires insurance. This insurance shall be maintained in the amounts (including &'ductible levels) and for the periods that Lender requires, What Lender requires pursuant to the preceding scmcnces can change during the term of the Loan. The insurance carrier providing the insurance shall hc chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall n.l hc 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-tm~c charge for flood zone determination and certification services and subsequent charges each time rcm: ppings or similar changes occur which reasonably might affect such determination or certification. B,~rruwcr shall also be responsible for the payment of any fees imposed by the Federal Emergency M',m:mcmcnt Agency in connection with the review of any flood zone determination resulting from an object i~m hy Borrower. If Borrower fails to maintain any of the coverages dcscrihc'd 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 amount of coverage. Therefore, such covcra!:,c shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or thc comcnts of the Property, against any risk, hazard or liability and might provide greater or lesser covet'aec than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so oblai~cd might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts dishm'scd by Lender under this Section 5 shall become additional debt of Borrower secured by this Security h~slrmncnt. These amounts shall bear interest at the Note rate from the date of disbursement and shall be pay',thlc, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals ul such policies shall be subject to Lender's right to disapprove such policies, shall include a standard m{~i[gagc clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have Ibc right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly g~vc ~ [.cndcr all receipts of paid premiums and renewal notices. If Borrower obtains any form Of insurance c.vc'rt~ge, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy sh~tll include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss pa3 cc In the event of loss, Borrower shall give prompt notice tu thc insurance carrier and Lender. Lender may make proof Of loss if not made promptly by Borrower. tlnlc,~s l~ender and Borrower otherwise agree ~n writing, any' insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restur~,i.n or repair is economically feasible and Lender's security is not lessened. During such repair and restor',ttt~m period, Lender shall have the right to hold such insurance proceeds until Lender has had an opporlttmt3 It) 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 rcs~.ration in a single payment or in a series of progress payments as the work is completed. Unless an ag]'cc~cnt is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender ~h',dl not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adju,~crs, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and sllztll bc the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's ~ccurity would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Insu-um~nt, whether or not then due, with 614 5 9 8 ,,,~,~:~ (~-6A(WY) {0o0~).o2 ~'.~e ~ o~ ~,~ Form 3051 1/01 the excess, if any, paid to Borrower. Such insurance proceeds shall he al)plied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, ~cgotlatc and settle any available insurance claim and related matters. If Borrower does not respond withi~ 3() days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender ma3 l~c'g~tiate and settle the claim. The 30-day period will begin when the notice is given. In either event, t)r if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lemlcr (a) Borrower's rights to ~y insur~ce proceeds in ~ ~ount not to exceed the ~ounts unpaid undc.~ tl~c Note or this Security Instrument, ~d (b) ~y other of Borrower's rights (other th~ the right to :,~ rcftmd of unearned premiums paid by Borrower) under all insur~ce policies covering the Property, ins,fi'ar as such rights are applicable to the coverage of the Property. Lender may use the insur~ce proccc, d~ t'ilher to repair or restore the Property or to pay ~ounts unpaid under the Note or this Security Instmmc,~, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and usc the Property as Borrower's princ~pfl residence within 60 days after the execution of this Security h~slmmcnt and shall continue to occupy the Property as Borrower's principal residence for at least one year :dtcr the date of occup~cy, uNess Lender otherwise agrees in writing, which consent shall not be umcas~mably wit~eld, or unless extenuating circumst~ces exist which are beyond Borrower's control. 7. Preservation, Maintenance and ~oteetion of the l'r~q)erl),; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Propert3 m deteriorate or co--it waste on the Property. ~ether or not Borrower is residing in the Properb, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing m value due to its condition. Unless it is determined pursuit to Section 5 that repair or restoration is n,~t economically feasible, Borrower shall promptly repair the Property if d~aged to avoid ~rthcr dc'tut;oration or d~age. If insur~ce or condemation proceeds are paid in co~ection with d~age m, ~r thc taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only ~ Lender has released proceeds for such pu~oses. Lender may disburse proceeds for the repairs ~d rcst.r~t~i(m m a single payment or in a series of progress payments as the work is completed. If the ~nsur~ce Ol c.ndcmnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved o1' lSt~l'lt)xvof's obligation for the completion of such repair or restoration. Lender or its agent may m~e reasonable entries upon ~u~C. inspections of the Property. If it has reasonable cause, ~nder may inspect the interior of the impro~ cHic~lts on the Property. Lender shall give Borrower notice at the time of or prior to such ~ interior ~nspcct ~, m spec;lying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be m default if, during the Lo~ application process, Borrower or ~y persons or entities acting at the dire'ct;on of Borrower or with Borrower's ~owledge or consent gave materially false, ~sleading, or inacct~ra~c inlbrmation or statements to Lender (or failed to provide Lender with material info,at;on) in COlmection with the Lo~. Material representations' include, but are not li~ted to, representations c'~mccrnlng Borrower's occup~cy of the Property as Borrower's principal residence. 9. Protection of Lender's ~terest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the coven~ts ~d agreements con,,mod in this Security Instrument, (b) there is a legal proceeding that might signific~tly affect Lender's intcrcs~ in tl~e Property ~d/or rights under this Security Instrument (such as a proceeding in b~mptcy, pr. Irate, for condemation or forfeiture, for enforcement of a lien which may attain priority over this SL'CUx'it3' Instrument or to enforce laws or regulations), or (c) Borrower has ab~doned the Property, thc~ l.cnder may do ~d pay for whatever is reasonable or appropriate to protect Lender's interest in thc' 'mt)crty and rights under this Security Instrument, including protecting ~d/or assessing the value of ~l~c Property, ~d securing ~d/or repairing the Property. Lender's actions c~ include, but are not limited to: (a) paying ~y sums secured by a lien which has priority over this Security Instrument: (b) appearing m court; ~d (c) paying reasonable 6X4598 ~ ~6A(WY) (0005).02 Page 7 of 15 Form 3051 1/01 0, .85 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 thc Property includes, but is not limited to, entering the Property to make repairs, change locks, replace ~n' bL>ard up doors and windows, drain water from pipes, eliminate building or other code violations .or dan~crotts conditions, and have utilities turned on or off. Although Lender may take action under this Section '~, I.cndcr does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender mom's no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 sh.,dl become additional debt of Borrower secured by this Security Instrument. These amounts shall bear tmcrcst at the Note rate from the date of disbursement and shall be payable, with such interest, upon n~ttc'c l'l'Oln Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leaschL,Id and the fee title shall not merge unless Lender agrees to the merger ~n writing. 10. Mortgage Insurance. If Lender required Mortgage hbm'ancc as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mort;'<,'c Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases mbc available from the mortgage insurer that previously provided such insurance and Borrower was required it~ make separately designated payments toward the premiums for Mortgage Insurance, Borrower sh.,dl pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivatcm Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amoum {~l' the separately designated payments that were due when the insurance coverage ceased to be in effect l.cnclur will accept, use and retain these payments as a non-refundable loss reserve in lieu of Men .... c Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the'Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss rcsc~ve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amotml and for the period that Lender requires) provided by an insurer selected by Lender again becomes availal31e, is obtained, and Lender requires separately designated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Bm'rower 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 an,. writttm agreement between Borrower and Lender providing for such termination or until termination is rcqtdrcd by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at thc ra~c provided in the Note. Mortgage Insurance reimburses Lender (or any entity l[~:tt pm'chases the Note) for certain losses it may ~ncur if Borrower doe's not repay the Loan as agreed, lh~rrowcr is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such msm':tncc m force 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 mortgagc insurer and the other party (or parties) to these agreements. These agreements may require the mortgage rosin'er to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser t~f ibc 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 Bornm'cr'., payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's ri~k, t~r reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insm-cr's risk in exchange for a share of the prermums paid to the insurer, the arrangement is often termed "c:~l,t ~vc reinsurance." Further: (a) Any such agreements will not affect the amoums that 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 nol entitle Borrower to any refund. (~}~-6A(WY) 1ooo51.o2 Page 8 of t5 Form 3051 1/01 (b) Any such agreements will not affect the rights lh}r,'mvcr has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Acl ~1' 1998 or any other law. These rights may include the right to receive certain disclosures, to rt, lucst and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance termi~ated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unt.:u'ncd at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture...\11 Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds ~hall be applied to restoration or repair of the Property, if the restoration or repair Is economically fca~il~lc and Lender's security is not lessened. During such repair and restoration period, Lender shall have thc nght to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Propert) t~ c:~surc the work has been completed to Lender's satisfaction, provided that such inspection shall be tmdc~t~kc,~ promptly. Lender may pay for the repairs and restoration in a single disbursement or in a scnc~ of progress payments as the work is completed. Unless an agreement is made in writing or Applicabl,. I.aw requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay I{~,'rower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not ecom,mcally feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to thc ~mn~ secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrmx ct. 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 xaluc of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Securii3 [t~qrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in vah~e ~,f the Property in which the fair market value of the Property immediately before the partial taking, dC~ll'UCtion, or loss in value is equal to or greater than the amount of the sums secured by this Securily h~Irumcnt ilxunediately before the partial taking, destruction, or loss in value, unless Borrower and Lc'ndcr otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by thc amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount o1' l~c sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in vahic Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in vahlc t~l' th~ Property in which the fair market value of the Property immediately before the partial taking, tk'~lm~tion, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscelhmct~t~s Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums arc then due. If the Property is abandoned by Borrower, or if, aftc~ nt~cc by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to m~tkc an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to re.~tt,'~ttitm or repair of the Property or to the sums secured by this Security Instrument, whether or not then dtnc. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whtma Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, x, hcthcr civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property ,~r other material impairment of Lender's interest in the Property or rights under this Security Instrument. Bt,'rower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, bx causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes I'oxTciture of the Property or other material impairment of Lender's interest in the Property or rights under tlx~s Security Instrument. The proceeds of any award or claim for damages that are attributable to the impa~x'mcnt of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to rcst~n'alttm or repair of the Property shall be applied in the order provided for in Section 2. 63.4598 (~)~-6AIW Y ){00o51.o2 Pagegof15 Form 3051 1101 12. Borrower Not Released; Forbearance By Lender N.t a Waiver. Extension of the time for payment or modification of amortization of the sums secured Iix this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not t,peratc 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 of Borrower or to refuse to extend tm~e tbr payment or otherwise modify amortization of the sums secured by this Security Instrument b5 re,son of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbe',tr'dnce by Lender in exercising any right or remedy including, without limitation, Lender's acceptance el payments from third persons, entities or Successors in Interest of Borrower or m amounts less than the 'amtmnt 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 jotul :md several However, any Borrower who co-signs this Security Instrument but does not execute thc N~tc (a "co-signer"): (a) is co-sigmng this Security Instrument only to mortgage, grant and convey thc co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligmcd to p,'ty 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 Sccm'ity lnstrmnent or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Succcss~r in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrumcm. Borrower shall not be released from Borrower's obligations and liability under this Security Instrumcllt unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees it~r sc'rvices performed in connection with Borrower's default, for the purpose of protecting Lender's imct'est m the Property and rights under this Security Instrument, including, but not limited to, attorneys' t'ccs, property inspection and valuation fees. In regard to any other fees, the absence of express anthority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on tile ch:~t'ging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or b) :\ pplicable Law. If the Loan is subject to a law which sets maximum loan ch:.'ges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected m connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be recluccd by tile amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected l'rom Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to mz~kc this refund by reducing the principal owed under the Note or by making a direct payment to Borr~wcr. If a refund reduces principal, the reduction will be treated as a partial prepayment without atiy I~rcpayment charge (whether or not a prepayment charge is provMed 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 n ctmnection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail ~,r when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borl'OSx cr shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The n.~cc address shall be the Property Address unless Borrower has designated a substitute notice address by not,ce to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifics a procedure for reporting 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 ~cct:nty Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing ~ by first class mail to Lender's address stated herein unless Lender has designated another addrcs, I% nouce to Borrower. Any notice in connection with this Security Instrument shall not be deemed ~ have been given to Lender until actually received by Lender. If any notice required by this Security h~strumcnt is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. ~/i ~!' ~ 614598 (~}~-fiA(WY) 10005}.02 Page 10 of 15 Form 3051 1/01 0£88 16. Governing Law; Severability; Rules of Conslr,cliou. This Security Instrument shall be governed by federal law and the law of the jurisdiction in x~hlcl the Property is located. All rights and obligations contained in this Security Instrument are subj,'ct t. ~my requirements and limitations of Applicable Law. Applicable Law might explicitly or. implicitl3 zdlow the parties to agree by contract or it might be silent, but such silence shall not be construed as a l)~fldhition 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 ~c't'uruy Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of thc m:tsculine gender shall mean and include corresponding neuter words or words of the feminine gender: ~1)) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" g~-~ sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be g~ven one cop3 ~ I' ~l~c Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Intere~l i~ Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest m the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, c,,~tr~ct lbr deed, installment sales contract or escrow agreement, the intent of which is the transfer of title hv Ig,~rrower at a future date to a purchaser. If all or any part of the Property or any Interest in the [;rt,[3urty is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower i~ ~t,ltl or transferred) without Lender's prior written consent, Lender may require immediate payment m l'ull of all sums secured by this Security Instrument. However, this option shall not be exercised hx I.cndcr if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrt~xvcr nouce of acceleration. The notice shall provide a period of not less than 30 days from the date the u,~icc is given in accordance with Section 15 within which Borrower must pay all sums secured by this .qc'~'urity Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender m,~ invoke any remedies permitted by this Security Instrument without further notice or demand on Borrox~ cr 19. Borrower's Right to Reinstate After Accelerali,,,. It' Borrower meets certain conditions, Borrower shall have the right to have entbrcement of this ,'-;cc'm'ily Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Properu l~m'suant to any power of sale contained in this Security Instrument; (b) such other period as Applicalflc, l.:~w might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment cnl't~rcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums x~luc'h then would be due under this Security Instrument and the Note as if no acceleration had occurred; (Ii) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this ~%curily Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valu:~tit~n l'ccs, and other fees incurred for the purpose of protecting Lender's interest in the Property and ri?ht~ under this Security Instrument; and (d) takes such action as Lendef may reasonably require to assure theft Lender's interest in the Property and rights under this Security Instrument, and Borrower's oblig~tt,,~ to l)~y the sums secured by this Security Instrument, shall continue unchanged. Lender may require th,st l]orrower pay such reinstatement sums and expenses in one or more of the following forms, as selected h~ I.cnder: (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, ~lrUmel~tality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Securil, Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred I luwcver, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice o1' (;ricva~ce. The Note or a partial interest in the Note (together with this Security Instrument) can be sohl ~nc or more times without prior notice to Borrower. A sale might result in a change in the entity ~k~,~xvu ~s the "Loan Servicer") that collects Periodic Payments due under the Note and this Security h~lrtuucnt and performs other mortgage loan servicing obligations under the Note, this Security Instrumc~t~ mid Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale ,~ mc 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 hc m.,~dc and any other information RESPA (~-6A(WY){ooos}.o2 P~g~ o1~5 Form 3051 1/01 O 3OGO Z 0289 requires in connection with a notice of transfer of servicing. [1' thc Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Nt~c, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by Iht Note purchaser. Neither Borrower nor Lender may commence, join, or hc ~oined to any judicial action (as either an individual litigant or the member of a class) that arises fi',~ thc otht:r party's actions pursuant to this Security Instrument or that alleges that the other party has brc',tchcd any provision of, or any duty owed by reason of, this Security Instrument. until such Borrower or l.c.der 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 .~ ~,uch notice to take corrective action. If Applicable Law provides a time period which must elapse I)cl'~.'e 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 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy ~l~e not,ce 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, pollutam,, t,- wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestt~ or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of thc .itir~sdiclion where the Property is located that relate to health, safety or environmental protection; (c) "Enx i~,mmental Cleanup" includes any response action, remedial action, or removal action, as defined in Enx iromnental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, m' otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, di~l)t~sal, storage, or 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 ,,,, that 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 sto~t,~c on the Property of small quantities of Hazardous Substances that are generally recognized to be :q~propriate to normal residential uses and to maintenance of the Property (including, but not limited to, ha/;trdous substances m consumer products). Borrower.shall promptly give Lender written notice of ~t~ ~my investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or l~rtvate party involving the Property and any Hazardous Substance or Environmental Law of which B~rrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any sp:ll~:~g, 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 thc lh'operty. If Borrower learns, or is notified by any governmental or regulatory authority, or any private i,zH'ty, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nt,llfing herein shall create any obligation on Lender for an Environmental Cleanup. (~II~-6AlWY} ,ooo5l.o2 Page t2 of 15 Form 3051 1/01 ,-.90 NON-UNIFORM COVENANTS. Borrower and Lender rurthcr covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to I~orrower prior to acceleration following Borrower's breach of any covenant or agreement ' in the Nccurity h]strument (but not prior to acceleration under Section 18 unless Applicable Law provide~ ol hcrwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a da~c, not less than 30 days from the date the notice is given to Borrower, by which the default musl hv cured; and (d) that failure to cure the default on or before the date specified in the notice may rc~ul~ in acceleration of the sums secured by this Security Instrument and sale of the Property. The noHcc shall further inform Borrower of the right to reinstate after acceleration and the right to bring a c,u,q action to assert the non-existence of a default or any other defense of Borrower to acceleration a,nl sale. If the default is not cured on or before the date specified in the notice, Lender at its option ma~ require immediate payment in full of all sums secured by this Security Instrument without furlhcr demand and may invoke the power of sale and any other remedies permitted by Applicable La~. Ix, nder shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Nedion 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give m,(ice of intent to foreclose to Borrower and to the person in possession of the Property, if differcul, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the ma,~nt,,' provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in lhe ma,ruer prescribed by Applicable Law. Lender or its designee may purchase the Property at m,) sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of Ihv sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrmnent; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Sccuruy Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation COSlS l.cndcr may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to ,, Ihird party for serwces rendered and the charging of the fee ~s permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights Ulldcr and by virtue of the homestead exemption laws of Wyoming. (~-6A(WY) (0005),02 Page 13 of 15 Form 3051 1/01 BY SIGNING BELOW, Borrower accepts and agrees t~ thc terms and covenants contained in this Security Instrument and in any Rider executed by Borrower alld recorded with it. Witnesses: Mi~ae i 'J '"C/~o o~,~w''/ //"/ -Borrower Rachel M. Cooper -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 614598 (~6AlWY) (ooos}.o2 Page 14 of 15 Form 3051 1/01 0092 STATE OF WYOMING,~/t~~( The foregoing instrument was acknowledged before me by Michael J Cooper & Rachel M. Cooper County ss: My Commission Expires: ~.._ ~~ 614598 PaDel~ofl$ Form 3051 1/01 EXHIBIT A Lot 26 of the Bear Hollow Twin Homes Subdivision Second Filing, Lincoln County, Wyoming as described on the official Plat No. 131-D filed March 14, 2003 as Instrument No. 888460 of the records of the Lincoln County Clerk. ADJUSTABLE RATE RIDER to Sccu rity Instrument (LIBOR 6 Month Index - As Published in The II ',ti! 3'tr,,et Journal - Rate Caps) (To Be Recorded Together with Scc'tt i·il)' [rlstrument) THIS ADJUSTABLE RATE RIDER is made this 2nd day of December, 2004 and incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust Or Sect,'%' Dccd (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's .\~[justable Rate Note (the "Note") to EquiFirst Corporation (the "Lender") of the same date and covering the propen3 described in the Security Instrument and located at: 435 Grizzly Road, Thayne, \V'f 83127 (property address) THE NOTE CONTAINS PROVISIONS ALLOWING FOR CtI.\N(;ES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT 1'111:. BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM AND MI N lXltlSI RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Seem·it,, Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTItLY PAYMENT CHAN( ;ES The Note provides for an initial interest rate of 6.000 %. Thc N,~tc provides for changes in the interest rate and the monthly payment as follows: (A) Change Dates The interest rate I will pay may change on Januar~ I, 2007 and on that day every sixth month thereafter. Each date on which my interest rate ctmld change ~s called a "Change Date". (B) The Index Beginning with the first Change Date, my interest r~ate will be based on an Index. The "Index" is the average of interbank offered rates lbr six-month U.S. dollar-denominated deposits in the London market ("LIBOR"), as l~uhllshcd in The Wall Street Journal. The most recent Index figure available as of the fi~-st business day of the month immediately preceding the month is which the Change Date oc~H s ~s the "Cun-ent Index." If the Index is no longer available, the Note Holdc~ will choose a new index that is based upon comparable information. The Note Holder x~ll g~ ye me notice of this choice. (C) Calculation of Changes Before each Chan~e Date, The Note Holder will c.,tlcttl:~t~ nay new interest rate by adding 6.160 porcentage points (6.160 %) to the Current Index 'Iht No[e Holder will then round the result of this addition to the nearest one-eighth of one pcrcc~tt[tuc point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount xxill'~¢ my interest rate until the next Change Date. The Note Holder will then determine the ankm~t t~l~ thc monthly payment that would be sufficient to repay the unpaid principal that I am cxpuctcd to owe at the Change Date in full on the Maturity Date at my new interest rate in sub~l,mtk~lly equal payments. The result of this calculation will be the new amount of my monthl3 2,t~ ment (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 9.000% or less than 6.000%. Thereafter, my interest rate xxlll never be increased or decreased on any single Change Date by more than one percentage p,,im(s) (1.00%) the rate of interest I have been paying for the preceding six months. My int~q cst rate will never be greater than 12.000 % or less than the initial interest rate provided for ~ Ncction 2 of this Note. 614598 EF0611 (05/02) Page 1 of 2 ~0 (E) Effective Date of Changes My new interest rate will become effective on c~c'h Change Date. I will pay the amount of my new monthly payment beginning on Irc first monthly payment date after the Change Date until the amount of my monthly p~).mcnt changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a not}cc ~}l' any changes in my new interest rate and the amount of my monthly payment befi,'c thc effective date of any change. The notice will include information required by laxx to be given me and also the title and telephone number of a person who will answc "'5' question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICI..\ k INTEREST IN BORROWER Uniform Covenant 17 of the Security Instrument is amended ;,, read as follows: Transfer of Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person), without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sumq scout-ed by this Security Instrument. However, this option shall not be exercised by Lender ifexcrciqc s prohibited by federal law as of the date of this Security Instrument. Lender also shall not exercise th~s option if: (a) Borrower causes to be submitted to Lender information required by Lender to evalualc t lac. intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably dclcmfincs that Lender's secm-ity will not be impaired by the loan assumption and that the risk of a b,'c;~clx o1' any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by applicable law, Lender may chmgc a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also rcqtm c the transferee to s~gn an assumption agreement that is acceptable to Lender and that obligates to thc transferee to keep all the promises and agreements made in the Note and in the Security Instrumeut. I lt,rrower will continue to be obligated under the Note and this Security Instrument unless Lender relcasc~ Borrower in writing. If Lender exercises the option to require inmaediate payment m full, Lender shall give Borrower notice of acceleration. The notice shall provide a period ol' not less than 30 days from the date the notice is delivered or mailed within which Borrower musl l):~y 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 Insta-umcnt xx ilhout fm-ther notice or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the term.s ~md covenants contained in this Adjustable Rate Rider. Rachel 614598 EF0612 (5/02) Page 2 of 2 ADJUSTABLE IL4TE INTEREST RATE FLOOR & PREPAYMENT PENALTY Rider to Security Instrument (To Be Recorded Together with Security Instrument) This ADJUSTABLE INTEREST RATE FLOOR & PREPAYMENT PENALTY RIDER (the "Rider") is made this 2nd day of December, 2004, and amends the Mortgage, Deed of.Trust or Security Deed (the "Security Instrument") dated the same date and given by the person(s) who signs below (the "Bon'ower(s)") to EquiFirst Corporation (the "Lender") to secure prepayment of a Note in the amount of U.S. $ 180,000.00. In addition to the agreements and provisions made in the Note and the Security Instrument, and notwithstanding any provisions to the contrary contained in said Note or the Security Instrument, both the Borrower(s) and the Lender further agree as follows ADJUSTABI~E INTEREST RATE FLOOR This loan has an Interest Rate "Floor" which will limi! the amount the Interest Rate can decrease. Regardless of any changes in the index, the Interest Rate during the term of this loan will never be less than the initial Interest Rate provided for in Section 2 of the Note. PREPAYMENT PENALTY IfI prepay this loan in full within 2 year(s) fi'om the date of this loan, I agree to pay a prepayment penalty in an amount equal to 6.00% of the balance of the loan outstanding on the date of prepayment. This amount, known as a prepayment penalty, will be in addition to any other amounts I may owe nnder the prowsions of the Note or the Security Instrument that secures the Note. If I make a prepayment in fifll on or after the 2nd anniversary date of the Note, the Note Holder will impose no prepayment penalty. h~'i J Coop~ ~ Rachel M. Cooper 614598 EF058 (05/02)