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HomeMy WebLinkAbout905294Return To: WELLS FARGO HOME MORTGAGE 3601 MINNESOTA DR. SUITE 200 BLOOMINGTON, MN 55435 Prepared By: BW MORTGAGE, LLC 808 3RD AVE SOUTH,, 581030000 FARGO, ND RECEIVED 12/15/2004 at 3:26 PM RECEIVING # 905294 BOOK 575 PAGE: 68 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY [Space Above This Line For R~,c.,'ding Data] MORTGAGE DEFINITIONS Words used in multiple sections of this document are dcl'incd below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding d<' usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is d:tlcd DECEMBER 14, 2004 together with all Riders to this document. (B) "Borrower" is NATHAN S WOOD AND PAIGE M WOOD, HUSBAND AND WIFE · Borrower is the mortgagor under this Security Instrument. (C) "Lender" is BW MORTGAGE, Lender is a LIMITED LIABILITY COMPANY organized and existing under the laws of THE STATE OF DELAWARE 0047125497 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 Lender's address is P.o. BOX 10304, DES MOINES, IA 503060304 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower al,I d~ttcd DECEM'BER 14, 2004 The Note states that Borrower owes Lender SIXTY THOUS~d~r) h~rD 00/100 Dollars (U.S. $ *****60,000.00 ) plus interest. Borrower has immfised to pay this debt in regular Periodic Payments and to pay the debt in full not later than Jh_.xilJ.M~y o 1, 2035 0g) "Property" means the property that is described below t,,lcr thc heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus intercq, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrm ncm, plus interest. (G) "Riders" means all Riders to this Security Instrument tlr, ti ~trc executed by Borrower. The following Riders are to be executed by Borrower [check box as applicablc[: [~] Adjustable Rate Rider [--] Condominium Rider [~ Second Home Rider [--] Balloon Rider [--] Planned Unit Development Rklcr I_--~ 1-4 Family Rider [~ VA Rider [~ Biweekly Payment Rider ---~ Other(s) [specify] (lq) "Applicable Law" means all controlling applicable fc&'ral, state and local statutes, regulations, ordinances and administrative rules and orders (that have thc cl rcct of law) as well as all applicable final, non-appealable judicial opinions. (I} "Community Association Dues, Fees, and Assessments" ~cans all dues, fees, assessments and other charges that are imposed on Borrower or the Property b> ,, condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of ftmd~, othcr than a transaction originated by check, draft, or similar paper instrument, which is initiated brough an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct ~r authorize a financial institution to debit or credit an account. Such term includes, but is not limited t{~, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire mmsfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in $cvtkm 3. (L) "Miscellaneous Proceeds" means any compensation, seulcmcnt, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under Ibc ct~vcrages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condenmati~m 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 the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (lq) "Periodic Payment" means the regularly scheduled amotmt duc for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Inqrumcnt. (O) "RESPA" means the Real Estate Settlement Procedures Act ~ 2 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 350~},. :ts they might be amended from time to time, or any additional or successor legislation or regulation th,t governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements :md restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does nm qualify as a "federally related mortgage loan" under RESPA. (~)~-6{WY) 10005~ Page 2 of 15 Form 3051 1/01 (P) "Successor in Interest of Borrower" means any party lh:t~ has taken title to the Property, whether or not that party has assumed Borrower's obligations under thc Nt ~c and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repaymm~ ,}1' thc I..oan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrox~cr th~c.~ hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power of salc. thc following described property located in the COUNTY of LINCOLN : [Type of Recording Jurisdiction] [Nanle of Recording Jurisdiction] LOT 10 OF BLOCK 1 OF THE SUNSET SUBDIVISION TO THE TOWN OF KEMMERER, LINCOLN COUNTY, WYOMING AS DESCRIBED ON THE OFFICIAL PLAT THEREOF. THIS IS A PURCHASE MONEY SECURITY INSTRUMENT. TAX STATEMENTS SHOULD BE SENT TO: WELLS FARGO HOME MORTGAGE, P.O. 10304, DES MOINES, IA 503060304 BOX P~cellD Number: 410 UPPER SUNSET KEMMERER ("Property Address"): which currently has the address of [Street] l( ',tyl , Wyoming 8 3101 [Zip Code] TOGETHER WITH all the improvements now or l~crcal'tcr erected on the property, and all easements, appurtenances, and fixtures now or hereafter , part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully sciscd of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and Ih:~t thc Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend 2chorally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform c~vcnants for national use and non-uniform covenants with limited variations by jurisdiction to constiml c :t u n ilbrm security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covcnalit and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Ih'vlmyment Charges, and Late Charges, Borrower shall pay when due the principal of, and interest ~m. thc debt evidenced by the Note and any prepayment charges and late charges due under the Note. Bt~rmwcr shall also pay funds for Escrow Iteins pursuant to Section 3. Payments due under the Note and this .%curity Instrument shall be made in U.S. currency. However, if any check or other instrument received by l.cnder as payment under the Note or this (~6(WY) 1oo051 Page 3 of 15 Form 3051 1/01 0 05;3:94 "0 ~07 Security Instrument is returned to Lender unpaid, Lender ny, fy require that any or all subsequent payments due under the Note and this Security Instrument be made i~ ~mc or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certiiicd check, bank check, treasurer's check or cashier's check, provided any such check is drawn 'upon ;m it~stitution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Fm~tls Transfer. Payments are deemed received by Lender when received :ti the location designated in the Note or at such other location as may be designated by Lender in accorthmcc with the notice provisions in Section 15. Lender may return any payment or partial payment if-the P:k~ ~cnt or partial payments are insufficient to bring the Loan current. Lender may accept any payment or p;tl lial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice t, ~ its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply s~t'l~ payments at the time such payments are accepted. If each Periodic Payment is applied as of its schcdtdcd due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied I'tHMs until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonz~hlc period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, stroh funds will be applied to the outstanding principal balance under the Note immediately prior to forcdt~s,,rc. No offset or claim which Borrower might have now or in the future against Lender shall relieve ll{~rrower from making payments due under the Note and this Security Instrument or performing the covcn:m~ s and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except :,s ~thcrwise described in this Section 2, all payments accepted and applied by Lender shall be applied in Ibc l'ollowing order Of priority: (a) interest due under the Note; (b) principal due under the Note; (c) ztlnc)unts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in xx hich it became due. Any remaining amounts shall be applied first to late charges, second to any other am,,tmts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a dcl i~tlUCnt Periodic Payment which includes a sufficient amount to pay any late charge due, the payment m%' hc applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, :md to the extent that, each payment can be paid in full. To the extent that any excess exists after the pay~cnt is applied to the full payment of one or more Periodic Payments, such excess may be applied to any h,tc 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 Misccllancous Proceeds to principal due under the Note shall not extend or postpone the due date, or change ~hc amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to 1.ctMcr ou the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Fronds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can athtin priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold paymenls ,~r ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender trader Scction 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to l.cndcr in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of ~qc.ction 10. These items are called "Escrow Items." At origination or at any time during the term of thc I ,~an, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrmx cd by Borrowe. r, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly I'm-nish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the l:tHitls for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all E,cr,,w Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items :~t any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay t lircctly, when and where payable, the amounts (~-6(WY) Iooo5) Page'~ o~ ~5 Form 3051 1/01 0 05294 ' · 72 due for any Escrow Items for which payment of Funds has bc~:~ watvcd by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such paymem xvitl~m such time period as Lender may require. Borrower's obligation to make such payments and to provi&, receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrmt~c.., as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escr,~x~ llClnS directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, I ~'mlcr may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated ~mdcr Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Fsc'~',~xx Items at any time by a notice given in accordance with Section 15 and, upon such revocation, B,.,'r,,wcr shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in m~ :lHlt~tmt (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not t~} exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount m I:tlmls 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 ,lc ~t~sits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an i~ ~tution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds ~t) i):ty the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower ~,.' h~dding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Item~ unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a ch:.'gc. Llnless an agreement is made in writing or Applicable Law requires iriterest to be paid on the Funds, I.cndc.,' shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender c'}m agree in writing, however, that interest shall be paid on the Funds, Lender shall give to Borrower, x~ ithout charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. Il' there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as ,-cq,ircd by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in acc,,'d',mce with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in cst:i ow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall t~',~ m Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more ~h:m 12 monthly payments. Upon payment in full of all sums secured by this Sect. it,. Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, asscssmcuts, charges, fines, and impositions attributable to the Property which can attain priority over this Nccurity Instrument, leasehold payments or ground rents on the Property, if any, and Community Associ;~titm Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall t':~3 them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has I.'i{}rity over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligaG,n secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such ,,s rccmcnt; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proct'c'dings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings ~, c pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an :t,.~ rccmcnt satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines th:, ;my part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the (~)~-6{WY) Iooos! Page 5 of ~ s Form 3051 1/01 lien. Within 10 days of the date on which that notice is given. I~,rrt~wcr 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 ch',tr:_,c l'or a real estate tax verification and/or reporting service used by Lender in connection with fhis Lo;tn 5. Property Insurance. Borrower shall keep the impr,,¥,'~cnts now existing or hereafter erected on the Property insured against loss by fire, hazards included ~x ilhin th~ term "extended coverage," and any other hazards including, but not limited to, earthquakes anti I I,~,~ds, Ibr which Lender requires insurance. This insurance shall fie maintained in the amounts (including7 ttcductible levels) and for the Periods that Lender requires. What Lender requires pursuant to the precc'di~tg sentences can change during the term of the Loan. The insurance carrier providing the insurance sb,'~ll I,c chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall ttt}t I~c exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, dlhcr: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a ,,~'-timc charge for flood zone determination and certification services and subsequent charges each time ~cnq~pings or similar changes occur which reasonably might affect such determination or certification. II~rrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Nl:~.;tgement Agency in connection with the review of any flood zone determination resulting from an objc. t:t i~ ~n by Borrower. If Borrower fails to maintain any of the coverages dc~t'~ ibcd above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lc~tk'r is under no obligation to purchase any particular type or amount of coverage. Therefore, such cov~.~; sc shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or I Itc, ct~ntents of the Property, against any risk, hazard or liability and might provide greater or lesser covcr',t~,c than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so ol)t:tincd might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts tliqltlrscd by Lender under this Section 5 shall become additional debt of Borrower secured by this Security htstrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be p;t5 :~ble, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals ,}t' such policies shall be subject to Lender's right to disapprove such policies, shall include a standard ~t~r~gagc clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall h.,t¥c II~c right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly g~vc t~ kcnder all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance c',,rcrage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy sh',dl include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss i~:t.x ce. In the event of loss, Borrower shall give prompt notice, t,, die insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower I~:~lt:ss Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underl> ~g insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restt}~cttion or repair is economically feasible and Lender's security is not lessened. During such repair and rest, ,~':~t ICon period, Lender shall have the right to hold such insurance proceeds until Lender has had an oppt~rtmtity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provi&d ihat such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and tt-~tt~ration in a single payment or in a series of progress payments as the work is completed. Unless an agr~'~'~ncnt is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lentk'~ Nhall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public z~di~:Ntcrs, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and ~h;d[ be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Len&r's sc-curity would be lessened, the insurance proceeds shall be applied to the sums secured by this Securit3 Instrument, whether or not then due, with (~-6(WY} Iooos) Page 6 of ~s Form 3051 1101 0074 the excess, if any, paid to Borrower. Such insurance proceeds ~h:dl be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file. ~cgt)tmte and settle any available insurance claim and related matters. If Borrower does not respond will,in 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender m:~3 negotiate and settle the claim. The 30-day period will begin when the notice is given. In either evcm, t,r il' Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to kc~(k,r (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid tmtk, r the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right t,~ ',my refund of unearned premiums paid by Borrower) under all insurance policies covering the Properl3, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance procucds cith er to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instru~cnt, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and .se the Property as Borrower's principal residence within 60 days after the execution of this Security l~strument and shall continue to occupy the Property as Borrower's principal residence for at least one ) c,:tr al'tot the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be t~m'easonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of thu Pt'operty; 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 Propcny, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasi.~ in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration i~ nm economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property ,rely il' Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance t*r condenmation proceeds are not sufficient to repair or restore the Property. Borrower is not relieved ~}f 2t~rrower's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries up~,n ~tlltl inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the iml,'t~velnents 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 bc in dcfi~ult if, during the Loan application process, Borrower or any persons or entities acting at thc, direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or in:~ccurate inlbrmation or statements to Lender (or failed to provide Lender with material information, in connection with the Loan. Material representations include, but are not limited to, representat i, ms concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and I{ights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements ~, mm ned in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender'~ interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, m~hate, for ,condemnation or forfeiture, for enforcement of a lien which may attain priority over this ,qecurity Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in ~hc Property and rights under this Security Instrument, including protecting and/or assessing the value ~1~ thc Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited ~o: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) al,pc-.,mg in court; and (c) paying reasonable (~)~-6(WY) (ooo5} Page 7 of ~5 Form 3051 1/01 0 575 attorneys' fees to protect its interest in the Property and/or ri ?his under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing ibc Property includes, but is not limited to, entering the Property to make repairs, change locks, replace ,,r board up doors and windows, drain water from pipes, eliminate building or other code violatigns or tl:ltl~c 'otis conditions, and have utilities turned on or off. Although Lender may take action under this Secti,m 5), Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lendc~ incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section ') shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bc.,tr interest at the Note rate from the date of disbursement and shall be payable, with such interest, uptm m~ticc from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower ~hall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leas,q,dd and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage I~surance as a condition of making the Loan, Borrower shall pay' the premiums required to maintain the IXh,'l ?age Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases t,, bc awfilable from the mortgage insurer that previously provided such insurance and Borrower was reqtti~cd to make separately designated payments toward the premiums for Mortgage Insurance, Borrower ~hall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insur, mcc previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equix:dc, nt Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amoum or' the separately designated payments that were due when the insurance coverage ceased to be in eft'cci l~cnder will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortt:',t~c Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ulli[m~cly paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such h~ss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the alnotmt and for the period that Lender requires) provided by an insurer selected by Lender again becomes :tvailable, is obtained, and Lender requires separately designated payments toward the premiums for Morlgagc Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, B~rrowcr shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a t~,,nq'clhndable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with ',my \vritten agreement between Borrower and Lender providing for such termination or until termination i.~ rc'quircd by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at thc r',~Ic 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. Rorrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such in~m'ance in force from time to time, and may enter into agreements with other parties that share or modify I l~cir risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mort?t£c insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which ~ray include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser rd' Ihe Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, max receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrt~\vcr's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the ils xc~ s risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "~':q, tive reinsurance." Further: (a) Any such agreements will not affect the amoums that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will n.t entitle Borrower to any refund. (~-6(WY) 100051 Page 8 of 15 "t~ Form 3051 1/01 (b) Any such agreements will not affect the rights Ih~rnm er has - if any - with respect to the Mortgage Insurance under the Homeowners Protectiou \c~ ,f 1998 or any other law. These rights may include the right to receive certain disclosures, t,~ request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance t crmin,'~ted automatically, and/or to receive a refund of any Mortgage Insurance premiums that were tm(';u'ned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeilm'c. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Procccd:~ ~hall bc applied to restoration or repair of the Property, if the restoration or repair is economically I'c':t~ihlc anti Lender's security is not lessened. During such repair and restoration period, Lender shall have thc right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Propcny m ensure the work has been completed to Lender's satisfaction, provided that such inspection shall bc tmdcrmken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applic:flflc I.aw requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Bm'rower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not ec~,~, mfically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to thc sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to B~,~wcr Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss h~ value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Securii~ h~strument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in x',d uc o1' the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Securily hastrument immediately before the partial taking, destruction, or loss in value, unless Borrower and [ cmlcr otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by ~hc amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount ~d' thc sums secured immediately before the partial taking, destruction, or loss in value divided by (b) thc lhir market value of the Property immediately before the partial taking, destruction, or loss in value. Any b:d:mcc shall be paid to Borrower. In the event of a partial taking, destruction, or loss in x aluc o1' the Property in which the fair market value of the Property immediately before the partial taking, dcstntction, or loss in value is less than the amount of the sums secured immediately before the partial t:~king, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Misccllmtctms Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums art' d~cn due. If the Property is abandoned by Borrower, or if, a~cr notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to n,~kc an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after thc date |he notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to rc~tt~ration or repair of the Property or to the sums secured by this Security Instrument, whether or not then duc. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party agai~t 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 Propc~3 m' other material impairment of Lender's interest in the Property or rights under this Security Instrumcm lk)rrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section l t). by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes l'~rl'citure of the Property or other material impairment of Lender's interest in the Property or rights unJcr this Security Instrument. The proceeds of any award or claim for damages that are attributable to the imp:fi nucnt of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to rc'hltu'atlOl] or repair of the Property shall be applied in the order provided for in Section 2. (~-6(WY) (ooo5) Page 9 of ~5 Form 3051 1/01 0 ,- 77 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of ~onization of the sums secured ~x this Security Instrument grated by Lender to Borrower or ~y Successor in Interest of Borrower shall ~ t~l~cr:tte to release the liability of Borrower or ay Successors in Interest of Borrower. Lender shall no~ I~,' rctluired to co~ence proceedings against ~y Successor in Interest of Borrower or to re. se to exit,iii time for payment or otherwise modi~ ~onization of the sums secured by this Security Instrument hx reason of any dem~d made by the original Borrower or ~y Successors in Interest of Borrower. Any fl~ I,c:~r~cc by Lender in exercising ~y right or remedy including, without li~tation, Lender's acceptance ,~f l)Z~ylneUtS lkom third persons, entities or Successors in Interest of Bo~ower or in ~ounts less th~ ibc :l~lt~tl~H then due, shall not be a waiver of or preclude the exercise of ~y right or remedy. 13. Joint and Several Liability; Co-signers; Success.rs ami Assigns Bound. Borrower coven~ts ~d agrees that Borrower's obligations ~d liability shill be .j~)l~ ~t~ld several. However, ~y Bo~ower who co-signs this Security Instrument but does not execute thc ~',~te (a "co-signer"): (a) is co-signing this Security Instrument o~y to mortgage, gr~t ~d convey thc c,~-signcr's interest in the Property under the ter~ of this Security Instrument; (b) is not personflly obli~z~tc,,l ~o pay the su~ secured by this Security Instrument; ~d (c) agrees that Lender ~d ~y other Borr~,~cr c~ agree to extend, modify, forbear or m~e ~y acco~odations with regard to the te~ of thi~ N~'curity Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, ~y Succc~t~r in Interest of Borrower who assumes Bo~ower's obligations under this Security Instrument in writings, :md is approved by ~nder, shall obtain fll of Borrower's rights ~d benefits under this Security In~tr~c~t. Borrower shill not be released from Bo~ower's obligations ~d liability under this Security Instrt~c~ unless Lender agrees to such release in writing. ~e coven~ts ~d agreements of this Security h~lrl~mciqt shall bind (except as provided in Section 20) ~d benefit the successors ~d assigns of Lender. 14. Loan Charges. Lender may charge Borrower fec~ h)r services perfo~ed in co~ection with Borrower's default, for the pu~ose of protecting Lender's ill,crest In the Property ~d rights under this Security Instrument, including, but not li~ted to, attorneys' Ices, property inspection ~d valuation fees. In reg~d to ~y other fees, the absence of express authority ~ Ihis Security Instrument to charge a specific fee to Bo~ower shall not be construed as a prohibition on thc ch:~rging of such fee. Lender ~y not charge fees that ~e expressly prohibited by this Security Instrument ,,r by Applicable Law, If the Lo~ is subject to a law which sets m~imum loa~ c'hz~rgcs, and that law is finally interfered so that the interest or other lo~ charges collected or to be collc, c. lc, d in connection with the Lo~ exceed the pe~tted li~ts, then: (a) ~y such lo~ charge shall be redact'cd by the ~ount necess~y to reduce the ch~ge to the pe~tted li~t; ~d (b) ~y su~ already collccwd h-om Borrower which exceeded pe~tted li~ts will be re~nded to Borrower, Lender may choose ~ ~:~kc this re.nd by reducing the principfl owed under the Note or by m~ing a direct payment to ll,~rrt~wer. If a re.nd reduces principfl, the reduction will be treated as a p~tial prepayment withotH ;~5, prepayment ch~ge (whether or not a prepayment ch~ge is provided for under the Note). Borrox~ cr's ~tcceptance of ~y such re.nd made by direct payment to Borrower will constitute a waiver of ~y right of action Borrower ~ght have arising out of such overchmge. 15. Notice. All notices given by Borrower or Lendc~ i~ connection with this Security Instrument must be in writing. Any notice to Borrower in co~ection x~ith this Security Instrument shall be deemed to have been given to Borrower when mailed by first class ~:~il ~r when actually delivered to Borrower's notice address if sent by o~er me~s. Notice to ~y one Borr,,xvcr shall constitute notice to all Bo~owers unless Applicable Law expressly requires otherwise. ~e ~icc ~ddress shall be the Property Address u~ess Borrower has designated a substitute notice address h3 ~otice to Lender. Borrower shall promptly noti~ Lender of Borrower's ch~ge of address. If Lender ~[~c,citics a procedure for reporting Borrower's ch~ge of address, then Borrower shall o~y report a chug, ~' :~ddress through that specified procedure. ~ere may be o~y one designated notice address under Ihi~ Nccurity Instrument at ~y one time. Any notice to Lender shall be given by delivering it or by maili~lj, it by first class mail to Lender's address stated herein unless Lender has designated ~other add~s /)y ~otice to Borrower. Any notice in co~ection with this Security Instrument shall not be deemed ~t~ h~vc been given to Lender until actually received by Lender. If ~y notice required by this Security I~slrtimcnt is also required under Applicable Law, the Applicable Law requirement will satis~ the c(~rc':~l)ol~ding requirement under this Security Instrument. ~6(WY) 100051 Page lO of ~5 Form 3051 1/01 0 905294 16. Governing Law; Severability; Rules of Con~lrlw(im~. This Security Instrument shall be governed by federal law and the law of the jurisdiction in xxhich tile Property is located. All rights and obligations contained in this Security Instrument are suhi~.ct t~) ~fny requirements and limitations of Applicable Law. Applicable Law might explicitly o~ implicid) :dlow the parties to agree by contract or it might be silent, but such silence shall not be construed as ~ i,~t,hihition against agreement by contract. In the event that any provision or clause of this Security Insurgent fcic. or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this NcYt~rity Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of lh~. m:~sculine gender shall mean and include corresponding neuter words or words of the feminine gender: th) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" ~tx cs sol~ discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one co133 ~,I tile Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial intcr~*~i i~ the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, c,,~l':~ct l~or deed, installment sales contract or escrow agreement, the intent of which is the transfer of title h3 l~orl'ower at a future date to a purchaser. If all or any part of the Property or any Interest in the P~ t~pcrty is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower ~ ~old or transferred) without Lender's prior written consent, Lender may require immediate payment i~ I'ull of all sums secured by this Security Instrument. However, this option shall not be exercised hx l.ender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Bor~xvcr notice of acceleration. The notice shall provide a period of not less than 30 days from the date thc ~cc ~s gwen in accordance with Section 15 within which Borrower must pay all sums secured by this ~ccurity Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender ~: y invoke any remedies permitted by this Security Instrument without further notice or demand on Borr,~xx er. 19. Borrower's Right to Reinstate After Accelerati~m. Il' Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Nc'C'ul-ity Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Propcr~3 pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable L:~w might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgmet~l c~ff~)rcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums xxltic'h then would be due under this Security Instrument and the Note as if no acceleration had occurred; ~h/cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this ~cc.t~i'ity Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valu:l~i~m f~es, and other fees incurred for the purpose of protecting Lender's interest in the Property and ~i~hl~ under this Security Instrument; and (d) takes such action as Lender may reasonably require to asst~r~. II~:tt Lender's interest in the Property and rights under this Security Instrument, and Borrower's oblig:~h,~f to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require th:~ lgol-rower pay such reinstatement sums and expenses in one or more of the following forms, as select~d hy l~cnder: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, i~strumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Secu ri~)' h~sU'ulnent and obligations secured hereby shall remain fully effective as if no acceleration had occurred. I Iox~,ever, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice or ¢;rievance. The Note or a partial interest in the Note (together with this Security Instrument) can be s~,ld ,,nc or more times without prior notice to Borrower. A sale might result in a change in the entity ~l.~)wn as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Im. lrument and performs other mortgage loan servicing obligations under the Note, this Security Instrumc~, :md Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale ,ff II~c Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the chang~ x~ hich will state the name and address of the new Loan Servicer, the address to which payments should hc m~ltle and any other information RESPA (~-6(WY) 10005) Page ~ of ~5 Form 3051 1/01 requires in connection with a notice of transfer of servicing. It ~llc Note is sold and thereafter the Loan Is serviced by a Loan Servicer other than the purchaser of the N~,Ic, tilt inortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be translk~ red to) a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided b5 ~l,. Note purchaser. Neither Borrower nor Lender may commence, join, or I,c i~,incd [o any judicial action (as either an individual litigant or the member of a class) that arises fr~,~ Ih(: other party's actions pursuant to this Security Instrument or that alleges that the other party has brcavhcd any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or 1 ~'~,lcr has notified the other party (with such notice given in compliance with the requirements of Section 15) (il' such alleged breach and afforded the other party hereto a reasonable period after the giving ~d' ~uch notice to take corrective action. If Applicable Law provides a time period which must elapse I)clk)rc certain action can be taken, that time period will be deemed to be reasonable for purposes of thi~ p;,-agraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Sectiot~ 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy ~hL' liotice and opportnnity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutams. ,,r wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable ~,~ toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbeslo~ ~,r formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of thc ~m'i~diction where the Property is located that relate to health, safety or environmental protection; (c) "En~ iromncntal Cleanup" includes any response action, remedial action, or removal action, as defined in Envi~mmcntal Law; and (d) an ."Environmental Condition" means a condition that can cause, contribute m or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, di,~ )o~al, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances. t~ t)r m the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property t.,t~ that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) xx hich, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affcc~ thc value of the Property. The preceding two sentences shall not apply to the presence, use, or storaec on the Property of small quantities of Hazardous Substances that are generally recognized to be ,qqm)prmte to normal residential uses and to maintenance of the Property (including, but not limited to, ha/:~t'tl~ ms substances in consumer products). Borrower shall promptly give Lender written notice of t:~) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or p~valc party involving the Property and any Hazardous Substance or Environmental Law of which l¢~,rrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition c,mscd hy the presence, use or release of a Hazardous Substance which adversely affects the value of thc I'roperty. If Borrower learns, or is notified by any governmental or regulatory authority, or any private pm'ty, that any removal or other remediation of any Hazardous Substance affecting the Property is necessar, · lgorrower shall promptly take all necessary remedial actions in accordance with Environmental Law. N~lhing herein shall create any obligation on Lender for an Environmental Cleanup. (~)~-6(WY) <ooo5) Page 12 of 15 Form 3051 1/01 U_:':' ::;': i NON-UNIFORM COVENANTS. Borrower and Lender I't~rlhcr covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice t,J Borrower prior to acceleration following Borrower's breach of any covenant or agreement in thi, Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law prox i~lt,s otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) ;~ date, not less than 30 days from the date the notice is given to Borrower, by which the default mu,t I~c cured; and (d) that failure to cure the default on or before the date specified in the notice may t't,,t~lt in acceleration of the sums secured by this Security Instrument and sale of the Property. The no~it.c shall farther inform Borrower of the right to reinstate after acceleration and the right to bring n court action to assert the non-existence of a default or any other defense of Borrower to acceleration ~md sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without furt ht, l' demand and may invoke the power of sale and any other remedies permitted by Applicable I~a~. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in thi~ Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall gi~c notice of intent to foreclose to Borrower and to the person in possession of the Property, if difrcrcnt, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the n~:mncr provided in Section 15. Lender shall publish the notice of sale, and the Property shall be s~dd in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at ~my sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of Ibc sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Nccurity Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this 5;cct,rity instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation ct~sts. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid ~,. third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights tinder and by virtue of the homestead exemption laws of Wyoming. I~}~-6(WY) 1ooo5! rage 13 of ~5 Form 3051 1/01 BY SIGNING BELOW, Borrower accepts and agrees t,, thc terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and rcc~rded with it. Witnesses: /~.:,~y¥~ 5 .K;ooo/ <Seal) NATHAN S WOOD -Borrower PAIGE bl '4qOOD -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower ~<~6(WY) (ooos) page 14 of ~s Form 3051 1/01 STATE OF WYOMING, The foregoing instrument was acknowledged before me tllix by 1~'.~.I'I4.kI~' 13 WOOD ~ PA'rGE t,I WOOD My Commission Expires: ]0 "67~ "0"~ Notary P~d hc ~ ~k,/ (~-6G(WY) (0005) Page15of 15 Form 3051 1/01 MORTGAGE ADDEN I)UM 008 The following is an Addendum to the Mort3;,,;,,,:. The addendum shall be incorporated into, and recorded with, the TAX EXEMPT FINANCING RIDER This Tax-Exempt Financing Rider is incorpon~t, ,l into and shall be deemed to amend the terms of the Mortgage to which it is :~ttached. In addition to the covenants and agreements m~,lc in the Security instrument, Borrower and Lender further covenant and ag~ ~.(, ,,~ follo~vs: Lender, or such of its successors or assigns ..~, nay, by separate instrument, assume responsibility for assuring complian('c by the Borrower with the provisions of this Tax Exempt Financing lqider, may require immediate payment in full of all sums secured by this Se('~t'ity Instrument if: a) All of part of the Property sold or ,l[.'rwise transferred (other than by devise, descent or operation of I~w by Borrower to a purchaser or other transferee: Who cannot reasonably be cxlwcted to occupy the property as a principal resident within ,, reasonable time after the sale or transfer, all as provided i~ ~c{'tion 143{c) and (i) (2) of the Internal Revenue Code; or ii} Who has had a present own~,rship interest in a principal residence during any part or- ~lw three year period ending on the date of the sale or tranMk'r, all as provided in Section 143(d} and (i} {2} of the Intert~ ~1 Revenue Code; or iii) At an acquisition cost which ,. greater than 90 percent of the average area purchase price (greater than 110 percent for targeted area residences), all ~s provided in Section 143(e) and (i) (2} of the Internal Revc~uc Code; or iv) Whose family income excec~ls ,,pplicable income limits as provided in Section 143(0 an(i (i) (2) of the Internal Revenue Code. b) Borrower fails to occupy the pr-l~,'r~y described in the Security Instrument without prior writte~ c()nsent of the lender or its successors or assigns described ,,t the beginning of this Tax Exempt Financing Rider, or c) Borrower omits or misrepresents · fact that is material with respect to the provisions of Secti(~ 143 of the Internal Revenue Code in an application for the h,;m secured by this Security Instrument. References are to the Internal Revenue Code ~,,~ ~mended, in effect on the date of execution of the Security Instrument and arc deemed to include the implementing regulations. BY SIGNING BELOW, Borrower accepts and aah'cs to the terms and provisions in this Tax-Exempt Financing Rider. B'orrower Borl{;wcr u - - MPP 210-B {Revised 12/95)