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HomeMy WebLinkAbout905129After Recording Return To: COUNTRYWIDE HOME LOANS, INC. MS SV-79 DOCUMENT PROCESSING P.O.Box 10423 Van Nuys, CA 91410-0423 Prepared By.' JOHN LECKY [Space Above This Line For Recordi,,g FA12549OM !Escrow/Closing #] MORTGAGE 0008537058512004 [Doc ID #] MIN 10~3157_0004514571_7 RECEIVED 12/9/2004 a[ 3:17 PM RECEIVING # 905129 BOOK: 574 PAGE 391 JEANNE WAG NER LINCOLN COUNTY CLERK KEMMERER. WY DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used hi Ibis documenl are also provided in Section 16. (A) "Security Instrument" means this document, which is dated with all Riders to this document. (B) "Borrower" is MICHAEL TRAUGHBER, AND CINDY TRAUGHBER, HUSBAND AND WIFE DECEMBER 03, 2004 , together J Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MER5; ~s a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns MI£RS is the mortgagee under this Security Instrument. MERS is organized and existing under the lax~, of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. (D) "Lender" is AMERICA' S WHOLESALE LENDER Lender is a CORPORATION organized and existing under the laws of NEW YORK Lender's address is P.O. Box 660694, Dallas, TX 75266-0694 (Iil) "Note" means the promissory note signed by Borrower and daled DECEMBER 03 2004 The Note states that Borrower owes Lender ' ' FORTY FIVE THOUSAND and 00/100 Dollars (U.S. $ 45,000.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than JANUARY 01, 2025 (F) "Property" means the property that is described below under thc heading "Transfer of Rights in the Property." WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WITH MERS Page 1 of 11 (~®-6A(WY) (0005) CHL (08/00)(d) VMP MORTGAGE FORMS- (800)521-729~ CONVNA nitials: ~ T Form 3051 1/01 ' 2 3 9 9 I * 085370585000002006A- DOC ID ~i: 0008537058S12004 (G) "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. ~ "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]: F-~ Adjustable Rate Rider F-] Condominium Rider [ -~ Second Home Rider ~ Balloon Rider [~ Planned Unit Development Rider x i 1-4 Family Rider [--] VA Rider [--] Biweekly Payment Rider ~ Other(s) [specify] (I) "Applicable Law" means all controlling applicable federtd, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (IO "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a Iinancial institution to debit or credit an account. Such term includes, but is not limited to, point-ot'-.,',dc transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and autt,nated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlemcm, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverwcs described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taki.g o1' all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations o1'. o,' omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender a~mllst the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount d,c for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instru m c~t. (P) "RESPA" means the Real Estate Settlement Procedures Act ,I 2 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as thc3 might be amended fi.om time to time, or any additional or successor legislation or regulation that govern.~ thc same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and rc~lrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualil'y its a "federally related mortgage loan" under RESPA. (Q) "Successor in Interest of Borrower" means any party that h~t, taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/t,' tl~is Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment o1' thc Loan, 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 d,cs hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and itssigns) and to the successors and assigns of MERS, with power of sale, the following described property located i, the COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] LOTS 1 AND 2 OF BLOCK A OF THE RIVERVIEN ADDZTI_ON TO THE TONN OF LABARGE,FORMERLY TULSA,LINCOLN COUNTY,WYOMING AS DESCRIBED ON OFFICIAL PLAT THEREOF. Parcel ID Number: Wyoming 8 3 12 3 [Zip Code] 113 BLAKE ST, LA BARGE [Street/City] ("Property Address"): which currently has the address of (~-6A(VVY) (0005) CHL (08/00) Page 2 of 11 Initials: . . . Form 3051 1/01 DOC ID ~: 0008537058512004 TOGETHEK WITH all the improvements now or hereafter creeled on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. ~\1 replacements and additions shall also be covered by this Security Instrument. All of the foregoing is roi'erred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds t,~h legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply x~ ith law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to excrc~,c an3 or all of those interests, including, but not limited to, the right to foreclose and sell the Property; a~d lo take any action required of Lender including, but not limited to, releasing and canceling this Security Inslrtm~ent. BORROWER COVENANTS that Borrower is lawfully seised t~l' tile 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 gencr',~lly the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covcn~tnts l~or national use and non-uniform covenants with limited variations by jurisdiction to constitute a lmil'tu'm security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and ,tgree tis follows: 1. Payment of Principal, Interest, Escrow Items, Prepaymt. nt Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt cxidcnccd by the Note and any, prepayment charges and late charges due under the Note. Borrower shall also pa3 funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security h~.slrtHncnt shall be made in U.S. currency. However, if any check or other instrument received by Lender tls p',~)mcnt under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more o1' ~hc following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured b3 a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the ocation designated in the Note or at such other location as may be designated by Lender in accordance with tl~c nouce provisions in Section 15. Lender may return any payment or partial payment if the payment or pm'tiztl pa5 ments are insufficient to bring the Loan current. Lender may accept any payment or partial paymcm insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to rclhse such payment or partial payments in the future, but Lender is not obligated to apply such payments at thc time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then I~cmlcr need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied It) the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Bc~rrower might have now or in the future against Lender shall relieve Borrower fi.om making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Securit3 Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following t,rclcr of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Sccticm 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. An3 remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinqt~ent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may bc applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lcmlcr may apply any payment received fi.om Borrower to the repayment of the Periodic Payments if, and to thc extent that, each payment can be paid in full. To the extent that any excess exists after the payment is ztpplicd to the full payment of one or more Periodic Payments, such excess may be applied to any late cha~-gcs due Voluntary prepayments shall be applied first to any prepayment charges and then as described in thc Note. Any application of payments, insurance proceeds, or Misccll,mcous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amotmt, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender ~m thc clay Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to pre, vide For payment of amounts due for: (a) taxes and assessments and other items which can attain priorit3 over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rcnls on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the pa)ncnt of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are call cd "lEscrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, Ices and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts ~t~ bc paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation tt~ pit3 to Lender Funds for any or all Escrow Initials: ~ (~®-6A(WY) (0005) CHL (08/00) Page 3 of 11 Form 3051 1101 DOC ID #: 0008537058512004 Items at any time. Any such waiver may only be in writing. In the cv~..nt of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrox~ llcms for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to I.cndcr receipts evidencing such payment within such time period as Lender may require. Borrower's obligation ~o make such payments and to provide receipts shall for all purposes be deemed to be a covenant m~,l ,greement contained in this Security Instrument, as the phrase "covenant and agreement" is used in $cctitm 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay tile amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amom~t and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may rc\'oke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 amt. upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required trader Ibis Section 3. Lender may, at any time, collect and hold Funds in an amount U*~ stifficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed thc na×imum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due oil fl~e basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are in~m'cd by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits m-e so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Itcm.s no litter than the time specified under RESPA. Lender shall not charge Borrower for holding and applying thc Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borroxx cr imcrcst on the Funds and Applicable Law permits Lender to make such a charge. Unless an' agreemcm 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. Ihat interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting tH'the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under I~l:S PA, Lender shall account to Borrower for the excess funds in accordance with RESPA~ If there is a shorlage 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 RIiNPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as del]nod under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lemlcr tile amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 month I) pa> ments. Upon payment in full of all sums secured by this Security Instrtm~ent, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrtnnc~ll. leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner prox idcd in Section 3. Borrower shall promptly discharge any lien which has priurit5 over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured b) tile 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 I.ender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but onlx t,ntil such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactor> lo Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Properb is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower ~t notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien 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 for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the ~crm "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences cm~ change during the term of the Loan. The insurance carrier providing the insurance shall be chosen b> Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised tmrcasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge lbr flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible l't~ the payment of any fees imposed by the Federal Emergency Management Agency in connection with tile review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described z~bove, 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 coverage shall cover l~cnder, but might or might not protect Borrower, Borrower's equity in the Property, or the contents ol' thc Property, against any risk, hazard ~-6A(WY) (0005) CHL (08/00) Page 4 of 11 Form 3051 1101 ,- 0395 DOC ID #: 0008537058512004 or liability and might provide greater or lesser coverage than was previousl) ii] effect. Borrower acknowledges that the cost of the insurance coverage so obtained might signilic',mtly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section $ shall become additional debt of Borrower secured by this Security Instrument. These amoun~ shal bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upoll notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such p~licies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold thc policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipt~ ol' p',tid 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 lnOrt~ge 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 in~tmmcc carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless I_cndcr and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration ,,- repair is economically feasible and Lender's security is not lessened. During such repair and restoration ix'rind. Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspectitm shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a §ingle pa)mcnt or m a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to Pe ltort'ower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained hx Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Bornmcr. Il' the restoration or repair is not economically feasible or Lender's security would be lessened, the instmmce proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, xx ith the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in ~cction 2 If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to ,~ notice fi'om Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and ~cttle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights ~o any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security lubh'tm~eUt, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid b) Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the cm'crage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pa} mnounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the DrOl)crty as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, ur un less extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall m~intain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condk ion. Uuless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrox~ cr shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance t,- condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrmvcr shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such Imrposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series t)[' progress payments as the work is completed. If the insurance or condemnation proceeds are not stH)'icicnt to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvement, on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection Sl~ecifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in defauh ill during the Loan application process, Borrower or any persons or entities acting at the direction of Borrtm cr or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information tlr statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy uf tl~e Property as Borrower's principal residence. (~®-6A(WY) (0005) CHL (08/00) Page 5 of 11 Form 3051 1101 0396 DOC ID ~: 0008537058512004 9. Protection of Lender's Interest in the Property and Righls lieder this Security Instrument. If(a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in ~he 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 Sccm'ity Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, thee I tinier may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of the Properly, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Se6urity Instrumem, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drnin xv~tcr fi'om pipes, eliminate building or other code violations or dangerous conditions, and have utilities turnc*d on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actit,ns 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 bear interest at thc Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to l~orrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall ct,reply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehbld and the I(*e title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insur~mcc as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be ~x~tilable from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay tl~c premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in efli'ch z~t ~ cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, fi'om ~m nlternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments ~h~t were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these p% m~'nts 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 ultimately paid in full, and Lender shall not be required to pay Bt~rrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments il' Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an i~sm'cr selected by Lender again becomes available, is obtained, and Lender requires separately designated p% mcnts toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition ~d' making the Loan and Borrower was required to make separately designated payments toward the premimns tbr Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in c flZ~ct, o,' to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends i, accordance with any written agreement between Borrower and Lender providing for such termination or ttmil termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay imcrest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is no; ~ party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in three from time to time, and may enter into agreements with other parties that share or modify their risk, ~r reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to ,~al, c payments using any source of funds that the mortgage insurer may have available (which may include l'tmds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of thc N~te, 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 lbr Mo~gage 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 insurers risk in exchange I'~r a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will n.l increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrowe,- ~o any refund. (~®-6A(WY) (0005) CHL (08/00) Page 6 of 11 Form 3051 1/01 : Ojg, DOC ID ~: 0008537058512004 (b) Any such agreements will not affect the rights Borr{mer has - if any - ~vith respect to the Mortgage Insurance under the Homeowners Protection Act of I()t)8 or any other law. These rights may include the right to receive certain disclosures, to request and .htain cancellation of'the Mortgage Insurance, to have the Mortgage Insurance terminated automalically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time ~H' 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 shall bc applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened During such repair and restoration period, Lender shall have the right to hold sucl Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender ma.~ pa) for the repairs and restoration in a single disbursement or in a series of progress payments as the xx ork is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such M~ccllaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whethc~ .r not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in thc order provided for in Section 2. In the event of a total taking, destruction, or loss in value of thc l~ropetxy, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, xx hcther or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of Ibc Property in which the fair market value of the Property immediately before the partial taking, destruction, ~,r h~ss in value is equal to or greater than the amount of the sums secured by this Security Instrument imm ed ia tel, before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in x~'r~ing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the p;,'tia[ taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately bc fore the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event ora partial taking, destruction, or loss in value of ~hc Ih'operty in which the fair market value of the Property immediately before the partial taking, destrnction, [~r I~*ss in value is less than the amount of the sums secured immediately before the partial taking, destructit,,~, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice bx l.ender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle, claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given. I,cndcr is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the th'operty or to the sums secured by this Security Instrument, whether or not then due. "Opposing Part)" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, xvhcther civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or othc, mmerial impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower c:m cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the act/tm or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Propcrt3 or other material impairment of Lender's interest in the Property or rights under this Security Instrument. l'hc proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest i~q the Property are hereby assigned and shall be paid to Lender, All Miscellaneous Proceeds that are not applied to restoration t,' ~'c pair of the Property shall be applied in the order provided for in Section 2. 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 by this gecm'ity Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate t t~ 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 time for pa)mcn! or otherwise modify amortization of the sums secured by this Security Instrument by reason of any dem',md made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender i~n c×crcising any right or remedy including, without limitation, Lender's acceptance of payments from third pcrst)ns, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "ct)-signer"): (a) is co-signing this Security (~®-6A(VVY) (0005) CHL (08/00) Page 7 of 11 Initials: ,,~'T'"- Form 3051 1/01 DOC ID #: 0008537058512004 Instrument only to mortgage, grant and convey the co-signer's intcJrc,t i~7 the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sum~ ~ccured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree lo extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest o£ Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approx cd by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrowei- shall m)l bc released from Borrower's obligations and liability under this Security Instrument unless Lender agrees m stroh release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided m S~ction 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees Ib~ services performed in connection with Borrower's default, for the purpose of protecting Lender's intercsl in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees. ~ropcrty inspection and valuation fees. In regard to any other fees, the absence of express authority in this Sooth it3 Iustrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging t)l' such fee Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applical~lc lxtw. If the Loan is subject to a law which sets maximum loan chm'~cs, and that law is finally interpreted so that the interest or other loan charges collected or to be collected it~ connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced b~ iht anlount necessary to reduce the charge to the permitted limit; and (b) any sums already collected fi.om Borrt~wcr which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund bx reducing the principal owed under the Note or by making a direct payment to Borrower. Ifa refund reduces priucipal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or nm a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund nmdc by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising oul of such overcharge. 15. Notices. All notices given by Borrower or Lender in co,mcction with this Security Instrument must be in writing. Any notice to Borrower in connection with this Sccurily Instrument shall be deemed to have been given to Borrower when mailed by first class mail or whc,~ actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shz, ll constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice add,'css shall be the Property Address unless Borrower has designated a substitute notice address by notice to l~cnder. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address thrtmg}l that specified procedure. There may be only one designated notice address Under this Security Instrument :~t any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lendc,"s address stated herein unless Lender has designated another address by notice to Borrower. Any notice n connection with this Security Instrument shall not be deemed to have been given to Lenddr until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, thc ~.xpplicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. '1 his Security Instrument shall be govemed 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 to any requircmcms and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to a~rcc by contract or it might be silent, but such silence shall not be construed as a prohibition against a?ccmcm 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 N~)lc which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) u t,rds in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of 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 ia ~hc Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract lb,' deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by Borrower ~tl ,, 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 sold or tr'~msferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exert ~sc is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrox~cr notice of acceleration. The notice shall provide a period of not less than 30 days from the date the not,cc is given in accordance with Section 15 within which Borrower must pay all sums secured by this Secur t> Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke ~m> remedies permitted by this Security Instrument without further notice or demand on Borrower. (~®-6A(WY) (0005) CHL (08100) Page 8 of 11 Initials: ~ "~"- Form 3051 1101 ,.., 0, 99 DOC ID ~: 0008537058512004 19. Borrower's Right to Reinstate After Acceleration. If B,~n',~x~ et' meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrun~c n discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to an'. power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specif3 fi~r the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument 'Fhose conditions are that Borrower: (a) pays Lender all sums which then would be due under this .qccurity Instrument and the Note as if no acceleration had occurred; Co) cures any default of any other covcmmts or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but m~t limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred fol' ~hc purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takc~ such action as Lender may reasonably require to assure that Lender's interest in the Property and ri~ht~ under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security lnsmm~cnt, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully el)~,ctivc as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleratitm under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grie~ :~ ncc. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or mt,re tithes without prior notice to Borrower. A sale might result in a change in the entity (known as th~ "Loan ~crx leer") that collects Periodic Payments due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There also m :ght be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of thc I.oan Servicer, Borrower will be given written notice of the change which will state the name and addres~ ~,t' thc new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is ~crviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to lh,n'm~ er will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed b3 the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be j~fincd to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any pmvi~ion of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified Ibc other party (with such notice given in compliance with the requirements of Section 15) of such alleged brc:~ch and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before 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 ptn'~uant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action proviskm~ ,~ r th is Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "l t,txm'dous Substances" are those substances del'reed as toxic or hazardous substances, pollutants, or wastes bx linvironmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdictitm where the Property is located that relate to health, safety or environmental protection; (c) "Environmental ('lcanup" includes any response action, remedial action, or removal action, as defined in Environmental L~x,. and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger ,~ F. nvironmental Cleanup. Borrower shall not cause or permit the presence, use, dispt~sal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or n the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) thal is in ~.iolation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to thc presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of thc Ih'operty. The preceding two sentences shall not apply to the presence, use, or storage on the Property o1' ~mall quantities of Hazardous Substances that are generally recognized to be appropriate to normal residenti:~ 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) anx investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or priwnc party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, Co) 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, usc 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 other' rcmcdiation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation ~m I~ender for an Environmental Cleanup. Initials: ~ (~®-6A(VVY') (0005) CHL (08J00) Page 9 of 11 Form 3051 1/01 0400 DOC ID #: 0008537058512904 NON-UNIFORM COVENANTS. Borrower and Lender further co~ cnan[ and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Ih,'rmvm- prior to acceleration following Borrower's breach of any covenant or agreement in this Nccurity Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date. n.t less than 30 days from the date the notice is given to Borrower, by which the default must be cured; ami (d) that failure to cure the default on or before the date specified in the notice may result in acetic, ration of the sums secured by this Security Instrument and sale of the Property. The notice shall I'urlher inform Borrower of the right to reinstate after acceleration and the right to bring a court action to ,~ssert the non-existence of a default or any other defense of Borrower to acceleration and sale. If thc dcfaul! 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 further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled ~o collect all expenses incurred in pursuing the remedies provided in this Section 22, including, b,t not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice .f intent to foreclose to Borrower and to the person in possession of the Property, if different, in accm'dauce with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed hy Applicable Law. Lender or its designee may purchase the Property at any sale. The.proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, includin'g, but m,~ limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) an)' excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Secmity Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Icndcr may 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 under and by virtue of the homestead exemption laws of Wyoming. BY SIGNING BELOW, Borrower accepts and agrees to thc tcr~ns and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: MICHAEL TRAUGHBER /~ -Borrower (Seal) -Borrowe~' (Seal) -Borrower (Seal) -Borrower (~®-6A(VVY) (ooo5) CHL (08100) Page 10 of 11 Form 3051 1/01 STATE OF WYOMING, Linco in The foregoing instrument was acknowledged before me this by Michael Traughber and Cindy Traughber Doc ID #: 0008537058512004 County ss: 6th day of December, 2004 My Commission Expires: February 2, 2006 Notary Public (~®-6A(WY) (0005) CHL (08/00) Pagell of 11 Initials: ~ Form 3051 1/01 (.. ,., 040 1-4 FAMILY RIDER (Assignment of Rents) AflerRecordNgRemm To: COUNTRYWIDE HOME LOANS, INC. MS SV-79 DOCUMENT PROCESSING P.O.Box 10423 Van Nuys, CA 91410-0423 PreparedBy: JOHN LECKY FA12549OM 0008537058512004 [Escrow/Closing I~] [Doc ID #] THIS 1-4 FAMILY RIDER is made this THIRD day of DECEMBER, 2004 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given b> thc undersigned (the "Borrower") to secure Borrower's Note to AMERICA' S WHOLESALE LENDER (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 11.3 BLAKE ST LA BARGE, WY 83123 [Property Address] 1-4 FAMILY COVENANTS. In addition to the covemm~s and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as lb ll ow s: MULTISTATE 14 FAMILY RIDER - Fannie Mae/Freddie Mac UNIFORM INSIRUMENT ~-57R (0401).01 CHL (06/04)(d) Page 1 of 3 VMP Mortgage Solutions, Inc. (800)521-729'1 23991* Initials: ..~/"7"'~ Form 3170 1/01 ' 0853 70585000002057R' 040° DOC ID #: 0008537058512004 A. ADDITIONAL PROPERTY SUBJECT TO THE SECt/RITY INSTRUMENT. In addition to the Property described in the Security Instrument, the following items ntm or hereafter attached to the Property to the extent they are fixtures are added to the Property description, and shall also constitute the Property covered by the Security Instrument: building materials, appliances and goods o£ every nature whatsoever now or hereafter located in, on, or used, or intended to be used in conneclio, with the Property, including, but not limited to, those for the purposes of supplying or distributing heating, cooling, electricity, gas, water, air and light, fire prevention and extinguishing apparatus, security and accczs control apparatus, plumbing, bath tubs, water heaters, water closets, sinks, ranges, stoves, refrigerators, dish\rashers, disposals, washers, dryers, awnings, storm windows, storm doors, screens, blinds, shades, curtains and curtain rods, attached mirrors, cabinets, paneling and attached floor coverings, all of which, including replacements and additions thereto, shall be deemed to be and remain a part of the Property covered by the Security Instrument. All of the foregoing together with the Property described in the Security Instrument (.r the leasehold estate if the Security "Property.Instrument" is on a leasehold) are referred to in this I-4 Family, Rider and the Security Instrument as the B. USE OF PROPERTY; COMPLIANCE WITH LAW. Borroxxer shall not seek, agree to or make a change in the use of the Property or its zoning classification, unless l.cnder has agreed in writing to the change. Borrower shall comply with all laws, ordinances, regulations and tcquh'ements of any govermnental body applicable to the Property. C. SUBORDINATE LIENS. Except as permitted by federal law, Borrower shall not allow any lien inferior to the Security Instrument to be perfected against the Property without Lender's prior written permission. D. RENT LOSS INSURANCE. Borrower shall maintain inst,'a,ce aeainst rent loss in addition to the other hazards for which insurance is required by Section 5. ~ E. "BORROWER'S RIGHT TO REINSTATE" DELETED. ~eclion 19 is deleted. F. BORROWER'S OCCUPANCY. Unless Lender and Borro~vcr otherwise agree in writing, Section 6 concern lng Borrower's occupancy of the Property is deleted. G. ASSIGNMENT OF LEASES. Upon Lender's request arier dc h,lt, Borrower shall assign to Lender all leases of the Property and all security deposits made in connection xvid~ leases of the Property. Upon the assignment, Lender shall have the right to modify, extend or terminate lhe existing leases and to execute new leases, in Lender's sole discretion. As used in this paragraph G, the x~ ord "lease" shall mean "sublease" if the Security Instrument is on a leasehold. H. ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION. Borrower absolutely and unconditionally assigns and transfers to Lender tilt the rents and revenues ("Rents") of the Property, regardless of to whom the Rents of the Property are payable. Borrower authorizes Lender or Lender's agents to collect the Rents, and agrees that each tenant of th e Property shall pay the Rents to Lender or Lender's agents. However, Borrower shall receive the Rents until: (i) l.ender has given Borrower notice of default pursuant to Section 22 of the Security Instrument, and (ii) Lender has given notice to the tenant(s) that the Rents are to be paid to Lender or Lender's agent. This assignmcm of Rents constitutes an absolute assignment and not an assignment for additional security only. If Lender gives notice of default to Borrower: (i) all Rents received b5 l~ot'rower shall be held by Borrower as trustee for the benefit of Lender only, to be applied to the sums secured by the Security Instrument; (ii) Lender shall be entitled to collect and receive all of the Rents of the Property; (iii) Borrower agrees that each tenant of the Property shall pay all Rents due and unpaid to Lender or I.ender's agents upon Lender's written demand to the tenant; (iv) unless applicable law provides otherwise, all Rents collected by Lender or Lender's agents shall be applied first to the costs of taking control of and managin~ d~e Property and collecting the Rents, including, but not limited to, attorneys' fees, receiver's fees, premiums on receiver's bonds, repair and (~)~-57R (0401).01 CHL (06104) Page 2 of 3 Initials: /~ Form 3170 1/01 DOC ID #: 0008537058512004 maintenance costs, insurance premiums, taxes, assessments and odwr charges on the Property, and then to the sums secured by the Security Instrument; (v) Lender, Lender's agent, t~r an y judicially appointed receiver shall be liable to account for only those Rents actually received; and (vi) Icnder shall be entitled to have a receiver appointed to take possession of and manage the Property and collccl tile Rents and profits derived fi.om the Property without any showing as to the inadequacy of the Property as security. If the Rents of the Property are not sufficient to cover the ct~,t~ of taking control of and managing the Property and of collecting the Rents any funds expended by I cndcr For such purposes shall become indebtedness of Borrower to Lender secured by the Security Instrumcm pm'suant to Section 9. Borrower represents and warrants that Borrower has not execmcd any prior assignment of the Rents and has not performed, and will not perform, any act that would prevent I.cnder fi*om exercising its rights under this paragraph. Lender, or Lender's agents or a judicially appointed receiver, bhall not be required to enter upon, take control of or maintain the Property before or after giving notice of dclh~,lt to Borrowen However, Lender, or Lender's agents or a judicially appointed receiver, may do so at any time when a default occurs. Any application of Rents shall not cure or waive any default or invalidate any other ri~ hl or remedy of Lender. This assignment of Rents of the Property shall terminate when all the sums secured bx ~l~e Security Instrument are paid in full. I. CROSS-DEFAULT PROVISION. Borrower's default or breach trader any note or agreement in which Lender has an interest shall be a breach under the Security Instrtm~cnt and Lender may invoke any of the remedies permitted by the Security Instrument. BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this 1-4 Family Rider, (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower (Seal) - Borrower ~-57R (0401).01 CHL (06~04) Page 3 of 3 Form 3170 1/01