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HomeMy WebLinkAbout20075264NiJkl PGS /s DOC?AX CK# FEES ~D Z~ CK#, ~ ~b !3 CHG ACCT# RET BEES:-CASH R.O.D. CK#_ REC'D/~ Rf:.: UHN G88oi IIp911111~IMVlll~l'~I ADAMS C(~';NTY, NE FILED INST. NO.~~..Q. r r 2 6 4 Date a-3-D Time.~~ 8.~ NUM~10.~~ ~ ~rs~/fjo~, REGISTER OF DEEDS RD. COMP d=do COMPARE ~ CADAS ~' AO Retuni To: WFHM FINAL DOCS X9999-O1M. 1000 HLUE GENTIAN ROAD EAGAN, MN 55121 Prepared By: WELLS FARGO HANK, N.A. 1919 DOUGLAS„ OMAHA, NE 661010000 DEFINITIONS [Space Above Tlus Lure For Recording DEED OF TRUST Words used in multiple sections of this document are defined below and other words are defiued in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated NOVEMBER 21, 2007 together with all Riders to this document. (B)"Borrower"is MARK F DRISCOLL AND BLAIR E DRISCOLL, HUSBAND AND WIFE Borrower is the trustor under this Security Instrument. 0081720864 NEBRASKA -Single Family -Fannie Mae/Freddia Mac UNIFORM INSTRUMENT Page 1 of 15 Initials! ' VMP MORTGAGE FORMS - 18001521-7291 Form 3026 1 /01 ~ ':~,; ,, t 17 f r If [C !r IA J, fP ~(: -F'' '1,;, /. I I y4-~ ~ ISSN / ~ ~•~7 20075264 (C)"Lender"is WELLS FARGO BANK, N.A. Lender is a NATIONAL ASSOCIATION organized and existing under the laws of THE UNITED STATES Lender's address is P•O. BOX 11701, NEWARK, NJ 071014701 Lender is the beneficiary under this Security Instrument. (D) "Trustee" is WELLS FARGO FINANCIAL NATL BNK C/0 SPEC. SERV., PO BOX 31557, BILLINGS, MT 59107 (E) "Note" means the promissory note signed by Borrower and dated NOVEMBER 21, 2007 The Note states that Borrower owes Lender TWO HUNDRED NINETY TWO THOUSAND- P.ND 00/100 Dollars (U.S. $ ****292, 000.00 )plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than DECEMBER O1, 2037 (~ "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (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) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: 0 Adjustable Rate Rider 0 Condonilnium Rider 0 Second Horne Rider 0 Balloon Rider 0 Plamred Urrit Development Rider ~ 1-4 Family Rider 0 VA Rider ~ Biweekly Payment Rider ~ Other(s) [specify] (n "Applicable Law" means all. controlling applicable federal, state and local statutes, regulations, ordinances and adnnimstrative rules and orders (drat have the effect of law) as well as all applicable Yirral, nar-appealable judicial opinrions. (J) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges drat are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (I~ "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 ternninutl, telephonic instrument, computer, or nugnetic tape so as to order, instruct, or authorize a 5nancial 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" meanrs 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, dre Property; (ii) condenruration or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) nnisrepresentatiorrs of, or onnissions as to, the value and/or condition of the Property. (N) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. ~~ 61NE) fooo5f ~ Paye 2 of 15 ~ Form 3028 1 /01 ae~,s' 20075264 (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. Section 2601 et sec[.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they riright be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used iu 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 rortgage loan" under RESPA. (~ "Successor in Interest of Borrower" means any patty that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note andlor this Security lrlstrument. TRANSPER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, exter>sions and modifications of the Note; and (ii) ttre performance of Borrower's covenants and agreements under this Security Instrument and' the Note. Por dlis purpose, Borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in the COUNTY pfADAMS [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] LOT 7, BLOCK 2, LOCHLAND MEADOWS SUBDIVISION NUMBER 2, ADAMS COUNTY, NEBRASKA. TAX STATEMENTS SHOULD BE SENT T0: WELLS FARGO.HOME MORTGAGE, P.O. BOX 11701, NEWARK, NJ 071014701 Parcel ID Number: 40 4021 which currently has the address of 603 MALLARD CIR [S[reetl HASTINGS [CitYl, Nebraska 68901. [Zip Code) ("Property Address"): 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 COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant grid 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. \J\~~~~/// r` Initials:V-- ((J~ -61NE) Iooo51 Page 30(ts 11J~ Form 3028 1/01 m 3~/S ~;. 200'75264 THIS SECURITY INSTRUMENT cmnbines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a u~tiform 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 No[e. 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 trade 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 tray be designated by Lender in accordance with the notice provisions in Section 15. Lender Wray return any payment or partial payment if the payment or partial payments axe insufficient to bring the Loan current. Lender Wray 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 mt mtapplied funds. Lender Wray hold such mtapplied funds until Borrower makes payments 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 Instrmnent or performing, the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in tltis 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 ttte 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 odter amounts due under this Security Instrument, and then to reduce the principal balance of the Note. [f Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amowtt to pay any late charge due, the payment tray 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 lit 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 tray be applied to any late charges due. Voluntary prepayments shall be applied first to airy 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 tor: (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) premiwns for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance Initial ~Y -61NEIlooo5l Pageaon5 .~ Form 3028 1/01 m i ~~ IS rs>>, ,: 200'75264 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 Ure term of Use Loau, Lender.may require that Conmmnity Association Dues, Fees, and Assessments, if'any, be 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 Ure 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 nuy only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any &scrow Reins 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 foi 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 Uren be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to auy 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, Urat 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 Ure Funds at Uie time specified under RESPA, and (b) not to exceed the maximum amount a leader can require under RESPA. Lender shall estimate Uie amount of Fmrds due on the basis of current data and reasoiuble estimates of expenditures of future Escrow Items or oUrerwise in accordance wiUi Applicable Law. The Punds 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 Pederal Home Loan Batilc. Lender shall apply Ure Funds to pay the Escrow Items no later than the time specified under RESPA. Leader shall not charge Borrower for holding and applying the Funds, amorally analyzing Ure escrow account, or verifying Ure Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law penruts Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid mr the Funds, Lender shall not be required to pay Borrower any interest or 'earrings on Ure Funds. Borrower and Lender can agree in writing, however,' Urat interest shall be paid on Ure Funds. Lender shall give. to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If Urere is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for Ure excess funds in accordance wiUr RESPA. If Urere 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 iu 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 Ure deficiency in accordance wiUr RESPA, but in no more Uran 12 monUrly payments. Upon payment in lull of all sums secured by Uris Security h~strument, 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 Uris Security Instrument, leasehold payments or ground rents on Ure Property, if any, and Cormnunity Association Dues, Fees, and Assessments, if any. To the extent Urat Uiese items are Escrow Items, Borrower shall pay Urem in the manner provided in Sectimr 3. Initial'~L . ~~ 6(NE) woosi ~ Paye s n(t s ~ Form 3026 1 /01 5~/S 200'75264 Borrower shall promptly discharge any lien which has priority over this Security Instrument uriless Borrower: (a) agrees in writing to the payment of the obligation secured by the lieu in a manner acceptable to Lender, but Drily so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien iu,legal proceediugs 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 t11e lien or take one or more of the actiars set forth above in this Section 4. i Lender may require. Borrower to pay cone-time charge for a real estate tax verification and/or reporting service used by Leader in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on dre 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 Leader 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 to pay, in corulection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-tune charge for flood zone determination and certification services and subsequent charges each time rernappings or similar changes occur which reasonably ~nright affect such determinatio^ or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connectimr 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 nriglrt 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 requestiug 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. Leader 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 dre 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. Uriless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lehder, 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 dre right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure ttre c~~~~ i~~t~ai9`~.G ©6(NE) 10o0s1 Page s or i s - ~ Form 3028 1 /01 b~ls 2U0'75264 work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoratior in a single payment or in a series of progress payments as dre work is completed. Uriless an agreement is made in writing or Applicable Law requires iuterestto 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 auy, 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 Leader acquires the Property wider 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 lnstrurnent, 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 [lre 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, uriless Leader otherwise agrees in writing, which consent shall not be uweasonably withheld, or unless extenuating circumstances exist which aze 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 mr the Property., Whether or not Borrower is residing in ttre Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Uriless it is deterrniued 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 coudenmation proceeds are paid in cormection 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 dre repairs and restoration in a single payment or in a series of progress payments as dre work is completed. If the insurance or condermration proceeds are not sufficient to repair or restore [Ire Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or 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 reasonable 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 dre direction of Borrower or with Borrower's knowledge or consent gave materially false, nrisleadiug, or inaccurate information or statements to Leader (or failed to provide Lender with material infornratiou) in comrectiou with the Loan. Material representations include, but are not limited to, representations concerning Borrower's occupancy of the Property as Borrower's principal residence. C4~~ Initials: ©6(NE) Iooo51 Page 7 of 15 ~ Form 3028 1 /01 i 7~1f r rr • F E. gu+. ~. ' t %: r i I 200'75264 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 significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condermration or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Leader may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this- Security hrstrument, 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 suers secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in fire Property and/or rights under dris Security lnstrunient, including its secured position iu a bankruptcy proceeding. Securing the Property includes, but is'not limited to, entering the Property to make repairs, change locks, replace or board up doorsand windows, drain water. fiom pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned ou or off. Although Lender may take action. under dris Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed drat Lender incurs iro liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under flris Section 9 shall become additional debt of Borrower secured by this Security Iustrurnent. These amounts shall bear interest at fire Note rate front the date of disbursement and shall be payable,. with such interest, upon notice from Leader to Borrower requesting payment. If flris Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making fire Loan, Borrower shall pay fire prenrimns required to nraiutain fire Mortgage hrsurance in effect. If, for any reason, fire Mortgage insurance coverage required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost'substantially equivalent to the cost to Borrower of dre Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender fire amount of the separately desigiuted payments drat were due when fire insurance coverage ceased to be iu effect. Lender will accept, use and retain these payments as a nmr-refundable loss .reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable; notwitlrstauding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings ou such loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments toward dre prenriunrs for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making fire Loan and Borrower was required to make separately designated payments toward the preriums for Mortgage Insurance, Borrower shall pay fire premiums required [o maintain Mortgage Insurance in effect, or to provide anon-refundable loss reserve, until Leader's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity lira[ purchases the Note) for certain losses it nay incur if Borrower does not repay dre Loan as agreed. Borrower is not a party to [ire Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may eater into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions lira[ are satisfactory to the mortgage insurer and dre other party (or parties) to these agreements. These agreements Wray require dre mortgage insurer to make payments using any source of funds drat fire mortgage insurer n>ay have available (which Wray include funds obtained from Mortgage Insurance prenuums). (/~//~/~J{~\/\J C{~j l1r I Willa"~L'ii`~ ©6lNE)iooos~ Pageeorrs Form302B 1/01 :" ~~(/S ~; 20075264 As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any odler entity, or any aftiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive trom (czr 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 aftiliate of Lender takes a share of dre insurer's risk in exchange for a share of the prenuums 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, anct they will not entitle Borrower to any refund. (h) Any such agreements will not affect the rights Borrower has - if any -with respect to the Mortgage lnsurance under the }lomeowners 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 lnsurance 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 is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of dre Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Leader shall have the right to hold such Miscellaneous 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. Leader 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 econonvcally feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Secm~ity 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. Iu the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sinus secured by this Security hrstrument, whether or not then due, with dre excess, if any, paid to Borrower. h1 the, event of a partial taking, destruction, or loss in value of the Property in which the fair market value of t(re Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the stuns secured by this Security Instrument immediately before the partial taking, destruction, or loss in Oalue, 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 nmltiplied by the following fractiml: (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 inunediately 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 dre sums secured irnrnediately before the partial taking, destruction, or loss in value, urdess 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) otters to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after die 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" mear>s the third party that owes Borrower Miscellaneous Proceeds or the party agair>st 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 [lie 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 n Initials: -6(NE) iooos~ Page 9 or t s ~ Form 3028 7101 m 9~~s' rP; s7,, a 200'75264 acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed wiU1 a ruling Urat, in Lender's judgment, precludes forfeiture of Ure Property or other ruaterial impairment of Lender's interest in Use Property or rights under U1is Security Instrument. The proceeds of any award or claim for damages that are attributable [o Ure impairment of Lender's interest in Ure Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds U1at-are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of U1e sums secured by this Security Instrument granted by Lender to Borrower a' any Successor iii Interest of Borrower shall not operate to release the liability of Borrower or any Successors m Interest of Borrower. Lender shall not be required to continence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of Ure sums secured by this Security Instrument by reason of any demand.made by U1e 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 Ulan U1e amount then due, shall not be a waiver of or preclude U1e exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and.Assigns Bound. Borrower covenants and agrees U1at Borrower's obligations u1d liability sha1L be joint and several. However, ~1y Borrower who co-signs U~is Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing U1is Security Instrument orily 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 U1at Lender and any orrer Borrower can agree to extend, modify, forbear or make any acconunodatimtis wiUr regard to U1e terms of Uris Security Instrument or Uie Note wiUrout the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under U1is 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 U1is 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 wiU1 Borrower's default for U1e propose of protecting Lender's interest in U1e Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. Li regard to any oU1er 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 U1e Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so Urat Ure interest or oUier loan charges collected or to be collected in coimectiwr with the Loan exceed the permitted lifnits, Uieu: (a) any such loan charge shall be 'reduced by Uie amount necessary to reduce Ure charge to Ure permitted limit; and (b) any sums already collected from Borrower which exceeded permitted lifnits 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 cmistitute 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 U1is Security Instrument must be in writing. Any notice to Borrower in cmmection 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 oU1er means. Notice to any one Borrower shall constitute notice to all Borrowers uiiless Applicable Law expressly requires otherwise. The notice address shall be Ure Property Address wiles Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly uotity Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, U~en Borrower shall. olily report a change of address U1ro ~ 1at specified procedure. Initial ~~ 61NE) fooo5l Page to of 15 ~ Form 3028 1101 /D~IS ~,~ ~;,,. n, 200752.64. There Wray be only one designated notice address under Utis Security Instrument at any one time. Any notice to Leader shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated anoUter address by notice to Borrower. Any notice in comtection wiUt this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required. by Utis Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy Ute corresponding requirement under this Security Instrument. 16. Governing Law; Severahility; Rules of Construction. This. Security Instrument shall be governed by federal law and Ute law of the jurisdiction in which the Property is located. All rights and obligations contained in Utis Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow Ute 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 Ute event Utat any provisimt or clause of Utis Security htstnunent or Ute Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect wiUtout the conflicting provision. As used in this Security Instrument: (a) words of Ute masculine gender shall mean and include . corresponding neuter words or words of Ute feminine gender, (b) words in the singular shall mean and include Ute plural and vice versa; and (c) Ute word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of Ute Note attd of this Security Iustrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in Ute Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests, transferred in a bond for deed, contract for deed, installment sales contract or escrow a ~reement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If a~l or any part of the Property or any Interest in the Property is sold or transferred (or tf Borrower is not a natural person and a beneficial interest in Borrower is sold o'r transferred) wiUtout Lender's prior written consent, Lender Wray require itumediate payment in full of all sums secured by Utis 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 Ute notice is given in accordance wiUt Section 15 wiUtin which Borrower must pay all sums secured by Utis Security hnstrument. If Borrower fails to pay these sums prior to the expiration of Utis period, Lender nuy invoke any remedies penttitted by Utis Security Instrument wiUtout furUter notice or den>and on Borrower. ' 19. Borrower's'Right to. Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of Utis Security Instrument discontinued at any time prior to Ute earliest of: (a) live days before sale of the Property pursuant to any power of sale contained in Uiis Security Instrument; (b) such outer period as Applicable Law might specify for Ute termination of Borrower's right to reinstate; or (c) entry of a judgment e~tforcing Utis Security Instrument. Those catditions are that Borrower: (a) pays Lender all sums which Uten would be due under Utis Security htstruatent and Ute Note as if no acceleration had occurred; (b) cures any default of any outer covenants or agreements; (c) pays all expenses incurred in enforcing Utis Security Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Leader's interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably require to assure that Leader's interest in the Property and rights under this Security hnstrument, and Borrower's obligation to pay Ute sums secured by this Security hnstrument, shall continue unchanged. Leader tuay require that Borrower pay such reinstatement sums and expenses in oue or more of Ute foflowing forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, batik 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. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby Initia~~~ ~~6(NE) 100051 Page tt or is Form 3028 1/01 i ~~ tn` ~~ iii i, F! tfi J ' k ' } i^ y e{ f~ {~y't F~' ~`~ '~ (ii 4'~ Y M~,