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HomeMy WebLinkAbout905277After Recording Return To: CHERRY CREEK MORTGAGE CO., INC. 7600 EAST ORCHARD ROAD, #250N GREENWOOD VILLAGE, COLORADO 80111 RECEIVED 12/15/2004 at 10:37 AM RECEIVING # 905277 BOOK: 574 PAGE: 860 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY [Space Above This Line For Rec.,',li,~g Data] Loan Number 40500112 MIN# 100030200405001122 MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and ,,ther words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document :irc :dso provided in Section 16. (A) "Security Instrument" means this document, which is dated DKt:i~:MBER 10, 2004, together with all Riders to this document. (B) "Borrower" is JAMES D. TAYLOR, A SINGLE MAN and CliR1STOPHER M. TAYLOR, A SINGLE MAN. Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. M£R.q is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the m.rlgagee under this Security Instrument. MERS is organized and existing under the laws of Delaware, and has an addrc~,~ :md telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. (D) "Lender" is CIIERRY CREEK MORTGAGE CO., INC.. Lender is a CORPORATION organized and existing under the laws of COLORADO. Lender's address is 7600 EAST ORCHARD ROAD, #250N, GREENWOOD VILLAGE, COLORADO 80111. (E) "Note" means the promissory note signed by Borrower and dated DKCEMBER 10, 2004. The Note states that Borrower owes Lender ONE HUNDRED THIRTY-SEVEN TtIOUSAND TIIREE HUNDRED AND 00/100ths Dollars (U.S.$137,300.00) plus interest. Borrower has promised to pay this debt il~ 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 under the headMg "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest, any prc:p~yment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (It) "Riders" means all Riders to this Security Instrument that are c~×ccuted by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: [] Adjustable Rate Rider [] Condominium Rider [] Second Home Rider [] Balloon Rider [] Planned Unit Development Rider [] Prepayment Rider [] 1-4 Family Rider [] Biweekly Payment Rider WYOMING--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRU~ 1 ENT B~rr°we/ Io:~(page l~f lof lI pages) (I) "Applicable Law" means all controlling applicable federal, st~tc and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all al~pl icable 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, hom~:t~wners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other th~m a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telcI~h,mic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit :tn account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "Miscellaneous Proceeds" means any compensation, settlement award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i)damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of thc Property. (N) "Mortgage Insurance" means insurance protecting Lender against thc nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 1J.~.C. § 2601 et seq..) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (Q) "Successor in Interest of Borrower" means any party that has t:~kcn title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements trader this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property located in the County of LINCOLN : [Type of Recording Jurisdiction] [Name of Recording Jurisdiction l Lot Seventy-Two (72) in Star Valley Ranch Plat Twelve (12) as platted recorded in the official records of Lincoln County, Wyoming. which currently has the address of 587 ALPINE WAY [Street] TFIAYNE , Wyoming 83127- C Property Address"): [City] [Zip Code] 3NYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUIXlENT ForfllJ051' 1/01 (page 2 of ll pages) TOGETHER WITH all thc improvements now or hereafter erected on lhe property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additi~ms shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Pr~pcrty." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Securib, Instrument, but, 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 to foreclose and sell thc Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances'of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants fm m~fional use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree :~ fifllows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Chm'ges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and a~Lv prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuanLto Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment 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 of the followi~tg forms, as selected by Lender: (al cash; (b) money order; (el 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; {~r (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the locati~m designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in S~'ctitm 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the I~oan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any righls hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated t~ apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled duc date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes pa) mcnt to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such fitnds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against l.cnder shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the ct~vcnants and agreements secured by this Security 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 order of priority: (al inlcrcst due under the Note; (b) principal due under the Note; (el amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Bm'rower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in thc Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the dzty Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (al taxes and assessments and other items which can attain priority, over this Security Instrument as a lien or enct,mbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (el 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 tt~ l.cnder in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Communit) Association Dues, Fees, and Assessments, if any, be Borrower initial~~ ~'7~ WYOMING-Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT For~0~ (page-3~fll;ages) escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be 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 Eschew Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in Writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amotmts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish It~ Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to m'&e such payments and to provide receipts shall for all purposes be deemed, to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow hems directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such am{rant. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Scclion 3. Lender may, at any time, COllect and hold Funds in an amount (a) suft'icicnt to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lcmlcr can require under RESPA. Lender shall estimate the amount of Funds due on the 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.~urcd 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 the Escrow Items no later than the time specified trader RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender tt~ make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as def'med'under RI~.~PA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the am~ rant necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount'necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, I.cndcr shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens.' Borrower shall pay all taxes, assessments, charges, tines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extcat that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner ~cccptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (e) secures from the l,~lder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the 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 term "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 can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower Borrower Initial~~ ~F WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form/j~5~/'i/~ (page 4 ofll pages) to pay, in connection with this Loan, either: (a) a one-time charge tbr flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and cc~lification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, I_ender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amoum of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower aelmowledges that the cost of the insurance coveragt: so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by [.cnder under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lcmler to Borrower requesting payment. All insurance policies required by Lender and renewals of such polick's 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 the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower ,~blains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be 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 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 inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to bc paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be thc sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, thc insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle m~y available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender thai II~c insurance carrier has offered to settle a claim, then Lender may negotiate and settle 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 to any insurance proceeds in an amount not to exceed the amounts unpaid under thc Note or this Security Instrument, and (b)any other of Borrower's rights (other than the right to any refund of unearned prt'mmms paid by Borrower)under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid trader the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy ~hc 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, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; luspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on thc Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deteriorafi~m tlr damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Bm'rower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. ~ Borrower Miff/ . WYOMING--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMI,~NT Forn~/J051 1/01 (page 5 ofll pages) Lender or its agent may make reasonable entries upon and inspectkms t~f the Property. If it has reasonable c er may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be in default if, th~ring the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrt~wcr's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information)in connection with the Loan. Material representations include, but are n~)t limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement ,~t' a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has ab:md~med the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in thc Property and rights under this Security Instrument, including protecting and/or assessing the value of the Property, and secunng ;tnd/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 Security Instrument, 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 I,t ~;trd up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not trader any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from thc date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment.. If this Security Instrument is on a leasehold, Borrower shall coxnply with all the provisionsofthelease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance ~ a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. Il', for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that l~rcviously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mm'tgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insm'ance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage InsUrance c~)verage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-refui~dable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the I_om] is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve, l.cnder can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately 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 Ii~surauce, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 al'l'ccts Borrower's obligation to pay interest 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 not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in fi~rce from iime to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties)tt, ~hese agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mt,rtgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). Borrower Initia,~l / ~F WYOMING-Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMI(NT Form ~[}51 1/01 (page 6 of ll pages) It- As a result of these agreements. Lender, any purchaser of the Note, a~,~ther insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) an~cam~s that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance~ in exchange f.r sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender ~a~w~ a share of the insurer's risk in exchange for 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 Borrox~t,r has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amoum Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insm'ance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insuram't. premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Misccllaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is ~,t lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Leander has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursc~cnt or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable I.aw requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security w,~t~ld be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or nc)t then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Pr, q)crty, the MisCellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the P,q)crty in which the fair market value of'the Property immediately before the partial taking, destruction, or loss in value is eqt~al to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destrt~c~ion, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrumcl~t shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of tl~c sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of ~l~e Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the l*r~q~erty in which the fair market value of the Property immediately before the partial-taking, destruction, 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 a~td l~cnder 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 by Le~dc~r to Borrower that the Opposing Party (as defmed in the next sentence) offers to make 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 restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party ag',i~st whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleratit~t has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Le~dcr's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights trader this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of I.ct~dcr's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to provided for in Section 2. restoration or repair of the 'Property shall be applied in the order WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Borrower Initial~~ 1/01 (page 7 of lI pages) 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in In~terest of Borrower shall not operate to release the liability of Borrower or any ,qt~cccssors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest ~ f Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrmnent by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance b5 Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude thc exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Seem it5' Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Inst rtm~cnt; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in 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 Instrument. Borrower shall not be released from Borrower's t~bligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agrccmcms of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services pc,-fi ~rmed in connection with'Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not bc ctmstrued as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, ami that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection wiih the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge tt~ ~hc permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Ih~rrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prep%mcnt charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be tlccmcd to h ave been given to Borrower when mailed by first class mai] or when actually delivered to Borrower's notice address if scm by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by no,ice to Lender. 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 through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be gix cn by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another adth'css by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to l.cnder until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable l~aw, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Scc'urity Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law nfight explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be ctmslrucd as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or thc Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. ~ Borrower. Initi~~7-'"~ WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMF. NT Forn~051 1/01 (page 8 of II pages) O OSZ 27 ,....6. 0 8 6 8 18. Transfer of the Property or a Beneficial Interest in Borrowe,-. ,-ks used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but nc~ limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow ~,~2rccment, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold m- transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without I cndcr's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. Itowever, this option shall not be exercised by Lender if such exercise is prohibited by Applicable law. If Lender exercises this option, Lender shall give Borrower notice of ',tcccleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance wifl~ Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these zums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further n~l ice or demand on Borrower. 19. Borrower's Right to Reinstate After Aeederation. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any tn nc prior to the earliest of: Ca) five days before sale of the Property pursuant to any power of sale contained in this Security Inst ru~ncnt; Cb) such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or Cc) entry of a .judgment enforcing this Security Instrument. Those conditions are that Borrower: Ca) pays Lender all sums which then would bc clue under this Security Instrument and the Note as if no acceleration had occurred; Cb) cures any default of any other covenants or agreements; Cc) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonal~Ic attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and Cd) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: Ca) cash; Cb) money order; Cc) 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 Cd) Electronic Funds Transfer. Upon reinstatement by Borrower, " this Sccm'ity Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, lhis right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. Thc Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") 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 might be one or more changes of the Loan Servicer unrelated to a sale ~I' file Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the n:m~e and address of the 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 serviced by a l~oau Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with th~ Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant tt~ this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compliance with thc requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of st:c'l~ 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 n~ cum given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: Ca) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law ami 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; Cb) "Environmental Law" mc:~ns federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; Cc) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmenlal Law; and Cd) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form--"~(~51- ~//~1 (page9 of lI pages) Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous S~'~'tarrces, eaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do. anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition. or (c) which, due to the presence, use, or release of a Hazardous Substance, crc:,cs a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate ,~ normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of (a) any invest i gallon, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property at~d any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Conditi~m including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and to) :my condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the l't'opcrty. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any ren~,~v:d 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. Nothing herein shall create any obligation on Lender fi~r an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further torch,ant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrosver prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not pri.r to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (h) the action required to cure the default; (e) a date, not less than 30 days from the date the notice is given to Borro~vt.r, by which the default must be cured; and (d) that failure to cure the default on or. before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall fu r~ her inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Svcm'ity Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Secti.n 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Le~ader shall give notice of intent to foreclose to Borrower' and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescriber by Applicable Law. Lender or its designee ma) 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, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Insl rument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a l'ce for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of thc fcc is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by Vlrtt~e of the homestead exemption laws of Wyoming. WYOMING--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRU51ENT Borrower initi~~7~ Vo n OS O1 . '., 0870 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: (Seal) -Borrower (Seal) -Borrower (Seal) .(Seal) -Borrower -Borrower [Space Below This Line For Ackmtm lodgment] State of WYOMING ) County of ~ Teton ) The foregoing instrument was acknowledged CHRISTOPHER M. TAYLOR, A SINGLE MAN this Witness my hand and official seal. (Seal) My Commission Expires: 9/12/07 before .' me lOth day of December Notary I ul)llc Lam:i.e Coe (Print or t~e n~e) by JANIES D. TAYLOR, A SINGLE MANand , 2004 -Teton ~ wyom,ng_ { WYOiVIING--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRU51ENT Form 3051 1/01 (page 11 of ll pages) Loan Number 40500112 ADJUSTABLE RATE RIDER - INTEREST ONLY (LIBOR Six-Month Index (As Published by The Wall Street Journal)--Rate Caps Accrued Interest Only for Fixed Rate I'c,qod) THIS ADJUSTABLE RATE RIDER is made this 10TH d%. of DECEMBER, 2004, and is incorporated into and shall be deemed to amend and supplement the IVlorlgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned ;" Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to CHERRY CREEK MORTGAGE CO., INC. ("Lender") of the same date and covering the property described i,~ Iht Security Instrument and located at: 587 ALPINE WAY~ THAYNE~ WYOMING 83127- [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CIIANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LISIITS THE AMOUNT BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME ANI} TIlE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the coven:m~s and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as fi~llmvs: A. INTEREST RATE AND MONTHLY PAYMENT CIIANGI?~S The Note provides for an initial interest rate of 4.2500%. Thc Note provides for changes in the interest rate and the monthly payments, as follows: 4.INTEREST RATE AND MONTHLY PAYMENT CIIANGES (A) Change Dates The interest rate I will pay may change on the first d;ty of JANUARY, 2007, and on that day every 6TH month thereafter. Each date on which ~,~y interest rate could change is called a "Change Date." (B) The Index Beginning with the first Change Date, my intercs~ ra~c will be based on an Index. The "Index" is the average of interbank offered rates fol' six month U.S. dollar-denominated deposits in the L.ondon market as published lay The W, dl Street Journal. The most recent Index figure available as of the first business day of thc month immediately preceding the month in which the Change Date occurs is called the "Current Index." If the Index is no longer available, or is no longer published, the Note Holder will choose a new index that is based upon comparable information. Thc Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AND ONE-QUARTER percentage points (2.2500%) to the Current Index. The Note Holder will then round the result of this addition to thc nearest one-eighth of one percentage point (0.125 %). Subject to the limits stated in Section 4 (D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount {~f thc monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment, ~ ~. ~.. Borrower initials ~,~ ~ ~/~t CCMC IO RIDER Page 1 of 3 //Revision 04/01/2003 (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first ('bange Date will not be greater than 7.2500% or less than 2.2500%. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than ONE percentage points (1.0000%) from the rate of interest I have been paying for the preceding nltmths. My interest rate will never be greater than 9.2500%. 0g) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first m~mdtly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver Or mail to me a notice ~d~ any changes in my interest rate and the amount of my monthly payment before the effective d~tlc of any change. The notice will include information required by law to be given to me and :tlso the title and telephone number of a person who will answer any question I may have reg~rding the notice. TRANSFER OF Tttlg PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 18 of the Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial Interes~ i,~ Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in thc Property is s01d or transferred (or if Borrower is not a natural person and a beneficial interest m Borrower is sold or transferred) without Lender's prior written consent, Lender may retltdrc immediate payment in full of all sums secured by this SeCurity Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any ¢o¥'t'n:mt or agreement in this Security Instrument is acceptable to Lender. To the extent, permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption, l.cndcr also may require the transferee to sign an assumption agreement that is acceptable to Lcmler and that obligates the transferee to keep all the promises and agreements made in the N~31e and in this Security Instrument. Borrower will continue to be obligated under the Nott: and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immedi:dc payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in' accordance with Sect i~m 15 within ~hich Borrower must pay all sums secured by this Security Instrument. If Bom~wcr fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. CCMC IO RIDER Page 2 of 3 BY Rate Rider. SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable (Seal) -Borrower (Seal) -Borrower CCMC IO RIDER Page 3 of 3 Revision 04/01/2003 '.. 0874 Prepayment Penalty Ritler (Multi-State Soft Prepay Pem~l(v) This Prepayment Rider is made this 10TH day of DE('ILMB ER , 2004 and is ,, incorporated into and deemed to amend and supplement the Mortgage, I)~ed ~f Trust, (t~e '~ecurity Instrument ) of the same date given by the undersigned (the "Borrower") to secure l~on'ower's Note (the '%[ote") to Cherry Creek Mortgage Company, Inc. (the "Lender") of the same date and covering the property described'in the Security Instrument and located at: 587 ALPINE WAY~ TI:IAYNE~ WYOMING 83127- , (the "Property") Amended Covenants. Not withstanding anything to the contrary set forth in the Note or Security Instrument, Borrower and Lender covenant, and agree, as follows: Borrower has the right to make payments of pri~tcipal at any time before they are due. A payment of principal only is known as a "prepayment'. A "fill1 prepayment" is the prepayment of the entire unpaid principal due under the Note. A payment of only part of the unpaid principal us know as a "partial prepayment". If, within the 2 -year period beginning xvilh the date Borrower executes the Note (the "Penalty Period"), Borrower makes a full prepayme~,h or partial prepayment in any twelve (12) month period that exceeds 20% of the original principal loan amount, Borrower will pay a prepayment charge as consideration for the Note Holder'~ acceptance of such prepayment. The prepayment charge will equal the amount of interest ~1~:~ would accrue during a ~ix (6) month period on the amount prepaid that exceeds 20% of the m'~ginal principal balance of the Note, calculated at the rate of interest in effect uhder the wrms of the. Note at the time of the prepayment, unless otherwise prohibited by applicable law m' regulation. No prepayment charge will be assessed for any prepayment occurring after the Penalty Periml Notwithstanding the foregoing, in the event of a full prepayment concurrent with a bona fide sale of the Property to an unrelated third party after ihe first -0- year(s) of the term of the Note, no prepayment penalty will be assessed. In tba~ eye,it, you must provide the Note Holder with evidence acceptable to the Note Holder of such sale. For purposes of this exception to the prepayment charge, a sale of the property to a person o,' emity with whom you have personal or business relationship (such as a family member, builder, developer or employer) will be presumed NOT to be a bona fide sale of the Property to an unrelated lhird party. By signing below, Borrower accepts and agrees to the terms and covenants contained in this Prepayment Rider. 603c Multi-State Rider (Product Solutions) 09/01/01