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HomeMy WebLinkAbout908015After Recording Return To: FIRST NLC FINANCIAL SERVICES, LLC 700 W. HILLSBORO BLVD. B-1 #204 DEERFIELD BEACH, FLORIDA 33441 RECEIVED 4/29/2005 at 3:42 PM RECEIVING # 908015 BOOK: 584 PAGE: 42 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY [Space Above This Line For Recording Data] MORTGAGE MIN:100195910000537483 DEFINITIONS Words used in nmltiple sections of this documeut are defiued below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain niles regarding the usage of words used in this documeat are also provided in Section 16. (A) "Security Instrument" means this document, which is dated April 22, 2005 Riders to this document. , together with all (B) "Borrower" is WILLIAM D YEARSLEY and BARBARA JO YEARSLEY, Husband and Wife Borrower is the mortgagor under this Security Instrnment. (C) "MERS" is Mortgage Electronic Registration Systems, IIiC. MERS is a separate corpo,'ation that is acting solely as a nominee for Lender and Lender's successors and assigus. MERS is the mortgagee under this Security Instrument. MERS is organized and existiug under the laws of Delaware, and has an address and telephone number of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. (D) "Lender" is FIRST NLC FINANCIAL SERVICES, LLC Lender is a Limited Liability Company the laws of the State of Florida 700 W. HILLSBORO BLVD. B-1 #204, DEERFIELD BEACH, FLORIDA 33441 organized and existing under · Leader's address is (E) "Note" tneans the pronfissory note signed by Borrower and dated April 22, 2005 . The Note states that Borrower owes Lei]der One Hundred Seventy Seven Thousand Six Hundred and no/100 Dollars (U.Si $ 111,600.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments aud to pay the debt in full not later that] May 01, 2035 (F) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." WYOMING~Single Fanfily--Fannle Mae/Freddie Mac UNIFORM INSTRUMENT ITEM 2769L1 (0011)---MERS (Page ] qf l 2 pagex) Form 3051 1/01 GREATLAND · To Order Call: 1-800-530-9393 [] Fax: 616-791-1131 O0043 (G) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (H) executed by Borrower [check box as applicable]: "Riders" nleans all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be ~ Condominium Rider [---] Plmmed Unit Developmeut Rider [--] Biweekly Payment Rider [] Adjustable Rate Rider [~] Balloon Rider [---] 1-4 Family Rider [] Second Home Rider [~ Other(s) [specify] (I) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinauces and adnfinistrative 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 Bon'ower or the Property by a condonfinium association, homeowuers association or sinfilar organization. (K) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or sinqlar paper instrument, which is initiated through an electronic temfinal, telephonic instrulnent, 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) condenmation 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. (N) "Mortgage Insurance" means iusurance protecting Lende,- against the nonpaylnent of, or default on, the Loan. (O) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest trader the Note, plus (ii) any amounts under Section 3 of this Security Ii~strument. (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 nfight 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 restrictious that are imposed in regard to a "federally related mortgage loau" 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, whethe,' or not that party has assumed Borrower's obligations under the Note and/or this Secu,-ity Instrnmeut. WYO1VHNG---Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ITEM 2769L2. (0011)--MERS (Page 2 of 12 pagex) Form 3051 1/01 GREATLAND · To Order Call: 1-800-530-9393 E] Fax: 616-791-1131 TRANSFER OF RIGHTS IN THE PROPERTY 00C44 This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modificatious of the Note; and (ii) the performauce of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to MENS (solely as nominee for Lender and Leuder's successors and assigns) and to the successors and assigns of MENS, with power of sale, the followiug described property County of Lincoln : located in the [Type of Recording Iurisdiction] [Name of Recording Jurisdiction] SEE ATTACHED LEGAL DESCRIPTION which currently has the address of Alpine [City] , Wyoufing 522 THREE RIVERS DRIVE [Street] 83128 ("Property Address"): [Zip Codel TOGETHER WITH all the improvemeuts 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 MENS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MENS (as nonlinee 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 lawfidly seised of the estate hereby conveyed and has the right to mortgage, graut and couvey the Property and that the Property is nnencnmbered, except for encnmbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demauds, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited vm-iations by jurisdiction to constitute a unifom~ security instrument covering real property. UNIFORM COVENANTS. Ben-ewer and Lender coveuant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Bon'ower shall pay when due the principal of, and interest ou, the debt evidenced by the Note aud auy prepayment charges and late charges due under the Note. Borrower shall also pay flmds 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 instrumeut received by Lender as payment under the Note or this Security Instmn~eut is returned to Lender unpaid, Lender may require that any or all subsequent paymeuts due under the Note and this Security h~strumeut be made in one or more of the following forms, as selected by Leuder: (a) cash; (b) money order; (c) certified check, bauk check, treasnrer's check or cashier's check, provided auy such check is drawn upon an institutiou whose deposits are insured by a federal agency, iustrumentality, or entity; or (d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location desiguated 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 WYOMING---Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ITEM 2769L3 (0011)--MENS (Page 3 of 12 pages) Form 3051 1/01 GREATLAND · To Order Call: 1-800-530-9393 [] Fax: 616-791-1131 00045 partial payment if the paymeut or partial payments are insnfficient to briug the Loan current. Lender may accept any payment or partial paytnent insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such paylnent 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 Leuder need not pay interest on uuapplied funds. Leuder may hold such uuapplied fnnds uutil Borrower makes paymeut to briug the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or returu them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note innnediately prior to foreclosure. No offset or claim which Borrower might have now o1' in the furore against Lender shall relieve Borrower from making payments due uuder 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) priucipal due under the Note; (c) amounts due under Sectiou 3. Such paylnents shall be applied to each Periodic Paymeut iix the order in which it became due. Auy remaining amounts shall be applied first to late charges, second to auy other amounts due under this Security Instrmneut, and then to reduce the principal balauce of the Note. If Leuder receives a payment from Borrower for a delinqueut Periodic Payment which includes a sufficient amouut to pay any late charge due, the payment may be applied to the delinquent paymeut and the late charge. If more thau oue Periodic Payment is outstandiug, Leuder may apply any payment received fi-om Borrower to the repayment of the Periodic Payments if, and to the exteut that, each paymeut can be paid in full. To the extent that auy 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. Vohmtary prepayments shall be applied first to any prepayment charges aad then as described iu the Note. Any application of paymeuts, insurance proceeds, or Miscellaueous 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 ou the day Periodic Paylnents are due under the Note, until the Note is paid iu full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments aud other items which can attain priority over this Security Instrumeut as a lieu or encumbrauce on the Property; (b) leasehold paymeuts or ground rents on the Property, if any; (c) prenfiums for any and all iusurance required by Lender uuder Sectiou 5; and (d) Mortgage Insurance premimns, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance prenfiums in accordaace with the provisious of Section 10. These items are called "Escrow Items." At origiuation or at any time during the term of the Loan, Lender may require that Conmmnity Associatiou Dues, Fees, aud Assessments, if any, be escrowed by Borrower, aud such dues, fees aud assessments shall be au Escrow Item. Borrower shall promptly furnish to Leuder all notices of mnouuts to be paid nnder this Section. Borrower shall pay Lender the Funds for Escrow Items nnless Lender waives Borrower's obligation to pay the Funds for auy 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 amouuts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall funfish to Leuder receipts evidencing such payment withiu such time period as Lender may require. Borrower's obligation to make such paymeuts and to provide receipts shall for all pm-poses be deemed to be a covenant and agreement contained in this Security Instrmnent, as the phrase "covenant and agreement" is used iix 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 Sectiou 9 and pay such amount aud Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender lnay 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, Bon-ower shall pay to Lender all Funds, aud iix such amounts, that are then reqnired under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficieut to perlnit Leuder to apply the Funds at the time specified under RESPA, and (b) uot to exceed the n~aximum amount a lender can require uader RESPA. Lender shall estimate the mnount of Funds due on the basis of cun'ent data and reasonable estimates of expenditnres of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in au institution whose deposits are insured by a federal agency, insmunentality, or entity (iucluding Lender, if Lender is an institution whose deposits are so iusured) or in any Federal Home Loan Bank. Leuder shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Leuder shall uot charge Borrower for holding and applying the Fuuds, aunually aualyziug the escrow accouut, or verifying the Escrow Items, unless Leuder pays Borrower iuterest ou the Funds aud Applicable Law pernfits Leuder to make st, ch a charge. Uuless au agreement is made in writiug or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest WYOMING--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ITEM 2769L4 (0011)--MERS (Page 4 qfl 12 pages) Form 3051 1/01 GREATLAND · To Order Call: 1-800-530-9393 [] Fax: 616-791-1131 OOO4 6 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 tile Funds as required by RESPA. If there is a surplus of Funds held iu escrow, as defined nnder RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Fnuds held in escrow, as defined uuder RESPA, Lender shall uotify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordauce with RESPA, but in no more than 12 monthly payments. If there is a deficieucy of Funds held in escrow, as defined nuder 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 ilo more than 12 monthly payments. Upon payment in full of alt sums secured by this Security Instrnment, Lender shall promptly retired to Borrower any Funds held by Leuder. 4. Charges; Liens. Bon'ower 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 auy, 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 ouly so long as Borrower is performing such agreement; (b) contests the lieu itl 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 lieu to this Security Instrument. If Lender deternfines that any part of the Property is subject to a lien which can attain priority over this Security Iustrumeut, Lender may give Bon'ower a uotice identifyiug the lieu. Withiu 10 days of the date ou which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above iu this Section 4. Leuder may require Bon'ower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in conuection with this Loan. 5. Property Insurance. Borrower shall keep the improvements uow existiug or hereafter erected on the Property insured against loss by fire, hazards iucluded within the term "extended coverage," and any other hazards includiug, but not limited to, earthquakes and floods, for which Lender requires insurance. This iusurance shall be maiutained iu the amounts (including deductible levels) aud for the periods that Leuder requires. What Lender requires pursuant to the preceding senteuces can chauge duriug the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Leuder's right to disapprove Bon'ower's choice, which right shall not be exercised nnreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time chaise for flood zone determinatiou, certification and trackiug services; or (b) a one-time charge for flood zone deternfination and certificatiou services and snbsequeut charges each time remappings or sinfilar changes occur which reasonably might affect such deternfination or certification. Borrower shall also be responsible for the paymeut of any fees imposed by the Federal Emergeucy Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain auy of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is uuder 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 conteuts 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 Instrnment. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon uotice from Leuder to Bon-ower requesting payment. All insurauce policies required by Lender and renewals of such policies shall be subject to Leuder's right to disapprove such policies, shall include a standard mortgage clause, and shall uame 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 prenfimns 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 additioual loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier aud Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, ally insurance proceeds, WYOMING~Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ITEM 2769L5 (001 I)--MERS (Page 5 o.f 12 Form 3051 1/01 GREATLAND · To Order Call: 1-800-530-9393 [2 Fax: 616-791-1131 whether or not the underlying insurance was'h-equired by Lender, shall be apl)lied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During sLleh repair and restoration period, Lender shall have the right to hold such insurance proceeds uutil 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 nndertaken 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 reqnired to pay Borrower any iaterest ol- 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 Bon'ower. 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 roi' 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 fi'om Lender that the insurance can-let 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, BoITower hereby assigns to Lender (a) Borrower's rights to any insnrance proceeds in an amount not to exceed the amounts uapaid under the Note or this Security Instrulnent, and (b) any other of Borrower's rights (other than the right to any refund of nnearned premiums paid by Borrower) nnder 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 o1' to pay amounts unpaid under the Note or this Security h~strument, whether or not then due. 6. Occupancy. Bon'ower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and~shall contiuue to occupy the Property as Borrower's principal residence for at least one year after the date of occnpancy, unless Lender otherwise agrees ill writing, which consent shall not be unreasonably withheld, 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 comnfit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property frorn deteriorating or decreasing in value due to its condition. Unless it is detemfined 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, ol- the takiug 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 condenmation proceeds are not sufficient to repair or restore the Property, Bon'ower is not relieved of Borrower's obligation for the completion of such repair o1' restoration. Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasoaable cause. 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, nfisleading, or inaccurate information or statelnents to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower fails to perform the covenants and agreements contained in this Security 'Instrument, (b) there is a legal proceeding that might siglfificantly affect Lender's interest in the Property and/or rights under this Security I,~strument (such as a proceeding in banka-uptcy, probate, for condenmafion or forfeiture, for enforcement of a lien which may attain prio,'ity over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest iu the Property aad rights under this Security Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien which has prio,-ity over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under tiffs Security InsU'ument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not linfited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from WYOMING~Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRLrMENT iTEM 2769L6 (OO11)--MERS ( Puge 6 of ] 2 /)ages) Form 3051 1/01 GREATLAND · To Order Call: 1-800-530-9393 [] Fax: 616-791-1131 pipes, elinfinate building or other code violmions or dangerous conditions, and have utilities turned on or off. Although Leuder may take actiou under this Section 9, Lender does uot have to do so and is not under auy duty or obligation to do so. It is agreed that Lender iucurs no liability for not ta~ng auy or all actious autborized uuder this Section 9. Any amouuts disbursed by Lender nnder this Sectiou 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate fi'om the date of disbursement and shall be payable, with such interest, upon notice from Lender to Bon'ower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisious of the lease. If Borrower acquires fee title to the Property, the leasehold aud the fee title shall not merge unless Lender agrees to the merger iu writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, BmTower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer thai previously provided such iusurance and Bon'ower was required to make separately designated payments toward the premiums for Mortgage Insurauce, Bm~ower shall pay the prenfimns required to obtaiu coverage substantially equivalent to the Mortgage Insurance previously iu effect, at a cost substantially equivalent to the cost to Bm~ower of the Mortgage Insurance previously iu effect, from an alternate mortgage insurer selected by Lender. If substautially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a nou-refundable loss reserve iu lieu of Mortgage Insurauce. Such loss reserve shall be non-refnadable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be reqnired to pay Bo~xower any interest or earnings on snch loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the atnount and for the period that Lender requires) provided by au insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated paymeuts toward the preminms for Mortgage Insnrance. If Lender required Mortgage Iusnrance as a condition of lna~ng the Loan and Bmxower was required to make separately designated payments toward the premiums for Mortgage Insnrance, Bon-ower shall pay the prenfimns reqnired to maintain Mortgage Insnrance in effect, or to provide a non-refundable loss reserve, Uutil Lender's requirement for Mortgage Insurance ends in accordance with any writteu agreement between Borrower and Lender providing for such temfination or nntil ternfiuatiou is required by Applicable Law. Nothing iu this Sectiou 10 affects Bon'ower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that pnrchases the Note) for certain losses it may incur if Bon-ower does not repay the Loan as agreed. Bon-ower is not a party to the Mortgage Insurance. Mortgage insurers evaluate tbeir total risk on all such insurauce in force from tilne to time, and may enter into agreements wifl~ other parties that share or modify their risk, or reduce losses. These agreemeuts are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make paymeuts using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance prenfinms). As a result of these agreements, Lender, any pnrchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of auy of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Bo~ower's payments for Mortgage Insurance, iu exchange for shariug or modifying the mortgage iusurer's risk, or redncing losses. If such agreement provides that au affiliate of Leuder takes a share of the insurer's risk in exchange for a shm'e of the preufiums paid to the insnrer, the an'angement 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 nmy include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, ancot 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 Miscellaueous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair aud restoration period, Lender shall have the right to hold such Miscellaneons Proceeds uutil Lender has had an opportnnity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be uudertaken promptly. WYOMING~Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ITEM 2769L7 (001 I)--MERS (Page 7 qf 12 l)ages) Form 3051 1/01 GREATLAND · To Order Call: 1-800-530-939313 Fax: 616491-1131 O0O4 9 Leuder may pay for the repairs and restoration in a siugle disbu,'sement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires iuterest to be paid on such Miscellaueous Proceeds, Lender shall uot be required to pay Borrower any interest or earuings ou such Miscellaneous Proceeds. If the restoration or repair is uot economically feasible or Leuder's security would be lessened, the Miscellaneous Proceeds shall be applied to the sunls secured by this Security Instrument, whether or aot 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 Secnrity htstrument, whether or not then due, with the excess, if any, paid to Borrower. In the eveut of a partial taking, destruction, or loss iu valne of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss m 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 Bon'ower aud Lender otherwise agree in writiug, 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 amouut of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair ma,'ket value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the eveut of a partial taking, destruction, or loss iu value of the Property in which the fair market value of the Property immediately before the partial takiug, destrucfiou, or loss iu value is less than the amount of the sums secured immediately before the partial taking, destructiou, or loss iu value, Unless Borrower aud Lender otherwise agree iu writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instnmlent 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 uotice 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 theu due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party agaiust whom Bon-ower has a right of action in regard to Miscellaneons Proceeds Bon'ower shall be in default if any action or proceeding, whether civil or crinfiual, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impaimteut of Lender's interest in the Property or rights under this Secnrity Instrument. Borrower cau cure such a default aud, if acceleration has occurred, reiustate as provided in Section 19, by causing the actiou 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 auy award or claim for damages that are attributable to the impairment of Leuder's interest itt the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for iu Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extensiou of the time for payment or modification of amortization of the sums secured by this Security Instnnnent granted by Lender to Borrower or any Successor in Interest of Borrower shall uot operate to release the liability of Bon-ower or any Successors in Interest of Bon'ower. Lender shall not be required to commence proceediugs against any Successor itt Interest of Borrower or to refi~se to extend time for payment or otherwise modify amortization of the sums secured by this Security Iustrument by reasou of auy demand made by the original Bon'ower or any Successo,-s in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy iucluding, without limitatiou, Lender's acceptance of payments fi'om third persous, entities or Successors in Interest of Bon'ower or in amounts less than the amount theu 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 coveuants aud agrees that Bon-ower's obligations and liability shall be joint and several. However, any Borrower who co-sigus this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-siguiug this Security Instrumeut only to mortgage, graut and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not persoually obligated to pay the stuns secured by this Security Instrumeut; and (c) agrees that Lender and auy other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrmnent or the Note without the co-signer's conseut. Subject to the provisious of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations nnder this Security Instrument in writing, and is approved by Lender,.shall obtain all of Borrower's rights and benefits under '~VYOMING~Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ITEM 2769L$ (0011)--MERS (Page 8 of ] 2 i)agex) Form 3051 1/01 GREATLAND · To Order Call: 1-800-530-9393 [] Fax: 616-791-1131 O0O50 this Security Instrument. Borrower shall not be released from Borrower's obligations and liability uuder this Security Instruuleut unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrmnent shall bind (except as provided in Sectiou 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, attorueys' fees, property inspection and valuation fees. Iu 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 Iustrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan chm'ges, 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 loau 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 reflmded 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 auy prepaymeut 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 connectiou with this Security Instrument shall be deemed to have been given to Ben-ewer when mailed by first class mail or when actually delivered to Borrower's uotice address if sent by other means. Notice to any one Bon'ower 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, theu 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 giveu by delivering it or by mailing it by first class mail to Lender's address stated herein uuless Lender has desiguated another address by uotice to Borrower. Any notice in connection with this Security Iustrument shall uot be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required nnder Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrmnent 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 auy provision or clause of this Security Iustrument 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 Instrumeut: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the fenfinine 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. Bon'ower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Iuterest iu the Property is sold or transferred (or if Bon'ower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require iunnediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. ,, If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these stuns prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrmnent without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrmnent discontinned at any time prior to the earliest of: (a) five days before WYOMINC:;,,----Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ITEM 2769L9 (OO11)--MERS (Page 9 of 12 l)agex) Form 3051 1/01 GREATLAND · To Order Call: 1-800-530-9393 [] Fax: 616-791-1131 sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period as Applicable Law might specify for the termination of Bon'ower's right to reiustate; or (c) entry of a judgmeut enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then wonld be due under this Security Instrmnent and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not linfited to, reasonable attorneys' fees, property inspection aud valuation fees, and other fees incun'ed for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights nnder this Security Iustrument, and Bon'ower's obligation to pay the sums secured by this Security Instrumeut, shall continne unchanged. Lender may require that Borrower pay such reinstatemeut sums and expenses 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 drawu upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electrouic Fnnds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occun-ed. However, this right to reinstate shall not apply in the case of a6celeration under Section 18 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together with this Security Instrument) can be sold one or more times without prior notice to Bon'ower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security Instrmnent and performs other mortgage loan servicing obligations under the Note, this Security Instrun~ent, and Applicable Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loau Servicer, Borrower will be given written notice of the chauge which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loau Servicer other than the purchaser of the Note, the mortgage loan serviciug obligatious to Borrower will remaiu with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note pnmhaser uuless otherwise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, nntil such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 20. 21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined as toxic or hazardous substauces, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flannnable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or enviromnental protection; (c) "Euvironmental Cleanup" includes any response action, remedial action, or removal action, as defiued iu Enviromnental Law; aud (d) au "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, nsc, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or ill 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 Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal resideutial 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 involviug the Property and auy Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not linfited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, aud (c) any condition caused by the WYOMING--Single Family--Fannie MaefFreddie Mac UNIFORM INSTRUMENT ITEM 2769L10 (001 ~)--MERS (Pctge 10 of 12 page.r) Form 3051 1/01 GREATLAND · To Order 6all: 1-800-530-9393 [3 Fax: 616-79'1-1131 00052 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 Instrun~ent, 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 pemfitted under Applicable Law. ;:. 24. Waivers. Borrower releases and waives all rights under and by virtue of the homestead exemption laws of Wyonfing. WYOMING~Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ITEM 2769L11 (0011)--MERS (Page 11 of 12/>age.r) Form 3051 1/01 GREATLAND · To Order Call: 1-800-530-9393 E] Fax: 616-791-1131 00053 this Security Instrument and in an.y~ixder executed by Borrower and recorded with it. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in pages 1 through 12 of (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) . (Seal) -Borrower -Borrower Witness: Witness: State of WY County of ~ ~'~-~ c4-CL. ) ) ss ) The foregoing instrument was acknowledged before me by WILLIAM D YEARSLEY, BARBARA JO YEAESLEY this Witness my hand and official seal. Notary Public My commission expires'. WYOMING---Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ITEM 2769L12 (0011)--MERS (Page 12 of l 2 pagex) Form 3051 1/01 GREATLAND · To Order Call: 1-800-530-9393 [] Fax: 616-791-1131 AttaChed Legal Description For William D. Yearsley and Barbara Jo Yearsley .0054 Lot 17 of the Forest Meadow Subdivision, Lincoln County, Wyoming as described on the official plat thereof. _O0055 ADJUSTABLE RATE RIDER (LIBOR Six,Month Index (As Published In The Wall Street Journal)--Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 22nd clay of April 2005 , and is incorporated into and shall be deemed to amend alld supplement the Mortgage, Deed of Trust, or Security Deed (the "Security InsU'ument") of the same date given by the undersigned ("Bon'ower") to secure Borrower's Adjustable Rate Note (the "Note") to FIRST NLC FINANCIAL SERVICES, LLC ("Lender") of the same date and covering the property described in the Security Instrument and located at: 522 THREE RIVERS DRIVE AlPine, WY 83128 [Propeay Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to tile covenants and agreements made in the Security Instrulnent, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 7.4750%. The Note provides for changes in the interest rate aud tile monthly paymeuts, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of May 2008 , and on that day every sixth mouth thereafter. Each date on which my interest rate could change is called a "Change Date." (B) The Index . Begimfing with the first Change Date, my interest rate will be based on an Iudex. The "Iudex" is the average of interbank offered rates for six month U.S. dollm'-denomiuated deposits ill the Loudon market ("LIBOR"), as published in The Wall Street Jottrnal. The most recent Iudex figure available as of the first business day of the month immediately precediug the month in which fire Chauge Date occurs is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable iuformation. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calcnlate my new interest rate by adding Seven and One Quarter percentage poiuts ( 7.2500%) to the Cun'eut Iudex. Subject to the limits stated in Section 4(D) below, this amount will be my new interest rate until the next Change Date. MULTISTATE ADJUSTABLE RATE RIDER--LIBOR SIX-MONTH INDE~ (AS PUBLISHED IN THE WALL STREET JOURNAL)--Single Family 5267500366 100195910000537483 (Page ] of 3 pages) : FNLC Form 33029L1 (04052005) 0005 The Note Holder will then deternfine the amount of file mouthly paymeut that would be sufficient to repay the unpaid principal that Ia[n, expected to owe at the Change Date iu full on the Maturity Date at my new interest rate in substautially equal payments. The result of this calculation will be the uew amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the ilrst Change Date will not be greater than 10.4750% or less than 7.4'/'50%. Thereafter, my interest ]'ate will never be increased or decreased on any single Change Date by more than One and One Half percentage points ( 1.5000%) from the rate of interest I have been paying for the preceding six months. My interest rate will never be greater than 14.4750% or less than 7.4750 %. (E) Effective Date of Changes My new interest rate will become effective ou each Change Date. I will pay the amount of my new monthly paymeut beginning on the first mouthly paylnent date after the Chang. e Date until the amount of my monthly paymeut changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include iufonnatiou required by law to be given me to and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 18 of the Security Insmnneut is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used iu this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, instalhnent sales contract or escrow agreement, the inteut of which is the transfer of title by Borrower at a fl~ture date to a pnrchaser. If all or any part of the Property or any Interest iu the Property is sold or transfen'ed (or if Bon'ower is not a natural person and a beneficial interest in Bon'ower is sold or transfen'ed) wifl~out Lender's prior writteu conseut, Leuder may require innnediate payment in flfll of all sums secured by this Security Instrumeut. However, this optiou shall not be exercised by Leuder if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be subnfitted to Leuder information required by Lender to evaluate the intended transferee as if a new loan were being made to the u'ausferee; and (b) Lender reasonably deternfines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreelnent in this Security Instrumeut is acceptable to Lender. To the extent permitted by Applicable Law, Lender may chm'ge a reasonable fee as a condition to Lender's conseut to the loan assumption. Lender also may require the transferee to sigu an assumption agreement that is acceptable to Lender and that obligates the trausferee to keep all the promises and agreemeuts made iu the Note and in this Security Instrument. Borrower will continue to be obligated under the Note aud this Security Instrument tmless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in hill, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the uotice is given iu accordance with Sectiou 15 :within which Borrower nmst pay all stuns secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies pernfitted by this Security Iustrument without fl]rther notice or demand on Borrower. (Page 2 of 3 pagex) 100195910000537483 FNLC Form33029L2 (04052005) () 0 0 5 7 BY SIGNING BELow, Borrower accepts and agrees to the terms and covenants contained in pages 1 tlu'ough 3 of this Adjustable Rate Rider. W~I"Lk(AI~ ~) YEAR~ (Seal) -n Ol-fow~r (Seal) (Seal) -B o,-,-owe,' -Borrower (Seal) (Seal) -Borrower -Borrower 100195910000537483 (Page 3 of 3 pages) FNLC Form 33029L3 (04052005)