HomeMy WebLinkAbout905883After Recording Remm To:
COUNTRYWIDE HOME LOANS,
MS SV-79 DOCUMENT PROCESSIII~
P.O.Box 10423
Van Nuys, CA 91410-0423
Prepared By:
QUIN MERRILL
RECEIVED 1/13/2005 at 3:57 PM
RECEIVING # 905883
BOOK: 577 PAGE: 153
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
]SI)m,, \ h,,~ c This Line For Recording Data]
FA128420M
~.:row/Closing #]
IORTGAGE
MIN 1000157-0004634614-0
0008789801401005
[Doc ID #]
DEFINITIONS
Words used in multiple sections of this dt ~,'t,~,~cnt are def'med below and other words are defined in Sections 3,
11, 13, 18, 20 and 21. Certain roles rc~2:~t~lh~.,., the usage of words used in this document are also provided in
Section 16.
(A) "Security Instrument" means this (h~,mnent, which is dated JANUARY 11,
with all Riders to this document.
(B) "Borrower" is
RICHARD A NELSON, AND DEBO}:Lii r~ELSON, HUSBAND AND WIFE
2005 , together
Borrower is the mortgagor under this Sccmi~,, h]strument.
(C) "MERS" is Mortgage Electronic Rc~i~':~tion Systems, Inc. MERS is a separate corporation that is acting
solely as a nominee for Lender and [~cnd~.~'s successom and assigns. MERS is the mortgagee under this
Security Instrument. MERS is organi>,c~l :md existing under the laws of Delaware, and has an address and
telephone number of P.O. Box 2026, Film. ~II 48501-2026, tel. (888) 679-MERS.
(D) "Lender" is
AMERICA'S WHOLESALE LENDER
Lender is a CORPORATION
organized and existing under the laws ot' r l i.::. YORK
Lender's address is
?.O. Box 660694, Dallas, TX ' ;~6-0694
0g) "Note" means the promissory re)lc ~iNm:d by Borrower and dated JANUARY 11, 2005 . The
Note states that Borrower owes Lender
ONE HUNDRED THREE THOUSAND ;~I 'i ')0/100
Dollars(U.S. $ 103,000.00 ) l*l,,'q interest. Borrower has promised to pay this debt in regular
Periodic Payments and to pay the deb( in I~l[ m~t later than FEBRUARY 01, 2035
(F) "Property" means the property d~al ~,; described below under the heading "Transfer of Rights in the
Property."
WYOMING-Single Family-Fannie Mae/Freddie rvl,~c UNIFORM INSTRUMENT WITH MERS
Page 1 of 11
11~®-6A(WY) (0005) CHL (08/O0)(d) VMI' :,'~ ~rGAGE FORMS- (800)521-7291
CONV/VA
Form 3051 1/01
*23991*
* 087898014000002006A*
DOC ID #: 0008789801401005
(G) "Loan" means the debt evidc,ced I,x tile Note, plus interest, any prepayment charges and late charges
due under the Note, and all sums duc .,~k.r ~his Security Instrument, plus interest.
(ID "Riders" means all Riders m Ihi~ Yi,'c.rity Instrument that are executed by Borrower. The following
Riders are to be executed by Borrower I,'h,.,'k box as applicable]:
[__~ Adjustable Rate Rider ~ Co.d~,mi.i.m Rider F-']Second Home Rider
Balloon Rider ~ Phmm,(I t rnit Development Rider [--] 1-4 Family Rider
~ VA Rider ~ Biwccl,:lv Payment Rider [--]Other(s) [specify]
(I) "Applicable Law" means all c-.Ir~flling applicable federal, state and local statutes, regulations,
ordinances and administrative rules a,d ~.~lcrs (that have the effect of law) a.s well as all applicable final,
non-appealable judicial opinions.
(J) "Community Association Dues, Iq,e,;, and Assessments" means all dues, fees, assessments and other
charges that are imposed on Borrower or lbo Property by a condominium association, homeowners association
or similar organization.
(K) "Electronic Funds Transfer" mc,.s :my transfer of funds, other than a transaction originated by check,
draft, or similar paper instrument, which i,~ initiated through an electronic terminal, telephonic instrument,
computer, or magnetic tape so as m .r{h.,-, instruct, or authorize a financial institution to debit or credit an
account. Such term includes, b,I is rl~,l limited to, point-of-sale transfers, automated teller machine
transactions, transfers initiated by telcph{ r~,,. wire transfers, and automated clearinghouse transfers.
(L) "Escrow Items" means those items Ih,i arc described in Section 3.
(M) "Miscellaneous Proceeds" mcan~ ;m,, compensation, settlement, award of damages, or proceeds paid by
any third party (other than insurance Im,t'~','(l~ paid under the coverages described in Section 5) for: (i) damage
to, or destruction of, the Property; lii l c~,.h:mnation or other taking of all or any part of the Property; (iii)
conveyance in lieu of condemnathm: ,,. t iv) misrepresentations of, or omissions as to, the value and/or
condition of the Property.
(N) "Mortgage Insurance" means ins.r,,['c protecting Lender against the nonpayment of, or default on, the
Loan.
(O) "Periodic Payment" means the r¢~.h,'ly scheduled amount due for (i) principal and interest under the
Note, plus (ii) any amounts under SCclion ) ~t' this Security Instrument.
(P) "RESPA" means the Real Estalc Nt'llhzmcnt Procedures Act (12 U.S.C. Section 2601 et seq.) and its
implementing regulation, Regulation X 12 ] (', F.R. Part 3500), as they might be amended from time to time, or
any additional or successor legisla6o, ~,r r~'gulation that governs the same subject matter. As used in this
Security Instrument, "RESPA" refers h~ ;dl requirements and restrictions that are imposed in regard to a
"federally related mortgage loan" eve. il' ~hc Loan does not qualify as a "federally related mortgage loan"
under RESPA.
(Q) "Successor in Interest of Borrm~er" ,,ca,s any party that has taken title to the Property, whether or not
that party has assumed Borrower's ohli?l ir,.~ .nder the Note and/or this Security Instrument.
TRANSFER OF RIGHTS IN THE PR()I'I,]~ TY
This Security Instrument secures to [.cml~:~: l i~ the repayment of the Loan, and all renewals, extensions and
modifications of the Note; and (ii) Ibc p, rl't~rmance of Borrower's covenants and agreements under this
Security Instrument and the Note. F(~r ~hi54 purpose, Borrower does hereby mortgage, grant and convey to
MERS (solely as nominee for Le.dcr a.d I ~'mler's successors and assigns) and to the successors and assigns
of MERS, with power of sale, the folh~\vim_, ~lcscribed property located in the
COUNT Y of L I NCOLN ·
[Type of Recording Jurisdicfi.n] [Name of Recording Jurisdiction]
LOT 1 OF BLOCK 13 OF THE LIt!.' "[I HEIGHTS 4TH SUBDIVISION TO THE TOWN OF
KEM/qERER, LINCOLN COUNTY, W'D il l!lG AS DESCRIBED ON THE OFFICIAL PLAT
THEREOF. ALSO LOTS 5A AND ~,:
,~'. ? BLOCK 3 OF THE LINCOLN HEIGHTS 5TH
ADDITION, THIRD FILING, TO !'Ii!< CITY OF KEMMERER, LINCOLN COUNTY, WYOMING
AS DESCRIBED IN THE OFFICIAI, 7: AT THEREOF.
Parcel ID Number: 12211623203 ]. ¢ :',~,~,
1419 ~Ti; ':EST AVENUE,
[Street]City]
Wyoming83101-4019 ("PropertyA .~,<~').
[Zip Code]
(~®-6A(WY) (ooos) CHL (08~00)
Page 2 of 11
which currently has the address of
KEMMERER
Initials: (~ ~
Form 3051 1/01
DOC ID #: 0008789801401005
TOGETHER WITH all the imp,'m ~',,}, ms now or hereafter erected on the property, and all easements,
appurtenances, and fixtures now or hcrc,,,lI~.,' a part of the property. All replacements and additions shall also
be covered by this Security Instmmcm. \Il ~,r the foregoing is referred to in this Security Instrument as the
"Property." Borrower understands and <,~,,-,,,,s that MERS holds only legal fide to the interests granted by
Borrower in this Security Instmmcnl, bul. ,I ,mcessary to comply with law or custom, MERS (as nominee for
Lender and Lender's successors and assi.~,,:< ~ has the right: to exercise any or all of those interests, including,
but not limited to, the right to fi~rcch~s~: :,,,d sell the Property; and to take any action required of Lender
including, but not limited to, releasing am l ~':~,,ccling this Security Instrument.
BORROWER COVENANTS that t{~,,',,wer is lawfully seised of the estate hereby conveyed and has the
right to mortgage, grant and convey d,~~ Property and that the Property is unencumbered, except for
encumbrances of record. Borrower war,':mt~: :md will defend generally the title to the Property against all
claims and demands, subject to any cncu,,~l,,';mces of record.
THIS SECURITY INSTRUMt2NT ~mbines uniform covenants for national use and non-uniform
covenants with limited variations by .HH'i'<~liclion tO constitute a uniform security instrument covering real
property.
UNIFORM COVENANTS. Bo,'rmvc,' ~til(l Lender covenant and agree as follows:
1. Payment of Principal, Interesl, I~is,.,-.w Items~ Prepayment Charges, and Late Charges. Borrower
shall pay when due the principal ol', and ,,~lerest on, the debt evidenced by the Note and any prepayment
charges and late charges due under thc D4~,I~. Borrower shall also pay funds for Escrow Items pursuant to
Section 3. Payments due under thc N{,I~, :,,,d this Security Instrument shall be made in U.S. currency.
However, if any check or other instmm~:,,l ,'cccived by Lender as payment under the Note or this Security
Instrument is returned to Lender unpaid, l.,.,,dcr may require that any or all subsequent payments due under
the Note and this Security Instalment bc ,,}:,~Ic in one or more of the following forms, a~s selected by Lender:
(a) cash; (b) money order; (c) certified chc~q<, bank check, treasurer's check or cashier's check, provided any
such check is drawn upon an instituli~m xx i,,,sc deposits are insured by a federal agency, instrumentality, or
entity; or (d) Electronic Funds Transl'cr.
Payments are deemed received bv l.~.,}~ I:,- when received at the location designated in the Note or at such
other location as may be designated bv Ix,,,{ t~.,' in accordance with the notice provisions in Section 15. Lender
may return any payment or partial pay,n~',,I ,r the payment or partial payments are insufficient to bring the
Loan current. Lender may accept any p:,,, ,,,~:nt or partial payment insufficient to bring the Loan current,
without waiver of any rights hereumlcr ~,- I,,~'ludice to its rights to refuse such payment or partial payments in
the future, but Lender is not obligated h~ :'1'1*1 ¥ such payments at the time such payments are accepted. If each
Periodic Payment is applied as of iix s~q,~'~h~Icd due date, then Lender need not pay interest on unapplied
funds. Lender may hold such unapplicd I~,,~1~ until Borrower makes payment to bring the Loan current. If
Borrower does not do so within a rcas{m:,},l~, period of time, Lender shall either apply such funds or return
them to Borrower. If not applied carl icl', s,,,'l, t'unds will be applied to the outstanding principal balance under
the Note immediately prior to foreclosure. ;~.:,~ {~ffset or claim which Borrower might have now or in the future
against Lender shall relieve Borrower f,'~,,, ,,,:,king payments due under the Note and this Security Instrument
or performing the covenants m~d agr¢cmcm~: ~:ccured by this Security Instrument.
2. Application of Payments or I'rm'~.,,.ds. Except as otherwise described in this Section 2, all payments
accepted and applied by Lender shall bc :,pidicd in the following order of priority: (a) interest due under the
Note; (b) principal due under the No,c; It'i :mtounts due under Section 3. Such payments shall be applied to
each Periodic Payment in the order in whi,.h il became due. Any remaining amounts shall be applied first to
late charges, second to any other am{n,,~ts d,~,. ,,nder this Security Instrument, and then to reduce the principal
balance of the Note.
If Lender receives a paymcm fl'{m} l~,~,'rower for a delinquent Periodic Payment which includes a
sufficient amount to pay any late charge dt~,', lite payment may be applied to the delinquent payment and the
late charge. If more than one Periodic P~,x,,~.,,l is outstanding, Lender may apply any payment received from
Borrower to the repayment of the Pcri~,~lic' I':Lvments if, and to the extent that, each payment can be paid in
full. To the extent that any excess exists ~1~¢,' the payment is applied to the full payment of one or more
Periodic Payments, such excess may bt~ :~l*l*licd to any late charges due. Voluntary prepayments shall be
applied first to any prepayment charges ~md Ih~',l as described in the Note.
Any application of payments, insm'~,~, proceeds, or Miscellaneous Proceeds to principal due under the
Note shall not extend or postpone thc duc <l:,l~,. {,r change the amount, of the Periodic Payments.
3. Funds for Escrow Items. Bo,'rmv~,, ~hall pay to Lender on the day Periodic Payments are due under
the Note, until the Note is paid in fi,Il, ~ ,~t,,,, {the "Funds") to provide for payment of amounts due for: (a)
taxes and assessments and other items xxHi,.l, can attain priority over this Security Instrument as a lien or
encumbrance on the Property; (b) Icasch~l{I p~,yments or ground rents on the Property, if any; (c) premiums
for any and all insurance required by Lcm I[, r ,ruder Section 5; and (d) Mortgage Insurance premiums, if any, or
any sums payable by Borrower to Lcmh., in lieu of the payment of Mortgage Insurance premiums in
accordance with the provisions of Scclmn 1~/. These items are called "Escrow Items;" At origination or at any
time during the term of the Loan, [~clt{I,~i· ,nay require that Community Association Dues, Fees, and
Assessments, if any, be escrowed by B~m'~,~,., ,'. and such dues, fees and a~ss~ssments shall be an Escrow Item.
Borrower shall promptly furnish to Lcmlcr :~!1 m~tices of amounts to be paid under this Section. Borrower shall
pay Lender the Funds for Escrow Items ,m h...:,: Lender waives Borrower's obligation to pay the Funds for any
or all Escrow Items. Lender may waive B~,~,'~wer's obligation to pay to Lender Funds for any or all Escrow
(~®-6A(WY) (0005) CHL (08/00) Page 3 of 11 Form 3051 1/01
5
DOC ID #: 0008789801401005
Items at any time. Any such waiver may ,,~,lv be in writing. In the event of such waiver, Borrower shall pay
directly, when and where payable, Ibc ~li~lll~ due for any Escrow Items for which payment of Funds has
been waived by Lender and, if Lcmlcr r~'tl~lh'es, shall furnish to Lender receipts evidencing such payment
within such time period as Lender may rc(l~ rt:. Borrower's obligation to make such payments and to provide
receipts shall for all purposes be (lcc~l~,~l I~ be a covenant and agreement contained in this Security
Instrument, as the phrase "covenant m~d <t~ccment" is used in Section 9. If Borrower is obligated to pay
~scrow Items directly, pursuant to a xv:~ix,,~'. :md Borrower fails to pay the amount due for an Escrow Item,
Lender may exercise its rights under ~ct'l~, ~ 9 and pay such amount and Borrower shall then be obligated
under Section 9 to repay to Lender a~v ~,. il :~mount. Lender may revoke the waiver as to any or all Escrow
Items at any time by a notice given i~ ~c'c~d~lllce with Section 15 and, upon such revocation, Borrower shall
pay to Lender all Funds, and in such am~,~t.:. Ihat are then required under this Section 3.
Lender may, at any time, collect m~d h,d,I Funds in an amount (a) sufficient 'to permit Lender to apply the
Funds at the time specified under Rt£,51~..\. :~tl 00) not to exceed the maximum amount a lender can require
under RESPA. Lender shall estimate Ibc :~,~!~mt of Funds due on the basis of current data and reasonable
estimates of expenditures of future E~cr~xv I~.~ls or otherwise in accordance with Applicable Law.
The Funds shall be held in an ing lil~li~,~ whose deposits are insured by a federal agency, instrumentality,
or entity (including Lender, if Lender i~ :~ i~litution whose deposits are so insured) or in any Federal Home
Loan Bank. Lender shall apply tile W~<l~ I,, pay the Escrow Items no later than the time specified under
RESPA. Lender shall not charge Borr~xvcr I, ~-holding and applying the Funds, annually analyzing the escrow
account, or verifying the Escrow lictor. ~i~.~ Lender pays Borrower interest on the Funds and Applicable
Law permits Lender to make such ~ ~%,~:~.. Unless an agreement is made in writing or Applicable Law
requires interest to be paid on the Fu~l~, I ~.~,tcr shall not be required to pay Borrower any interest or earnings
on the Funds. Borrower and Lender c~m ~ty,.tc.c ill writing, however, that interest shall be paid on the Funds.
Lender shall give to Borrower, withoul ch;~?. ~m annual accounting of the Funds as required by RESPA.
If there is a surplus of Funds held i~ ~:,:, r~w, as defined under RESPA, Lender shall account to Borrower
for the excess funds in accordance wilh l-~li:-;PA. If there is a shortage of Funds held in escrow, as defined
under RESPA, Lender shall notify B~t'r~,,~ ~,r ;~s required by RESPA, and Borrower shall pay to Lender the
amount necessary to make up thc sh~r~? i~ accordance with RESPA, but in no more than 12 monthly
payments. If there is a deficiency iff ~:~1:; held in escrow, as defined under RESPA, Lender shall notify
Borrower as required by RESPA, a~d ~g,~,~cr shall pay to Lender the amount necessary to make up the
deficiency in accordance with RESPA. I~l ,~ ~ more than 12 monthly payments.
Upon payment in full of all sum~ y;ct'lwctl by this Security Instrument, Lender shall promptly refund to
Borrower any Funds held by Lender.
4. Charges; Liens. Borrower gh:lll [~:~ :~ll laxes, assessments, charges, fines, and impositions attributable
to the Property which can attain priorily ~,~' Ibis Security Instrument, leasehold payments or ground rents on
the Property, if any, and Community A ~g~ ~'i:tti~r~ Dues, Fees, and Assessments, if any. To the extent that these
items are Escrow Items, Borrower ~lmll i,:~ Ihtrm in the manner provided in Section 3.
Borrower shall promptly discharge ~ lien which has priority over this Security Instrument unless
Borrower: (a) agrees in writing to the l,:~y~,.~l of the obligation secured by the lien in a manner acceptable to
Lender, but only so long as Borrower i~ i~,rl,~rming such agreement; (b) contests the lien in good faith by, or
defends against enforcement of tile lic~ i~. k'y',d proceedings which in Lender's opinion operate to prevent the
enforcement of the lien while those pl't~cct~[~ys are pending, but only until such proceedings are concluded;
or (c) secures from the holder of thc lict~ :~ :~greement satisfactory to Lender subordinating the lien to this
Security Instrument. If Lender detcrmi~lc~ II~t any part of the Property is subject to a lien which can attain
priority over this Security Instrumc~I, l_ciltl~:~ ~ay give Borrower a notice identifying the lien. Within 10 days
of the date on which that notice is givcl~, l~,~-r~wer shall satisfy the lien or take one or more of the actions set
forth above in this Section 4.
Lender may require Borrower to p~y ~ ~e-time charge for a real estate tax verification and/or reporting
service used by Lender in connection wilh Ihi'~ Loan.
5. Property Insurance. Borrower ~h;~fl I<cep the improvements now existing or hereafter erected on the
Property insured against loss by fire, lm~;~'~l,; included within the term "extended coverage," and any other
hazards including, but not limited to~ c:~rll~,l~akes and floods, for which Lender requires insurance. This
insurance shall be maintained in thc ~t~l~: tincluding deductible levels) and for the periods that Lender
requires. What Lender requires pursua~t t~ ~1~¢ preceding sentences can change during the term of the Loan.
The insurance carrier providing thc i~Nt~t,c:t~ shall be chosen by Borrower subject to Lender's right to
disapprove Borrower's choice, which riehl ~i~:~ll not be exercised unrea~sonably. Lender may require Borrower
to pay, in connection with this Lomb, ¢ilh~.r: I~tl a one-time charge for flood zone determination, certification
and tracking services; or (b) a on c-tim~ ('l~:~c for flood zone determination and certification services and
subsequent charges each time remal,l,i~?: ,~r similar changes occur which reasonably might affect such
determination or certification. Borrower ~1~;~1I ~dso be responsible for the payment of any fees imposed by the
Federal Emergency Management Agc~cv i~ connection with the review of any flood zone determination
resulting from an objection by Borrower.
If Borrower fails to maintain :~lv ,~1 ~hc coverages described above, Lender may obtain insurance
coverage, at Lender's option and Borroxvcr ,; ,.~,l~ense. Lender is under no obligation to purchase any particular
type or amount of coverage. Thcrcf~rc, ~'h coverage shall cover Lender, but might or might not protect
Borrower, Borrower's equity in lt~c I'r~l~.,iL or the contents of the Property, against any risk, hazard
Initials: ~, /~
(~®-6A(WY) (OOO5) CHL (08/00) Page 4 of 11 Form 3051 1/01
DOC ID #: 0008789801401005
or liability and might provide greater or tc~:~ ,' ,'~verage than was previously in effect. Borrower acknowledges
that the cost of the insurance covc,'~,gc ~, ~,t,~ained might significantly exceed the cost of insurance that
Borrower could have obtained. Any an~(~u,,l~: ,Ii ~bursed by Lender under this Section 5 shall become additional
debt of Borrower secured by this SCCllrilv l,,'4,,ment. These amounts shall bear interest at the Note rate from
the date of disbursement and shall bc p,~:,l,lc, with such interest, upon notice from Lender to Borrower
requesting payment.
Ail insurance policies required hy t.c,~ I,.,' :,rid renewals of such policies shall be subject to Lender's right
to disapprove such policies, shall include ~, .~l~mdard mortgage clause, and shall name Lender as mortgagee
and/or as an additional loss payee. Lender :J,'.dl have the right to hold the policies and renewal certificates. If
Lender requires, Borrower shall promp~ ly
Borrower obtains any form of insu,'a~cc ~,,~ c,'age, not otherwise required by Lender, for damage to, or
destruction of, the Property, such policy ~h:,ll include a standard mortgage clause and shall name Lender as
mortgagee and/or as an additional loss
In the event of loss, Borrower shall ?x ,, prompt notice to the insurance carrier and Lender. Lender may
make proof of loss if not made prompll3 l~x Borrower. Unless Lender and Borrower otherwise agree in
writing, any insurance proceeds, whcthcr ~r .~t the underlying insurance was required by Lender, shall be
applied to restoration or repair of the }'r~)l~c'rly, if the restoration or repair is economically feasible and
Lender's security is not lessened. Du ring s~t' h ,~'pair and restoration period, Lender shall have the right to hold
such insurance proceeds until Lender has h;~{I :~, opportunity to inspect such Property to ensure the work has
been completed to Lender's satisfaction, pr~,,, ~lcd that such inspection shall be undertaken promptly. Lender
may disburse proceeds for the repairs and r~"~,ration in a single payment or in a series of progress payments
as the work is completed. Unless an agrec.~,',t is made in writing or Applicable Law requires interest to be
paid on such insurance proceeds, Lender ~;h:,ll not be required to pay Borrower any interest or earnings on
such proceeds. Fees for public adjusters; ~,r ~,tl~cr third parties, retained by Borrower shall not be paid out of-
the insurance proceeds and shall be Irc ~,,1~: obligation of Borrower. If the restoration or repair is not
economically feasible or Lender's sect.'i~v x,, t,~dd be lessened, the insurance proceeds shall be applied to the
sums secured by this Security Instrumenl, x~ I~,lher or not then due, with the excess, if any, paid to Borrower.
Such insurance proceeds shall be applied h~ Ih,, ~rder provided for in Section 2.
If Borrower abandons the Property, l,~'~l~.r may file, negotiate and settle any available insurance claim
and related matters. If Borrower does nt)~ r~;~:l~,,~d within 30 days to a notice from Lender that the insurance
carrier has offered to settle a claim, d~c. I ~'~lcr may negotiate and settle the claim. The 30-day period will
begin when the notice is given. In cilhcr ,,,,.nc, or if Lender acquires the Property under Section 22 or
otherwise, Borrower hereby assigns to Lc,,I,,r ca) Borrower's rights to any insurance proceeds in an amount
not to exceed the amounts unpaid under th~: ::.:,,ce or this Security Instrument, and Cb) any other of Borrower's
rights (other than the right to any refund ~I' ~.:~med premiums paid by Borrower) under all insurance policies
covering the Property, insofar as such tigris: :~rc applicable to the coverage of the Property. Lender may use
the insurance proceeds either to repair or r~:~<~ ,re the Property or to pay amounts unpaid under the Note or this
Security Instrument, whether or not the,
6. Occupancy. Borrower shall t)ccup3. ,',~:~blish, and use the Property as Borrower's principal residence
within 60 days after the execution of dds ~;..,m'ity Instrument and shall continue to occupy the Property a~s
Borrower's principal residence for at Ic:~t ,,,e year after the date of occupancy, unless Lender otherwise
agrees in writing, which consent shall n t)l b~' ~i~rcasonably withheld, or unless extenuating circumstances exist
which are beyond Borrower's control.
7. Preservation, Maintenance a,d ~'r.tecfion of the Property; Inspections. Borrower shall not
destroy, damage or impair the Property, :~ll~x,,. Ire Property to deteriorate or commit waste on the Property.
Whether or not Borrower is residing in thc }'~,,l~crty, Borrower shall maintain the Property in order to prevent
the Property from deteriorating or dccrcasit~.~: i~ value due to its condition. Unless it is determined pursuant to
Section 5 that repair or restoration is nt~l cc'~ )l~, ,i,ically feasible, Borrower shall promptly repair the Property if
damaged to avoid further deterioratitm (,r (h~mage. If insurance or condemnation proceeds are paid in
connection with damage to, or thc taki,.~ ,,I. d~e Property, Borrower shall be responsible for repairing or
restoring the Property only if Lender has rcl~ :,,:cd proceeds for such purposes. Lender may disburse proceeds
for the repairs and restoration in a sin5~,lc, i,:tyment or in a series of progress payments as the work is
completed. If the insurance or condcmm~li~,, proceeds are not sufficient to repair or restore the Property,
Borrower is not relieved of Borrower's obli?l i~,~ for the completion of such repair or restoration.
Lender or its agent may make rc:~s,,~:~!,lc entries upon and inspections of the Property. If it has
reasonable cause, Lender may inspect Ih~ **~I,:rior of the improvements on the Property. Lender shall give
Borrower notice at the time of or prior ti) s,t.l~ :.~ interior inspection specifying such reasonable cause.
8. Borrower's Loan Applicali,n. l~,,r,, ,~ er shall be in default if, during the Loan application process,
Borrower or any persons or entities aclm? :~ the direction of Borrower or with Borrower's knowledge or
consent gave materially false, mislcadi~g. ~,~ inaccurate information or statements to Lender (or failed to
provide Lender with material informad()nl i, ,',,nnection with the Loan. Material representations include, but
are not limited to, representations conccr, m~: l lorrower's occupancy of the Property as Borrower's principal
residence.
(~®-6A(WY) (0005) CHL (08/00)
Page 5 of 11
Initials: ~[~ .~
Form 3051 1/01
-9 J..5 3
DOC ID #: 0008789801401005
9. Protection of Lender's Inleresl i,, Il,,' Property and Rights Under this Security Instrument. If (a)
Borrower fails to perform the cove,m,~ts :~,,~l :,greements contained in this Security Instrument, (b) there is a
legal proceeding that might signific~mtly :,llcct Lender's interest in the Property and/or rights under this
Security Instrument (such as a proccc~li,,~ i,~ bankruptcy, probate, for condemnation or forfeiture, for
enforcement of a lien which may i~ll~i,, i~,'iority over this Security Instrument or to enforce laws or
regulations), or (c) Borrower has abm~d~l~c.<l the Property, then Lender may do and pay for whatever is
reasonable or appropriate to protect Lcmlcr'.: i,~lcrest in the Property and rights under this Security Instrument,
including protecting and/or assessing Ibc x:,I~c of the Property, and securing and/or repairing the Property.
Lender's actions can include, but arc ,~ li,,~,l~.d to: (a) paying any sums secured by a lien which has priority
over this Security Instrument; (b) app¢~rim~' i,, court; and (c) paying rea~sonable attorneys' fees to protect its
interest in the Property and/or righ1~ ~,,~<l~.r Ibis Security Instrument, including its secured position in a
bankruptcy proceeding. Securing thc Pr~l~t'rl>' includes, but is not limited to, entering the Property to make
repairs, change locks, replace or board ~l) ~1~ ~ ,r~ and windows, drain water from pipes, eliminate building or
other code violations or dangerous c~mliti~,~, and have utilities turned on or off. Although Lender may take
action under this Section 9, Lender docs ~,~ h:~vc to do so and is not under any duty or obligation to do so. It
is agreed that Lender incurs no liability t¥,' ,~ ,I taking any or all actions authorized under this Section 9.
Any amounts disbursed by Lcmlcr ~m~l~.,~h is Section 9 shall become additional debt of Borrower secured
by this Security Instrument. These mm~,,t,l~ ~;h:~ll bear interest at the Note rate from the date of disbursement
and shall be payable, with such intercsl. ~,i~,,, ,~,tice from Lender to Borrower requesting payment.
If this Security Instrument is o,~ :~ Ic:t~.h~,ltl, Borrower shall comply with all the provisions of the lease.
If Borrower acquires fee title to the l'r~i~c,l~., the leasehold and the fee title shall not merge unless Lender
agrees to the merger in writing.
10. Mortgage Insurance. If L¢~lc,' ,~l,,ired Mortgage Insurance a~s a condition of making the Loan,
Borrower shall pay the premiums rcqui,'cd I, ~ ,,,:dntain the Mortgage Insurance in effect. If, for any reason, the
Mortgage Insurance coverage reqtm'¢d by Icuder ceases to be available from the mortgage insurer that
previously provided such insurance ~md I!.~,,r~wer was required to make separately designated payments
toward the premiums for Mortgage 1,~.~,,'~,,~,.~.. Borrower shall pay the premiums required to obtain coverage
substantially equivalent to the Mortg~ge l,~<~,,:~,~ce previously in effect, at a cost substantially equivalent to the
cost to Borrower of the Mortgage h~s~,,'~,,c~ i~,'cviously in effect, from an alternate mortgage insurer selected
by Lender. If substantially equivalcm ~I~,'1!~:~:¢ Insurance coverage is not available, Borrower shall continue
to pay to Lender the amount of the scp~,'i~l~l> ~k'signated payments that were due when the insurance coverage
ceased to be in effect. Lender will acccl~l, t~:<~ :md retain these payments as a non-refundable loss reserve in
lieu of Mortgage Insurance. Such loss rc~.,"~ ~. ~hall be non-refundable, notwithstanding the fact that the Loan
is ultimately paid in full, and Lender ~l,:,ll ,~** be required to pay Borrower any interest or earnings on such
loss reserve. Lender can no longer rctl~l~rt' i~gs reserve payments if Mortgage Insurance coverage (in the
amount and for the period that Lemler ,'c~!,~,~,:~) provided by an insurer selected by Lender again becomes
available, is obtained, and Lender rccluirc~ ~:,:l~:~,'ately designated payments toward the premiums for Mortgage
Insurance. If Lender required Morlg~gc h~<~,,'~uce as a condition of making the Loan and Borrower was
required to make separately design~tcd i~:,... ,,~:,~ts toward the premiums for Mortgage Insurance, Borrower
shall pay the premiums required to mai~I~,i,~ ~I,~,'tgage Insurance in effect, or to provide a non-refundable loss
reserve, until Lender's requiremcm for ~ I?:,gc Insurance ends in accordance with any written agreement
between Borrower and Lender providings I'~,' ~,~ch termination or until termination is required by Applicable
Law. Nothing in this Section 10 affects I%~,','~ ,'.'. ~.r's obligation to pay interest at the rate provided in the Note.
Mortgage Insurance reimburses I~c,,~l~., ~,' any entity that purchases the Note) for certain losses it may
incur if Borrower does not repay thc L~:~,~ :~:~ :,~,'~ed. Borrower is not a party to the Mortgage Insurance.
Mortgage insurers evaluate thc i,' t~l:,l ,',:i ~n all such insurance in force from time to time, and may enter
into agreemen[s with other parties theft ~h~,~~ , ,r modify their risk, or reduce losses. These agreements are on
terms and conditions that are satisi'~ct~,'x I~, thc mortgage insurer and the other party (or parties) to these
agreemen[s. These agreements may rcq~,ir~' ~1,~. ,nortgage insurer to make payments using any source of funds
that the mortgage insurer may have av~dl:,l~l,.- (which may include funds obtained from Mortgage Insurance
premiums).
As a result of these agreements. I~c,,,I,.,' :,uy purchaser of the Note, another insurer, any reinsurer, any
other entity, or any affiliate of any ~l' thc I,~,,.~oing, may receive (directly or indirectly) amounts that derive
from (or might be characterized as) a l~orli~*~ ~*1 Borrower's payments for Mortgage Insurance, in exchange for
sharing or modifying the mortgage i~s~,-~.,-' risk, or reducing losses. If such agreement provides that an
affiliate of Lender takes a share of lhc i~:,~,~'r's risk in exchange for a share of the premiums paid to the
insurer, the arrangement is often termed "'-':~l'~" c: reinsurance." Further:
(a) Any such agreements will noi arl,:~.~ Ihe amounts that Borrower has agreed to pay for Mortgage
Insurance, or any other terms of Ihe I~:~,,. l-;~ch agreements will not increase the amount Borrower will
owe for Mortgage Insurance, and lhcy ~ ill ,~,~t entitle Borrower to any refund.
Initials :--~o r~m
(~®-6A(WY) (ooo5) CHL (08/00) Page 6 of ~ 1 3051 1/01
DOC ID #: 0008789801z]01005
(b) Any such agreements will ,mi al'root the rights Borrower has - if any - with respect to the
Mortgage Insurance under the Ho,ne,,~ ,,~,,'~ Protection Act of 1998 or any other law. These fights may
include the right to receive certain di~cl,,~,,res, to request and oblain cancellation of the Mortgage
Insurance, to have the Mortgage ln.~ur~,m', ~erminated automatically, and/or to receive a refund of any
Mortgage Insurance premiums tha! ~cr~' ,~ m'arned at the time of such cancellation or termination.
11. Assignment of Miscella,~eous I'r.ceeds; Forfeiture. All Miscellaneous Proceeds are hereby
assigned to and shall be paid to Lender.
If the Property is damaged, such 5li~'~-tl~meous Proceeds shall be applied to restoration or repair of the
Property, if the restoration or repair is cc~,,~,, ,.c~ally feasible and Lender's security is not lessened. During such
repair and restoration period, Lendcr ghall h:~ ~, Ibc right to hold such Miscellaneous Proceeds until Lender hms
had an opportunity to inspect such Proper!5 ~o ensure the work has been completed to Lender's satisfaction,
provided that such inspection shall be m]llcll:~l, cu promptly. Lender may pay for the repairs and restoration in
a single disbumement or in a series ol~ p,'~?,',~ payments as the work is completed. Unless an agreement is
made in writing or Applicable Law requirc'~< i,~lcrest to be paid on such Miscellaneous Proceeds, Lender shall
not be required to pay Borrower any i,~ crc~ ~r earnings on such Miscellaneous Proceeds. If the restoration or
repair is not economically feasible or Lc,~l,.,"~ security would be lessened, the Miscellaneous Proceeds shall
be applied to the sums secured by this .%c:,,,',lv Instrument, whether or not then due, with the excess, if any,
paid to Borrower. Such Miscellaneous P,'oc,,,~.d~ shall be applied in the order provided for in Section 2.
In the event of a total taking, dc.~lrm'li~n, or loss in value of the Property, the Miscellaneous Proceeds
shall be applied to the sums secured by lhi~ ~ccurity Instrument, whether or not then due, with the excess, if
any, paid to Borrower.
In the event of a partial taking, dc.~l r.t'l i~ ,,~ or loss in value of the Property in which the fair market value
of the Property immediately before (he p~r~ i:,l h~king, destruction, or loss in value is equal to or greater than
the amount of the sums secured by this .%c,,ri~v Instrument immediately before the partial taking, destruction,
or loss in value, unless Borrower and [~c~l.,'r olherwise agree in writing, the sums secured by this Security
Instrument shall be reduced by the amom~ ~,l Ibc Miscellaneous Proceeds multiplied by the following fraction:
(a) the total amount of the sums sccu,'¢d i,,,,cdiately before the partial taking, de~struction, or loss in value
divided by Co) the fair market value of Ibc I',~pcrty immediately before the partial taking, destruction, or loss
in value. Any balance shall be paid
In the event of a partial taking, dc~(,',,, ~,, ~,~. or loss in value of the Property in which the fair market value
of the Property immediately before Ibc p:~li;~l raking, destruction, or loss in value is less than the amount of
the sums secured immediately before d,c p:,,lial taking, destruction, or loss in value, unless Borrower and
Lender otherwise agree in writing, thc N li,,',.t h~neous Proceeds shall be applied to the sums secured by this
Security Instrument whether or not thc ~,,~ :,,'c then due.
If the Property is abandoned by B~.'r~,~'. ~.:r, or if, after notice by Lender to Borrower that the Opposing
Party (as defined in the next sentence) ofl'cr,: I~ make an award to settle a claim for damages, Borrower fails to
respond to Lender within 30 days aflcr Ih~: (l',~lc the notice is given, Lender is authorized to collect and apply
the Miscellaneous Proceeds either Io rc~l~,r:~li~n or repair of the Property or to the sums secured by this
Security Instrument, whether or not thc~ ~h;c. "Opposing Party" means the third party that owes Borrower
Miscellaneous Proceeds or the party :~gam~l ,,,, horn Borrower has a right of action in regard to Miscellaneous
Proceeds.
Borrower shall be in default if any :l~'l~,n or proceeding, whether civil or criminal, is begun that, in
Lender's judgment, could result in forl'cilm',, ,,1' the Property or other material impairment of Lender's interest
in the Property or rights under this Sccm'il~ [~lrument. Borrower can cure such a default and, if acceleration
has occurred, reinstate as provided in ,qccli~,,~ I c). by causing the action or proceeding to be dismissed with a
ruling that, in Lender's judgment, prcc ludc,~ I, ,d'citure of the Property or other material impairment of Lender's
interest in the Property or rights under lhi'~ !;ccufity Instrument. The proceeds of any award or claim for
damages that are attributable to the iinp:xtr~,,'.t of Lender's interest in the Property are hereby assigned and
shall be paid to Lender.
All Miscellaneous Proceeds that arc ~,,l :q~plied to restoration or repair of the Property shall be applied in
the order provided for in Section 2.
12. Borrower Not Released; Fm'h~':~r:~nce By Lender Not a Waiver. Extension of the time for
payment or modification of amortizalio~ olll,~: gums secured by this Security Instrument granted by Lender to
Borrower or any Successor in Intcrcsl o{' l~,,,~,xver shall not operate to release the liability of Borrower or any
Successors in Interest of Borrower. Lc~d~.~ %all not be required to commence proceedings against any
Successor in Interest of Borrower or Io rc{~,~, !o extend time for payment or otherwise modify amortization of
the sums secured by this Security Instrm~'~I hv reason of any demand made by the original Borrower or any
Successors in Interest of Borrower. Any h~rl,,~:~rance by Lender in exercising any right or remedy including,
without limitation, Lender's acceptance t~[~ l~:~mcnts from third persons, entities or Successors in Interest of
Borrower or in amounts less than thc am~)~ml Ihcn due, shall not be a waiver of or preclude the exercise of any
right or remedy.
13. Joint and Several Liability; Co-~i:,?crs; Successors and Assigns Bound. Borrower covenants and
agrees that Borrower's obligations and li;~l,ilitv shall be joint and several. However, any Borrower who
co-signs this Security Instrument but tloc~ ~,,I execute the Note (a "co-signer"): (a) is co-signing this Security
(~I®-6A(WY) (oo05) CHL (08/00)
Page 7 of 11
Initials: ~ J
Form 3051 1/01
DOC ID #: 0008789801401005
Instrument only to mortgage, grant ami ~'~ ~,,,, c v the co-signer's interest in the Property under the terms of this
Security Instrument; (b) is not pets{really ,,l,ligated to pay the sums secured by this Security Instrument; and
(c) agrees that Lender and any ogler l~,~n'ower can agree to extend, modify, forbear or make any
accommodations with regard to thc Ic,'m,< ,,l' this Security Instrument or the Note without the co-signer's
consent.
Subject to the provisions of Sccfi~m l:q. ;my Successor in Interest of Borrower who assumes Borrower's
obligations under this Security Instm mc,~l ~,, writing, and is approved by Lender, shall obtain all of Borrower's
rights and benefits under this Security lnsl,'mncnt. Borrower shall not be released from Borrower's obligations
and liability under this Security Inst,'umc,ll ,,n less Lender agrees to such release in writing. The covenants and
agreemen[s of this Security Instrumcm slmll bind (except as provided in Section 20) and benefit the successors
and assigns of Lender.
14. Loan Charges. Lender may ch:,,'gc Borrower fees for services performed in connection with
Borrower's default, for the purpose el' p,~,lccting Lender's interest in the Property and rights under this
Security Instrument, including, but m~I limih~d to, attorneys' fees, property inspection and valuation fees. In
regard to any other fees, the absence el' c×p,'~.:~s authority in this Security Instrument to charge a specific fee to
Borrower shall not be construed as a prt)hibilion on the charging of such fee. Lender may not charge fees that
are expressly prohibited by this Sccm'ilv h,~l, muent or by Applicable Law.
If the Loan is subject to a law whi~,h ~,:ls maximum loan charges, and that law is finally interpreted so
that the interest or other loan charges c~lh,t.'tcd or to be collected in connection with the Loan exceed the
permitted limits, then: (a) any such loan ~'h:,,.~c shall be reduced by the amount necessary to reduce the charge
to the permitted limit; and (b) any sums :~h',':~,lv collected from Borrower which exceeded permitted limits will
be refunded to Borrower. Lender may ch~,~:c to make this refund by reducing the principal owed under the
Note or by making a direct payment I~ B~ ,r,,, ~wcr. If a refund reduces principal, the reduction will be treated as
a partial prepayment without any prcpaym~ nt charge (whether or not a prepayment charge is provided for
under the Note). Borrower's acceptance ~I' any such refund made by direct payment to Borrower will
constitute a waiver of any right of actium B{)m~wer might have arising out of such overcharge.
15. Notices. All notices given by lg~)rr'~wer or Lender in connection with this Security Instmment must
be in writing. Any notice to Borrowc,' i. t~,mection with this Security Instrument shall be deemed to have
been given to Borrower when mailed b, I,~st class mail or when actually delivered to Borrower's notice
address if sent by other means. Nolicc ~{~ :my one Borrower shall constitute notice to all Borrowers unless
Applicable Law expressly requires {~g~,',~.~,.~¢. The notice address shall be the Property Address unless
Borrower has designated a substitute m~li,:~· address by notice to Lender. Borrower shall promptly notify
Lender of Borrower's change of address. Il' I~cnder specifies a procedure for reporting Borrower's change of
address, then Borrower shall only rcp~rl :, ,'h:mge of address through that specified procedure. There may be
only one designated notice address undo r~hi ~: Security Instrument at any one time. Any notice to Lender shall
be given by delivering it or by mai li,ig il b~ fi,'st class mail to Lender's address stated herein unless Lender has
designated another address by notice t~ B,),'mwer. Any notice in connection with this Security Instrument
shall not be deemed to have been given I~ I [.ntler until actually received by Lender. If any notice required by
this Security Instrument is also rcq u i,'cd ,,n{I,: r Applicable Law, the Applicable Law requirement will satisfy
the corresponding requirement under lh i~ N~'~n-~ty Instrument.
16. Governing Law; Severabilib: R,,h,s of Construction. This Security Instrument shall be governed
by federal law and the law of thc juri~dicli,m in which the Property is located. All rights and obligations
contained in this Security Instrument ;m' ',~,h. icct to any requirements and limitations of Applicable Law.
Applicable Law might explicitly or implit'illS' allow the parties to agree by contract or it might be silent, but
such silence shall not be constn, cd as a i~,~,hibition against agreement by contract. In the event that any
provision or clause of this Security Insl,'m~,,;m or the Note conflicts with Applicable Law, such conflict shall
not affect other provisions of this Sccu,'i~x Instrument or the Note which can be given effect without the
conflicting provision.
As used in this Security Instrum~),~l: la) words of the masculine gender shall mean and include
corresponding neuter words or words ~l' Ih~' I,~,ninine gender; (b) words in the singular shall mean and include
the plural and vice versa; and (c) thc w{~,-,l "may" gives sole discretion without any obligation to take any
action.
17. Borrower's Copy. Borrower shall h~: given one copy of the Note and of this Security Instrument.
18. Transfer of the Property m' :, l;eneficial Interest in Borrower. As used in this Section 18,
"Interest in the Property" means any lcg;fl ~ beneficial interest in the Property, including, but not limited to,
those beneficial interests transferred in a l~,,,,I t'or deed, contract for deed, installment sales contract or escrow
agreement, the intent of which is thc transl,,,' ,,I' title by Borrower at a future date to a purchaser.
If all or any part of the Property or any Imcrest in the Property is sold or transferred (or if Borrower is not
a natural person and a beneficial imercs~ ,~, [l~,rrower is sold or transferred) without Lender's prior written
consent, Lender may require immcdimc !):,~ mcnt in full of all sums secured by this Security Instrument.
However, this option shall not be excrci~t~(I I,,, Lender if such exercise is prohibited by Applicable Law.
If Lender exercises this option, Lc,~,h.,' :d~all give Borrower notice of acceleration. The notice shall
provide a period of not less than 30 {lax~ I,,m~ the date the notice is given in accordance with Section 15
within which Borrower must pay all gu,ns ~<,','m'ed by this Security Instrument. If Borrower fails to pay these
sums prior to the expiration of this pcri,,(h l.ender may invoke any remedies permitted by this Security
Instrument without further notice or dCTn:,,,,i ~T~ Borrower.
Initials:.~
(~®-6A(WY) (0005) CHL (08/00) Page 8 of 11 Form 3051 1/01
DOC ID #: 0008789801401005
19. Borrower's Right to Reinslah' ,\ rh,r Acceleration. If Borrower meets certain conditions, Borrower
shall have the right to have enforccmcm ~,l' Otis Security Instrument discontinued at any time prior to the
earliest of: (a) five days before sale el' II}~, l'n~perty pursuant to any power of sale contained in this Security
Instrument; (b) such other period as Al~pli~':~bl¢ Law might specify for the termination of Borrower's right to
reinstate; or (c) entry of a judgment c~l'~n'ciny this Security Instrument. Those conditions are that Borrower:
(a) pays Lender all sums which thc~ x~u~hl be due under this Security Instrument and the Note as if no
acceleration had occurred; (b) cures ~mv d~'l:mlt of any other covenants or agreements; (c) pays all expenses
incurred in enforcing this Secnritv h~slrm,~;nt, including, but not limited to, reasonable attorneys' fees,
property inspection and valuation fees, ;m,I ~1 her fees incurred for the purpose of protecting Lender's interest
in the Property and rights under this S cc~ril~ h~strument; and (d) takes such action as Lender may reasonably
require to assure that Lender's inlcrcsl i, Ire Property and fights under this Security Instrument, and
Borrower's obligation to pay the stm~s scc~,,..d by this Security Instrument, shall continue unchanged. Lender
may require that Borrower pay such rci,s~:~:ment sums and expenses in one or more of the following forms,
as selected by Lender: (a) cash; (b) m~m cy ~,r~lcr; (c) certified check, bank check, treasurer's check or cashier's
check, provided any such check is draw, ~I~,n an institution whose deposi[s are insured by a federal agency,
instrumentality or entity; or (d) Elccln~ni~~ lqmds Transfer. Upon reinstatement by Borrower, this Security
Instrument and obligations secured hcrcl,x ,~hall remain fully effective as if no acceleration had occurred.
However, this right to reinstate shall s~I ~q,l~l,: m the ca, se of acceleration under Section 18.
20. Sale of Note; Change of Loan 5~,rvicer; Notice of Grievance. The Note or a partial interest in the
Note (together with this Security h~slmm~:nl ~ can be sold one or more times without prior notice to Borrower.
A sale might result in a change in the o,l il, !known as the "Loan Servicer") that collects Periodic Payments
due under the Note and this Security hlslnm~'nt and performs other mortgage loan servicing obligations under
the Note, this Security Instrument, a,d/\plq ic;d,le Law. There also might be one or more changes of the Loan
Servicer unrelated to a sale of thc Nolo. II Ihcre is a change of the Loan Servicer, Borrower will be given
written notice of the change which will ~:~i,~ Ire name and address of the new Loan Servicer, the address to
which payments should be made and ~mv ,,[hcr information RESPA requires in connection with a notice of
transfer of servicing. If the Note is sold :m<l Ihereafter the Loan is serviced by a Loan Servicer other than the
purchaser of the Note, the mortgage h~;m s,,r,, icing obligations to Borrower will remain with the Loan Servicer
or be transferred to a successor Loa~ Scrx i,'~:r and are not assumed by the Note purchaser unless otherwise
provided by the Note purchaser.
Neither Borrower nor Lender m;~x ~,,~.mence, join, or be joined to any judicial action (as either an
individual litigant or the member of ~ cl',~s,: ~ Ih:~t arises from the other party's actions pursuant to this Security
Instrument or that alleges that the o0~cr I~:~, has breached any provision of, or any duty owed by reason of,
this Security Instrument, until such Bom,x~ ~., ~r Lender has notified the other party (with such notice given in
compliance with the requirements el' Sccl i~,~ 15) of such alleged breach and afforded the other party hereto a
reasonable period after the giving of' s~ch ~ ,I ice to take corrective action. If Applicable Law provides a time
period which must elapse before certai~ :~t'l i~ ,n can be taken, that time period will' be deemed to be reasonable
for purposes of this paragraph. Thc nolicc ~! :~cceleration and opportunity to cure given to Borrower pursuant
to Section 22 and the notice of accclcr:~li~,~ ~iven to Borrower pursuant to Section 18 shall be deemed to
satisfy the notice and opportunity to l:~kc {~, ,r,',.ctive action provisions of this Section 20.
21. Hazardous Substances. As ,sod i, ~his Section 21: (a) "Hazardous Substances" are those substances
defined as toxic or hazardous substmlccy:, i,~llutants, or wastes by Environmental Law and the following
substances: gasoline, kerosene, other I'l:t~,~,:~hle or toxic petroleum produc[s, toxic pesticides and herbicides,
volatile solvents, materials cont~mm~g :,~hestos or formaldehyde, and radioactive materials; (b)
"Environmental Law" means federal h~ws :m~i laws of the jurisdiction where the Property is located that relate
to health, safety or environmental pml~:cli~,,: (c) "Environmental Cleanup" includes any response action,
remedial action, or removal action, as del m,,{f in Environmental Law; and (d) an "Environmental Condition"
means a condition that can cause, con lribl~l~: 1~ ~ or otherwise trigger an Environmental Cleanup.
Borrower shall not cause or permil II~: presence, use, disposal, storage, or release of any Hazardous
Substances, or threaten to release any ! t:~/:~,h,~s Substances, on or in the Property. Borrower shall not do, nor
allow anyone else to do, anything affcc~ i,g ~1~,: Property (a) that is in violation of any Environmental Law, (b)
which creates an Environmental Condili~,,. ~,r I c) which, due to the presence, use, or release of a Hazardous
Substance, creates a condition that :~dvcrs,.l.,. :fffects the value of the Property. The preceding two sentences
shall not apply to the presence, usc, or '<~':tl~'¢ on the Property of small quantities of Hazardous Substances
that are generally recognized to be apl,l't~l~ll~lc to normal residential uses and to maintenance of the Property
(including, but not limited to, hazar&ms st~l,.,l:mces in consumer products).
Borrower shall promptly give Lcml~'r '..,, dtten notice of (a) any investigation, claim, demand, lawsuit or
other action by any governmental or rcy~h~tory agency or private party involving the Property and any
Hazardous Substance or Environmcnug l.:~v, {,l' which Borrower has actual knowledge, (b) any Environmental
Condition, including but not limited u~, :~,,. ~pilling, leaking, discharge, release or threat of release of any
Hazardous Substance, and (c) any co~ltlili{~, ~':msed by the presence, use or release of a Hazardous Substance
which adversely affects the value or thc }~, ,!~crty. If Borrower learns, or is notified by any governmental or
regulatory authority, or any private p}~rL~ ~ ~h:tl any removal or other remediation of any Hazardous Substance
affecting the Property is necessary, Borr~xv,: ~' ,~hall promptly take all necessary remedial actions in accordance
with Environmental Law. Nothing h er¢i, ~;1~:~11 create any obligation on Lender for an Environmental Cleanup.
(~®-6A(WY) (ooo5) CHL (08/00)
Page 9 of 11
Initials: '~. ,.~
Form 3051 1/01
DOC ID #: 0008789801401005
NON-UNIFORM COVENANTS. B~.,', ,wet and Lender further covenant and agree as follows:
22. Acceleration; Remedies. l.e.(h,r shall give notice to Borrower prior to acceleration following
Borrower's breach of any covena.! ,.' agreement in this Security Instrument (but not prior to
acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a)
the default; (b) the action required t. c,.,'~, the default; (c) a date, not less than 30 days from the date the
notice is given to Borrower, by which Ibc del'ault must be cured; and (d) that failure to cure the default
on or before the date specified in flu, indite may result in acceleration of the sums secured by this
Security Instrument and sale or the l'r~q.'rty. The notice shall further inform Borrower of the right to
reinstate after acceleration and lhe ri~2h~ ~. bring a court action to assert the non-existence of a default
or any other defense of Borrower h~ acc.h.rafion and sale. ff the default is not cured on or before the
date specified Jn the notice, Lender al iI~ option may require immediate payment in full of all sums
secured by this Security Instrumem ~ il h,.,~ further demand and may invoke the power of sale and any
other remedies permitted by Applicahh, I.;.w. Lender shall be entitled to collect all expenses incurred in
pursuing the remedies provided in ~his ,~dccfion 22, including, but not limited to, reasonable attorneys'
fees and costs of tide evidence.
ff Lender invokes the power or s:,h,, l.e,,der shall give notice of intent to foredose to Borrower and
to the person in possession of the I','.p.,-ly, il' different, in accordance with Applicable Law. Lender
shall give notice of the sale to Borrm~er i. il~e manner provided in Section 15. Lender shall publish the
notice of sale, and the Property shall bc ~.hl in the manner prescribed by Applicable Law. Lender or its
designee may purchase the Properb ,l :.,y sale. The proceeds of the sale shall be applied in the
following order: (a) to all expenses .r i I., ,:.,le, including, but not limited to, reasonable attorneys' fees;
(b) to all sums secured by this Securib l,,',~.'ument; and (c) any excess to the person or persons legally
entitled to it.
23. Release. Upon payment ~ff all ~,,~ secured by this Security Instrument, Lender shall release this
Security Instrument. Borrower shall pax :,~v recordation costs. Lender may charge Borrower a fee for
releasing this Security Instrument, bm ..I.~ il' the fee is paid to a third party for services rendered and the
charging of the fee is permitted under ,,\ l~pl,',';tble Law.
24. Waivers. Borrower releases ami x~,~ives all rights under and by virtue of the homestead exemption
laws of Wyoming.
BY SIGNING BEI~OW, Borrower :,,, ~'pts and agrees to the terms and covenants contained in this
Security Instrument and in any Rider c x cc~,,.~I t~y Borrower and recorded with it.
Witnesses:
ICHARD A. NELSON -Borrower
(Seal)
-Borrower
(Seal)
-Borrower
(Seal)
-Borrower
(~®-6A(WY) (0005) CHL (08/00)
Page 10 of 11 Form 3051 1/01
DOC ID #: 0008789801401005
STATE OF V~ffOMING, l-J D ~.QK__.County ss:
Theforegoinginstmmentwasackmu, h.~l~_,edbeforemethis 1:2.t.[~,.- ~ ~-/ ~
My Commission Expires:
Initials:
(~®-6A(WY) (0005) CHL (08/00) Page 11 of 11 Form 3051 1/01