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HomeMy WebLinkAbout905599Retum To: EquiFirst Corporation Attn: Collateral M 500 Forest Point Circle Charlotte, NC 28273 0':5 0 Prepared By: Lisa Milne 500 Forest Point Circle, Charlotte, NC 28273 RECEIVE.,.) 1/3/2005 at 2:14 PM RECEi~.,'ING # 905599 BOOK: ~/~; PAGE: 350 JFANNE WAGNER LINCOLN CO{Jr,~Ty CLERK, KEMMERER, WY [Space Above This Line For ReL'.,'ding Data] MORTGAGE MIN 100200100063730612 DEFINITIONS Words used in multiple sections of this document are dcl'i~cd hclow and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding II~. us.,tgc of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dm,:dDecember 27, together with all Riders to this document. (B) "Borrower" is Douglas Alan Smith and Patrici._~ Lynn Smith, 2004 , Borrower is the mortgagor under this Security Instrument. (C) "MERS" is Mortgage Electronic Registration Systems. i~c. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's succc~,,,rs and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and e;~i~it~ ttlldcr the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 4~:,1,1~2026, tel. (888) 679-MERS. 637306 WYOMiNG-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT WiTH MERS 1~®-6A(WY) 10005,.02 Page I of 15 Initials: _ .l~ VMP MORTGAGE FORMS - (8001521-7291 Form 3051 1/01 0351 (D) "Lender" is EquiFirst Corporation Lender is a Corporation organized and exis[ing under [he laws 0fNorth Carolina Lender's address is 500 Forest Point Circle, Char";~t%e~ NC 28273 (E) "Note" means the promissory note signed by Borrower and d:ttcdDecember 27, 2004 The Note states that Borrower owes Lender seventy thousa,~ci and 00/100 Dollars (U.S. $ 70,000.00 ) plus interest. Borrower has l)t,,miscd to pay this debt in regular Periodic Payments and to pay the debt in full not later than January 1, 2035 (F) "Property" means the property that is described below umlc'r thc heading "Transfer of Rights in the Property." (G) "Loan" means the debt evidenced by the Note, plus interest. :my prepayment charges and late charges due under the Note, and ail sums due under this Security Inst,'um~'nt, plus interest. (H) "Riders" means ail Riders to this Security Instrument tht~ :trc executed by Borrower. The following Riders are to be executed by Borrower [check box as applicablc l ~ Adjustable Rate Rider ~ Condominium Rider [--] Bailoon Rider [---] Planned Unit Development [---] VA Rider [---] Biweekly Payment Rider ~ Second Home Rider ~ 1-4 Family Rider ix]Other(s) [specify] ARM Floor/ Prepay Rider (I) "Applicable Law" means all controlling applicable fcd~*~':~l, state and locai statutes, regulations, ordinances and administrative rules and orders (that have thc t. itcct of law) as well as ail applicable finai, non-appealable judiciai opinions. (J) "Community Association Dues, Fees, and Assessments" ~t~c:~ns all dues, fees, assessments and other charges that are imposed on Borrower or the Property bx :, condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of rural,,, other than a transaction originated by check, draft, or similar paper instrument, which is initiated ~h~'tmgh an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct. ,)r ztuthorize a financiai institution to debit or credit an account. Such term includes, but is not limited t,,. poiut-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wm. tr:tnsl'crs, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Scc'l i~ m 3. (M) "Miscellaneous Proceeds" means any compensation, settk.~cnt, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under tltc ct~vcrages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnatit,~ ~,~' other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) m~.,~cp~cscntations of, or omissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender ag[tinst the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amom~t duc t'or (i) principai and interest under the Note, plus (ii) any amounts under Section 3 of this Security In,ti umcnt. (P) "RESPA" means the Real Estate Settlement Procedures .,\~'t (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 350t}~, as they might be amended from time to time, or any additionai or successor legislation or regulation thztt ~c>\'crns the same subject matter. As used in this Security Instrument, "RESPA" refers to all requiremem~ :md restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does m,t qualify as a "federally related mortgage loan" under RESPA. 637306 Form 3051 1/01 (Q) "Successor in Interest of Borrower" means any party th:Li h:~ t:tkcn title to the Property, whether or not that party has assumed Borrower's obligations under the N,,~. :md/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment ~I ~l~c Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of B,,~r,~x~cr's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrm~.: dr,cs hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's succ~'.-.~,,rs and assigns) and to the successors and assigns of MERS, with power of sale, the il~ilo\ving described properly located in the County of Lincoln : [Type of Recording Jurisdiction] I N:mlc of Recording Jurisdiction] See Attached Exhibit A ParcellD Number: 12-3119-04-4-00-336.00 1752 Crow Creek Road Fairview ("Property Address"): which currently has the address of [Stxeetl \Vyoming 83119 [Zip Code] TOGETHER WITH all the improvements now or hc~c.:ti'lcr erected on the properly, and all easements, appurtenances, and fixtures now or hereafter a !-,:~ of thc property. All replacements and additions shall also be covered by this Security Instrument. All c)t' the foregoing is referred to in this Security Instrument as the "Properly." Borrower understands attx[ a~l'ccs that MERS holds only legal title to the interests granted by Borrower in this Security Instrument), but, ii' necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successor~ :ntd assigns) has the right: to exercise any or all of those interests, including, but not limited to, the ri~.ht t,, l'm'eclose and sell the Properly; and to take any action required of Lender including, but not limited ~o, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully sc.i~,.,l or' the estate hereby conveyed and has the right to mortgage, grant and convey the Property and th:ti illt: Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend ~c~.ntlly the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform c~\~,~:(nts for national use and non-uniform covenants with limited variations by jurisdiction to constitute :t tmifonn security instrument covering real properly. Form 3051 1/01 UNIFORM COVENANTS. Borrower and Lender covenant :~,! agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prt. lm)ment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on. tl~c debt evidenced by the Note and any prepayment charges and late charges due under the Note. Bom~v. cr shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this 5;~.ct~rity Instrument shall be made in U.S. currency. However, if any check or other instrument received h,~ I cmlcr as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may ~.qttirc dmt any or all subsequent payments due under the Note and this Security Instrument be made in ,,nc or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an i~:,r~ution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Fund,. 1 ransler. Payments are deemed received by Lender when received :ti thc location designated in the Note or at such other location as may be designated by Lender in accordanct: xxilh the notice provisions in Section 15. Lender may return any payment or partial payment if the payn~c~n or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice tt~ it~ rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply sml~ imYments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied l'uml~ until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonabk. !,cdod of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, sm'l~ funds will be applied to the outstanding principal balance under the Note immediately prior to forecl~.,urc. No offset or claim which Borrower might have now or in the future against Lender shall relieve l;~,~,,wcr from making payments due under the Note and this Security Instrument or performing the covenant,, ami agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in thc Ibllowing order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) tantrums due under Section 3. Such payments shall be applied to each Periodic Payment in the order in whi,t~ it bcc~'une due. Any remaining amounts shall be applied first to late charges, second to any other amoums duc under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment ma3 I,,. :tpplicd to the delinquent payment and the late charge. If more than one Periodic Payment is outstandin,/, l.cnder may apply any payment received from Borrower to the repayment of the Periodic Payments if, a~t,i t,, thc extent that, each payment can be paid in full. To the extent that any excess exists after the paym,.nt is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late ~ i~:~x'gcs due. Voluntary prepayments shall be applied first to any prepayment charges and then as described ~ mc Note. Any application of payments, insurance proceeds, or M iscc. lixncous Proceeds to principal due under the Note shall not extend or postpone the due date, or change thc mnt)unt, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lemk'~' t)n the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Fund,,'~ it) provide for payment of amounts due for: (a) taxes and assessments and other items which can attain i,ri,,rity over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments t~ siotmd rents on the Property, if any; (c) premiums for any and all insurance required by Lender untlc~ Nc. etlon 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lcmlcr in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Scct~t,n 10. These items are called "Escrow Items." At origination or at any time during the term of the L,,:~, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed t)~ Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly lu~ nish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds lbr Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escr,,~< 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 dircctl5, whcu and where payable, the amounts 63'7306 (~-6A(WY) 10005).02 Page 4 of ~5 Form 3051 1/01 due for any Escrow Items for which payment of Funds has bec~ v, :tired by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment witl~ ,~ch time period as Lender may require. Borrower's obligation to make such payments and to provideJ t~: cipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrum~-~t. as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escroxx lt{_.~ls directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lc~dc~' may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated u~tlc.~' Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Esc~,,x; Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borr,,v. ct' shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an ant,,~t fa) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to c':cccd the maximum amount a lender can require under RESPA. Lender shall estimate the amount of I ~tls due on the basis of current data and reasonable estimates of expenditures of future Escrow Items ,,~ ,~t~crwise in accordance with Applicable Law. The Funds shall be held in an institution whose dcl,,,,,its are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an in.~ti~ctti~ m whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds tt~ t,:t?, thc Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower ft~ I~,)lding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, milc~,s Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a cha~,:c., t~nlcss an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, l.ct~dcr shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender ~:,~, agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, ,x itht)m 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. If lhc~c is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as recNi¥cd by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accord:t~cc with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in est:~',}xx, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pa) I~ Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more th:~ i2 monthly payments. Upon payment in full of all sums secured by this Securitx i t~slrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, asso.~,~i~cnts, charges, fines, and impositions attributable to the Property which can attain priority over this <,~..cm'~ty Instrument, leasehold payments or ground rents on the Property, if any, and Community Associati,,~ l)ucs, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pa:. tttc~n in the manner provided in Section 3. Borrower shall promptly discharge any lien which has p~it,~ty over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obi;gat;tm :<.cured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such a~ccmcnt; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal procecdi~gs which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings arc' I,cnding, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agrcc,~cnt satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that :[~' part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender ~:t5~ give Borrower a notice identifying the 637306 (~-6A(WY) Iooosl.o2 Page 5 of 15 Form 3051 1/01 lien. Within 10 days of the date on which that notice is given. I'~,,~ t'L,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 char;~. ~',)r a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvt:~L.ms ii©w existing or hereafter erected on the Property insured against loss by fire, hazards included wi~l~i~ thc term "extended coverage," and any other hazards including, but not limited to, earthquakes and l]~,~,ds, for which Lender requires insurance. This insurance shall be maintained in the amounts (including: ,Idt~ctihle levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding.., sentences can change during the term of the Loan. The insurance carrier providing the insurance shall I,,. d~[~scn by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall m,i bc exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, ei~h,.:': (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a oik. time charge for flood zone determination and certification services and subsequent charges each time rn~:tl)pings or similar changes occur which reasonably might affect such determination or certification, i'~,,,~'~wcr shall also be responsible for the payment of any fees imposed by the Federal Emergency M:t~::?cmcnt Agency in connection with the review of any flood zone determination resulting from an objccti, ~ by Borrower. If Borrower fails to maintain any of the coverages desc~ il,cd above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Len&.~ is under no obligation to purchase any particular type or amount of coverage. Therefore, such covcr:~::~' ~lmll cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or tl~c. ~.~}mcnts of the Property, against any risk, hazard or liability and might provide greater or lesser cover:t~.~' dmn was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtzm~d might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts di~l,t~r.scd by Lender under this Section 5 shall become additional debt of Borrower secured by this Security ln~t~macnt. These amounts shall bear interest at the Note rate from the date of disbursement and shall be pzL,,:d~ic, \vith such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals ot ~ttch policies shall be subject to Lender's right to disapprove such policies, shall include a standard n~,,:t~:z~gc clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall hax~. tl~c right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give h, I c~clcr all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance c,,~ cr:tgc, 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 p:Lx c,~. In the event of loss, Borrower shall give prompt notice iL, thc insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. ['~ic~s bender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underl,,'i~ ~, insurance was required by Lender, shall be applied to restoration or repair of the Property, if the resto~:,~,~l~ or repair is economically feasible and Lender's security is not lessened. During such repair and resmt:~l~,m period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportt~3' to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided th:~l such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and R'v. hu'mion in a single payment or in a series of progress payments as the work is completed. Unless an agrcc~n~t is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender' >.hztll not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjt~:.~.~s, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and ~h:dl bc the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lendcr'~ ~c. curity would be lessened, the insurance proceeds shall be applied to the sums secured by this Securit\ i~stmmcnt, whether or not then due, with 637306 ~,~.¢ C (~-6A(WY) (ooo5).o2 Page 6 of 15 Form 3051 1/01 the excess, if any, paid to Borrower. Such insurance proceeds sl~a,ll I*c apl)lied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, nc~,,~Ii;ttc and settle any available insurance claim and related matters. If Borrower does not respond within .i~ days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender max ~:~mtiat~ and settle the claim. The 30-day period will begin when the notice is given. In either event. ,,,' ii Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender {:t., Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under ti~. Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to :t~', refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, im.,,fzt,' as such rights are applicable to the coverage of the Property. Lender may use the insurance procec& either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrumcm. ~xhcthcr or not then due. 6. Occupancy. Borrower shall occupy, establish, and t~::c thc Property as Borrower's principal residence within 60 days after the execution of this Security ht:,ti~tlncnt aud shall continue to occupy the Property as Borrower's principal residence for at least one year ,l~c.i ~hc date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unn.':,-.,)~mbly withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the l'r,,i,crty; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Properq, ~, deteriorate or commit waste on the Property. Whether or not BorroW, er is residing in the Property. t~(,rrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing ~. v;duc due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is t~,,t cc(momically feasible, Borrower shall promptly repair the Property if damaged to avoid further d~'tc'ri(~ration or damage. If insurance or condemnation proceeds are paid in connection with damage ti), t,~ thc taking of, the Property, Borrower shall be responsible for repairing or restoring the Properly on15 ii' i.cnder has released proceeds for such purposes. Lender may disburse proceeds for the repairs and rest,, ~t i(m in a single payment or in a series of progress payments as the work is completed. If the insurance ~,' ~:,,micm,mtion proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of B,,,,',,wcr's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries upon ~,,d i~tspcctions of the Properly. If it has reasonable cause, Lender may inspect the interior of the improvc~cms ou the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspect ~,,~ st)ccifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall be i~t dcl'zmlt if, during the Loan application process, Borrower or any persons or entities acting at the dirc<'tiou of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inac,.'t~nttc iulbrmation or statements to Lender (or failed to provide Lender with material information) m c:tmncction with the Loan. Material representations include, but are not limited to, representations ~',mccrning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and l{i;4hts Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements cont;.~cd in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's i~llctc~t in thc Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, p~, Jmtc, I'or condemnation or forfeiture, for enforcement of a lien which may attain priority over this Sc.cts,'it5, Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, thc~ l.c~tlcr may do and pay for whatever is reasonable or appropriate to protect Lender's interest in thc l'nq)crty and rights under this Security Instrument, including protecting and/or assessing the value of th,: Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited ti,: (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) appeari~ in court; and (c) paying reasonable 637306 ,~t,~l~: ~..~~' (~-6A(WY) 10005).02 Page 7 of 15 Form 3051 1/01 attorneys' fees to protect its interest in the Property and/or right, ~,~tdcr this Security Instrument, including its secured position in a bankruptcy proceeding. Securing iht: l'r,,l)crty includes, but is not lirrdted to, entering the Property to make repairs, change locks, replace or },t,:tltl up doors and windows, drain water from pipes, eliminate building or other code violations or dan:~,c~,,us conditions, and have utilities turned on or off. Although Lender may take action under this Section t; I c11dcr does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender ~tCt~l'S no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 ~.h:,ll become additional debt of Borrower secured by this Security Instrument. These amounts shall bear i,~t~.rc, st at the Note rate from the date of disbursement and shall be payable, with such interest, upon n,,licc t'rom Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shztll comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leaseh,,ld :md the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage lnst~r:mce as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mort?? insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to i,c. ~tvailable from the mortgage insurer that previously provided such insurance and Borrower was requirt:d t~ make separately designated payments toward the premiums for Mortgage Insurance, Borrower sha}! i)zt.5, the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance i)rc~ i~usly in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance ~rc\'iously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalc~t Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amoum t~i tl~c separately designated payments that were due when the insurance coverage ceased to be in effect, i c~lder will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortga?c I~stlrance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimz,tcl3 paid in full, and Lender shall not be required to pay Borrower any interest or earnings on such loss ~<'~crve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amotmt :~iid lbr the period that Lender requires) provided by an insurer selected by Lender again becomes axztilahh:, is obtained, and Lender requires separately designated payments toward the premiums for Mortg:t:?c I~lstlrance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower x~:~. ~'Ctluired to make separately designated payments toward the premiums for Mortgage Insurance, Boi'r,,.,~c~' shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a n~,~ ~'t'l'tmdable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with an\ ,,\ l'itlen agreement between Borrower and Lender providing for such termination or until termination is rc~It~rc.d by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity th:tt pttrchascs the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed, llt,rrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insu~:~tcc 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 mortga? ~surcr and the other party (or parties) to these agreements. These agreements may require the mortgage i~,~l~r~:r to make payments using any source of funds that the mortgage insurer may have available (which ~l:t,, include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser ~)i d,c- Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, ma3' ~-ccc~,'c (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrox,.~.~ s payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risl., or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insur~'~"s risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "c:ti~tivc reinsurance." Further: (a) Any such agreements will not affect the amounts ~hat Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such a~rt, ements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not enlitlc Borrower to any refund. 637306 ,~/~ ' (~-6A(WY) (00051.02 Page 8 of 15 '~"/-- Form 3051 1/01 (b) Any such agreements will not affect the rights Bm'~,~cr has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Acl ,~I' 1998 or any other law. These rights may include the right to receive certain disclosures, to r~-qm'st and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terming:dod automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unc~,~',cd at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiturt.. ~\11 Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceed> .,!~:d! bc applied to restoration or repair of the Property, if the restoration or repair is economically feasii~i~ ~md Lender's security is not lessened. During such repair and restoration period, Lender shall have thc t i?l~t to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Propert3 [,, c~surc the work has been completed to Lender's satisfaction, provided that such inspection shall be und~ t',tkcn promptly. Lender may pay for the repairs and restoration in a single disbursement or in a sc~i~.:, ~f progress payments as the work is completed. Unless an agreement is made in writing or Applic~l,l~. l.ztw rcquires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pa3' I¢,,~rowcr any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not econ{, ~,ic:dl3 feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to thc :.~:ms secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borr~,,,,, ~'r. 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 x;iiuc of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security [it~trtlmt:l]t, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in valti~: ~)1' thc Property in which the fair market value of the Property immediately before the partial taking, dc:.~rttction, or loss in value is equal to or greater than the amount of the sums secured by this Securitx l~t:,trumcnt immediately before the partial taking, destruction, or loss in value, unless Borrower and I~c~,lcr otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by thc :tlnt)tlnt of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of ll~, sums secured immediately before the partial taking, destruction, or loss in value divided by (b~ thc fair market value of the Property immediately before the partial taking, destruction, or loss in value...\nv balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in vait:~. ,~l' linc Property in which the fair market value of the Property immediately before the partial taking, cl~:~.t, t!ctiop., or loss in value is less than the amount of the sums secured immediately before the partial ~:~l,~:Z, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellam~:,~ts t'roceeds shall be applied to the sums secured by this Security Instrument whether or not the sums arc ~,~ ~ duc. If the Property is abandoned by Borrower, or if, after ~t)ticc by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to mal.~' :t~ award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the d:tlc, tile notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to res:,,t:tti{)n or repair of the Property or to the sums secured by this Security Instrument, whether or not then dt~. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party again~.~ ix horn Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, .,x [~c'thcr civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Propert.x ,,~ t~lhcr material impairment of Lender's interest in the Property or rights under this Security Instrument. H~,rrowcr can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19. ~,., c',a:sing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes !~,~zcitt:rc of the Property or other material impairment of Lender's interest in the Property or rights undc;-tills Security Instrument. The proceeds of any award or claim for damages that are attributable to the imp:~i:~:~cnt of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to rest,,~:~li~m or repair of the Property shall be applied in the order provided for in Section 2. 637306 (~-6A(WY) ioo051.o2 Page 9 of ~5 '~' ~""~-- Form 3051 1/01 12. Borrower Not Released; Forbearance By Lender ),~l a Waiver. Extension of the time for payment or modification of amortization of the sums secured b', ~l~is ~ccurity Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall nt~t ,~pcratc to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not bc ~.qtfii'cd to commence proceedings against any Successor in Interest of Borrower or to refuse to extc~d dsc for payment or otherwise modify amortization of the sums secured by this Security Instrument bi ~c:t~on of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbc:~:mcc by Lender in exercising any right or remedy including, without limitation, Lender's acceptance ol l~a3mcnts from third persons, entities or Successors in Interest of Borrower or in amounts less than thc ',,,~,,tmt then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successor~ :md Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joi~ :md several. However, any Borrower who co-signs this Security Instrument but does not execute the ;'.,,to ta "co-signer'): (a) is co-signing this Security Instrument only to mortgage, grant and convey the c,, :,i;ncr's interest in the Property under the terms of this Security Instrument; (b) is not personally obligal~d I~ pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrox~ ~-~ c',m agree to extend, modify, forbear or make any accommodations with regard to the terms of this 5¢','.~'itv Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Succes~,,~ m Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writi~r.?, anti is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrt~c.~n. Borrower shall not be released from Borrower's obligations and liability under this Security Instrun~,'~t tmlcss Lender agrees to such release in writing. The covenants and agreements of this Security Ins~,'t~mcnt shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees ~,~ services performed in connection with Borrower's default, for the purpose of protecting Lender's mt.~.~:~t m the Property and rights under this Security Instrument, including, but not limited to, attorneys' tcv~;~ property inspection and valuation fees. In regard to any other fees, the absence of express authority in t l~i:, .%curity Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the c'h:~'&yin~ of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or I,,, ,\pplicable Law. If the Loan is subject to a law which sets maximum loan c'h:~_,cs, and that law is finally interpreted so that the interest or other loan charges collected or to be collcc~c.d in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduc'c.d by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collec~c~l t'r~m~ Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to n~:d:~~ dds refund by reducing the principal owed under the Note or by making a direct payment to B,,~x~cr. If a refund reduces principal, the reduction will be treated as a partial prepayment without :~, prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrowc~ :, :tc'ccptance of any such refund made by direct payment to Borrower will constitute a waiver of any righ~ ,,i action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender i~ ,',,m~cction with this Security Instrument must be in writing. Any notice to Borrower in connection with ~l~i~ Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail ~,~' wbcn actually delivered to Borrower's notice address if sent by other means. Notice to any one Borr~,',,. ~'r shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The no~i~'c adclrcss shall be the Property Address unless Borrower has designated a substitute notice address b3 ~,,~icc to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender spccilics a procedure for reporting Borrower's change of address, then Borrower shall only report a change t,~ :tddrcss through that specified procedure. There may be only one designated notice address under this ~c'curity Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailin2 .~t t~y first class mail to Lender's address stated herein unless Lender has designated another addres:, i,, notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed t,, have been given to Lender until actually received by Lender. If any notice required by this Security hr, tx UmCllt it also required under Applicable Law, the Applicable Law requirement will satisfy the corrc:.l),,ncling requirement under this Security Instrument. 637306 I,,, ~ /}' 37` (~-6A(WY) 100051.o2 Page ~0 of 15 Form 3051 1/01 16. Governing Law; Severability; Rules of Constrm'thm. This Security Instrument shall be governed by federal law and the law of the jurisdiction in ,.~t~.'t, tile Property is located. All rights and obligations contained in this Security Instrument are subjcc~ t~, any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly, :dl~w the parties to agree by contract or it might be silent, but such silence shall not be construed as a p~,l~ibition against agreement by contract. In the event that any provision or clause of this Security Instrt,~.m m' the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Sc~'t~ritv Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of thc ~:~sculin~ 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" gix ~., ~dc discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy ,,', the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest ~ Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest ~n thc Property, including, but not limited to, those beneficial interests transferred in a bond for deed, c~,~t~ ac l for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title bx I;,~rrt~wcr at a future date to a purchaser. If all or any part of the Property or any Interest in the Pi,~i,crty is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is >~,,ld or transferred) without Lender's prior written consent, Lender may require immediate payment ia It,ll of all sums secured by this Security Instrument. However, this option shall not be exercised bx 1.cndcr if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrt~,,~ cr mnice of acceleration. The notice shall provide a period of not less than 30 days from the date the n,>t~c~: is given in accordance with Section 15 within which Borrower must pay all sums secured by this $~.c~-~ty Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender ~:~, revoke any remedies permitted by this Security Instrument without further notice or demand on Born,,, 19. Borrower's Right to Reinstate After Accelermm,. il' Borrower meets certain conditions, Borrower shall have the right to have enforcement of this So, rtl'ltv Instrument discontinued at any time prior to the earliest of: (a) five days before sale of the Propen~ imrsuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable I;tw might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment c~fi~rcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums whic.h then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b~ ~t~cs any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Sc~ ~ ilv Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and vait}~i~m t'ces, and other fees incurred for the purpose of protecting Lender's interest in the Property and ri~.!~t~ trader this Security Instrument; and (d) takes such action as Lender may reasonably require to assure ~]l:tt i.cnder's interest in the Property and rights under this Security Instrument, and Borrower's obligati,~t t~ pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require th:ti i~,~ri-ow~r pay such reinstatement sums and expenses in one or more of the following forms, as selected ~ i~cndcr: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's cltccl,, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, i~slrumcntality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Securit,. It~strmnent and obligations secured hereby shall remain fully effective as if no acceleration had occurred, t lowcver, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of ~irievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold ,,ne or more times without prior notice to Borrower. A sale might result in a change in the entity (}<n,~wn as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Ins~'t~nent and performs other mortgage loan servicing obligations under the Note, this Security Instrument. :t~d Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale ,~1 tm: Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change x,. ~ch will state the name and address of the new Loan Servicer. the address to which payments should b~~ made and any other information RESPA 637306 ~-6A(WY) (0005).02 Page 11 of 15 Form 3051 1/01 requires in connection with a notice of transfer of servicing. 11' th~. Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the N{,~.. tttc mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transfem.~i t,~ :~ successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by Iht. :';~,tc purchaser. Neither Borrower nor Lender may commence, join, or bc i,,incd to any judicial action (as either an individual litigant or the member of a class) that arises from ~l~c other party's actions pursuant to this Security Instrument or that alleges that the other party has bre:,L!~.d :thy provision of, or any duty owed by reason of, this Security Instrument, until such Borrower or Lc~ic~' has notified the other party (with such notice given in compliance with the requirements of Section 15~ ~,l' such alleged breach and afforded the other party hereto a reasonable period after the giving of ,tic'h notice to take corrective action. If Applicable Law provides a time period which must elapse bc~,,rc certain action can be taken, that time period will be deemed to be reasonable for purposes of this !,:tr:t,,.2raph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 21! :md the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy iht~ t~,~l~cc and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 2!: I:tl "Hazardous Substances" are those substances defined as toxic or hazardous substances, pollutmus. ,,t w',~stes by Environmental Law and the following substances: gasoline, kerosene, other flammable or t,,Nic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos ,,~ l,,rmaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jm i~dic'li(m where the Property is located that relate to health, safety or environmental protection; (c) "Envi~,,~lcntal Cleanup" includes any response action, remedial action, or removal action, as defined in Enx'i~,,~t~tcntal Law; and (d) an "Environmental Condition" means a condition that can cause, contribute it>. ,,~' otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disl,,,:,ztl, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, t)~ ,,: in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property {:~) lh',,I is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) whicl~, duc to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects tl~c valuc of the Property. The preceding two sentences shall not apply to the presence, use, or storz~ot: tm ~he Property of small quantities of Hazardous Substances that are generally recognized to be aplm,l~riatc to normal residential uses and to maintenance of the Property (including, but not limited to, haz~tt d,,us substances in consumer products). Borrower shall promptly give Lender written notice of la):m~ investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or !)~, ;~tc party involving the Property and any Hazardous Substance or Environmental Law of which B~,t~wcr has actual knowledge, (b) any Environmental Condition, including but not limited to, any spill i~,._,, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition cz~t~:,cd by the presence, use or release of a Hazardous Substance which adversely affects the value of the t'~,,I)CrtS'. If Borrower learns, or is notified by any governmental or regulatory authority, or any private i):,~tx, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, l~,,rrower shall promptly take all necessary remedial actions in accordance with Environmental Law. N~tt~i~t,.2, herein shall create any obligation on Lender for an Environmental Cleanup. (~)~-6AIWY) 100051.02 Page 12 of 15 Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender l'llilllc;r ct)venant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice t(, t~.,,~'~-ower prior to acceleration following Borrower's breach of any covenant or agreement in this Zt~ct~-ity Instrument (but not prior to acceleration under Section 18 unless Applicable Law provi(lt.,: ~)lhcrwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a (t~,te. ~()t less than 30 days from the date the notice is given to Borrower, by which the default mus~ I,t~ t't~t'ed; and (d) that failure to cure the default on or before the date specified in the notice may res~li i,~ acceleration of the sums secured by this Security Instrument and sale of the Property. The nolit, t. ~h~ll t'urther inform Borrower of the right to reinstate after acceleration and the right to bring a t'~,~,,'t z~ction to assert the non-existence of a default or any other defense of Borrower to acceleration :~d s~le. If the default is not cured on or before the date specified in the notice, Lender at its option ,~t~ ~'C(luire immediate payment in full of all sums secured by this Security Instrument without furtht.~- dt.,~and and may invoke the power of sale and any other remedies permitted by Applicable La~. l.c~(ler shall be entitled to collect all expenses incurred in pursuing the remedies provided in this :,~.~.ti~ 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall girt, ~ice of' intent to foreclose to Borrower and to the person in possession of the Property, if diffe~'c~i, i~ accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the ma~t,~- p~'o¥ided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold i~ tht~ manner prescribed by Applicable Law. Lender or its designee may purchase the Property at a~,~ s~le. The proceeds of the sale shall be applied in the following order: (a) to all expenses of iht. s=~lc, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this .St,ct~'ity Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Sc:~.t~ritv D~strument, Lender shall release this Security Instrument. Borrower shall pay any recordation cost,. ;_~c:~dcr may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid tt~ :t tt~ird party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all right.s t~tlcr a~d by virtue of the homestead exemption laws of Wyoming. 637306 (~6AIWY) Page 13 of 15 Form 3051 1/01 BY SIGNING BELOW, Borrower accepts and agrees to tltc terms and covenants contained in this Security Instrument and in any Rider executed by Borrower m~d ccordcd with it. Witnesses: Douglas Alan Smith (Seal) -Borrower Patricia Lynn Smith (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower 637306 Page 14 of 15 Form 3051 1/01 STATE OF WYOMING, The foregoing instrument was acknowledged before me th i,, by Douglas Alan Smith & Patricia Lynn Smith ,-~~ ·NOT, qtYPU81Jc My Commission Expires: February 2, 2006 Notary Publi~ I, lnco In County ss: 27th day of December, 2004 637306 (~6AIWY) (ooo51.02 Page 15 of 15 Form 3051 1/01 ADJUSTABLE RATE RIDER to Security Instrument (LIBOR 6 Month Index - As Published in The II ',ll A?rect Journal - Rate Caps) (To Be Recorded Together with Secul i t5' Instrument) THIS ADJUSTABLE RATE RIDER is made this 27th day of Decc~l,,.~ , 2004 and incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Secm it,. l~ccd (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's \,littstable Rate Note (the "Note") to EquiFirst Corporation (the "Lender") of the same date and covering the property ,kQ.t ibcd in the Security Instrument and located at: 1752 Crow Creek Road, Fairviexx. \VY 83119 (property address,, ~ THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHA?,~ ;I'iS IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT '1 t lt.i IIORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM AND MINI:xlt'.\I RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Securit', [llNtI'ument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHAN( ;ES The Note provides for an initial interest rate of 7.200 %. Thc ',,~,tc provides for changes in the interest rate and the monthly payment as follows: (A) Change Dates The interest rate I will pay may change on Januatx 1. 2007 and on that day every sixth month thereafter. Each date on which my interest rate ctm I,l change is called a "Change Date". (B) The Index Beginning with the first Change Date, my interc:,t ~'atc will be based on an Index. The "Index" is the average of interbank offered ratc~ ibc six-month U.S. dollar-denominated deposits in the London market ("LIBOR"), as pt~I,li,hcd in The ~Vall Street Journal. The most recent Index figure available as of the first l,~,incss clay of the month immediately preceding the month is which the Change Date occ~; ~s thc "Current Index." If the Index is no longer available, the Note Hohk.~ ~viil choose a new index that is based upon comparable information. The Note Holder x~ ~il/~,.c me notice of this choice. (C) Calculation of Changes Before each Change Date, The Note Holder will c:tlct~lat~ my new interest rate by adding 6.700 percentage points (6.700 %) to the Current Index. Ih,: Note Holder will then round the result of this addition to the nearest one-eighth of one perc.:~l~gc point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount x,. ilt b~ my interest rate until the next Change Date. The Note Holder will then determine the amou~t ~1' the monthly payment that would be sufficient to repay the unpaid principal that I am c'.,l~,.ctcd to owe at the Change Date in full on the Maturity Date at my new interest rate in sub,.t:~lially equal payments. The result of this calculation will be the new amount of my monthly i~:t,, mont. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the fit,~ t'hang¢ Date will not be greater than 10.200% or less than 7.200% . Thereafter, m> m~c~cst rate will never be increased or decreased on any single Change Date by more than ,,~tc percentage point(s) (1.00%) the rate of interest I have been paying for the preceding si.x ~tonths. My interest rate will never be greater than 13.200 % or less than the initial int~.~-,t ~ate provided for in Section 2 of this Note. 637306 EF0611 (05/02) Page 1 of 2 (E) Effective Date of Changes My new interest rate will become effective on c~,l~ Change Date. I will pay the amount of my new monthly payment beginning on ~l~c Ih'st monthly payment date after the Change Date until the amount of my monthly p:~,. ~cm changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice ~,f :my changes in my new interest rate and the amount of my monthly payment befi~ c thc cl'l'cctive date of any change. The notice will include information required by lax, l~, bc given me and also the title and telephone number of a person who will answc~ :~x question I may have regarding the notice. B. TRANSFER OF TIlE PROPERTY OR A BENEFICIAl. INTEREST IN BORROWER Uniform Covenant 17 of the Security Instrument is amended ~,, ~'cad as follows: Transfer of Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a b~.~cficiztl interest in Borrower is sold or transferred and Borrower is not a natural person), without Len&.~':, p~ior xvritten consent, Lender may, at its option, require immediate payment in full of all sum, :;toured by this Security Instrument. However, this option shall not be exercised by Lender if exerci~· ~ prohibited by federal law as of the date of this Security Instrument. Lender also shall not exercise t l~i, ~,ptiou if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate tl~c imended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably del c~mines that Lender's security will not be impaired by the loan assumption and that the risk of a breacl~ ~,l' any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by applicable law, Lender may cl~t~ .~e a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also rec!t~, ~. ~hc transferee to sign an assumption agreement that is acceptable to Lender and that obligates to thc ~ :msfcree to keep all the promises and agreements made in the Note and in the Security Instrument. i,,~.ower will continue to be obligated under the Note and this Security Instrument unless Lender relea~,', !;,~rmwer in writing. If Lender exercises the option to require immediate paymc~ ~ full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of n,~t less than 30 days from the date the notice is delivered or mailed within which Borrower must I)~t,.. all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to thc ~:(q,i~:~tion of this period, Lender may invoke any remedies permitted by this Security Instrument .,~tlttmt further notice or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees .to the terms :~ ~(t co vcnants cOntained in this Adjustable Rate Rider. /Douglas~' -aA1 n Sm/th Patricia L', t~t >;troth / 637306 EF0612 (5/02) Page 2 of 2 ADJUSTABLE RATE INTERES'i' tL:kTE FLOOR & PREPAYMENT PENALTY Rider t~ Security Instrument (To Be Recorded Together with Sect~ ~x' h~strument) This ADJUSTABLE INTEREST RATE FLOOR & PREPAYIvlli:'.. ! !'I.:NALTY RIDER (the "Rider") is made this 27th day of December, 2004, and amends the Mortgage, Deed of Trust ~,~' .';ccurity Deed (the "Security Instrument") dated the same date and given by the person(s) who signs below (the 'Bont~,.., ~.t(s i") to EquiFirst Corporation (the "Lender") to secure prepayment ora Note in the amount of U.S. $ 70,000.00. In addition to the agreements and provisions made in the Note and Ih~, Security Instrument, and notwithstanding any provisions to the contrary contained in said Note or the Security Instm~.~i both tt~e Borrower(s) and the Lender further agree as follows ' ADJUSTABLE INTEREST RA'I I.i FI.OOR This loan has an Interest Rate "Floor" which will limit the amount th~. h~tcrcst Rate can decrease. Regardless of any changes in the index, the Interest Rate during the term of this loan will ~.x c~ bc less than the initial Interest Rate provided for in Section 2 of the Note. PREPAYMENT PENAl. If I prepay this loan in full within 2 year(s) from the date of this loan. I :tZ,~cc to pay a prepayment penalty in an amount equal to 6.00% of the balance of the loan outstanding on the d:~i,. ,~l' twcpayment. This amount, known as a prepayment penalty, will be in addition to any other amounts I may oxx c u~dcr the provisions of the Note or the Security Instrument that secures the Note. IfI make a prepayment in full tm {>r after the 2nd anniversary date of the Note, the Note Holder will impose no prepayment penalty. Douglag~lan Snfith' Patricia ,?lin Slmtl' h'~~ / ~ '' 637306 EF058 (05/02) EXHIBIT A A portion of the property referred to in the Deed rec,~rdcd in Book 458PR on page 97 of the records of the Lincoln County Clerk, located within thc !'.i \V !~4 SE ¼ of Section 4, T31N R119W of the 6th P.M., Lincoln County, Wyoming, the met,.,,, and bounds being more particularly described as follows: BEGINNING at a point in the south line of said prt,l,c~'tV, said point being 1790.82 feet N 18013'45'' E from the BLM type monument markim~ ~l~c7 l'aul N. Scherbel RLS 164, 1978 location for the southwest corner of the SE~,~ and 2697.57 fc~:t N 51°02'10'' W from the BLM type monument marking the Paul N. Scherbel RLS 16-1. 1()78 location for the Southeast corner of said Section 4; thence N 23041'02'' E, 393.27 feet; thence S 81°38'27'' E, 124.4i feet; thence S 75°37'11'' E, 142.96 feet; thence S 57002'34'' E, 36.86 feet to a point in the cenlcrlinc of Crow Creek County Road 12- 141; thence Southerly along said centerline the following: :~i,~]g a 289.31 foot radius curve to the Right, through a central angle of 26°08'11'', a~ :~rc distance of 131.98 feet; thence S 59o05'37'' W, 120.47 feet; and along a 274.84 i',,~t radius curve to the left, through a central angle of 44°22'28", an arc distance of 212.,~6 feet; thence N 75o54'43'' W, 132.28 feet to the POINT OF Ill,GINNING.