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HomeMy WebLinkAbout9053620 "032 7 ~R ep_-'n To: ltm:rr.~ _ ~1555 W. iIRVING, ~DST ~LOSING ]~AIL ~TA~.NDT ~FT?.~. /=N. %2DO wr~ 6712 ~X 75038 P~r~l By: 199 ~. ~J~HL .~T, %101~ 20 ]~OX 988 J~*qON, W~ 83001 RECEIVF:r) 12_/17/2004 at 3:18 PM RECEIVING # 905362 BOOK: 575 PAGE: 327 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY [SpaceAboveThisLiae For Rt.c.rding Data] MORTGA GE MIN 100085200520272248 'D'Eb-INITiONS Words used ha multiple ~finns of this docament are defined below and other words are de. finext/n Seclions 3, 11, 13, 18,20 and21. Certain rides xegarding the mmge o~ words used in Ihis document arealso provided in Sertinn 16. Dec~her 15th, 2004 ]3orrower is the mnngagor under Ihis Secnrity In,torment. (C) "MF. RS" Js Ivlortgage'Rlve_tronic Regi.~trafion Sysmms, hw. MERS is a separate corpnrafinn ~hat iS acting solely a.q a ~nmine~. for 12,nder and lender's .qnccessorS m~d assigns. MERS is the mortgagee nnder Ibis ~eellrity In~rnment. MERS is organized and gxisting under thc laws of Delaware, and has ~ address lind telet:lhoI~ nnmbgr of P.O. Box 2026, Flint_. MI48501-2026, Icl (8;88) 679-MERS. WYOMING-SingleFamiiy-FannJeMae/FreddieMac UNIFORM INSTRUMENT WITH MERS Form 3051 1101 t[~-IiA(WY) -Page 1 o! 1:5 VMP MORTGAGE :FORMS ? (800)52%7291 l llll[lllllllllllHllll 03 ~D) "Lender"iS 3~J3~ST ]~ORIV. O/ff ~nwr~, ..L~A~T CORPORATION ] ~.nderisa organi?e~t and e. xisfing under the laws of ~JER STATE ]~'.ndar'saddresSis 4000 .Horizon. Way, OF KANSAS Texas 75063 Og) "Note" means Iheprnmigaorynotesigned byBarrower ami dated Dec-,~l~er 15a-h, :2D04 The Note ~tams that ]3orrower owes l~ndar DIKE 2HIJI, IBR.ED ~ Il'HOD'SA_ND leOl/R ]tONDRED a 00/100 Dnllars (U.S. $ ~50 ,&DO. DO ) p~s intar~ B~ower ha~ promised ~ ~y ~ ~bt~ re, Ilar P~ Pa~mandm~y~e~bth~notlat~ ~ARY 1, 2035 ~) "~op~" me~nq ~e ~op~ ~at ~ ~ below under ~e he-ding '~ran~f~ ~ Righm ~ ~ ~." (G) "Luau" means ~e ~bt ecdenc~ by ~ NoZ, ~s micros( ~y prepaym~t c~gm ~ ~ eharg~ dna nnd~ ~e No~, and ~ ~s ~e nnd~ ~ S~ Ins~umcnt, plus M~esL ~) "~s" mean~ ~ Riders m ~ Sernfi~ ~ent thru ~e ex~u~ by B~ow~. ~e f~wMg ~idars ~e ~ be ~nteA by B~ow~ [che~k b~ ~ ~phcablc 1: ~ Mj,mtahle~Rider ~ CoMnmini,,m Rider ~ S<~d H~Rider ~ Balln~Rid~ ~ PlanneJ U~Dev~pmem Rider ~ 14 Family Rider ~ VA Rid~ ~ Biw~y Palm ~r ~ O~¢) [~y] fl) "Applicable Law" means all contrnlling applicable lcdcral, sate and local slalom, regnlafinns, ordinances and adminkn'ative allies and orders 0hat have thc clTect of law) as well as all applicable final, non-appaal ahle jn dicial opinions. (J) "Camm,miry A~qociafinn Dues, Fees, and Asses.~nems" means all dues, fees, _as.~.ssmam~ and other charges that .ale imposed an 3orrow~r or the th'operty IU a condominium assnciatinn, hnmeownm-s .assoaiafinn or gimilar or~ani?atinn ~) "Electronic 17,ads Transfer" means any transfer of funds obher ~an a ~ran~n6on O15ginate~l by check, draft, or ~imilar paper illsl:mment, which is initiated lttrough an electronic terminal, Ial~onic ingtmmenl. £omp,.ar, or m%~nafic Iapc so as ID order, instruct, or audlol izc fl financial in~fimfinn ID debit or ore, tit all aE~onnL SllCti term includeS, hilt is 11o1 limilad ID, point-of-sale transfers, anmmaw~d ;eller machine tran~actinn~, transf/xs inifia;e~l by Ie.l~, wire ll'ansfers, m~d automated clearinghouse n'anifers. (L) "~sc. rowltems" means throe ileal that are described in 5 ccdon 3, (M) "Miseellanpous Proceeds" means any compen~finn, settlement, award of damages, or proceeds paid by any third party (other than insurance pace. ads paid under thc coverages described .in Seclian 5) far: (i) damage ID, or degmmlion of, the Property; (ii) condemnation or other taking of all or any pan of Ihe Property; (iii) conveyance in lie,, of candamnatinn; or (iv) misreprescntation.~ of, or ornm~ions as ID, ltm value and/or cnnditian of the Propm'ty. iAI) "Mortgage Insurance" means in.qm'ancepro~e~_fing Lendc~ against the nonpayment of. ar defa,,ll an, the I nan. (O) "Periodic Payment" means the regularly Iche~lnled mmmnt due for (i) principal and interest nndar Ih~ Note, plus (ii) any amnnms nnder Secli/m 3 of Ihis Secm-ity ln~tru n ~ent. (P) °'RI~ISPA" means the Raal F. smta Se.lament Procedurc~ Act (12 U.S.C. Section 2601 et seq.) and ils implementing Iegnlatinn, Regale(inn X (24 C_F.R. Part 3500,. a~ they might be amanderl from time ID hme, ar any additinnal ar sneC-.SSar le..qiilation or regale(inn Iha! [, t)vcrns the same subjec[ manor. As used in this Security lnitn,menI. '~ESPA' lafars ID all requirementS and restrictions tha~ are imposel:l in regard ID a "t'e~larally ]re. late~t mar,gage lnan" even if the Loan does nol qualify as a "fe~larally ]'elated mortgage Icon" nnder RF-qPA. tI~-6A(WY) (0005) ~age2of 15 Form3051 lf01 0329 (Q) "$-eeessor in lmerest of Borrower" maans zny ~ th~[ has ~en ~c m ~op~, ~at~ ha~ am~me~ B~OW~'S 0~ .nd~r ~ Note anco/or ~is S~ ln~t. ~~ OF ~G~S ~ ~ PROP~ ~ S~ Ink,merit ~es m l~d~: (i) ~ ~e~ymcn~ ol fl~e Lo~, ~d ~ ~w~, gxmnfions and modificafi~ of ~e Nora; and (fi) ~e p~ance of Borrower's cov~ ~ ~enm S~W ~t and ~e Nom. F~ ~ p~o~, Borrov~cr does hereby m~age, ~ant ~ c~vey ~ ~ (solely ~ n~,n~ for l~nder and ~der's st~ct'cssors ~d ~) and and a~i~ of ~, ~ pow~ of role, Cw following ~ prop~ ~ca~M h~e Cowry of Lincoln : ~e ~mding J~aln, i~] { Name of ~cm~ J~cfi~] a~ +h~t ~au~ ~ ~c~ of ~d ~ ~hom on Schedule "l" h~eto w~ ~ ~c~orated h~ ~d made a part hereof. TOGETt-~R WITH all .Ihe improvements now or hercal'tcr erected on the property, and all easements, ilppllrtenances, and fixn,res now or hereafter a part of the proI~crb'. All replacements and additions ~hall also be covered by ~hi~ Security Instrument. All of the foregoing ,.. roi'erred to in this Securily ln~mmmnt as the 'iPl'opurty." Bolxower nnden'.qtandg and agrees lhat MERS htdds only legal lille IO Ihe interests granlext by Bon'ower in thi~ Security Inem,ment, but, ifnec, essary ID comply with law or custom, MERS (as ~ominae for I imder and ] ~.nder'$ SB_e-_cu~._SSorS .and .as~iotm~) has Ihe right: to exercise any or all of those interests, innlnding, but :not limitM ID, the fight Ia foreclose and sell Ihe Property; and to lake any action xequired of lnndel' inHnrlino., but not limiteA Io, l'ele, aqing and nanny, ling lhi,q Sec u ril 5 I n strument. BORROWER Cov~q~s that Borrower is lawfull3 sciscd of the eslate hereby conveyed and has the right ID mortgage, D'ant and convey Ihe Protx:rty and that the Property is unencumbered, except for encumbrances of :record. Borrower warrants and will defend generally the title ID Ihe Properly againq all nlaimi and demands, subjecI Io any lmcumhranc-es of Itl:oral THIS SECI/R1TY INSTRUMENT combines nniform covenants for natinnal use and nan-.niform covenants with limiteJ variations by j,,ri~dintion ID consntutc at uni[orm security innm~me, nt covering Ieal propm~y. Page3of 15 Form3051 1/01 0,90S36 UNIFORM COVENANTS. Bo~xower and lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow l_~enas, Prepayment Charges, and Late Charges. zBflrl'OWer ehall pay where due the principal of, and interesl ~m. the debt evidenced by the Note and any t:lrg'paymen, t charges .and ~ charges due under the Note. Borr~,a,er shall also 'pay fl~nds for ~rn'ow _lie, ms pLlrgllant ID Section 3. paymen~ due nnder the Note and fl~is Security Inslnn-nent ehal! be made .in US. emxency. However, if any the. ok' or other inutrnment xeceived I~y Lender as payment nnder the Note or ~ Seniority Inmnlmen[ is :relllrlled Io J.~.nder mapaid. Lender ma3 rcquire that any or all subsequent paymenls due under the Note _and lifts SexTaxrity In~trmnent be made in cmo or more of the following forms, as se. lee. ted by lender: (a) ca~h; (b) money order; (c) certified check, NmL check, treasurer's cheek or c. ashier's chec, k, provided any mmh cheek' is drawll llpoll all institution who~c deposits are insured by a £eaiera_l agency, inutrumentalily, or enfi~l or (d)~F_.~ecIronie ~Funds Txansfer. Paymemu are deemexl_ received by lender when xeeeivcd :it the location de.uignmext in the Note or at each other location as may be deuisnated by l .ender in accordance with the notice proviuinn~ in Section 15. ~may xe. xnm any paymem or partialpaymentffthe paymcm or partial paymenls areinsnfficient_ IO bring the Loan cmxent. Lender may .accept any payment or partial Nb'meat insufficient to bring the Loan cixrrent, without waiver Of any fights ]lerennder or prej,,dice to its nght~ m re fuse such payment or partial paymente in I1~ fi~h~re, bllt l ~nder is 110! ohli~ate, d ID apply mmh payments :ii tt~e time such payments are accepted. If each Periodic payment is appliext as of ils .ucheatnle~l due date., filch Lender need not pay interest on .napplie~l ritualS. Lender may hold .~nch nnnpplied flmds nnfil ~on'owcr makes payment to bring ~ Loan em-rent. If Borrower does not do so within a reasonable period of l~rne, 1 .coder shall either apply such fimds or return them ID Borrower. J. flloI ap~nli¢~ e-nrlier, .each fimd.~ will be apl )lied to the outstanding principal balance nnder the Note immeAiately prior ID foreclosure. No off, et or claim which Borrower might have now or _in the. 'fimwe against ]_~ier .~hall xelieve Borrower from malting payments due under the Note and this Security _Inslrmnent or performing the £ovenants and agreements secured hy this Security Instalment. 2. Applleatlnn of Paymellts or Proceeds. ~.xcepl as oflwrx~ isc described in thie Section 2, all paymentu asw.~pI~ and .applied by I coder uhall be applied in the following order of priority: (a) interes! due nnd_er the .Note; (b) principal dl~ lmder the Notei (£) arIlonntq due tmde~ Section 3. Sucah payment~ ~ha'll be applied to each Periodic Payment in the order in which .ii became due. Any remaining amotmts .ehall be applieA first to ~ eharge~s, ~ond IO any other amonnts doe nnder this Se. curi t 3' Instrument, and then to reAr, ce the principal balance of ~ NOte. ]5 lre. nder xea~ves a payment from Boo'ewer :for a dchnquent Periodic Payment which inc. lndes a sufficient anaoum ID pay.any late charge due, the payment ma3 hc applied to the delinquent paymen_t and the .late eharge..If more than one Periodic Payment is Ontutandillg, 1 .coder may apply any payment received fi-om -'Borrower ID the xepaymen! of the Periodic Payments if, and to the extent that, each payment ran be naid in fifll To the ~t that any excess exists after the payment i~ al)plied to the full payment of one c~ more Perinclic Paymems, .uneh excess may be applie~ to any late charges due. Volnnlary prepayments ehall be applied first Io any prepayment charges and then as desm'ibed in file Note. ' Any appliemfion of payment% insurance proeeexls, or Miscellaneous Proceeds to princ~al due nnder the Note ehall ~OI extend or poslpone file flue date, or change l:he am~)un t, of the Periodi~ payme, n~. 3. l~nndS for Escrow Itoms. ~Bol:rower ~hall pay IDLendcr on the day Periodic Payments are th_~e nnder ~ _NOte, nnfil ~ Note is ~ in rill, a .~nm (I~ '~nndu") 1o provide for payment Of amonntu due for: (a) loxes nad .assee~mentu and other items which ran attain priorily over this Security Instnmaent .as a lien or ~..annbran~ on the. Prop~7; Ct)) .lemsehold paymen~ or grouml rents on the Property, if any; (£) premiums :for any and all -inunrance rex:lllired by Lender under Secaion 5: a,,l (d) Mortgage In~uranca prea-ninms, if ally, or any uums payable by Borrower Io _Lender in li~u of the p',tynient of Mortgage lnunrance premiums in a~ordance With the provisions of Section 10. These items are ca[lcd "Escrow Ilemu." AI ori~inatinn or atany time daring ~ ~ of the L.nan, l~nder may l'e. quire thal Colnmunity Association Dues, Fees, and Asse.,~ument% if any, be ca. owed by Borrower, and ~nch dues, lees and assessments .~hall be an F.~crow Itean. iBorrower ehall promptly fiirni~h to lc. oder all 11~ of anl~)unl~ to be paid under thi,q Sea, flea. iBon'ower uhall pay l~.nder ~ Flmds £or ~.eerow lteme nnleusLender x~ ',lives Borrower's ohli~afinrl II3 pay the Fnnd~ :for.any or all Egcrow ltems._Le, llder may waive zBoil-ower' s obh.e, atk)n to pay to lender Fnnds for any or all -F..ean'ow Items many lime. Any each waiver may only be in writing. In the event of ,~nch waiver, Borrower .ehall pay direv.2~ty, when .and w]aere payable., ~ amonnt~ duc l~)r any Escrow Items :for which payment of ~I~-~SA(WY) (oon5) Inilials: 5~/~' P~age4~3f 15 Form3051 1/01 Fnnrls has been waived by J2.n~ and, if lenrler xequires, shztll furnish to Lender xeceipts evidencing *nth tmyment within mmh time period as I~nder may le, qllire. Borrower's obligauon to make mmh paymenm .and ID providg Ice, pis .~hall for all plllposes be tleeJ,next Io-be a coven;mi and agreement contained in ~ Sec. llrity Inning_men!..as the phrase "Covenant and agr~..,ment" is nsed in Section 9. If Borrower is obligated Io pay ~crow Items directly, pm'.qnant to a waiver, and Borrower fail~ to pay the mount due for an ~_.serow Item, lender may exercise/Is ~q~ts nnrler Section 9 and pay such amount and Borrower .qhall then be ohligaterl ~mder Secfinn 9 to ~epay Io l~nrler any Stlch amollnl, l~nder re:t) revoke the waiver as IOany or allFxcrow llern~ at any time by a notice given in accorrlance with Section 15 and, upon such xevocafion, Borrower ~qhall tlay IOI,e. nrler all Fnnd% and in .each amotmts, that are Ihen reqmrcd under this Section 3. I~nder may, at any lime, cnllect and hold Fends in an mmmnt (a) sufficient to permit l~nder Io apply the Fnnrl~ at the time sp~ifie, rl nnder RF~gPA, and (b) not to exceed the maximnm mount a lanrler can ieqllire nnrler RF~gPA./2.rider ~hall e~fimate th~ amount of t:unds due on Ihe ha~is of Cllrrent rlata artd :reasonable e,~fima~es of.expenrlimres offnmre~.scrow Items or odicrwise in accordance with ApplicahleLaw. 'The Fnnrl~ ~hall be heJd in an institution whose deposits ar,, insured by a federal agency, instmmeraality, or entity (inclnrling I ~ender, if 1 ~_.nd__er iS an institution whose dcp~ ~sits are so insured) or in any Federal Iqnme Loan ~Bank. l~nrler ~hall apply the Fnnrl~ Io pay the Escrow Items no lal~r than the lime Specifier] lieder ~RF~.qPA. l~nrl~ .qhall nOt charge Borrower for balding and applying the Fnnd~, annnally analyzing the e~.q~l'OW ac~nnnt, or v~f)dllg the F~SCl'OW Items, nnless Lendc~ pays Borrower inlerest on the Fnnd~ anrl Applicable Law permitq Lender to make .8llch a charge. Unless an ag reement is marie in wiS_ting or Applicable Law Ieqttires interest to be pairl tm the Fnnrl% Lenrler ~hall not t*e required to pay Borrower any in~erest or earnings tm the Fnnrl~. iBOn'OWer and Lender can agree in wrinl ~g, ht)wevet, thai inlerest ~hall be paid on the ~Fnnrl~. l~nder .qhall give to ~Borrower, without charge, an annual accounting of the Fnnrls as Iequired by RESPA. If _there iS a sm'phm of F~md~ helrl Jn e~qerow, as del'iced under RESPA, I2,~rler ~hall account IO ~Borrow~ for the excess funds in accordance with RE~qPA. If there is a shorlage of Fnnd~ helrl in escrow, as definerl nnder RESPA, Lender ~hall notify Borrower as reqmrcd by RESPA, and Borrower ~hall pay to 1 ~.nder the mount ~ece.q~ary Io make up the shnrmge in accordance with RESPA, but in no more than 12 mnnthty payments. If there _is a deficiency of Fnnrl~ held in escrow, as defined nnder RF.~PA, Lender shall notify ttorrower as ~equired byRESPA, and ]~orrower ~hall pay to Lender the amount necessary Io make np Ihe deficiency Jn accordance with RESPA, butin no more than 1 ? monthly paymenm. Upon payment in fifll of all stalls ~.e~nrezl by this Security Instrument, Lenrlew ~hall tlrtlmptly lefimd to ~t:m'owt:r any F~mrls helrl by Lc, nde. 4. Charges; Li~n.q. ~Borrower .qhall pay all rexes, assessments, charges, fine% and Jmpn~ifirms atlriblllab~ lo I1~ Pi'operty which can anain priority OVer thi~; Security Instrument, lea~ehnlrl payments or gro~mrl Iflnls on the Prope. rty, if any, anrl Commnnity Asso£iatit~n I)ues, Fees, and Assessmems, if any. To Ihe exlent that these item~ are F~ow Items,~Borrower ,qhall pay them in the manner providedin Se. ction 3. Borrower ~hall promptly rlimharge any lien which has pr~t~rity over this Se. cm'ity Insl~ment unless Borrower: (a) agrees in writing IO the payment of the ohligaticm ~ccured by the lien in a manner acceplablg to 1 ~.nrler, but ollty .80 long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defenrl~ against t~,~nforc~ment of theli~ in, l~gal proceedings winch in Lender's opininn operate to prevent the ~ttforcement oflhe lien while those prOC.~.rlings are pending, but only until such proce-~rlings are cnncindeO; or (C) secaxres from the hnlder of the lien an ~gree~ment satisfactory to Lender suborrlinating the lien Io this Severity ln~tmm~mt If l~nder rletermines that any part of thc }'roperty ts subject to a lien which can anain ~ over lhi~ Ser~wity ln~tnlln~t, l~nrler may give Borrower a nouce identifying the lien. Within 10 ~)~-gA(WY) (goos) Page .~ of ~ 5 Form 3051 1/01 ,-0332 days of the dam an which that ~otice is given, Borrower sh;dl satisfy the lien or take mae ar more of the ~_6finns ~et forth ~bove ii1 lhis S¢.lT. tion 4. 1 ~nde.r lllay l¢.qllh-e B0rrowe. r IO pay a ane4ime charge h>1 a real estate lax verification and/ar ~-eprming s~wice nse. d by 1 ~nde.r ill C0nne~tion with thi~ I nan. 5. Propert~ Insurance. ~Barrower .~hall ke~p the improvements now existing or hereafter ere~'.te~t an the t~roperty inmrred against lcms by fire, ha?ards included within thc term "extended coverage," and any other haTards inelndlng, but zmt limiled to, ~rlhqnakes and flor)ds for which Le~der ieztllires illsnrance. This _inslmtnce .qhall be maintained in the amolmts (inchlding deductible levels) and for the periods ~_hat I.e.nder I¢_12111ir¢.,s. ~ 1 ~mder leqllires pursuant I0 Ihe prece~ling semcnces can change dmOmg the term of the Loan. The insurance carrier providing the insurance shall be eht~>,,.n by Borrower subjecl[ to Ja. nder's zight Io disapprove Borrower's choice, which zight .qhall not be exercised unreasonably, lender may ~eqaire ~Ba~ower Io pay, in cnnnection with this J_~an, either: (a) ;~ ~mc-time charge far flood z~ne determination, c. erfificafinn and traclcing ,~l'vices; or (b) zt ace-time charge lot flood zone de.termination lind r.C/fifieafinn serv/ces and sobseq~nt charges each time ~:em?pings or himilar changes occur which lea.mnably might affect such dm~minatinn ar Cmlificafion. ]~arrower shall als~ hc responsible for the paymem of any fees imposed by Ihe Fe-4eral t~.mergency Management Agency in connection with the review of any flood znne de.te.rminafiOll I~dfillg_frOlll ltn objection by Borrower. J_f ;Btm'ower fail~ It) maintain any of lhe cove.rages dc~cril)ed above, l.e. nder may ohmic inm~rance coverage, ~ l~nde~'S option and ~Borrower's expense. Icmlcr is under no obligafinn to purchase any t:larticnlar Iype or amolmI of coverage. Ther~are, mmh Covcr;~,~,c shall cover Lender, but might or might zmt l~'otect ~Barrower, ;Barrowe~"s e_qtlity in the Property, ar the c~nlcnts o£ the Property, against any risk, ha?orr or liability and mio~ht larovicle greater or lesser covera~h' than was previously /n effect, ttarrower aclcnowlt--dges that the. C0Sl of the. in.qurance C0vea'age So t}bmmcd might significantly exceed the cost of 'insurance ~haf ~Bcm'ower collld have obtaine~t. Any amounb disbursed by Lender nnder this Sectinn 5 shall become additinnal debt of Borrower secured by thi~ Security Instrument. These amotmts ~hall be.~ar in~ere~qt af the Note m_te :fl-om lhe dam of disbursement and ~h011 be payable wid~ such interest, npan zmlice fram 1 ~nder I~ ;Barrow~ ~,eque,qting lmym~m ~ inmn'ance policies ieqllired by l~.nde, r and Ienewals t~l' such policies shall be subject to 1 ~.nder's fight to di,qapprove mmh policies, .qhall include a ,qtanda~d mortgage clause, and ,qhall name l~.nde.r ~s -mm'~gagee ~!/ar ~aS an additional ~SS payee, l~.nder ~hall h',~vc d~e right to hold the policies and zenewal C~lificam~. If I~nder Ieqllircs, Botlower .qhall promptly give to Lender all receipts of paid pre. microS and zenewal notices. If !Borrower obtains any form of insurance coverage, not otherwise zeqaired by l,ender, for damage I~, ar de.motion cfi, the Property, .qnch policy shall include a standard mortgage clause ~nd ~hall name Lender ~tS mnrt~agee and/or i~s an addifinnal 10SS payee. In the event ofloss,~Barrower .qhall give prompt nohce t~} the insurance carrier and Iamder. 1 ~.nd~r may make. proof of loSS _if ll0t made promptly by Borrower. Ll~dcss Lender and Borrower ofherwise .agree in writing, any inmrrance pr0Ce~'-4S, whether ar ~ot the nnderlym~ insurance was ~eqaired by Lender, .qhall be Itpplie~l Io ze.qtorarinn or :repair of Ihe Prap~Iy, if Ihe restor:~tion or repair is economic, ally feasible and l~.nde.r's ~e~'J~rily is ~lot lesSell~. During .qnch le~ .aIld rc,~t~ration period, l.e.nder ,qhall have the light IJ) hold ,quch inm~ranee proceeds nntil I~nder has had an opportumt y to inspect such Propm~y to en,qnre the wc~ tins been comple.fe~l Io l~.nd~'s ~d~t'acdon, prov/ded that such inspection shall be nnde.nake.n pramplly. I ~nder my disb~se prrmeeds far the :repairs and restoration m a single payment ar in a .qe.rie.$ of progrt~.ss paymenf~ a.q Ihe work is comple.ferl. IJnle~ an ~tgreement is made in writing or Applicable Law ~eqaires inrere..st It) be paid on mmh insurance proceeds, l.e.nder shall not be required to pay ~Borrower any in,ere, st or ~-lzings an .qnch proceeds. Fees £ar ptthlic adjn*mrs, ar other d~rd parties, retained by ~Ban'ower ~hall not be ~ t)ut of tile inmn'aneeproc~ds and .qhall be the sole obligat~(m of Borrower. If the le~qtorati~ ~1' iel~ir is not ¢.4:anomically Se.a~ihle. ar l~.nder'S SecmSty wo~ld be les~cncd the insurance proceeds ~hall be applieri Ir) .~6A(WY) (ooos) ~a~ S of 15 Form 3051 1/01 }2' .; ' ~'.;'.'i i¥i'~ 0333 Ihe .qnm, sex. ureA by this Secanity ln._~y~_ rmenL whe_ther or nt~t then due, with Ihe excess, if any, paid lo BOlIOWer. Sllch ~.~nranc-e llroceeAs ~hall be applieA in the order provided for in Section2. If Barrower abandons the Property, I nnder may file, nc?note and settle any available in~nrance claim and ye. lateA manerS. If Borrower does not ~espond within 30 tkW.s to a notice'from Lender ~ha~ the in~nmnc~ c..m'rier tins offea'eA lO se.~l¢ a claim~ then I ~.nder may negotiate and settle the claim. The 30-day period will begin when the nolice is give. J1. In either eve_,nL or if LcmL'r acquires the Propeaty nnder SeclSan 22 ~ otherwise, Borrower hereby assigns Ia Lender (a) Barrower'~ rights to any insurance proce, eAS in an mount not lO exceeA the mounts unpaid nnckn' the Note ar this Securit5 Instrument, and (b) any other of Borrower's xig-hm (other than the xight to any lefimd of nneame, d prcnuums paid by Borrower) lmder all i~nranee policies covering the Property,/nsofar as .qnch xights are applicable to the coverage oflhe Property. Lenchxr may use the in~m'ance proceeds either Ia ~pair ar :restore thc Property or to pay amonms unpaid nnder lite Note ar thi~ Se~'.nrily ln~m~me.nL whether ar not then doe. 6. Oc£Dpancy. BolIOWer ~hall OCCupy, e~mhliah, and u~c lite Property as Borrower's principal renidence within 60 days ~ the execution of this Security ln~trumcm and shall continue lo occupy the Property as Bon'ower's print/pal residence far at le.a~t one year after Iht date of occupancy, nnless l~'.nder nthe~ise agrees in willing, which con.qent ~hall not be nm'easr~nabh w~thheld, or unless extennating circnm~lances exiq which are beyond Borrower's cnn_rrol. 7. l:~'t~.ryation, Malnt~,nance and la¥o!_m2~jon of thc Property; Inspections. Bo~xower .qhall YioI destroy, damage or impair Itm Property, allow Ihe Property t,~ deteriorate or commit waste on Ihe Prope. axy. Whether ar not Borrower is re.qiding in Ihe Propezly, ~Barrowcr sl~all mmntain the Property m order Ia prevent the Proptn'ty fi.om deaxrinrating ar decreasing in value due tt~ ~ts uondifion. Unless ills demrmineA pur~nant lo Sex.finn 5 thai I~:k~ir ar Ie.qmrafinn is not e. lx~nornically feasible. Borrower shall promptly repair the Prop~a'ry ff damao~ed lo avokl fttrther dete~ ar damage. If instuance or condemnation procec£1s are paid in cnnnection with damage Ia, ar the raking of, the Property, B~}rrower shall be responsible for xepairing ar xesmring Ihe Propm'ty only ~_12..nder has xelea~exl proceeds I or such purposes. 1 ~.nder lllay disburse proceeAs :far the :repairs and ~'esmratinn in a single payment ar in u ~eries of progress paymen~n aS the work is comple~eA If the in.qnmnce or condemnatinn proceeAs a~c nt~l sufficient to repair ar resiDre the Property, Borrower is not xe. lieveA of Borrower's obligation far the completion of such repak ar ;restorafinn. Lender or its agent may make Ieasnnahle enlries uptm and inspections of Ihe Property. If it has xeasonable c~an.~., Lender may inspect the inmriar of the iml~ravcments on the Property. l.ender nhall give Borr0wt:l' notice at th~ limn of ar prier Ia .qlmh an inLeriar inspcution specifying such l'eltsnnahle canoe. 8. Borrower's Loan Application. ltmxower ,qhall be m dclhult if, during the Lp. an application process, Borrower ar any persons ar entities acting at the direction t~ Borrower or with Borrower's knowledge or cnn~,ent gave materially false, misleading, or inaccnram inf~rmatton or slatemenls Ia ~ (or faileA ID provide 1 ~aader with mmerial iofarmation) in ccmnectkm witli the Loan. Mmerial Iepre,qenmfinns inclnde, bnt ~tre 11o£ limile, rl lo, Iepre.~.nmrinns COlmexlling Bm'tower's occul~ancy of the Property as Barrowe..a"$ principal l~Sidence. 9, Protection of I.~,nd~,r'a Interest in the Property and Rights Under this Secan'ity In.,a. rument. If (a) Bon'ower fails lo perfo~un the. Covenant~ and agreemaents c¢ retained in this Security Inslxument, (b) ~here is a ]e_,gal prOCe~'Aing lhm mi~oht .~ignificanfly affect l~'.nder's interest tn the Propexty and/ar xighls nnder this Security Insl~ament (.qnch as a proce~'Aing in hanlcrnptcy, probate, for c0~demnation ar forfeiture, _far ~Ilfarcemen! of it ~ which may anair~ ~ over this Security Insllnment ar lo ~.,rLf'arce laws ar xegulatinns), or (c) Borrower has abanaoneA the th-operty, then Lender may do and pay for whine, vet is Ieitsnnahle ar .appro.rn'ia~e. Ia prolecl; l.ender'.q interest in thc Property and xighls nnder this SecanSty ln~m~me.nL inclnding prO~e.c_ting and/ar .asse,q~ing the value t~l Ibc Property, and secnling and/ar xepairmg the Property. l~nder'S acfinns can haclnde, bnt are not limited tt~: (a) paying any sores secured by a lien which ha~ priority over thi~ Security Instnnnextt; (b) appearing in court; and (c) paying xeasnnable (~-6A(WY) (onos} ~age7 of ~ 5 ~==rm 3051 1/01 0334 attorneys' fees to protect its interest in the Property and/or rights tinder this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the ProperLy includes, but is not limited to, entering the Property to make repairs, change locks, replace or board 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 under any duty or obligation to do so. It is agreed that Lender incurs ]~o liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shzdl become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note ram from the 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 comply with all the provisions of the lease. If Borrower acqukes 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 as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases Itl be available from the mortgage insurer that previously provided such insurance and Borrower was reqtiircd to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previeusly in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and rclain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the 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 Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance ill 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 affects Borrower's obligation ~o 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 i~ not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage 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 may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (direcdy or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts Hint Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (~-6A(WY) (0005) Page 8 of ~5 Form 3051 1/01 0.905362 '..,',. 0335 (b) Any such agreements will not affect the rights lh}rrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act .f 1998 or any other law. These rights may include the right to receive certain disclosures, to.reques~ and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeitm'e. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such lVliscellaneous Proceeds 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 Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress pa)ments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or carmngs on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not 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 Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrumcm, 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 Property in which the fab market value of the Property immediately before the partial taking, dc.qruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fab market value of the Pm perry immediately before the partial taking, destruction, or loss in value..&ny balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fab 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 and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums arc then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined 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 o1' 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 Nliscellaneous Proceeds or the party against whom Borrower has z~ 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 acceleration has occurred, reinstate as provided in Section 19, by causing thc action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of LendeCs interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restorauon or repair of the Property shall be applied in the order provided for in Section 2. ~-6A(WY) (ooo5) ~'ag. e of ~s Form 3051 1101 06 L";. OZ) O 12. Borrower Not Released; Forbearanc~ By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured b) this Security instrument granted by Lender to Borrower or any S~ccessor in Interest of Borrower shall not UlX:rate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by l~cnder in exercising any right or remedy including, without limitation, Lender's acceptance of payments l¥om third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then duc. shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors ami 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 Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obfigated to pay the sum~ secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree ~o extend, modify, forbear or make any accommodations with regard to the terms of this Security Insirumcnt or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in In~ercst of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is at,proved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrmmmt unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrumc~l 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 performed 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, attorneyo°' fee~, 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 be construed 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, and that law is finally interpreted so that the interest or other loan charges collected or to be colleck~d in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this retired 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 prepayment 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 deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice addrc.~ shall be the Property Address unless Borrower has designated a substitute notice address by notice to I.¢nder. 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 z~t ztn y one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lcmder's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law~ tl~c Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. Initials~ (~I~-6A(WY) (ooo5) ~'ag- ~oof ~s Form 3051 1/01 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located, All fights and obligations contained in this Security Instrument are subject to .any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against ~,grccment by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provtsion. As used in this Security Instrument: (a) words of thc 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. 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 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 the Pre perry is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all .sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such c×crcise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument, If Borrower falls 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. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the fight to have enforcement of this Security Instrument discontinued at any time prior to the earliest of.' (a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (13) such other period as Applicable Law might specify for the termination of Borrower's fight to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as d no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure 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: (a) cash; Co) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this fight to reinstate shall not apply in thc case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security 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 "ktmn 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 of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a (~-6A(WY) (ooo5) Page ~ of ~5 Form 3051 1/01 0038 notice of transfer of servicing. If the Note is sold and thereafter the Loan ts serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing oNi~ations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan S6rvicer and arc 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 to this Security Instrument or that alleges that the other party has breached any provtsion 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 the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective ~ction. If Applicable Law provides a time period which must elapse before certain action can be taken, that ume period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opporttmity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21, Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmenlztl Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental l.~w; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise triggc;r an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (zl) that as in violation of any Environmental Law, (b) which creates an Environmenlal Condition, or (c) which, duc to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects ~h~,. value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on thc. Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to 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) ;my investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or privzl~e party involving the Property and any Hazardous Substance or Environmental Law of which Borrower 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 by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or 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 herei~a .~hztll create any obligation on Lender for an Environmental Cleanup. ¢~I~-6A(WY) Page 12 of 15 Form 3051 1/01 :,4':,!;: · ',';';'i. ?.-.. ' ........ ' , ::,~:...i;!. - ..... '~" ..... "i.. . 'i ;;¢;i?;': ' :?.~i!!ii!!!i.?" ..: "'. -','. ' ::;:::b ~ :;2:' .. - ....', ~ ? ~;. . ;,";¢~ ;',:',.; ' '.: 0o39 NON-UNIFORM COVENANTS, Borrower and Lender fro'thor covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice Io llorrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may rcsul! in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further 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 Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable l.aw. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if dil'l'crcnt, in accordance with Applicable Law. Lender shah give notice of the sale to Borrower in the nnmner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in lite manner prescribed by Applicable Law. Lender or its designee may purchase the Property at an y 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 Inslrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid t() a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all fights under and by virtue of the homestead exemption laws of Wyoming. Initlals:~ (~-6A(WY) (ooo5) Page 13of 15 Form 3051 1/01 0240 BY SIGNING BELOW, Borrower accepts and agrees to thc 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) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 0052027224 (~6A(WY) Page 14 o! 15 Form 3051 1/01 0905 62 STATE OF WYOMING, The foregoing instrument was acknowledged before me this by SUSAN E. SWEITZER County ss: My Commission Expires: / Notary Public 0052027224 (~)~-6A(WY) (0005) Page 15of15 nitia~ Form 3051 1/01 0905362 ', 03-12 SCHEDULE "A" Lot 22 of Nordic Ranches Subdivision No. 3, Lincoln County, Wyoming according to that plat filed April 6, 1993 as Plat No. 311-B, Instrument No. 762820 of the records of the Lincoln County Clerk. 0o4 3 ADJUSTABLE RATE RIDER 005202?224 (LIBOR Six-Month Index (As Published In The IV. Il Slreet Journal). Rate Caps) THIS ADJUSTABLE RATE RIDER is made this lSth day Of December, 2004 and is incorporated into and shall be deemed to arnend and supplement the Mortgagel 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 FTRST ~OR'r'zo~ HOl~fl!l 'r,o.i~N CORPORATTO~ ("Lender") of the same date and covering the property described in the Security Instrument and located at: 3 0 5 SADDLE DRIVe. ETNA, WY 83118 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 4. ? 50 %. The Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of Ja~uazT, 2008 and on that day every 6t:h month thereafter. Each date on which my interes[ rate could change is called a "Change Date." (B) The Index Beginning with the first Change Date, my interest rate will be based on an Index. The "Index" is the average of interbank offered rates for six month U.S. dollar-denominated deposits in the London market ("LIBOR"), as published in The Wall Street Journal. The most recent Index figure available as of the first business day of the month immediately preceding the month in which the Change Date occurs s called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding ~o mqD OZ~rS-GUA.RT~.]~ percentage points ( 2.250 %) to the Current Index. The Not~ Holder will then round the result of MULTISTATE ADJUSTABLE RATE RIDER - LIBOR SIX-MONTH INDEX (AS PUBLISHED IN THE WALL STREET JOURNAL) - Single Family - Fannie Mae Uniform Instrument _I~-838R (0402) Form 3138 1/01 Page I of 3 Initials:_,_~_._~_..~ V MPMo(800)521rtgage_7291 So lutio ns, I nc. III II I Il{Il{ {111 Illlll Il I IIII this addition to the 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 of the 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. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 3.0.750 % or less than 2. 250 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than '~wo r,. O0/3.0O percentage points ( 2.00 %) from the rate of interest I have been paying for the preceding 6 months. My interest rate will never be greater than 3.0. ?50 %. )Effective Date of Changes y new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. 1~) Notice of Changes e Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE 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 Interest in Borrower. As used in this Section 18, "Interest m 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 the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this 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 Eender 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 ,n, ot be im~p~ red by the loan assumption and that the risk of a breach el any coven~.nt or agre,,ment n th s Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption, Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. 005202?224 {~)~-838R (0402) Page 2 of 3 Form 3138 1/01 '.-.- 0345 If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shal/prov de a period Of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails topay 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. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants ~-'0;S'A.N E. SWEITZE:~ O-B°C~rr°wer (Seal) (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower 0052027224 ~838R (0402) Page 3 of 3 Form 3138 1/01 INTEREST ONLY ADI)ENDUM TO ADJUSTABLE RATE RIDER t~ THIS ADDENDUM is made this 15thday of Dece~er , 2004 , and is incorporated into and intended to form a part of the Adjustable Rate Rider (the "Rider") dated thc same date as' this Addendum executed by the undersigned and payable to FIRST HORIZON HOM'g hOAR' CORPORATION (the "Lender"). THIS ADDENDUM supercedes Section 4(C) of the Rider. None of the other provisions of the Rider are changed by this Addendum. INTEREST RATE AND MONTHLY PAYMENT CIIA N (; ES (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO A_ND ONE-QUARTER percentage points ( 2. 250 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125 %). Subject to the limits stated in Section 4(D), this rounded amount will be my new interest rate until the next Change Date. During this Interest Only Period, the Note I lolder will then determine the amount of the monthly payment that would be sufficient to repay accrued interest. This will be the amount of my monthly payment until the earlier of the next Change Ditto or the end of the Interest Only Period unless I make a voluntary prepayment of principal during sucl~ period. If I make a voluntary prepayment of principal during the Interest Only Period, my paymenl amount for subsequent payments will be reduced to the amount necessary to pay interest on the lower princq~al balance. At the end of the Interest Only Period and on each Change Date thereafter, the Note thflder will determine the amount of the monthly payment that would be sufficient to repay in full the unpaid principal that I am expected to owe at then end of the Interest Only Period or Change Date, as applicable, ~n equal monthly payments over the remaining term of the Note. The result of this calculation will be the new amount of my monthly payment. After the end of the Interest Only Period, my payment amount will not be reduced due to voluntary prepayments. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Addendum. 'E~ SWEITZ'ER 2%.--,0 Date Date Date Date Date Date Date 520 2 ~n~erest21Jn~y ~ddendum to ARM Rider Page 1 of 1 FH6D03U 9/04