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HomeMy WebLinkAbout907098After Rec.ordh'~ Ret,am CHERRY CREEK MORTGAGE CO., INC. 7600 EAST ORCHARD ~' OAD, #250N GREENWOOD VILLAOF,, COLORADO 801 RECEIVED 311612005 at 3:25 PM RECEIVING # 907098 BOOK: 581 PAGE: 2 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY [Space Above Thi.~ Line For Recordtng Data] Loaz~ Number 39000011 MIN# 10~30200390000 i,l 3 MORTGAGE DEFINITIONS Words u~d in multiple sections of this document are defined below and other words are defined in Sections 3, 11. ' 3, 18 20 and 2 l. Ce~aln r~les r~g;trding t~c usage of words u~ed in this docura~nt a~e also provided in ~ctien 16. (A) "Security Instrumevt" means this document, which is dated MARCH 15, 21305, together with all Riders to this d)cumeut. ~) "Borrower" h; RI',2HARD L. JOHNSON and LORI A. JOHNSON, HUSBAND And I,~TFE. Eorrow~r is the mortgagor under this Sec~,fity Instrument. (C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a ~epa. rate corporation that i.~ acting :~olel), as a nominee for L~ncler and Lender's successor~ and assigns. MERS is the mortgagee under this Security Instrument. MERS is organized and existing imder the laws of Delaware, and has an address and telephone uuml~z'r of P.O. B~x 2026, Flint, MI 48501-2026, tel. (888) 6?9-MERS. (D) "Lender" is CIliaRY CKEEK MORTGAGE CO.~ INC.. Leader is a CORPORATION organized atxd ex!sqng under the laws of COLORAI~O. Lender's address is 760~ EAST ORCHARD ROAD, ~50N, GREENWOOD VILLAGE, COLORADO 80111.. (E) "Note" means the promissory note signed by Borrower and dated MARCH 15, 2005. The Note states that Bom~wer oWeS bender ONE HUI~RED SEVENTEEN TItOUSAND FOUR I-I'U~D AND 00il00ethn Dollars (U.$.$117,4f3D.0~) plus inter,st. Borrower has l,romit~l to pay this debt in regular Periodic Payments and to pay the debt in full not later them APRII, 1, 2035. (F) "Property" means th~. property that is described bt:low under the heading "3'tansfer of Rights in the Property." (G) "Loan" maans the debt evidenced by the Note, plus interest, any prcpayme~at chaxg~ and late ch~ges due undes the Note. and all sums due under t. bis S~curity lnstrumeat, plus inter, st. (H) "Riders" means all Ridcr~ to this Security Instrument that are executed by Borrower. 'D. ie following Riders are to be executed by Borrower [check box as applicable]: [] Adjustable Rate Rider [] Condominium Rider ~ Se.c. ond Home Rider [~]Bzlloon Rider [] Planned Unit Dcv,lopment Rider ~ Pr~.payrr~.nt Rider [] 1-4 Family Rider [] Biweekly Payment Rider W'YO1YFING--$ingle l::axni~y--Fannie Mae/Freddie Mac UNIFORM INSTRUNfENT Form 3fi51 l/l~/ (page. I ?11 paget.ri 09070 S (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial Opinions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (L) "Escrow Items" means those items that are described in Section 3. (M) "MiscellaneOus Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i)damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (bO "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (Q) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MERS (solely as nominee for Lender and Lender's successors and assigns) and to the successors and assigns of MERS, with power of sale, the following described property located in the County of LINCOLN COUNTY : [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] BEGINNING AT THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER SOUTHEAST QUARTER OF SECTION 7, TOWNSHIP 34 NORTH, RANGE 118 WEST OF THE 6TH P.M., LINCOLN COUNTY, WYOMING, AND RUNNING EAST 165 FEET; THENCE NORTH 528 FEET; THENCE WEST 165 FEET; THENCE SOUTH 528 FEET TO THE POINT OF BEGINNING. which currently has the address of 777 LOST CREEK ROAD [Street] THAYNE , Wyoming 83127 ("Property Address"): [City] [Zip Code] WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/0I (page 2 o;11 payees) 'kJ ., TOGETHER WITH all the improvements now or hereafter 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 Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") 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 payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 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 Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 305; lA (page 3 ~fll ;~es) escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower 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 amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower 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 charge 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 improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower Borrower Initials~~ Vv'YONIING-~Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/0~ (page 4 of ll pages) 0 070 8 to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of 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 have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b)any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower)under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably witttheld, or unless extenuating circumstances exist which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. Borrower lnitials/~~ WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 305i z~ (page 5 ofl! pages) )90709 '% 7 Lender or its agent may make reasonable entries upon ~d inspections of the Prop~y. If it has reasonable cause, Lender may inspect the interior of the improvements on the Prope~y. Lender sh~l give Borrower notice a~ ~he time of or prior to such ~ interior inspection speci~ing such reasonable cause. 8. Borrower's Lo~n Application. Borrower shall be in default if, during the Lo~ application process, Borrower or ~y ~ersons or entities acting at the direction of Borrower or with Borrower's ~owledge or consent gaw materi~ly f~se, misleading, or inaccurate info~ation or statements to Lender (or failed to provid~ Lender with ma~eri~ info~a~ion)in connection with ~he Lo~. Material r~presentations include, but ~e not li~ed to, representations concerning Borrower's occup~cy of the Prop~y ~ Borrower's principal residence. 9. ~oteetion of Lender's Inter~t in the ~operty ~nd ~hts Under this Security Instrument. If (a) Bo~ower fails to perfo~ the coven~s ~d agreements comained in this Security Instmmem, (b) ther~ is a leg~ proceeding that ~ght signific~tly affect Lender's interest in the Property ~d/or rights under this Security Instrument (such as a proceeding in b~kmpmy, probate, for condemation or forfeiture, for enforcement of a lien which ~y attain priority over this Security Instrument or to enforc~ laws or regulations), or (c) Borrower has ab~doned the Prope~y, then Lender may do ~d pay for whatewr is reasonabl~ or appropriate to protect Lender's interest in ~e Property ~d rights under this Security Instrument, including protecting ~d/or assessing the v~u¢ of the Prope~y, ~d securing ~d]or repairing the Prope~y. Lender's actions c~ include, but ~e no~ li~ted to: (a) paying ~y su~ secured by a lien which has priority over this Security Instrument; (b) appearing in court; ~d (~) paying reasonabl~ attorneys' fees to protect its inter~st in the Prope~y ~d/or rights under this Security Instrument, including i~s secured position in a b~mptcy proceeding. Securing the Property includes, but is not li~ed ~o, entering the Proper~y to m~¢ repairs, ch~ge locks, replace or bo~d up doors ~d windows, drain water from pipes, eliminate building or other cod~ violations or d~gerous conditions, ~d have utilities turned on or off. Although Lender may t~e action under this Section 9, L~nder does not have to do so ~d is not under ~y duty or obligation to do so. It is agreed that Lender incurs no liability for not ~ing ~y or ~1 actions authorized under ~his Section 9. Any mounts disbursed by L~nder under this Section 9 sh~l become addition~ debt of Borrower secured by this Security Instrument. ~s~ mourns sh~l b~ar interest at the No~e rate from the date of disbursement ~d sh~l be payable, with such interest, upon notice from ~nd~r to Borrower requesting payment. If this S~curity Instrument is o~ a l~asehold, Borrower sh~l comply with ~1 the provisions of the leas~. If Borrower acquires fee title to the Prope~y, ~he leasehold ~d the fee title sh~l not merg~ unless Lender agrees to the merger in writing. 1~. Mortgage Insurance. If Lender required Mortgage Insur~ce as a condition of m~ing the Lo~, Borrower sh~l pay ~he pre~u~ required to maintain the Mo~gag~ Insur~c~ in effect. If, for ~y reason, th~ Mo~gage Insur~ce coverage r~quired by Lender ceases to be available from the mortgage insurer ~ha~ previously provided such insur~c¢ ~d Borrower was required to m~e sep~ately designated payments towed the pre~u~ for Mo~gage Insur~ce, Borrower sh~l pay th~ pre~u~ required ~o obtain coverag~ subst~tially ~quivalent to the Mortgage Insur~ce previously in effect, at a cost subst~tially equiv~nt ~o th~ cost to Borrower of the Mo~gage Insur~ce previously in effect, from ~ ~temat~ mortgage insurer selected by Lender. If subst~ti~ly equiv~em Mo~gag~ I~sur~ce coverage is not available, Bo~ower sh~l continue to pay to Lender ~he mount of the s~p~atdy designated payments that were due when the insur~ce coverage ceased to be in effect. Lender will accept, use ~d retain ~s~ payments as a non-re,ridable loss rescue in lieu of Mortgag~ Insur~ce. Such loss r~se~ sh~l be nomm~ndable, notwithst~ding ~h~ fac~ ~hat th~ Lo~ is ultimately paid in ~11, ~d Lender sh~l not be required to pay Borrower ~y interest or ¢~ings on such loss res~rw. L~nder c~ ~o longer require loss rescue payments if Mortgage Insur~c~ coverage (in the mount ~d for the p~riod that Lender r~quires) provided by ~ insurer selected by Lender again becomes available, is obtained, ~d L~nder requires sep~ately designated payments towed the pre~u~ for Mortgage Insur~ce. If Lender required Mortgage Insur~ce as a condition of m~ing the Lo~ ~d Borrower was required to separatdy designated payments toward the pre~u~ for Mo~gage Insur~ce, Borrower shall pay ~he pre~u~ required to maintain Mo~gag~ Insur~c¢ in effect, or to provide a non-re~ndable loss r~serv~, until Lender's requirement for Mortgage Insur~ce ~nds in aecord~c¢ with ~y written agreemen~ between Borrower ~d Lender providing for such t~nafion or until te~ination is required by Applicable Law. Nothing in ~his Section 10 affects Borrower's obligation to pay inmres~ at ~he rate provided in ~he Note. Mo~gage Insur~ce reimburses Lender (or ~y entity that purchases the Note) for ce~ain losses it may incur if Borrower does not repay the Lo~ as agreed. Borrower is not a pa~y to the Mo~gag¢ Insur~c~. Mo~gag~ i~sumrs ev~uat¢ their total risk on ~1 such insur~c~ in force from fim~ to time, ~d may enter into agreements with other p~ies that sh~ or modify their risk, or reduce losses. ~es~ agreements ~e on t~m ~d conditions that ~e satisfacto~ to th~ mo~gage insurer ~d the other p~ty (or parties)to these agreements. ~es¢ agreements may require mortgage insurer ~o m~e payments using ~y source of ~nds ~hat the mortgage insurer may hav~ available (which may include ~nds obtained from Mortgag~ Insur~ce pre.urns). B°rr°wer Initi~s~4¢ ~~ ~O~G--Singl~ Family--Fannie M~eZr~daie ~ ~IFO~ ISStR~/t Form 3051 1~1 ~age 6 o~1~ pa~es) As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property restoration or repair Lender shall have the ensure the work has is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the is economically feasible and Lender's security is not lessened. During such repair and restoration period, right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such Property to been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the 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 Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds provided for in Section 2. that are not applied to restoration or repair of the Property shall be applied in the order WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form3051 ~ (page 7 of l l pa~es) O O?O.q 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this SecuritYBorrowerlnitialslnStrUXt. WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/0( (page 8 ofll pages) 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Propcr~y" means ~y leg~ or bcncfici~ imcres~ in the Prope~y, including, bm nor li~ed ~o, ~hosc benefici~ interests tr~sferred in a bond for deed, comrac~ for deed, ins~Mlmen~ sMcs comrac~ or escrow agreement, ~hc in~cn~ of which is ~hc ~r~sfcr of rifle by Borrower ar a ~mre dare m a purchaser. If M1 or ~y p~ of the Prope~y or ~y Imeres~ in ~he Prope~y is sold or ~r~sferred (or if Borrower is nor a narur~ person ~d a beneficial in~ercs~ in Bo~owcr is sold or rr~sferrcd) wi~hom Lender's prior written consem, Lender may require i~cdia~e paymem in ~11 of ~1 su~ secured by this Security Ins~mcm. However, ~his option shall no~ bc exercised by Lender if such exercise is prohibited by Applicable law. If Lender exercises this option, Lender shall give Borrower no~ice of acceleration. ~c notice shall provide a period of no~ less ~h~ ~0 days from the da~e ~e notice is given in accord~ce wi~h Section 15 within which Borrower mus~ pay M1 su~ secured by ~his Security Ins~mcnr, If Borrower fails ro pay ~hese sums prior ro ~he expiration of ~his period, Lender may invoke ~y remedies pc~ed by ~his Security Ins~mem wi~hom ~her notice or dem~d on Borrower. 19. Borrower's ~ght to Reinstate After Acceleration. If Borrower meets ce~ain conditions, Borrower sh~l have righ~ m have enforcemem of this Security Insr~mcnr discontinued a~ ~y time prior m the e~lies~ of: (a) five days before sale of ~he Prope~y pursu~ m ~y power of sale comained in this Security Insr~mem; (b) such other period as Applicable Law specify for ~he re.nation of Borrower's right ~o reinstate; or (c) en~ of a judgmen~ enforcing this Security Ins~mem. conditions ~e ~ha~ Borrower: (a) pays Lender ~1 su~ which then would be due under this Security Ins~mcm ~d ~he No~e as if no acceleration had occurred; (b) cures ~y defaul~ of ~y o~hcr coven~rs or agreements; (c) pays all expenses incurred in enforcing this Security Ins~mem, including, bm no~ li~ed ~o, reasonable ar~o~eys' fees, property inspection ~d valuation fees, ~d other fees incurred for the pu~ose of protecting Lender's interest in the Prope~y ~d rights under this Security Instrument; ~d (d) t~es such action as Lender may reasonably require to assure that Lender's interest in the Property ~d rights under this Security Instrument, ~d Borrower's obligation to pay the su~ secured by this Security Instrument, shill continue unch~ged. Lender may require that Borrower pay such reinstatement sums ~d expenses in one or more of the following fora, as selected by Lender: (a) cash; (b) money order; (c) certified check, b~ check, treasurer's check or c~hier's check, provided ~y such check is drawn upon ~ institution whose deposits are insured by a federfl agency, instmmentflity or entity; or (d) Electronic Funds Tr~sfer. Upon reinstatement by Borrower, this Security Instrument ~d obligations secured hereby shall remain hlly effective ~ if no acceleration had occurred. However, this right to reinstate shill not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. ~e Note or a panifl interest in the Note (together with this Security Instrument) c~ be sold one or more times without prior notice to Borrower. A sfle ~ght result in a ch~ge in the entity (~own as the "Lo~ Se~icer") that collects Periodic Payments due under the Note ~d this Security Instrument ~d perfo~ other mortgage lo~ se~icing obligations under the Note, this Security Instrument, ~d Applicable Law. There also might be one or more ch~ges of the Lo~ Se~icer unrelated to a sale of the Note. If there is a ch~ge of the Lo~ Servicer, Borrower will be given written notice of the ch~ge which will state the nme ~d address of the new Lo~ Servicer, the address to which payments should be made ~d ~y other info~ation RESPA requires in co~ection with a notice of tr~sfer of servicing. If the Note is sold ~d thereafter the Lo~ is serviced by a Lo~ Servicer other th~ the purchaser of the Note, the mortgage Io~ servicing obligations to Borrower will remain with the Lo~ Se~icer or be tr~sferred to a successor Lo~ Servicer ~d ~e not assumed by the Note purchaser unless othe~ise provided by the Note purchaser. Neither Borrower nor Lender may co~ence, join, or be joined to ~y judicial action (as either ~ individual litig~t or the member of a class) that arises from the other paay's actions pursuit to this Security Instrument or that flleges that the other party has breached ~y provision of, or ~y duty owed by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in compli~ce with the requirements of Section 15) of such alleged breach ~d afforded the other p~y hereto a reasonable period after the giving of such notice to t~e co~ective action. If Applicable Law provides a time period which must elapse before ce~ain action c~ be t~en, that time period will be deemed to be reasonable for pu~oses of this p~agraph. ~e notice of acceleration ~d oppo~unity to cure given to Borrower pursuit to Section 22 ~d the notice of acceleration given to Borrower pursuit to Section 18 shill be deemed to satis~ the notice ~d oppoffunity to t~e corrective action provisions of this Section 20. 21. Hazardous Substance. As used in this Section 21: (a) "H~dous Subst~ces" are those subst~ces defined as toxic or h~ardous subst~ces, polluters, or wastes by Enviromental Law ~d the following subst~ces: gasoline, kerosene, other fl~able or toxic petroleum products, toxic pesticides ~d herbicides, volatile solvents, materials containing asbestos or fo~aldehyde, ~d radioactive materifls; (b) "Enviromentfl Law" me~s federfl laws ~d laws of the jurisdiction where the Property is located that relate to heflth, safety or enviromentfl protection; (c) "Enviromental Cle~up" includes ~y response action, remedifl action, or removal action, as defined in Enviromentfl Law; ~d (d) ~ "Enviromentfl Condition" me~s a condition that c~ cause, contribute to, or othe~ise trigger ~ Enviromentfl Cle~up. ~O~G--Single Family--Fannie Mae/Freddie Mac ~FO~ INSTR~NT Form 3051 1/0g Cage 9 ofll pages) Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value Of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Proper~y of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous sUbstances in consumer products). Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall give notice of intent to foreclose to Borrower and to the person in possession of the Property, if different, in accordance with Applicable Law. Lender shall give notice of the sale to Borrower in the manner provided in Section 15. Lender shall publish the notice of sale, and the Property shall be sold in the manner prescribed by Applicable Law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyoming. WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: 'I~CHARD L. JOa~l~Ol~ (Seal) -Borrower ~-~A, JOHNSON (Seal) -Borrower (Seal) .(Seal) -Borrower -Borrower [Space Below This Line For Acknowledgment] State of WYOMING ) County of ~ ) ss The Witn~es_s ~m), ~ ~ ~fi~i~ ~e~: ..... (SCM) COUNTY OF ~ STATE OF [ My Co~ssion Expires: ~ Y/~ ~' ~& foregoing instrument was acknowledged before me by RICHARD L. JOHNSON and LORI A. JOHNSON this Notary Public /g,)At/IJL>~ /~, //~L/.)DO~IN/ (Print ortypename) WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3051 1/01 (page I1 of ll pages) Prepayment Penalty Rider (Multi-State Soft Prepay Penalty) This Prepayment Rider is made this 15TH day of MARCH , 2005 and is incorporated into and deemed to amend and supplement the Mortgage, Deed of Trust, (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Note (the "Note") to Cherry Creek Mortgage Company, Inc. (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 777 LOST CREEK ROAD, THAYNE~ WYOMING 83127 , (the "Property") Amended Covenants. Not withstanding anything to the contrary set forth in the Note or Security Instrument, Borrower and Lender covenant, and agree, as follows: Borrower has the right to make payments of principal at any time before they are due. A payment of principal only is known as a "prepayment'. A "full prepayment" is the prepayment of the entire unpaid principal due under the Note. A payment of only part of the unpaid principal us know as a "partial prepayment". If, within the 3 -year period beginning with the date Borrower executes the Note (the "Penalty Period"), Borrower makes a full prepayment, or partial prepayment in any twelve (12) month period that exceeds 20% of the original principal loan amount, Borrower will pay a prepayment charge as consideration for the Note Holder's acceptance of such prepayment. The prepayment charge will equal the amount of interest that would accrue during a six (6) month period on the amount prepaid that exceeds 20% of the original principal balance of the Note, calculated at the rate of interest in effect under the terms of the Note at the time of the prepayment, unless otherwise prohibited by applicable law or regulation. No prepayment charge will be assessed for any prepayment occurring after the Penalty Period Notwithstanding the foregoing, in the event of a full prepayment concurrent with a bona fide sale of the Property to an unrelated third party after the first ONE year(s) of the term of the Note, no prepayment penalty will be assessed. In that event, you must provide the Note Holder with evidence acceptable to the Note Holder of such sale. For purposes of this exception to the prepayment charge, a sale of the property to a person or entity with whom you have personal or business relationship (such as a family member, builder, developer or employer) will be presumed NOT to be a bona fide sale of the Property to an unrelated third party. By signing below, Borrower accepts and agrees to the terms and cOvenants contained in this Prepayment Rider. DATE: MARCH 15~ 2005 ~I~HA~,D-L. JOHNSON ~/ ' ' 603C Multi-State Rider (Product Solutions) 09/01/01 Prepayment Penalty Disclosure (Soft Prepay Penalty) (Multi-State Soft Prepay Penalty) Loan Applicants: RICHARD L. JOHNSON Property Address: 777 LOST CREEK ROAD THAYNE, WYOMING 83127 You are entering into a residential mortgage loan that will be secured by the property referenced above. The terms of your loan provide for the payment ora prepayment charge as described below. If, within the 3 -year period beginning with the date Borrower executes the Note (the "Penalty Period"), Borrower makes a full prepayment, or partial prepayment in any twelve (12) month period that exceeds 20% of the original principal loan amount, Borrower will pay a prepayment charge as consideration for the Note Holder's acceptance of such prepayment. The prepayment charge will equal the amount of interest that would accrue during a six (6) month period on the amount prepaid that exceeds 20% of the original principal balance of the Note, calculated at the rate of interest in effect under the terms of the Note at the time of the prepayment, unless otherwise prohibited by applicable law or regulation. No prepayment charge will be assessed for any prepayment occurring after the Penalty Period. Notwithstanding the foregoing, in the event of a full prepayment concurrent with a bona fide sale of the Property to an unrelated third party after the first ONE year(s) of the term of the Note, no prepayment penalty will be assessed. In that event, you must provide the Note Holder with evidence acceptable to the Note Holder of such sale. For purposes of this exception to the prepayment charge, a sale of the property to a person or entity with whom you have personal or business relationship (such as a family member, builder, developer or employer) will be presumed NOT to be a bona fide sale of the Property to an unrelated third party. By signing below, Borrower accepts and agrees to the terms and covenants contained in this Prepayment Rider. DATE: MARCH 15~ 2005 iii HARD L. JOHI~SONy 603C3 Multi-State Disclosure (Product Solutions) 09/01/01