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HomeMy WebLinkAbout9056030389 Afmr Recording Return To: COUNTRYWIDE HOME LOANS, INC. MS SV-79 DOCUMENT PROCESSING P.O.Box 10423 Van Nuys, CA 91410-0423 Prepared By: MELISSA HUNTER RE.~_;EIVED 11312005 at 2:31 PM ~2ECEIVING # 905603 ~DOK: 576 PAGE: 389 JEANNE WAGNER LINC(>LN COUNTY CLERK, KEMMERER, WY [Sp~ce Above ~ Lin,: For Re, ordain D04046768 [Escrow/Closing 0008742342712004 [Doc ID [] M/N 20~.;0157-0004594460-6 MORTGAGE (Line of TH/SMORTGAGE, dat~d DECEMBER 15, 2004 ,isbc,wcc, WILLIAM A NEEB, AN UNMARRIED MAN residing at P.O. BOX 5211t ETNA, WY 83128 ' [he person or pex'sons signing as "Mortgagor(s)" b¢low and hereinaftc[ r¢ltrrad [o as "we," "our," or "ns" and MORTGAGE ELECFROITIC RRGISTR.ATION SYSTEMS, INC., t"M[..R$") a D¢lawm'e corporalion, wi[h an address of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-1VfEl(5. ?,IERS is [he "Mo~.gagee" under Mortgage and is acting solely as nominee for COUNTRYWIDE HOME LOANS, INC. ("Lender" or "you*) and its successors and assigns. MORTGAGED PREMISES: In consideration of the loan hereim,ltcr described, we hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's succc~:~ors and assigns) and to the successors and assigns of MERS, the prenfises locat~ au 29 MEGAN RD. ALPINE LINCOLN Municipality Ccxmty WY 83128 Sta~e ZLTM ([he "Premises"). · MERS HELOC - WY Mo~lgage Page I o~ 5 Inl~_~ ~ 2EO37-WY (02/04)(t~) * 2 3 9 9 1 * - 087423427000002E037' and furthur deseribed as: LOT 28 TRAIL CREEK SUBDIVISION, LINCOLN COUNTY, PLAT FILED APRIL 3, 2002 IN THE OFFICE OF LINCOL!: #: 0008742342712004 ACCORDING TO THAT CLERK AS PLAT NO. 03 0 The Premises includes ail buildings and other improvements now or in ti~c future on the Premises and ail rights and interests which derive from our ownership, use or possession of fl~e th ~: mists and ail appurtenances thereto. WE UNDERSTAND and agree, that ME.RS is a separate corporat.)..~.tiug solely as nominee for Lender and Lenders successors and assigns, and holds only legal rifle to the intcrc:;l:, granted by us in this Mortgage, but, if necessary to comply with law or custom, MERS (as nominee for Lender ;..1 Lender's successors and assigns) has the fight: to exercise any or ail of those interests, including, but not limited tu, the right to foreclose and sell the Property, and to take any action required of Lender including, but m,t hmitcd to, releasing or canceling this Mortgage. LOAN: This Mortgage will secure your loan to us in the principal am~uut of $ 39,000.00 orso much thereof as may be advanced and reaflvanced from time to time to WILLIAM A. NEEB thc Borrower(s) under the Home Equity Credit Line Agreement and I h::clu~;ure Statement (thc "Note") date~ DECEMBER 15, 2 0 0 4 , plus interest and costs, late chacgc; ~:~d all mhercharges related to the loan, all of which sums are repayable according to the Note. This Mortgage v, ill alsu secure the performance of ail of the promises and agreements made by us and each Borrower and Co-Sii,.'r in the Note, ail of our promises and agreements in this Mortgage, any extensions, renewals, amendments, SUlqflcmt.:nts and other modifications of thc Note, and any amounts advanced by you under the terms of thc section t,f this Mortgage entitled "Our Authority To You." Loans under the Note may be made. repaid and remade from m.c lu time in accordance with the terms of the Note and subject to the Credit Limit set forth in the Note. OWNERSH~: We are the sole owner(s) of the Premises, We have the h:rM tight to mortgage the Premises to you. OUR IM?ORTANT OBLIGATIONS: (a) TAXF_.S: We will pay ail real estate taxes, assessments, water charges and sewer rents relating to the Premises when they become due. We will not claim any credit on, ur ,~,:~,~ deduction from, the loan under the Note because we pay these taxes and charges. We will provide you with l*tC~l of payment upon request. Co) MAINTENANCE: We will maintain the building(s) on thc Premises in good condition. We will not make major changes in thebuilding(s) except for normal repairs. We ~ il! mat tear down any of the building(s) on the Premises without first getting your consent. We will not use the .P~cmi:~c,, illeg',,dly. If this Mortgage is on a unit in a condominium or a planned uait development, we shall p.z~iomi all of our obligations under the declaration or covenants creating or governing the condominium or plmu:t'd unit development, the by-laws and regulations of the condominium or planned unit development and consutucut documents. (c) INSURANCE: We will keep the building(s) on the Premises msurc,,l at all times against loss by tn'e, flood and any other hazards you may specify. We may choose the insur';m~ c company, but our choice is subject to your reasonable approval. The policies must be for at least the amounts ;,,d thc ume periods that you specify. We will deliver to you upon your request the policies or other proof of thc ut,,tuanc¢. The policies must name you as "mortgagee" and "loss-payee" so that you will receive payment on ;,r, m,mrance claims, to the extent of your interest under this Mortgage. before we do. The insurance policics mu t also provide that you be given not leas than 10 days prior written notice of any cancellation or reduction in c, ,~ c,,gc, for any reason. Upon request, we shall deliver the policies, certificates or other evidence of insurance it) )~ u~ In the event of loss or damage to the Premises. we will immediately notify you in writing and file a proof of h3:;s with the insurer. You may file a proof of loss on our behalf if we fail or refuse to do so. You may also sign uu: U:tlnC to any check, draft or other order for the payment of insurance proceeds in the event of loss or damage u, mc Pr~mises. It' you receive payment of a claim, you will have the right to choose to use the money either to rcpm[ the Premises or to reduce the amount owing on the Note. · MERS HELOC - WY Mortgage Page 2 of 5 2EO37-WY (02/04) -- I 0o91 L:OL' ID #: 0008742342712004 (d) CON-DBMNATION: Wc assign to you thc proceeds of an3 ;,~.i~rd or claim for damages, direct or consequential, in connection with any condcnmation or other tsking ,,l iht: Premises, or pan thereof, or for conveyance in lieu of condenmation, all of which shall bc paid to you, s~b.i,~ct tu the terms of any Prior Mortgage. (c) SECURITY INTEREST: We will join with you in signing a,.~ titmg documents and, at our expense, in doing whatever you believe is necessary to perfect and continue thc lX:r:~< ~.,,, of your lien and security interest in the Premises. It is agreed that thc I_¢ndcr shall Ix: subrogatcd to the clah., and liens of all panics whose claims or liens arc discharged or paid with the proce, eds of the Agreement secured heathy. (fl OUR AUTHORITY TO YOU: If we fall to perform our obligatio.., trader this Mortgage. you may. if you choose, perform our obligations and pay such costs and expenses. You ,.~ill add the amounts you advance to thc sums owing on thc Note, on which you will charge interest at thc interest re,re scl forth in the Note. If, for example. wc fall to honor our promises to maintain instmmec in effect, or to pay l ili.g fees. taxes or the costs necessary to keep thc Premises in good condition and repair or to perform any of otH i>L~lcr agreements with you. you may, if you choose, advance any sums to satisfy any of our agreements with y,,...d charge us interest on such advances at thc interest rat~ set forth in the Nee. This Mortgage secures all such advltnccs, Your payments on our behalf will not cure our failure to perform our promises in this Mortgage. ^n', ~cf~lacemcnt insurance that you obtain to cover loss or damages to the Premises may be limited to thc amount .,,, .~g on the Note plus thc amount of any Prior Mortgages. (gl PRIOR MORTGAGE: If the provisions of this paragraph :.c ~ ,,.,ph:tc:d, this Mortgage is subject and subordinate to a prior mortgage dated 10/30/2003 a,,d g~cn by us to COUNTRYWIDE HOb!E LOANS as mortgagee, in the original amount of $ 304,000. O0 tthc "Prior Mortgage"). We shall not increase, amend or modify the Prior Mortgage without your prior wntl~., octagon! and shah upon receipt of any written notice from thc holder of thc Prior Mortgage promptly delivcr a c~py ut' such notice to you. We shall pay and perform all of our obligations under the Prior Mortgage as ami ;,, he. required under the Prior Mortgage. (h) HAZARDOUS SUBSTANCES: We shall not cause or pc.,.t the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Premises. We shall m)t d,>. nor allow anyone else to do, anything affecting the Premises that is in violation of any Environmental Law. '! hc pmccding two sentences shall not apply to the presence, use, or storage on the Premises of small quantities t,t }kt/ardous Substances that are generally recognized to be appropriate to normal residential uses and to mumtc,,a.cc of the Premises. As used in this paragraph, "Hazardous Substances" are those substances defined a.~ toxic or hazardous substances by Environmental Law and the following substances: gasoline, kero~c,,c, uther flanunable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials ~mtuining asbestos or formaldehyde, and radioactive materials. As used in this paragraph, "Environmental 1.~,',~," means federal laws and laws of the jurisdiction where the Premises are located that relate to health, safety t)~ c.vironmentat protection. (i) SALE OF PREMISES: We will not sell, transfer ownership ~,i', mortgage or otherwise dispose of our interest in the Premises, in whole or in pan, or permit any other lic..r c:lltiln against the Premises without your prior written consent. (j) INSPECTION: We will permit you to inspect the Premises at ~.,;. ~casonable time. NO LOSS OF RIGHTS: The Note and this Mortgage may be negotiatc~l ~,:' assigned by you without releasing us or the Premises. You may add or release any person or property obligated ..der thc Note and this Mortgage without losing your rights in thc Premises. DEFAULT: Except as may be prohibited by applicable law. and suhjccl t. any advance notice and cure period if required by applicable law. if any event or condition of default as dcs~ ~l ~cd m the Note occurs, you may foreclose upon this Mortgage. This means that you may arrange for thc Premises t. t,c sold by advertisement and sale or by judicial foreclosure, at your option, aa provided by law, in order to pay ~,tl what we owe on the Note and under this Mortgage. If thc money you receive from the sale is not enough to pa3' ol t what we owe you, we will still owe you thc difference which you may seek to collect from us in accordance v, ith applicable law, In addition, you may, in accordance with applicable law, (i) enter on and take possession of thc I'tctnises; (ii) collect the rental payments, including over-due rental payments, directly from tenants after siml~l) x~otil'ying them first class mall to make rental payments to you; (iii) manage the Premises; and (iv) sign. ca.~cl and change leases. We agree that the interest rate set forth in the Note will continue before and after a dcl'atdt, cntr7 of a judgment and foreclosure. In addition, you shall be entitled to collect all reasonable fees and cost; ;~ctuully incurred by you in proceeding to foreclosure, including, but not limited to, reasonable attorneys fees ;md costs of documenm-,'y evidence, abstracts ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER: As add~ti~mal security, we assign to you the rents of the Premises. You or a receiver appointed by the courts shall be e~t.h:d to enter upon, take possession of and manage the Premises and collect the rents of the Premises including tht),c past due after simply notifying them by fa-st class mail to make rental payments to you. · MERS HELOC -WY Mortgage ~T"~' ~/! 2EO37-WY (02,.~4) Page 3 of 5 I b:.L' ID ~: 0008742342712004 WAIVERS: To the extent permitted by applicable law, we waive and relc:r;c .ny error or defects in proceedings to enforce this Mortgage and hereby waive the benefit of any present or futmc I:lws providing for stay o.f execution, extenaion of time,'exemption from attachment, levy and sale and homestc:xci c ~cmption. BINDING EFFECT: ~.ch of us shall be fully responsible for all of the p..m~cs and agreements in this Mortgage. Until the Note has been paid in full and your obligation to make ~urthc~ advtmces under the Note has been terminated, the provisions of this Mortgage will be binding on us. our leg;d , cprcsentativcs, our heirs and all future owners of the Premises. This Mortgage is for your benefit and for the b,cncht of anyone to whom you may assign it. Upon payment in full of all amounts owing to you under the Note ~t~d this Mortgage, and provided any obligation to make further advances under the Note has terminated, this tq,. tgagc and your rights in the Premises shall end. NOTICE: Except for any notice required under applicable law to be givcu .~ re;other manner, (a) any notice to us provided for in this Mortgage shall be given by delivering it or by maili.g ~,uch notice by regular first class mail addressed to us at the last addre, s.s appearing in your records or at such t,thcr address a.s we may designate by notice to you as provided herein, and Co) any notice to you shall bc ~i,~c. by certified mail, return receipt requested, to your address at For MERS: P.O. Box 2026. Flint, MI 48501-2026 For Lender. 4500 Park Granada. Cal. abasa,% CA 91302-1613 or to such other address as you may designate by notice to us. Any notice p~[>vidcd for in this Mortgage shall be deemed to have been given to us or you when given in the manner desig..tvd herein. Rm'.P..a. SB: Upon payment of all sums secured by this Mortgage and provided your obligation to make further advances under the Note has terminated, you shall discharge this Mortg.~: without charge to us, except that we shall pay any fees for recording of a satisfaction of this Mortgage. GENERAL: You can waive or delay enforcing any of your rights under th~,; Mortgage without losing them. Any waiver by you of any provisions of this Mortgage will not be a waiver oi th.t or a.y other provision on any other O~casion. TF[IS MORTGAGE has been signed by each of us under seal on the dale i'H hi il[~ove written. (SEAL) Mortg~oc. (SEAL) Mortgagor:. Mortgagor: 0892 · MERS HELOC - WY Mo~age 2~037-WY (0~) Plge 4 of 5 STATE OF WYOMING, The foregoing instrument was acknowledged before me this .//'~-~' ~ My Commission Expires: LIS NOTARY PUBLIC ,' ;:~ _~ · MERS HELOC - WY Mortgage 2E037-WY (0?JB4) Page 5 ol 5 ' Return To: THE JACKSON STATE BANK & TRUST 112 CENTER ST.. P 0 BOX 1788, JACKSON. WY 83001 0394 Prepared By: Ashlee Wilhite RECEIV?_~ 1/3/2005 at 2:33 PM RECEIVING # 905604 BOOK: ~;7~ PAGE: 394 ,JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY [Space Above This Line For Recto di.g l)ata] MORTGAG DEFINITIONS Words used in multiple sections of this ~document are defint.d hcloxv md other words are defined in Sections 3, 11 13, 18, 20 and 21. Certain rules regarding tht. t~'~ ,c or' words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is datc. d together with all Riders to this document. (B) "Borrower" is deffrey C. Tool son and Heidi ~ December 27, 2004 son, Husband and wife Borrower is the mortgagor under this Security Instrument. (C) "Lender" is THE JACKSON STATE BANK & TRUST Lender is a State Bank organized and existing under the laws of THE ~"- ~/,IE OF WYOMING T00LSON,TERM 79787401 WYOMING-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTFIU~'iENT (~}®-6(WY) (0005) Page 1 of 15 MW 05/00.01 Initials: VMP MORTGAGE FORMS - (800)521-7291 Form 3051 1/01 L,' 0395 Lender's address is 112 CENTER ST. P 0 BOX 17L,~ . ,%A,(;KSON, WY 83001 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dmcd December 27. 2004 The Note states that Borrower owes Lender 0rle Hundred '~ i:, L,y Eq 9hr Thousand and F10 / 100 Dollars (U.S. $168,000.00 ) plus interest. Borrower has i,l~lniscd to pay this debt in regular Periodic Payments and to pay the debt in full not later than ,]ai-/~ ~:, t'y 1, 2035 (E) "Property" means the property that is described below tllldc'r the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus intcrc,t, m~y prepayment charges and late charges due under the Note, and all sums due under this Security InstrtH~cnt, plus interest. (G) "Riders" means all Riders to this Security Instrument th:~t :,'e executed by Borrower. The following Riders are to be executed by Borrower [check box as applicahk'l: [~ Adjustable Rate Rider [----] Condominium Rider ~ Second Home Rider f--] Balloon Rider F--] Planned Unit Development I,' idcr ~ 1-4 Family Rider ~ VA Rider F-~ Biweekly Payment Rider ~ Other(s) [specify] (It) "Applicable Law" means all controlling applicable l'cd~.r:d, state and local statutes, regulations, ordinances and administraQve rules and orders (that have th~. ,..l I'cct of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessmenls" ~nc:ms all dues, fees, assessments and other charges that are imposed on Borrower or the Properly h~ :t condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of I'tH~,)~, other than a transaction originated by check, draft, or similar paper instrument, which is initiated thrt)ugh an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instru~'t, t~r mHhorize a financial institution to debit or credit an account. Such term includes, but is not limited t,), point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, x~i~'~, trmml'crs, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in 5~.~:tion 3. (L) "Miscellaneous Proceeds" means any compensation, sctlk.~cnt, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under Ibc coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnati,,~ ~i' other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) ~,i:~cprcsentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lend<'F :~gainst the nonpayment of, or default on, the Loan. (IN') "Periodic Payment" means the regularly scheduled amo~,~t duc for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security h ~,t ~t~ mem. (O) "RESPA" means the Real Estate Settlement Procedures Att (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 35{111~ '.ts they might be amended from time to time, or any additional or successor legislation or regulation lh:~t governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requiremct~t,; ',tnd restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan doc~, ~,~t qualify as a "federally related mortgage loan" under RESPA. TOOLSON. TERM 79787401 0 Imitial$: (~6(WY) (ooo51 Page 2 of ~5 Form 3051 1/01 ¥ '0396 (P) "Successor in Interest of Borrower" means any part!, th:tl has taken title to the Property, whether or not that party has assumed Borrower's obligations under thc Nora and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This~Security Instrument secures to Lender: (i) the repaymcm or' the Loan, and all renewals, extensions and mOdifications of the Note; and (ii) the performance of II~}~ ~wcr's covenants and agreements under this Secu~rity Instrument and the Note. For this purpose, Born,v, cr does hereby mortgage, grant and convey to Lender and Lender's successors and assigns, with power {>1' .<dc, the following described property located in tti.~.e County of Li ncol n : [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] Lot 40 Bridget View Ranches, Lincoln Co~}ty. Wyoming as described on the official plat thereof. P~cel ID Number: 218 Caribou Loop Thayne ("Property Address"): which currently has the address of [Street] ICityl , Wyoming 83127 [Zip Code] TOGETHER WITH all the improvements now or ltcreafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrumcm. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawful lx .;ciscd of the estate hereby conveyed and has the right to mortgage, grant and convey the Property anti tlmt thc Property is unencumbered, except for encumbrances of record. Borrower warrants and will defcml ;cncrally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines unifon~ c,~vcnants tbr national use and non-uniform covenants with limited variations by jurisdiction to constitmc. ~t tmilbrm security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender co',~:~:tm :md agree as follows: 1. Payment of Principal, Interest, Escrow Items, l',-elmyment Charges, and Late Charges. Borrower shall pay when due the principal of, and intero;t ,,~t, tiao debt evidenced by the Note and any prepayment charges and late charges due under the Note. I~,~ ~,,Acr shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and thi,; Security Instrument shall be made in U.S. currency. However, if any check or other instrument receiv<:J i,v l.ender as payment under the Note or this T00LSON , TERM 7978740'~ 0 (~-6(WY) (ooo5) Pa9.3 of ~5 Form 3051 1/01 0397 Security Instrument is returned to Lender unpaid, Lender m:,. :cquirc that any or all subsequent payments due under the Note and this Security Instrument be made ~ (,nc or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certili,.J check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon :,~ ~nstnution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic l:ut~d.4 Transfer. Payments are deemed received by Lender when receivc~! :n tile location designated in the Note or at such other location as may be designated by Lender in accord:n~c with the notice provisions in Section 15. Lender may return any payment or partial payment if the I,:,'..~cm or partial payments are insufficient to bring the Loan current. Lender may accept any payment or t'~'~tial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice ~,, its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply .~ch payments at the time such payments are accepted. If each Periodic Payment is applied as of its scl,c~lulcd due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied ~nnds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reason:ddt period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier. ~uch funds will be applied to the outstanding principal balance under the Note immediately prior to forcch,surc. No offset or claim which Borrower might have now or in the future against Lender shall relieve l~,rrower from making payments due under the Note and this Security Instrument or performing the covc-n:nns and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except a~, ,,thcrwise described in this Section 2, all payments accepted and applied by Lender shall be applied in ~hc following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) :nn,,,nts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in ~t~i~'l~ it became due. Any remaining amounts shall be applied first to late charges, second to any other am,,~:n~s due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a dcln~qncnt Periodic Payment which includes a sufficient amount to pay any late charge due, the payment ma~ bc applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstamlhT, l.ct~der may apply any payment received from Borrower to the repayment of the Periodic Payments il. :n~d to the extent that, each payment can be paid in full. To the extent that any excess exists after the pa)'~cnt is applied to the full payment of one or more Periodic Payments, such excess may be applied to any l:t~c, charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in tt~c Note. Any application of payments, insurance proceeds, or Nl~;ccll,'meous Proceeds to principal due under the Note shall not extend or postpone the due date, or change th~~ amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lc~,lcr t),~ the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Fln~l~,") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payment~ ~,~ ~round rents on the Property, if any; (c) premiums for any and all insurance required by Lender un~lcr ~cction 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of ,%,;firm 10. These items are called "Escrow Items." At origination or at any time during the term of thc I,,,,m, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escn,'.¥cd by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptl3 l'nrnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the [:mM~ for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Es~'~'~,w ltems. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Irene, :n any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay d i~..,'ll.,,, when and where payable, the amounts TOOLSON. TERM 79787401 0 (~)~-6(WY) {oo05) Pa§e4of ~5 Form 3051 1/01 398 due for any Escrow Items for which payment of Funds has bc~.~ waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment ~itl~i~ such time period as Lender may require. Borrower's obligation to make such payments and to provid~~ , ~'ceipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instru~c~t, :ts the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escn,,.,. Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, I c~dcr may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated m,JcF Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Est.i,}x~ Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Bom,xxcr 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 :,,~,,tmt (a) sufficient to permit Lender to apply the ~Funds at the time specified under RESPA, and (b) not t,, cxcec'd the maximum amount a lender can require under RESPA. Lender shall estimate the amount oi' l:tmds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items ~,t' otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose dul,>sits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an i~,,timtitm whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds t,, Fay thc Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower I',,~ ht,hling and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items. u~llcss Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a clmt ?c. IJnless an agreement is made in writing or ~Pplicable Law requires interest to be paid on the Funds, I cmlcr shall not be required to pay Borrower any:~interest or earnings on the Funds. Borrower and Lender ~:t~ agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, x,.i~hout charge, an annual accounting of the Fun~ls as required by RESPA. ;;If there is a surplus of Funds held in escrow, as det'i~.,I under RESPA, Lender shall account to Boniower for the excess funds in accordance with RESPA. Il ihc, Fu is a shortage of Funds held in escrow. as defined under RESPA, Lender shall notify Borrower as rc'~l~i~'cd by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in acc{,~ J~mc'c with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in t..~,~ ~,w, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall i):~5 to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more il~:t~ 12 monthly payments. Upon payment in full of all sums secured by this Securil,, I.strument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, a~;,:cs:smt:nts, charges, fines, and impositions attributable to the Property which can attain priority over th i:, %~'ct,rity Instrument, leasehold payments or ground rents on the Property, if any, and Community Associ:, i,,~ Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall P:'5 them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has t,~i~,rity over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligati~,~ ,toured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such a::~ccmtent; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal procc.~.tli~gs which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings 'a~'c pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an ag~ ~'cmcnt satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines thru :,~v part of the Property is subject to a lien which can attain priority over this Security Instrument, Lend~.~' may give Borrower a notice identifying the TOOLSON, TERM 7978740 0 Form 3051 1/01 : lien. Within 10 days of the date on which that notice is givc~, l~,~n'ower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time ch:,'?c for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the imp~,,,, cmcnts now existing or hereafter erected on the Property insured against loss by fire, hazards included ,.,. ithin the term "extended coverage," and any other hazards including, but not limited to, earthquakes and lh~)ds, for which Lender requires insurance. This insurance shall be maintained in the amounts (includirt;_, dcductible levels) and for the periods that Lender requires. What Lender requires pursuant to the prec,:ding sentences can change during the term of the Loan. The insurance carrier providing the insurance slm!l bc chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall m,t bc exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, ci~l~cz': (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a ,,~:cqinae charge for flood zone determination and certification services and subsequent charges each time ~c~m~ppings or similar changes occur which reasonably might affect such determination or certificati~m. Ilornnver shall also be responsible for the payment of any fees imposed by the Federal Emergenc.~ ~,,l:tn'agcment Agency in connection with the review of any flood zone determination resulting from an ol,ic~'ti~m by Borrower. If Borrower fails to maintain any of the coverages d,...'~ibcd above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lcmlcr is under no obligation to purchase any particular type or amount of coverage. Therefore, such c~n~'~:mc shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, ~n ~l~c, ctmtcnts of the Property, against any risk, hazard or liability and might provide greater or lesser covc~:~t~c dmn was previously in effect. Borrower acknowledges that the cost of the insurance coverage so t~l,~:~incd might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts di~lmrsed by Lender under this Section 5 shall become additional debt of Borrower secured by this Securitx I~trumcnt. These amounts shall bear interest at the Note rate from the date of disbursement and shall bc i~ttS'ablc, witl~ such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewal~ ,d' such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall t~:~x'c tl:e right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly ?.i,. ~. i{~ l.cnder all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance. ~'~,vcrage, not otherwise required by Lender, for damage to, or destruction of, the Property, such polic.v :droll include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss In the event of loss, Borrower shall give prompt notic,, ~ thc insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower I !tdcss Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the undc~ I,. in7 insurance was required by Lender, shall be applied to restoration or repair of the Property, if the rcs~ m i~m or repair is economically feasible and Lender's security is not lessened. During such repair and rc:.~,~ration period, Lender shall have the right to hold such insurance proceeds until Lender has had an oppt,~tm~ity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provitl~.d that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and ~'storation in a single payment or in a series of progress payments as the work is completed. Unless an a~ ~'cmcnt is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lt:mlct- shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adiustcrs, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds a~d ~hall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lemtt'~"s security would be lessened, the insurance proceeds shall be applied to the sums secured by this Securitx Instrument, whether or not then due, with T00LSON. TERM 7978740 i 0 (~-6(WY) 1ooo5) Page O of ~5 Form 3051 1/01 0 00 the excess, if any, paid to Borrower. Such insurance proceeds; 'J~'Ldl be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may filc~ ~g~tiate and settle any available insurance claim and related matters. If Borrower does not respond wit!}i~t 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender i~:~,, negotiate and settle the claim. The 30-day period will begin when the notice is given. In either evcnt~ ~)~' iF Lender acquires the Property under Section i22 or otherwise, Borrower hereby assigns to Lc~l::r (~() Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid u~:l,~ thc Note or this Security Instrument, and (b) any Other of Borrower's rights (other than the right t,, :my refund of unearned premiums paid by Borrowe?) under all insurance policies covering the Properlx. i~sofar as such rights are applicable to the coverage of the Property. Lender may use the insurance prot'~., ,Is either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instn,~:-~tt, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, a.d t~sc thc Property as Borrower's principal residence within 60 days after the execution of this Security l~strumcnt and shall continue to occupy the Property as Borrower's principal residence for at least one 3c:~ zd'lcr the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be uH~c':tstmably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of tht, l'roperty; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Proper I:, tt~ deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Propv~t3, Ilorrower shall maintain the Property in order to.~prevent the Property from deteriorating or decreasings, in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoratim~ i,; m)t economically feasible, Borrower shall promptly repair the Property if damaged to avoid funhc~ dc'tciioration or damage. If insurance or condemnation proceeds are paid in connection with damage t~,, or the taking of, the Property, Borrower shall be"responsible for repairing or restoring the Property ~,tfl v ii' Lender has released proceeds for such purpose~iLender may disburse proceeds for the repairs and rc'~.[,,r'~tion in a single payment or in a series of progress payments as the work is completed. If the insurm~cc ~,~- ctmdemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved t,t 14twTt)xver's obligation for the completion of such repair or restoration. Lender or its agent may make reasonable entries up{,~ :md inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the iml~,~,x ~'mcnts on the Property. Lender shall give Borrower notice at the time of or prior to such an interior insl,vvl i,m specifying such reasonable cause. 8. Borrower's Loan Application. Borrower shall bt, i~ default if, during the Loan application process, Borrower or any persons or entities acting at thc. direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or i~l:~cctH'atc in/bnnation or statements to Lender (or failed to provide Lender with material information~ in connection with the Loan. Material representations include, but are not limited to, representati~,~; concerning Borrower's Occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property ami ~ights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements c~t~t~incd in this Security Instrument, (b) there is a legal proceeding that might significantly affect Lender's i~Hcrcst in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptc3, l)r,~bate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this :;~'curity Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, ih~m l.cnder may do and pay for whatever is reasonable or appropriate to protect Lender's interest in lhv Property and rights under this Security Instrument, including protecting and/or assessing the value {,~ t l~c Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited It~' (a) paying any sums secured by a lien which has priority over this Security Instrument; (b) apl,~.:~ing in court; and (c) paying reasonable TOOLSON, TERM 79787401 0 (~¥6(WY) IOOOSl Page 7 of 15 Form 3051 1/01 ~ ,'"7~,'~""~". ~Y~ "'-.~T-~--;"~ attorneys' fees to protect its interest in the Property and/o~ : ,.i: tllitlcr ibis Security Instrument, including its secured position in a bm~a-uptcy proceeding. Securi~; . I'nq)erty includes, but is not limited to, entering the Property to make repairs, change locks, reph, .,~ l,,)m-d up doors and windows, drain water from pipes, eliminate building or other code violations o~ , .:~.:',.~,,tls conditions, and have utilities turned on or off. Although Lender may take action under this Sect: ,: u, l_cnder does not have to do so and is not under any duty or obligation to do so. It is agreed that Lt.~. ~:m's no liability for not taking any or ail actions authorized under this Section 9. Any amounts disbursed by Lender under this Seelig,:. 5.]mll become additional debt of Borrower secured by this Security Instrument. These amounts shall . [[ ~mcrest at the Note rate from the date of disbursement and shall be payable, with such interest, uI ~:.,~icc from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borro... : -!,H1 comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the h.: .,h! :md the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortg:,., !:~ t~r:mcc as a condition of making the Loan, Borrower shall pay the premiums required to maintain the x ~. :r::,~c Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender cease. !,c':,vailable from the mortgage insurer that previously provided such insurance and Borrower was re,4 ,,i t,, make separately designated payments toward the premiums for Mortgage Insurance, Borrowc.~' ::~tl Imy the premiums required to obtain coverage substantiaily equivalent to the Mortgage Insur:~, ~,,cviously in effect, at a cost substantially .equivalent to the cost to Borrower of the Mortgage Inst~ ' ~- previously in effect, from an aiternate mortgage insurer selected by Lender. If substantially cq. =:,-.~t :',lortgage insurance coverage is not available, Borrower shail continue to pay to Lender the an~ :~t ~,1 thc separately designated payments that were due when the insurance coverage ceased to be in ~.~: l.cnder will accept, use and retain these payments as a non-refundable loss reserve in lieu of hi,. :,?c I~tsurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is t~::, ,i:,tcly paid in fUll, and Lender shall not be required to pay Borrower any interest or earnings on such i . ~'scr\'e. Lender can no longer require toss reserve payments if Mortgage Insurance coverage (in the :,: '[~t :md for the period that Lender requires) provided by an insurer selected by Lender again becom~ =.:tilzlblc, is obtained, and Lender requires separately designated payments toward the premiums for h I,,: .,:~ c h~surance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrou~: ...:t~ n:quired to make separately designated payments toward the prem/ums for Mortgage Insurance, I:,.~,,,~:r shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide :~ ~,~,~[ ~cflmdable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance xvitl ::,,, ,,x rittcn agreement between Borrower and Lender providing for such termination or until terrninatio~ ~ ~<'tl(~i:cd by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at tt~, ~ic Im~vided in the Note. Mortgage Insurance reimburses Lender (or any entit~, '::..~ Imrchases the Note) for certain losses it may incur if Borrower does not repay the Loa_n as agrt~ I'.u'~t~wer is not a party to the Mortgage Insurance. Mortgage insurers evaiuate their total risk on ail such :: ~ :t~cc in force from time to time, and may enter into agreements with other panics that share or modil.. !.:=~ ~isk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mt~ ~sm'cr and the other party (or parties) to these agreements. These agreements may require the mortu:,, i~>urt:r to make payments using any source of funds that the mortgage insurer may have available (wiii, i ::L~,. include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purcha.,~: ,,~ tl~c Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, ~,, :..~.ivc (directly or indirectly) amounts that derive from (or might be characterized as) a portion of B,,~ ...,'~'s payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insureF'~. ~.I. t,~ reducing losses. If such agreement provides that an affiliate of Lender takes a share of thc ~: ,,~.~'s risk in exchange for a share of the premiums paid to the insurer, the arrangement is often terns,, ~ q,{~x'c reinsurance." Further: (a) Any such agreements will not affect the aln{~t~t. Ilud Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. ,~;t~t 11 z~L'rt~cments will not increase the amount Borrower will owe for Mortgage Insurance, and they will ~,,,i t.ntitlo Borrower to any refund. TOOLSON. TERM 7978740 ~ 0 (~-6(WY)(00051 Pagesof~5 Form 3051 1/01 (b) Amy such agreements ~ll mot affect the rights Ih,~'r,m'cr has - if an), - ~th respect to the Mortgage ~sura~ce under the Homeowners ~otection ..',el ,d' 199~ or an)' other law. ~hese rights may include the right to receive certain disclosures, t,, et'qtleSt and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance tert~fin:,tcd automatically, and/or to receive a refund of any Mortgage Insurance premiums that were u~carncd at the time of such cancellation or termination. 11.. Assignment of Miscellaneous Proceeds; Forfeitu~t,. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceed, ~.l~:tll be applied to restoration or repair of the Property, if the restoration or repair is economically fc~:~,.il,lc and Lender's security is not lessened. During such repair and restoration period, Lender shall have tl~c: right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Propen\ t,, ensure the work has been completed to Lender's satisfaction, provided that such inspection shall bc u~dc'rtakcn promptly. Lender may pay for the repairs and restoration in a single disbursement or in a ,.~.:ic~ of progress payments as the work is completed. Unless an agreement is made in writing or Appli~':d,lc: Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to p:~ l~m'roxver any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not ec,,~,,~icztlly feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to ~1~.: ,qlills secured by this Security Instrument, whether or not then due, with the excess, if any, paid to B,,rt,,x~cr. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss i~ value o£ the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Securit'. 1.strument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in x:,lttc o[' the Property in which the fair market value of'the Property immediately before the partial taking, destruction, or loss in value is equal to or greater.than the amount of the sums secured by this Securit,. Instrument immediately before the partial taking i-. destruction, or loss in value, unless Borrower and I t.~Mcr otherwise agree in writing, the sums secured .by this Security Instrument shall be reduced by ~h¢ amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount ,,I thc sums secured immediately before the partial-taking, destruction, or loss in value divided by {h) the fair market value of the Property immediately before the partial taking, destruction, or loss in x':~lt~c. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in x :tlt~c t)I' the Property in which the fair market value of the Property immediately before the partial taking, d~*~lruction, or loss in value is less than the amount of the sums secured immediately before the partial t:,hing, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Misccll:~c:t)tls Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums m'~: then due. If the Property is abandoned by Borrower, or if, :d'i~.~ re)rice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to m:d.:c m~ award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after thc d:ttc d~e notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to rC,,h,r',ttion or repair of the Property or to the sums secured by this Security Instrument, whether or not then duc. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party ag:ti~st whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, x,,hcther civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Propcru ,>r other material impairment of Lender's interest in the Property or rights under this Security Instrumt.~t. lgorrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 1';. I,)' causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludc~, I,,rfciture of the Property or other material impairment of Lender's interest in the Property or rights un&~ this Security Instrument. The proceeds of any award or claim for damages that are attributable to the i r~l>:tirmcnt of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to x-c~,r,)r:~tion or repair of the Property shall be applied in the order provided for in Section 2. TOOLSON. TERM 79787401 0 hlitials: (~-6(WY) (0oo5) Page 9 of ~5 Form 3051 1/01 12. Borrower Not Released; Forbearance By Len(h:r >,ot a Waiver. Extension of the time for payment or modification of amortization of the sums secured I,,, this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall ~t,,t ~)l)Crate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall n~,t l,c required to commence proceedings against any Successor in Interest of Borrower or to refuse to c'~,,nd time for payment or otherwise modify amortization of the sums secured by this Security Instrumc:H I,,, reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any I'~,~ I,c:~r:mcc by Lender in exercising any right or remedy including, without limitation, Lender's acceptance ,,F payments from third persons, entities or Successors in Interest of Borrower or in amounts less than tl;c :,~otmt then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Succe.~:..,F:, and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall bc .i~,itH :md several. However, any Borrower who co-signs this Security Instrument but does not execute tl~(: i'~'(~tc (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey thc c,, .~igucr's interest in the Property under the terms of this Security Instrument; (b) is not personally oblit~:tlcd to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other BorF,~,,vcr can agree to extend, modify, forbear or make any accommodations with regard to the terms of thi:~ %~.curity Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Suc~.:,:~(~F in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in x~z~::l[,., ~,~d is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security h~:,in~ment. Borrower shall not be released from Borrower's obligations and liability under this Security In~ ~H~cm unless Lender agrees to such release in writing. The covenants and agreements of this Security I~.~,mcnt shall bind (except as provided in Section 20) and benefit the successors and assigns of LendcF. 14. Loan Charges. Lender may charge Borrower Fc.~.:. l',~r .~crvices performed in connection with Borrower's default, for the purpose of protecting Lender's; ~crcst in the Property and rights under this Security Instrument, including, but not limited to, attornc) ~;' lcc~, property inspection and valuation fees. In regard to any other fees, the absence of express authority it~ thi~ Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on th,: cl~'~xrging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrumc~H ,~ I~y Applicable Law. If the Loan is subject to a law which sets maximum Io:~:~ clmrgcs, and that law is finally interpreted so that the interest or other loan charges collected or to be coli~c'tcd in connection with the Loan. exceed the permitted limits, then: (a) any such loan charge shall be rcd~ccd by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected fi-om Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose I~, ~imkc this refund by reducing the principal owed under the Note or by making a direct payment to I¢(,rn~xvei'. If a refund reduces principal, the reduction will be treated as a partial prepayment without :H~v prepayment charge (whether or not a prepayment charge is provided for under the Note). Born~c~"~ ~cceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right oi' :~ction Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender i~ connection with this Security Instrument must be in writing. Any notice to Borrower in connection x~i~h this Security Instrument shall be deemed to have been given to Borrower when mailed by first class ~:~il ~r when actually delivered to Borrower's notice address if sent by other means. Notice to any one l~,,~,,~xer shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise: Thc. ~(,ticc address shall be the Property Address unless Borrower has designated a substitute notice address 1;,, ~odce to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender ~!,c'cil'ics a procedure for reporting Borrower's change of address, then Borrower shall only report a chan? ~F ',~dcircss through that specified procedure. There may be only one designated notice address under tl~i:, ~ccurity Instrument at any one time. Any notice to Lender shall be given by delivering it or by m:dli~? it by first class mail to Lender's address stated herein unless Lender has designated another acidn.,;~; by notice to Borrower. Any notice in connection with this Security Instrument shall not be deem~.d t(~ have been given to Lender until actually received by Lender. If any notice required by this Securh.~ I:~tnm~ent is also required under Applicable Law, the Applicable Law requirement will satisfy the c(,Frc~;ixmding requirement under this Security Instrument. TOOLSON, TERM 79787401 0 initials: (~-6{WY) (0005) Page ~Oof ~5 Fqrm,.3,0,51 1/01 16. Governing Law; Severability; Rules of Con~;tr,t'tim~. This Security Instrument shall be governed by federal law and the law of the jurisdiction in v. !~iL'h thc Property is located. All rights and obligations contained in this Security Instrument are suh,,.t to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicili,. ,Ih)w the parties to agree by contract or it might be silent, but such silence shall not be construed as :~ l,t,flfihition against agreement by contract. In the event that any provision or clause of this Security Inst~{~cnt or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this %,','ttrity Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of thc masculine gender shall mean and include corresponding neuter words or words of the feminine gend~.J: (t)) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" ~i,. ~.s st,lc discretion without any obligation to take any. action. 17,: Borrower's Copy. Borrower shall be given one col,.~ ,~I' the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interc.-;l i, Bm'rower. As used in this Section 18, "Interest in the Property" means any legal or beneficial intc~c:~[ m thc Property, including, but not limited to, those beneficial interests transferred in a bond for deed, c',.r~t~'act for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title t,x. };.rmwer at a future date to a purchaser. If all or any part of the Property or any Interest in the l'~,,t)crtv is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrowe~ i,, s.hl or transferred) without Lender's prior written consent, Lender may require immediate payment i, inll of all sums secured by this Security Instrument. However, this option shall not be exercised I,~ l_cnder if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Bon,,',,cr notice of acceleration. The notice shall provide .a period of not less than 30 days from the date thc ,,,ticc is given in accordance with Section 15 within:Which Borrower must pay all sums secured by this *,,vurity Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender ~:tv invoke any remedies permitted by this Security~Instrument without further notice or demand on Bon, 19..Borrower's Right to Reinstate After Accelerati~,,. It' Borrower meets certain conditions, Borrower shall have the right to have enforcement of this b;~'c'urity Instrument discontinued at any time prior tb the earliest of: (a) five days before sale of the Propc~ tl, tmrsuant to any power of sale contained in this Security Instrument; (b) such other period as Applicald~- l.aw might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgmen( t',}F, rcing tbis Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums xkhk'l~ then would be due under this Security Instrument and the Note as if no acceleration had occurred; I t,~ c'urcs any default of any other covenants or agreements; (c) pays all expenses incurred in enlbrcing this .*;,:, urity Instrument. including, but not limited to, reasonable attorneys' fees, property inspection and valt~:~li~.~ fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and ~iz. ht~ tamer this Security Instrument; and (d) takes such action as Lender may reasonably require to assu~,.. Ih.at Lender's interest in the Property and rights under this Security Instrument, and Borrower's oblig',~i,,~ h) pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require th,l ~ )rrower pay such reinstatement sums and expenses in one or more of the following forms, as selected /~ Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's chi.FL, provided any such check is drawn upon an institution whose deposits are insured by a federal agencx, instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Secu/it, l,strument and obligations secured hereby shall remain fully effective as if no acceleration had occurred, lh)wcver, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice o1' ~;rievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold ~,nc or more times without prior notice to Borrower. A sale might result in a change in the entity (hn,,x~n as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security ht:,ttuinent and performs other mortgage loan servicing obligations under the Note, this Security Instrumc~,. :md Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a salt. ,,i' thc Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change whidx will state the nm,ne and address of the new Loan Servicer, the address to which payments should It,, madL~ and any other information RESPA TOOLSON,TERM 79787401 0 ~,-6(WY) (o0o5) Page 11 of 15 Form 3051 1/01 requires in connection with a notice of transfer of servicin~ serviced by a Loan Servicer other than the purchaser of to Borrower will remain with the Loan Servicer or be tran assumed by the Note purcha, ser unless otherwise provided Note is sold and thereafter the Loan is mortgage loan servicing obligations successor Loan Servicer and are not purchaser. Neither Borrower nor Lender may conmaence, join, ,., :.. I,fincd to any judicial action (as either an individual litigant or the member of a class) that arises 1: ~ tl~c. uther party's actions pursuant to this Security Instrument or that alleges that the other party ha.~ i. .. i,vJ :my provision of, or any duty owed by reason of, this Security Instrument, until such Borrower ~,~ . :,k.~ has notified the other party (with such notice given in compliance with the requirements of Secti~, , ~ ~,I' stlch alleged breach and afforded the other party hereto a reasonable period after the giving ...,~jt notice to take corrective action. If Applicable Law provides a time period which must elap::,', '.~,rc certain action can be taken, that time period will be deemed to be reasonable for purposes of !,mWrai)la. The notice of acceleration and opportunity to cure given to Borrower pursuant to Secti,,. '1 ZtllCl tile notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to sati~, i~ ~,)ticc and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Secti '[' (:t; "ltazardous Substances" are those substances defined as toxic or hazardous substances, pollul ,~. wastes by Environmental Law and the following substances: gasoline, kerosene, other flammabk .~,,xic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asb~-.t ~,r fi,rmaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws oI' tl~ :~tliction where the Property is located that relate to health, safety or environmental protection; (c) "1: :r,,~m~cntal Cleanup" includes any response action, remedial action, or removal action, as defined in I:. : .,~ncntal Law; and (d) an "Environmental Condition" means a condition that can cause, contribu!,.. ,. ~r mherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, usv.: l','~,:tt, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substance. ~,r ~ the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Prow:[, :,~ thz~t is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) ~:,',. d~c to the presence, use, or release of a Hazardous Substance, creates a condition that adversely :t~:: thc value of the Property. The preceding two sentences shall not apply to the presence, use, or :,t,, :: ,m the Property of small quantities of Hazardous Substances that are generally recognized to lx.. :!,~,,[~rhtte to normal residential uses and to maintenance of the Property (including, but not limited to, i[ ~h ~t~s substances in consumer products). Borrower shall promptly give Lender written notice ,,[ :, :~nv investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency ,~, ,: ~. utc party involving the Property and any Hazardous Substance or Environmental Law of whicl~ i:,,~:,m'cr has actual knowledge, (b) any Environmental Condition, including but not limited to, anx : ii..~,.~, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any conditi,,~. :, ~,vd by the presence, use or release of a Hazardous Substance which adversely affects the value oI tl; i'~,q¢crty. If Borrower learns, or is notified by any governmental or regulatory authority, or any priv:~t~. :~.,. thz~t any removal or other remediation of any Hazardous Substance affecting the Property is nece~:,:: i;~,rr~wer shall promptly take all necessary remedial actions in accordance with Environmental Law..:'~i:~? herein shall create any obligation on Lender for an Environmental Cleanup. TOOL5ON, TERN 7978740 0 I~-6(WY) (00051 Page 12 of ~5 Form 3051 1/01 NON-UNIFORM COVENANTS. Borrower and Lender I'~:~hcr covenant and agree as ffollows: 22. Acceleration; Remedies. Lender shall give notice to t;~FFower prior to acceleration following Borrower's breach of any covenant or agreement in this ';ccnFity Instrument (but not prior to acceleration under Section 18 unless Applicable Law providc:~ ~l hcFxvise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a d;dt,, not less than 30 days from the date the notice is given to Borrower, by which the default must M, c'm'cd; and (d) that failure to cure the defaUlt'on or before the date specified in the notice may restHl ia acceleration of the sums secured by this Security Instrument and sale of the Property. The notic<: :;h:dl further inform Borrower of the right to reinstate after acceleration and the right to bring a tw,tH.i ~ction to assert the non-existence of a defhult or any other defense of Borrower to acceleration a,~: ~alc. Il' the default is not cured on or before the date specified in the notice, Lender at its option m;b Fo'quire immediate payment in full of all sums secured by this Security Instrument without furthcF dt'tnand and may invoke the power of sale and any other remedies permitted by Applicable Lax~. l,t'ndcr shall be entitled to collect all expenses incurred in pursuing the remedies provided in this ,%~'tim~ 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give n~,~icc, ot' intent to foreclose to Borrower and to the person in possession of the Property, if differenl, i, accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the mannc~- i~Fm'idcd in Section 15. Lender shall publish'the notice of sale, and the Property shall be sold in ~hc manner prescribed by Applicable Law.'L~nder or its designee may purchase the Property at an), ,;~dc. The proceeds of the sale shall be applied'lin the following order: (a) to all expenses of thc ',~lc, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Seem Iv Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Sec,~ i !, Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. I ,:~cicr may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to :~ ihi~ d p:~rtv for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights tm,~l,:r and by virtue of the homestead exemption laws of Wyoming. TOOLSON, TERM 79787401 0 6(WY) (00051 Paga 13 of 15 Form 3051 1/01' BY SIGNING BELOW, Borrower accepts and agrees tt~ ih,: terms ,and covenants contained in this Security Instrument and in any Rider executed by Borrower and ~v, mlud with it. Witnesses: Jeff re3 Foo]son -Borrower ., ')',! D,~ _ (~ L'L(~}C/~._~-----~. (Seal) ', ~ol son '" .... Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower TOOLSON, TERM (~)~6(WY) (0005) 79787401 Page 14 of 15 Form 3051 0 1/01 STATE OF WYOMING, Teton The foregoing instrument was acknowledged before me II,is; December 27, by,Jeffrey C. Toolson and Heidi E. Too]son. iltt:;band and wife County ~: 2004 My Commission Expires: COUNTY OF ~.~,,'~ STATE OF I( TETON tt~ll~ WYOMINGB ~,_o~&xm~ s ~ow~. u, ~oo~ il' Notary Pul d ~ T00LSON,TERM I~}~6(WY) 79787401 Page 15of15 Form 3051 0 1/01 FIXED/ADJUSTABLE I tATE RIDER (LIBOR One-Year Index (As Published In Thc !~'~fl/Street Journal)- Rate Caps) THIS FIXED/ADJUSTABLE RATE RIDER is made fi,i~'; ~TLh day of December` 2004 , and is incorporated into and shall h,; ~h,~emed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "SecL, it¥ Instrument") of the same date given by the undersigned ("Borrower") to secure Borro',,,c~'s Fixed/Adjustable Rate Note (the "Note") to THE JACKSON STATE BANK & TRUST ("Lender") of the same date and covering the propu, t¥ described in the Security Instrument and located at: 218 Car,ibou Loop,Thay~ ,.'?,,'Y 83127 [Property Addre:ml THE NOTE PROVIDES FOR A CHANGE IN t;ORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RAI-E. THE NOTE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the ~:,v,nants and agreements made in the Security Instrument, Borrower and Lender further cov~r~nl and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate ~1 4. B750 %. The Note also provides for a change in the initial fixed rate to an adj~;tahle interest rate, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will chantj(; ~o an adjustable interest rate on the first day of0aFIuar'y, 2010 , and the adju,,;t;~ble imerest rate I will pay may change on that day every 12th month thereafter. The date <,~ which my initial fixed interest rate changes to an adjustable interest rate, and each dau: on which my adjustable interest rate could change, is called a "Change Date." TOOLSON. TERN 79787401 0 MW 08/01 MULTISTATE FIXED/ADJUSTABLE RATE RIDER - WSJ One-Year LIBOR - Single Family - Fannie Mae Uniform Instrument ~-168R (0401) Form 3187 6/01 Pa~ 1 of 4 Initials: VMP Mortgage Solutions '-' 04.tO (B) The Index Beginning with the first Change Date, my adjL~:.t~d~le interest rate will be based on an Index. The "Index" is the average of interb:~,L offered rates for one-year U.S. dollar-denominated deposits in the London market ("1 lt~OR"), as published in The Wall Street Journa(. The most recent Index figure available as ~¢1 the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Hohl,~r' will choose a new index that is based upon comparable information. The Note Holder will d~,.,,~ rne notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will ,:.,Icutate my new interest rate by adding Two and One / Quarter percentage points 2.2500 %) to the Current Index. -t1~,; I'dote Holder will then round the result of this addition to the nearest one-eighth of one p[:~,:,;,~tage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded ana{~L~[ will be my new interest rate until the next Change Date. The Note Holder will then determine the amou~t ~I the monthly payment that would be sufficient to repay the unpaid principal that I am exf.:~:ted to owe at the Change Date in full on the Maturity Date at my new interest rate in sut):~mtially equal payments. The result of this calculation will be the new amount of my monthl.)~ I)ayment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the li~.i Change Date will not be 9rearer than 6. 8750 % or less than 2.87~',ii %. Thereafter, my adjustable interest rate will never be increased or decreased or~ any single Change Date by more than two percentage points from the rate of interest I I,.',ve been paying for the preceding 12 months. My interest rate will never be greater than ~0. 8750 %. (E) Effective Date of Changes My new interest rate will become effective on e~,(:h Change Date. I will pay the amount of my new monthly payment beginning on the firs[ ~onthly payment date after the Change Date until the amount of my monthly payment chang,:,.] again. (F) Notice of Changes The Note Holder will deliver or mail to me a ,~,~ce of any changes in my initial fixed interest rate to an adjustable interest rate and of a~y changes in my adjustable interest rate before the effective date of any change. The notic,~, will include the amount of my monthly payment, any information required by law to be giw;~ to me and also the title and telephone number of a person who will answer any question I ~,~y have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower's initial fixed interest rate ch;,~.ms to an adjustable interest rate under the terms stated in Section A above, Uniform Cove~.'~[~[ 18 of the Security Instrument shall read as follows: T00LSON,TERH 7978740~ 0 -168R (0401) Page 2 of 4 Initials: Form 3187 6/01 which, Borrower must pay all sums secured by ~tfis Security instrument. If Borrower fails to pay these sums prior to the expirat on ,~1, s period, Lender may invoke any remedies:permitted by this Security'lnstrumen~ .r'.ithout further notice or demand on Borrowe.r.. : By sIGNING BELOW, Borrower accepts and agr~,,~; to the terms and coy. enants contained in this Fixed/Adjus. table Rate Rider. ,.- ........... . Jeffre~v C(Toolson -Borrower H~ '~; E. T~,o~],.s"on -B~rrower (Seal) -Borrower (seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower TOOLSON. TERH (~- 168R (0401) 797874(:, Page 4 of ,I 0 Form 3187 6/01 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 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. 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 fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 2. When Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrument described in Section B1 above shall then cease to be in effect, and the provisions of Uniform Covenant 18 of the Security lnstrument shall be amended to read as follows: 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 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 Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. 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. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within TOOLSON, TERM 79787401 0 Initials: -168R (0401) Page 3 of 4 Form 3187 6/01