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HomeMy WebLinkAbout2010 Lawsuits IN THE IOWA DISTRICT COURT IN AND FORJOHNSON COUNTY HILLS BANK &TRUST COMPANY, ) // CASE NO. EQCV 0.716 2,(O Plaintiff, ) ) ORIGINAL NOTICE vs. ) LESLIE THOMAS, JR., SONYA M. ) THOMAS, UNITED STATES OF ) _ o AMERICA, CBE GROUP, INC., H&R ) O -� ACCOUNTS, INC., INSTANT CASH ) *c-) � co ADVANCE, INC. AND CITY OF IOWA ) _� CITY, ) r<rn -" Defendants.' ) O w N TO THE ABOVE-NAMED DEFENDANTS: .a You are notified there is a Petition on file in the office of the Clerk of the above Court. A copy of this filing is-attached. .The Plaintiffs attorney is H. Raymond Terpstra II, whose address is 3600 First Avenue NE, Suite 101, Cedar Rapids, Iowa 52402. The Plaintiffs attorney's phone number is (319) 364-2467, with a facsimile transmission number of(319) 364-0923. You must serve a motion or answer within 20 days after service of this Original Notice upon you, and within a "reasonable time thereafter file your motion or answer, in the Iowa District Court for Johnson County, at the County Courthouse in Iowa City, Iowa. If you do not,judgment by default may be rendered against you for the relief demanded in the Petition. If you require the assistance of auxiliary aids or services to participate in court because of a disability, immediately call your district ADA coordinator at 1-319-398-3920. f u are hearing impaired, call Relay Iowa TTY at 1-800-735-2942). KN4 0 L (SEAL) 4 (it- 14gA:tA) CLE 11.3 OF THE ABOVE COURT Johnson County Courthouse Iowa City, IA 52240 IMPORTANT YOU ARE ADVISED TO SEEK LEGAL ADVICE AT ONCE TO PROTECT YOUR INTERESTS. cc '. 1 CA FlN Nis) • 6' � IN THE IOWA DISTRICT COURT IN AND FOR JOHNSON COUNTYL4�c2ff, c� r •mss�,r �/ v ,„ O/ HILLS BANK&TRUST COMPANY, ) �O`r�' ) CASE NO. EQCV C) !' 7A (U �'����� cp. t Plaintiff, ) ) PETITION IN EQUITY FOR �-P vs. ) FORECLOSURE, WITH ) REDEMPTION AND WITH WAIVER LESLIE THOMAS, JR., SONYA M. ) OF IN PERSONAM JUDGMENT THOMAS, UNITED STATES OF ) AMERICA, CBE GROUP, INC., H&R ) ACCOUNTS, INC., INSTANT CASH ) ADVANCE, INC. AND CITY OF IOWA ) :S.:c/ _ m CITY, ) �=+ -<ter Defendants. ) sr�— -v i 0 w COMES NOW the Plaintiff, Hills Bank& Trust Company, ("the Bank")thro> counsel, and respectfully states as follows: 1. Plaintiff, Hills Bank and Trust Company("the Bank"), is a state banking organization organized under Chapter 524, Iowa Code. 2. The Defendants Leslie Thomas, Jr. and Sonya Thomas ("Borrowers" and/or "Mortgagors") were at all times material hereto residents in Johnson County, Iowa. The Defendants Leslie Thomas, Jr. and Sonya Thomas were at all times material hereto husband and wife and are still husband and wife to the best information and belief of the Plaintiff in possession of the real estate described below. 3. The Borrowers made, executed and delivered to the Plaintiff their Balloon Note on February 25, 2005, Loan No. 801-371-050-2, in the original principal sum of$93,600.00. The note required monthly payments in the initial amount of$546.22 commencing April 1, 2005. The note is in default. The balance due on the note as of December 22, 2009 is in the sum of $90,244.15. Interest accrues from and after December 22, 2009 on the unpaid principal balance of $87,650.27 at the rate of 5.75%per annum. Per diem accrual is in the amount of$13.44967. A A copy of the note is attached hereto as Exhibit "A" and is incorporated herein by reference. 4. The note is secured by a written purchase money mortgage dated February 25, 2005 filed of record in the office of the Johnson County, Iowa Recorder on March 3, 2005 in Book 3848 at page 880. The mortgage encumbers the following described non-agricultural real estate, to-wit: Lot Forty-Four(44), Block Sixteen (16), Fair Meadows Addition Fourth Unit, Iowa City, Iowa, according to the recorded plat thereof. (locally known as 2311 Nevada Avenue, Iowa City, IA 52240). A copy of the mortgage is attached hereto as Exhibit"B"and is incorporated herein by reference. The property is still the homestead of the Borrowers to the best information and belief of the Plaintiff. • 5. The Plaintiff gave the Defendant a notice of right to cure default on November 24, 2009. A copy of the cure notice is attached hereto as Exhibit "C" and is incorporated herein by reference. 6. A 14 day notice of default and acceleration with an original Iowa Mortgage Help Mediation Notice was given on February 5, 2010. The note has been properly accelerated by the Plaintiff. A copy of the 14 day notice of acceleration is attached hereto as Exhibit"D"and is incorporated herein by reference. 7. The Plaintiff has expended the sum of$100.00 for abstracting fees with amounts properly added to the judgment, as is prayed for below. The Plaintiff is entitled to be reimbursed for all abstracting expenses and other advancements, if any, made by the Plaintiff for insurance premiums, real estate taxes and/or other costs during the pendency of this action to protect the real estate and/or improvements thereto. Any and all advancements should be included as part of the indebtedness awarded as a judgment herein and secured by the aforementioned mortgage. c7 2 '! 8. The promissory note and the mortgage securing the same provide for the recovery by the Plaintiff of collection costs including, but not limited to, attorney's fees. The Plaintiffs Attorney's Affidavit of Fees is attached hereto as Exhibit "E" and is incorporated herein by reference. 9. The United States of America has been named as a Defendant on account of its judgment taken against Leslie Thomas in the sum of$11,481.90 plus interest docketed December 26, 2001 in the United States District Court for the Southern District of Iowa, Civil No. 3-01-cv- 90090 and recorded on December 31, 2001 in the records of the Johnson County, Iowa Recorder in Book 3200 at page 681. The lien of the USA is subordinate to the purchase money mortgage of the Plaintiff. The Defendant USA's statutory rights under 28 U.S.C. Section 2410(b)(c) and 26 U.S.C. Section 6321 will be recognized in the Foreclosure Decree. 10. CBE Group, Inc. has been named as a Defendant on account of a judgment taken in the Iowa District Court for Johnson County, Small Claims Division, on December 10, 2002 against Leslie Thomas, Jr. and Sonya Thomas in the amount of$2,753.71 with interest at the rate of 4.532% from November 12, 2002, plus pre-filing interest in the amount of$408.37 plus court costs of$76.00. The judgment lien enjoyed by CBE Group, Inc. is junior and inferior to the mortgagee's liens of the Plaintiff and as such is subject to extinguishment by foreclosure. 11. H&R Accounts, Inc. has been named as a Defendant on account of a judgment taken in the Iowa District Court for Johnson County, Small Claims Division, on August 12, 2005 against Leslie Thomas in the amount of$626.39 with interest at the rate of 5.64%from June 9, 2005 plus court costs of$68.46. The judgment lien enjoyed by H&R Accounts, Inc. is junior and inferior to the mortgagee's liens of the Plaintiff and as such is subject to extinguishment by,, o foreclosure. -11 Ear 3 a- w n7 .� ti • 12. Instant Cash Advance, Inc. has been named as a Defendant on account of a judgment taken in the Iowa District Court for Johnson County, Small Claims Division, on January 25, 2006 against Leslie Thomas in the amount of$515.00 with interest at the rate of 6.35% from December 13, 2004 plus court costs of$67.24. The judgment lien enjoyed by Instant Cash Advance, Inc. is junior and inferior to the mortgagee's liens of the Plaintiff and as such is subject to extinguishment by foreclosure. 13. City of Iowa City has been named as a Defendant on account of its second mortgage dated February 25, 2005 recorded in the office of the Iowa City, Iowa Recorder's office on March 4, 2005 in Book 3849 at page 593. The mortgage secures the amount of$23,400.00. The judgment lien enjoyed by City of Iowa City is junior and inferior to the mortgage liens of 0 the Plaintiff and as such is subject to extinguishment by foreclosure. o c" i 71 14. The Plaintiff has requested foreclosure with redemption. THE PTIPF :<m WAIVES AN IN PERSONAM JUDGMENT AGAINST THE BORROWERS.a') — WHEREFORE, the Plaintiff prays for the following judgments and relie A. An in rem judgment against the real estate described above in the amount of $90,244.15 plus interest on the principal sum of$87,650.27 at the rate of 5.75% per annum from and after December 22, 2009 plus abstracting charges in the amount of$100.00 plus Plaintiffs reasonable attorney's fees, which should be assessed as court costs pursuant to §625.22 and §625.25, Iowa Code, and for all other court costs, including Sheriffs fees. B. The Court direct that a special execution issue directing the sale of the Johnson County, Iowa real estate described above by the Johnson County Sheriff and that, at the time of said sale, the Sheriff shall issue to the purchaser of the real estate described above a Sheriffs Deed. C. That the Court recite in the Decree of Foreclosure that no third persons may obtain an interest in and to the real estate being foreclosed hereunder after this action has been indexed by the Clerk of Court pursuant to §617.11, Iowa Code. D. That the Court order that if the purchaser at Sheriffs sale of all or a portion of the real estate foreclosed upon should be denied possession of the property by any of 4 • the Defendants, after obtaining a Sheriffs Deed, then a writ issue from the Court on the filing of a praecipe and request for the issuance of the writ directing the Johnson County Sheriff to put the purchaser at Sheriffs sale in possession of the subject-real estate or so much thereof as has been sold to satisfy the Plaintiffs judgment. E. For such other orders and relief as the Court deems just and equitable in the premises including the retention of jurisdiction through the date of Sheriff's sale if the mortgage note is reinstated by one or both of the Defendants and thereafter by the owner and holder of the Sheriff's deed for the purpose of clearing title objections, if any, arising in the future relative to this foreclosure proceeding. Respectfully submitted,.,: off ' .�f H. RaymondTe stra.II AT0007866 P -TR� TERS ING 3600 First Avenue NE, Suite 101 Cedar Rapids, IA 52402 Telephone: (319) 364-2467 Fax: (319) 364-0923 Attorney for Plaintiff -� . 1; t 5-50 c9 �.. n t 7. a O s d1 5 1,7 ti Leslie Thomas Jr Snnya M Thnmac 2311 Nevada Avenue Iowa City, I.A 52240 BALLOON NOTE (Fixed Rate) 7 • !, THIS LOAN IS PAYABLE IN FULL AT MATURITY. YOU MUST REPAY THE ENTIRE PRINCIPAL BALANCE OF THE LOAN AND UNPAID INTEREST THEN DUE LENDER IS UNDER NO OBLIGATION TO REFINANCE THE LOAN AT THAT TIME. YOU WILL, THEREFORE, BE REQUIRED TO MAKE PAYMENT OUT OF OTHER ASSETS THAT YOU MAY OWN, OR YOU WILL HAVE TO FIND A LENDER, WHICH MAY BE THE LENDER YOU HAVE THIS LOAN WITH, WILLING TO LEND YOU THE MONEY. IF YOU REFINANCE THIS LOAN AT MATURITY, YOU MAY HAVE TO PAY SOME OR ALL OF THE CLOSING COSTS NORMALLY ASSOCIATED WITH A NEW LOAN EVEN IF YOU OBTAIN REFINANCING FROM THE SAME LENDER. cs A February 25, 2005 Iowa City ,o2or �7 [Date] [City] clqiStatei 2311 Nevada Avenue N Iowa City, IA 52240 ...< -v f 1 [Property Address] I. BORROWER'S PROMISE TO PAY ;, N In return for a loan that I have received, I promise to pay U.S. $ 93,600.00 (this`fmount is called "Principal"), plus interest, to the order of Lender. Lender is Hills Bank and Trust Company I will make all payments under this Note in the form of cash, check or money order. I understand that Lender may transfer this Note. Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of 5.750 %. The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 6(B) of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payments on the 1st day of each month beginning on April 2005 I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If, on March 01, 2015 , I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date." I will make my monthly payments at any of our locations . IA or at a different place if required by the Note Holder. (B) Amount of Monthly Payments My monthly payment will be in the amount of U.S. $546.22 »01 X105-02 MULTISTATE BALLOON FIXED RATE NOTE- Single Family-FANNIE MAE UNIFORM INSTRUMENT �-�� forrb-:3260 1101 Page 1 of 3 �-S70N (0205j VMPMORTGAGE FORMS•(800)521-7291 ) "'1 © Qlnili '� CI 333 71" pO F' —1 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a "Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under this Note. I may make a full Prepayment or partial Prepayments without paying any Prepayment charge. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holder may apply my Prepayment to the accrued and unpaid interest on the Prepayment amount before applying my Prepayment to reduce the Principal amount of this Note. If I make a partial Prepayment, there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. 5. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from me that exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment. 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charges for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of FIFTEEN calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be 5.000 % of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B) Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C) Notice of Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of Principal which has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. (D) No Waiver By Note Holder Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (E) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. 9. WAIVERS I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust, or Security Deed (the "Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses that might result if I do not keep the promises that I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions read as follows: ` o 37105-02 ` rm 3201 CD-870N (C20S) Paget of 3Inilieis: .- /7I tiICZY Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. WITNESSiTI E AND(S) AND SEAL(S) QF THE UNDERSIGNED. A ) (Seal) ,` -, ,.lL (Seal) Leslie Thomas Jr -Borrower Sonya M Nomas -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower [Sign Original Only] .77 N.) 80137105-02 ©-870N (0205) Page 3or3 Form 3260 1101 Q`i U'J Q PI IIIIIII 11111111111 I III 1111111111 IIIII JillM1 IIII 1 III III!III! Doc ID: 019524700018 Tvpe: GEN Recorded: 03/03/2005 at 09:06:09 AM Fee Amt: 892.00 Pace 1 of 18 Johnson County Iowa Kim Painter County Recorder BK3848 PG880-897 Prepared By: Sherri Leeper 131 Main Street Hills, IA 52235 (319) 679-2291 Return To: Hills Bank and Trust Company 131 Main Street Hills, IA 52235 N CI {Space Above This Line For Recording Data) O LCD ;7,1 MORTGAGE ›-=-, c XfVThis is a purchase money mortgabe. -.R,tom'! —[7 Ox s 0 W N DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 2l. 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 February 25th, 2005 together with all Riders to this document. ' (B) 'Borrower"is Leslie Thomas Jr. and Sonya M. Thomas, Husband and Wife Borrower is the mortgagor under this Security Instrument. 80137105-02 IOWA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3016 1/01 (r -6(1A)(0005)02 CZ Page®1 15 Initialer. C'rn r.=0 cs VMPMORTGAGE FORM S-(800)521-)291 =x -11 w'r-Pi 2:: �_ v 4' r 5 . i .Mo x- (C) "Lender" is Hills Bank and Trust Company Lender is a Commercial Bank organized and existing under the laws of the State of Iowa Lender's address is 131 Main Street, Hills, IA 52235 Lender is the mortgagee under this Security Instrument. (D) "Note"means the promissory note signed by Borrower and dated February 25th, 2005 The Note states that Borrower owes Lender NINETY THREE THOUSAND SIX HUNDRED AND 00/100 Dollars (U.S. S93,600.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than March 1, 2015 (E) 'Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "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. ,S (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower.-The folEving Riders are to be executed by Borrower [check box as applicable]: C? 71 Adjustable Rate Rider Condominium Rider Second Home Ridex�-<I i x I Balloon Rider Planned Unit Development Rider 1-4 Family Rider —4C7 N VA Rider n Biweekly Payment Rider Other(s) [specify] ="<tr.-1 -D 43> N (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments"means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items"means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of; or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) '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. 80137105-02 Initials D-6(1A) (0005).02 wage 2 or 15 Form 3016 1/01 (0) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i)the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably mortgages, grants and conveys to Lender, with power of sale, the following described property located in the County of Johnson [Type of Recording Jurisdiction) [Name of Recording Jurisdiction) Lot 44 in Block 16 in Fair Meadows Addition Fourth Unit, Iowa City, Iowa, according to the recorded plat thereof. O o "11 D- corn .,.. C")—C I r— [Ti rl 3 O 73 w � N 4-0 Parcel ID Number: 1023404003 which currently has the address of 2311 Nevada Avenue [Street) Iowa City [City], Iowa 52240 [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 and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. 80137105-02 Initials: -6(IA) (0005).07 Page 3 ori 5 Form 3016 1/01 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or (d)Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum(the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) MortgaInsurailt premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment q.cltslort.&ge Insurance premiums in accordance with the provisions of Section 10. These items are c "Esiw Items." At origination or at any time during the term of the Loan, Lender may require tlhZ Mmrr.lificity '77 10 02 Initials' CI)-6(1A) (0005).02 Paye 4 of 15 31:E 110 g7eoN kr.) 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 the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount(a)sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity(including Lender, if Lender is an institution whose deposits are so insured)or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith 0 8O19)5-Q4A Initials: �t -6(IA) (0005)02 Page S of 15 Fofft ail. 6 C 1 *77 .;t1,, /77 ,S":3 o by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law 801305-0.1� mitiais: ifs% 4 CD-6(IA) (0005)02 Page 6 of 15 Fo4416 41 m rry w R.) ca requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably 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 commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. 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 the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, 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 significantly affect Lender's interest in the Property and/or rights ur lger this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or 4DfeitureAltr enforcement of a lien which may attain priority over this Security Instrument or to elg,r,Q laws,or CO sa �i0�02 mhos. :fir-., -6(IA) (0005).02 Page 7 of 15 E rih 30 tg, 1/D1 L77� ti 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 in the Property and 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 priority 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 this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this 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 the Loan, Borrower 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 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 the 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 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 non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on 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 the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender'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 that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements 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 payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insrance, exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If sucdgreemt 807-7 5-� Initials: �¢(s) !�F -6(IA) (0005)02 Page 8of 15 16 /O1 czk /77 provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property 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 and restoration period, Lender 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. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or ofmater impairment of Lender's interest in the Property or rights under this Security Instrument. TheAceed 80Z? 5— r Initials: --lc) I R. ©-6(IA) (0005)02 Page 5 of 15 G21Fe/016 `7101 Z c., any award or claim for damages that are attri::ta .1:•tc' '!:e impairment of Lender's interest in 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 in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20)and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and(b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lerltr's adds stated herein unless Lender has designated another address by notice to Borrower. fyciotiogin 8040542 Initials: *17 �®6(IA)(0005)02 Page 10 0115 reettp)1011i 1101 1` rri w O connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this 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, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before 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 Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Ndte 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 limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred 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 under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement 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 drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; oy (d) Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partiatnterest. the Note (together with this Security Instrument) can be sold one or more times without prWalyticef,47, 1 f'•:1 8Q1317,1 ai-)02 Initials CD-6(IA) (0005)02 Pagett of 15 IA 3V§ 1/01 /77 c4.) �,J 0 Borrower. 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 Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, 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 Loan Servicer, Borrower will be given written notice of the change 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 Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless 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, until 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 substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable 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 environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a)that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or(c)which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be'appropriate to normal residential uses and to maintenance of the Property(including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of(a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental.or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. 8018`105-0 Initials: ( 0 C®6(IA) (0005).02 Page 12 of 15 Fo4416 401 14, *17r IN) r, 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, foreclosure by judicial proceeding and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. 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 foreclose this Security Instrument by judicial proceeding. 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. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower relinquishes all right of dower and waives all right of homestead and distributive share in and to the Property. Borrower waives any right of exemption as to the Property. 25. HOMESTEAD EXEMPTION WAIVER. I UNDERSTAND THAT HOMESTEAD. PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AND EXEMPT FROM JUDICIAL SALE; AND THAT BY SIGNING THIS MORTGAGE, I VOLUNTARILY GIVE UP MY RIGHT TO THIS PROTECTION FOR THIS MORTGAGED PROPERTY WITH RESPECT TO CLAIMS BASED UPON THIS MORTGAGE. 101 • AL �� 1.4701:)-"DS-0,5 rower ;5/ �S Borrower Leslie Thomas J Date Bo S ya M Thomas ale Borrower Date Borrower Date Borrower Date Borrower Date Borrower Date Borrower co �� iv —0 177I7lQ,5-02 CD-6(1A) (0005)02 Paye 13 or 15 Form 30A 1101 26. Redemption Period. If the Property is less than 10 acres in size and Lender waives in any foreclosure proceeding any right to a deficiency judgment against Borrower, the period of redemption from judicial sale shall be reduced to 6 months. If the court finds that the Property has been abandoned by Borrower and Lender waives any right to a deficiency judgment against Borrower, the period of redemption from judicial sale shall be reduced to 60 days. The provisions of this Section 26 shall be construed to conform to the provisions of Sections 628.26 and 628.27 of the Code of Iowa. IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: (Seal) Leslie Thomas Jr -Borrower (Seal) s ya M homas -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower ti Q "-Zr- 869.4710W2 C-6(1A) (0005).0s Page t4orts 30TH 1101 0 • STATE OF IOWA, Johnson County ss: On this 25th day of February 2005 , before me, a Notary Public in the State of Iowa, personally appeared Leslie Thomas Jr, Sonya M Thomas husband and wife to me personally known to be the person(s) named in and who executed the foregoing instrument, and acknowledged that he/she/they executed the same as his/her/their voluntary act and deed. My Commission Expires: 08/22/2005 ..-- -/-/ Ly1 Notary Public in and for said County and State O LL A S yW� William A Stewart CZi c7---1 cc; • r".'' r-- 0 80137105-02 Initials'. ©-6(IA) (0005).02 Page 15 o1 15 Form 3 016 1101 BALLOON RIDER (CONDITIONAL RIGHT TO REFINANCE) THIS BALLOON RIDER is made this 25th day of February 2005 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Deed to Secure Debt (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure the Borrower's Note to Hills Bank and Trust Company (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 2311 Nevada Avenue Iowa City, IA 52240 [Property Address] The interest rate stated on the Note is called the "Note Rate." The date of the Note is called the "Note Date." I understand the Lender may transfer the Note, Security Instrument and this Rider. The Lender or anyone who takes the Note, the Security Instrument and this Rider by transfer and who is entitled to receive payments under the Note is called the "Note Holder." ADDITIONAL COVENANTS. In addition to the covenants and agreements in the Security Instrument, Borrower and Lender further covenant and agree as follows (despite anything to the contrary contained in the Security Instrument or the Note): 1. CONDITIONAL RIGHT TO REFINANCE At the maturity date of the Note and Security Instrument (the "Note Maturity Date"), I will be able to obtain a new loan ("New Loan") with a new Maturity Date of March 01, 2035 (the "New Maturity Date") and with an interest rate equal to the "New Loan Rate" determined in accordance with Section 3 below if all the conditions provided in Sections 2 and 5 below are met (the "Conditional Refinance Option"). If those conditions are not met, I understand that the Note Holder is under no obligation to refinance the Note or to modify the Note, reset the Note Rate, or extend the Note Maturity Date, and that I will have to repay the Note from my own resources or find a lender willing to lend me the money to repay the Note. 2. CONDITIONS TO OPTION If I want to exercise the Conditional Refinance Option, certain conditions must be met as of the Note Maturity Date. These conditions are: (a) I must still be the owner and occupant of the property subject to the Security lnstyrument (the "Property"); (b) I must be current in my monthly payments and cannot have been more than 30 days late on any of the 12 scheduled 60137105-02 MULTISTATE BALLOON RIDER (Refinance) - Single Family - Freddie Mac UNIFORM INSTRUM ENT ©-876R (0402) Form 3191 1/01 cj p� Page 1 of 3 Initials: o -77 VMP Mortgage Solutions, Inc. ' (800)521-7291 .may .`ern ti F czyO monthly payments immediately preceding the Note Maturity Date; (c) there are no liens, defects, or encumbrances against the Property, or other adverse matters affecting title to the Property (except for taxes and special assessments not yet due and payable) arising after the Security Instrument was recorded; (d) the New Loan Rate cannot be more than 5 percentage points above the Note Rate; and (e) I must make a written request to the Note Holder as provided in Section 5 below. 3. CALCULATING THE NEW LOAN RATE The New Loan Rate will be a fixed rate of interest equal to the Federal Home Loan Mortgage Corporation's required net yield for 30-year fixed rate mortgages subject to a 60-day mandatory delivery commitment, plus one-half of one percent (0.5%), rounded to the nearest one-eighth of one percent (0.125%) (the "New Loan Rate"). The required net yield shall be the applicable net yield in effect on the date and time of day that the Note Holder receives notice of my election to exercise the Conditional Refinance Option. If this required net yield is not available, the Note Holder will determine the New Loan Rate by using comparable information. 4. CALCULATING THE NEW PAYMENT AMOUNT Provided the New Loan Rate as calculated in Section 3 above is not greater than 5 percentage points above the Note Rate and all other conditions required in Section 2 above are satisfied, the Note Holder will determine the amount of the monthly payment that will be sufficient to repay in full (a) the unpaid principal, plus (b) accrued but unpaid interest, plus (c) all other sums I will owe under the Note and Security Instrument on the Note Maturity Date (assuming my monthly payments then are current, as required under Section 2 above), over the term of the New Loan at the New Loan Rate in equal monthly payments. The result of this calculation will be the new amount of my principal and interest payment every month until the New Loan is fully paid. 5. EXERCISING THE CONDITIONAL REFINANCE OPTION The Note Holder will notify me at least 60 calendar days in advance of the Note Maturity Date and advise me of the principal, accrued but unpaid interest, and all other sums I am expected to owe on the Note Maturity Date. The Note Holder also will advise me that I may exercise the Conditional Refinance Option if the conditions in Section 2 above are met. The Note Holder will provide my payment record information, together with the name, title and address of the person representing the Note Holder that I must notify in order to exercise the Conditional Refinance Option. If I meet the conditions of Section 2 above, I may exercise the Conditional Refinance Option by notifying the Note Holder no earlier than 60 calendar days and no later than 45 calendar days prior to the Note Maturity Date. The Note Holder will calculate the fixed New Loan Rate based upon the Federal Home Loan Mortgage Corporation's applicable published required net yield in effect on the date and time of day notification is received by the Note Holder and as calculated in Section 3 above. I will then have 30 calendar days to provide the Note Holder with acceptable proof of my required ownership, occupancy and property lien status. Before the Note Maturity Date the Note Holder will advise me of,4be cza(app.?11 Q2 17 Initials: ,c'— ti -8768 (0402) Page 2 of 3 31 -j 110 icb A` ca O new interest rate (the New Loan Rate), new monthly payment amount and a date, time and place at which I must appear to sign any documents required to complete the required refinancing. I understand the Note Holder will charge me a $250 processing fee and the costs associated with the exercise of the Conditional Refinance Option, including but not limited to the cost of updating the title insurance policy. BY SIGNING BELOW, BORROWER accepts and agrees to the terms and covenants contai ed 'n this Balloon Rider. i n , L_u+_ • $ (Seal) //i (Seal) Leslie Thomas Jr -Borrower Sonya M homas -Borrower (Seal) (Seal) -Borrow er -Borrower (Seal) (Seal) -Borrow er -Borrower (Seal) (Seal) -Borrow er -Borrower [Sign Original Only] 80137105-02 -876R (0402) Page 3 of 3 Form 3191 1/01 O o C, -ID inr7 r . czy w 0 c, Hills Bank 131 Main Street and Trust Company Hills, Iowa 52235 319-679-2291 November 24, 2009 Leslie Thomas Jr. COLLECTION DIVISION Sonya M. Thomas 2311 Nevada Ave NOTICE OF DEFAULT AND ACCELERATION Iowa City IA 52240 (Sent Certified and Regular Ml Dear Sonya and Leslie: o D� r71.1 - Creditor: Hills Bank and Trust Company 9 r"- �� N 131 Main Street '7.< rn P.O. Box 160 Hills, IA 52235-0160 **--"" c? D w Credit Promissory Note dated February 25, 2005, Loan No. 8013710502 Fthe original Transaction: principal sum of$93,600.00. The balance due on the note as of November 24, 2009 is in the sum of$89,813.30. Interest accrues on the unpaid principal balance of$87,6750.27 at the rate of 5.75% per annum from and after November 24, 2009. Collateral The debt described above is secured by the following collateral document: Documents: Mortgage dated February 25, 2005, filed of record in the office of the Johnson County Recorder on March 3, 2005, in Book 3848 at Page 880, encumbering the property located at 2311 Nevada Av., Iowa City, IA, legally described as follows: Lot Forty-four(44), Block Sixteen (16), Fair Meadows Addition Fourth Unit, Iowa City, Iowa , according to the recorded plat therof. NOTICE OF ACCELERATION Hills Bank and Trust Company gives you notice that a timely cure of the defaults described under the Februrary 5, 2009 notice of right to cure did not occur. Accordingly, the note described above is being accelerated and will be due and payable in full on December 10, 2009. The Creditor will proceed with a foreclosure action or procedure pursuant to Chapter 654, Iowa Code. The pay off on the note is $89,813.30 as of November 24, 2009. Per diem accrual is $13.91833 at the contract rate of interest of 5.75% per annum from and after November 24, 2009. Please find enclosed an original mediation notice. Please contact Iowa Mortgage help and/or your attorney if you have any questions. ra Sinc ]y, or" o 00 To Dan Widmer 7 p Collections Officer G� Hills • Iowa City • Coralville • North Liberty• Kalona • Cedar Rapids • Lisbon • Mount Vernon • Mate 1Nplim an hillsbank.com 1-800-445-5725 • Mortgage Mediation Notice • FA tiii You are receiving this notice because (1) your lender believes that your mortgage is seriously delinquent, or (2) a foreclosure petition was recently filed against you. The purpose of this notice is to inform you that help is available through Iowa Mortgage Help, a State of Iowa-sponsored program. e heip is avaigiabie Iowa Mortgage Help is a group of organizations partnering with the Iowa Attorney General's Office and the Iowa Finance Authority to offer all Iowans access to free, confidential mortgage counseling with local ': organizations located right here in Iowa. Iowa Mortgage Help is here • to assist you in working through your situation. r- • t5 Please call 1-877-622-4866 as soon as possible. The earlier you call, '`f the more options that are available to you. When you call, you will - be referred to a trained, professional counselor who will listen to your situation and offer free, confidential advice through each t 1k4.41' "��1-'}.'` - : : , step of the process. In some cases, we are able to work with lenders Yayp 4�*r�'r' s ' . +•K and borrowers to restructure mortgage terms. While we are not able g.‘•Y - " ` ' T `= to help everyone, we are able to help the majority of homeowners .>igm +.r111 '. who call Iowa Mortgage Help. ..,:;1,.--,.•.•.-51%,.-7. �? ;tv& N The fact that a foreclosure petition may be or has been filed against •T A *ii',:: you does not necessarily mean that you will lose your house. It is NOT too late. There is still time for help. .kk 3 F c5: Do Not Delay. This may be your best chance to save your } 4.,; i4r- S45 i :,-,.. t; - -RA. home from foreclosure. ' ° ' :'4 " " Call 1-877-622-4866 today or go to IowaMortgageHelp.com. This free call could save your home. o_ o n J 1./. Iowa Mortgage Help '77 `�i ,• � 1-877-622-4866 fir, �, ti y. ' www.lowaMortgageHelp.com 4„.....: a}a : This notice is being provided as required by Iowa Code section 654.4B(2). w 0k.F a A ^9�.t Hills Bank 131 Main Street and Trust Company Hills, Iowa 52235 319-679-2291 February 5, 2009 NOTICE OF RIGHT TO CURE DEFAULT (Sent Certified and Regular Mail) Leslie Thomas Jr Sonya M Thomas h., 2311 Nevada Ave — o Iowa City IA 52240 0 -;� 5::_-, cu Leslie and Sonya: c-)-< I r-- =in N This letter provides notice of right to cure the default under a promissory note #801371 ataFFeb 25, 2005 with a current principal balance of$29,308.94 that is secured by a real estate mortgage o prr rty 11an 1 NEVADA AVE IOWA CITY IA as legally described under said mortgage. This defaulonsistbf the failure to make the following payments: Payment of$903.13 due on December 1, 2008 and payments of$929.727ue on January 1, 2009 and February 1, 2009. You have the right to cure this default by March 7,2009. You do so by bringing the payments current on this loan. You must pay the Total Amount Past Due of$2,762.57 plus the next scheduled payment of$902.41 due on March 1, 2009 for a grand total of$3,664.98 by March 7,2009. Payments can be made to any of our offices in Iowa City, Coralville, North Liberty, Lisbon, Mt. Vernon, Wellman,Cedar Rapids, Marion, Kalona or Hills. This letter is notice to you that Hills Bank and Trust Company requires you to cure this default by March 7,2009. If you do not,the Bank can then proceed to enforce its right to foreclose on the mortgage covering this property. Enclosed for your reference is Iowa Code section 654.2D (see sub-section 3-7) which sets forth your right to cure. We recommend you contact your attorney. For your information the payoff for your loan as of May 9, 2006 is $25,680.92. Iowa law may give you the right to counseling services. Here are some nearby agencies that may be able to help: Hawkeye Area Community Action Program, Inc. Fain ily Management Credit Counselors, Inc. 1328 2nd Ave SE 1409 W 4"' Street Cedar Rapids IA 52 406-0789 Waterloo IA 50702-2907 Ph 319 366-7631 Ph 319 234-6695 C) ,__r-- on ;scabe's Center for Strategic Action Services for Homeowners Pro "' 1.1 312 Iowa Avenue 602 E 1" Street -,x "ri y Muscatine IA 52761-0618 Des Moines IA 50309-1812 ut op. ..'"'" Ph 563- 264-3276 Ph 515-283-4787 xa GN, n Or feel free to call HUD toll free @ 800-569-4287. z� IS Sinc iely, 'o" t W,I/ N.17.7--5t Dan Widmer Collection Officer Hills • Iowa City • Coralville North Liberty • Kalona • Cedar Rapids • Lisbon • Mount Vernon • Marion •Wellman hillsbank.com 1-800-445-5725 Hills Bank 131 Main Street Hills, Iowa 52235 and Trust Company 319-679-2291 654.2D NONAGRICULTURAL LAND -- NOTICE, RIGHT TO CURE DEFAULT I. Except as provided in section 654.2A,a creditor shall comply with this section before initiating an action pursuant to this chapter or initiating the procedure established pursuant to chapter 655A to foreclose on a deed of trust or mortgage. 2. A creditor who believes in good faith that a borrower on a deed of trust or mortgage on a homestead is in default shall give the borrower a notice of right to cure as provided in section 654.2B. A creditor gives the notice when the creditor delivers the notice to the consumer or mails the notice to the borrower's residence as defined in section 537.1201, sub-section 4. 3. The borrower has a right to cure the default within thirty days from the date the creditor gives the notice. 4. a. The creditor shall not accelerate the maturity of the unpaid balance of the obligation, demand or otherwise take possession of the land, otherwise than by accepting a voluntary surrender of it, or otherwise attempt to enforce the obligation until thirty days after a proper notice of right to cure is given. b. Until the expiration of thirty days after notice is given, the borrower may cure the default by tendering either the amount of all unpaid installments due at the time of tender, without acceleration, or the amount stated in the notice of right to cure, whichever is less, or by tendering any other performance necessary to cure a default which is described in the notice of right to cure. 5. The act of curing a default restores to the borrower the borrower's rights under the obligation and the deed of trust or mortgage. 6. This section does not prohibit the creditor from enforcing the creditor's interest in the land at any time after the creditor has complied with this section and the borrower did not cure the alleged default. 7. A borrower has a right to cure the default unless the creditor has given the borrower a proper notice of right to cure with respect to a prior default which occurred within three hundred sixty-five days of the present default. 8. This section does not apply if the creditor is an individual or individuals, or if the mortgaged property is property other than a one-family or two-family dwelling which is the residence of the mortgagor. 9. An affidavit signed by an officer of the creditor that the creditor has complied with this section is deemed to be conclusive evidence of compliance by all persons other than the creditor and the mortgagor. 87 Acts, ch 142, § 14 CD p1/40, O o C43 0 Hills • Iowa City • Coralville • North Liberty • Kalona • Cedar Rapids • Lisbon • Mount Vernon • Marion •Wellman hillsbank.com 1-800-445-5725 • IN THE IOWA DISTRICT COURT IN AND FOR JOHNSON COUNTY HILLS BANK & TRUST COMPANY, ) ) CASE NO. EQCV Plaintiff, ) AFFIDAVIT OF ATTORNEY'SN vs. ) FEES LESLIE THOMAS, JR., SONYA M. ) D� THOMAS, UNITED STATES OF ) n...0 N AMERICA, CBE GROUP, INC., H&R ) ern,. -vrn ACCOUNTS, INC., INSTANT CASH ) r*� j ADVANCE, INC. AND CITY OF IOWA ) c,., CITY, ) y 0) p Defendants. ) STATE OF IOWA ) ) ss. COUNTY OF LINN ) I, H. Raymond Terpstra II,being first duly sworn on oath, depose and state: That I am the attorney for the Plaintiff in the foregoing cause of action and that, as part of the cause of action herein, there is a claim for attorney fees pursuant to the note between the Plaintiff and Defendants. That, pursuant to Iowa Code § 625.24, there has been and is no agreement between me as an attorney for the Plaintiff and Plaintiff, express or implied, nor between myself and any other person except practicing attorneys engaged with me as attorney in this cause, for any division or sharing of the fee to be taxed. When said fee is taxed, it shall only be in favor of me as a regular attorney and as compensation for services actually rendered in this action. That Defendants have had, to the best of my information and belief, notice and reasonable opportunity to pay the sums due the Plaintiff and as alleged in the Plaintiffs Petition in Equity for r' r- o Foreclosure to which this Affidavit is attached. o Further,Affiant sayeth not. CO ""'' o r c.>N Citi _ `1X .grxg - ss " � A so N3> N --t 1�,� Dated this agid y of January, 2010. Respectfully submitted, r H. Dymond Terpstra II-.,, AT0007866 RPSTRA&_--P-PING 3600 First Avenue NE, Suite 101 ar Rapids, IA 52402 Telephone: (319) 364-2467 Fax: (319) 364-0923 Attorney for Plaintiff Subscribed and sworn to before me by H. Raymond Terpstra II thisaC_i_gay oiErlanuary, *t--) m "'f 2010. * 1 3>--4 CO IMIIIIIMI n-< N r .i c.w:t.i.e 5v-� -<i- 71 Notary Public in and for the State Stmiva w , > , CD t''' `i- MICHELLE SMEJKAL ° i COMMISSION NO. 189450 7'r MY COMMISSION EXPIRES row. '1-i--Ha .. C..- op w ,'� --An •73 CS t N 77 v242 CIVIL PROCESS WORKSHEET JOHNSON COUNTY SHERIFFS OFFICE • PO BOX 2540, 511 S CAPITOL ST, IOWA CITY, IA 52244-2540• (319)356-6030 PLAINTIFF: HILLS BANK& TRUST Docket No 10-00632 ] State IOWA vs. Court No EQCV071626 County JOHNSON DEFENDANT: THOMAS, LESLIE JR Ref No Received 02/01/2010 DEFENDANT : THOMAS, SONYA M Requestor(s) Phone TERPSTRA,H RAYMOND II (319)364-2467 Name CITY OF IOWA CITY Zone Party Type DEFENDANT Phone (319) 356-5030 Fax Address 410 E WASHINGTON ST IOWA CITY IA 52240- E-Mail I Employer Comments Documents Document Serve by Date OE PSR Description/Special Instructions ORIGINAL NOTICE AND I L PETITION Service Information Date vL-CZ-1 0 Time IS-Z Type f --y Go•JT Party �2 4-tO FAX-2 Relationship C . kr C ( i (_ Race LA--) Sex P DOB Location 4/6 L a,.ad Miles f vp Fee ( ,, Officer Ca Attempts Log Date Time Serves Notes Date Time Server Notes Notes: ti 1 Q N Printed:Monday,February 01,2010 Page 1 of 1 END OF CASE FILE • CIVIL PROCESS WORKSHEET JOHNSON COUNTY SHERIFFS OFFICE• PO BOX 2540, 511 S CAPITOL ST, IOWA CITY, IA 52244-2540 •(319) 356-6030 PLAINTIFF: E&L PRYBIL LMTD PARTNERSHIP Docket No 10-00757 —I State IOWA vs. Court No CVCV071594 County JOHNSON DEFENDANT: COMMUNICATION SRVCS ASSOC Ref No Received 02/08/2010 DEFENDANT: CITY OF IOWA CITY Requestor(s) Phone FOSTER.DAVIS (319)339-7727 Name CITY OF IOWA CITY Zone Party Type DEFENDANT Phone (319) 356-5030 Fax Address 1410 E WASHINGTON ST IOWA CITY IA 52240- E-Mail Employer' Comments 1 _ Documents Document Serve by Date OE PSR Description/Special Instructions ORDER 02/09/2010 ORIGINAL NOTICE AND ❑ ❑ _ 1 PETITION ^� Service Information `'!/ Date", -2--0$�1 6 \ Time onf dig 2-- Type C ! `Y GUuT Party rn� - A/`-' J A K" Relationship C t+-y C (e rKL Race Sex F DOB Location T 10 ;eo G-(-t,-- Miles / '66 Fee 'o' Officer • Attempts Log • Date Time Server Notes Date Time Server Notes Notes: . cry ysr CO ._cam c rr7 P3/46ti � ti Printed: Monday, February 08,2010 Page 1 of 1 • IN THE IOWA DISTRICT COURT IN AND FOR JOHNSON COUNTY E & L PRYBIL LIMITED ) rc PARTNERSHIP ) NO: G CA 0 31 ± Plaintiffs, ) ORDER SETTING HEARING ON Vs. ) TEMPORARY INJUNCTION A7Vb /'1 drtOA) ro "DiSm t$$ CITY OF IOWA CITY and JOINT ) EMERGENCY ) COMMUNICATION SERVICES ) ASSOCIATION OF ) JOHNSON COUNTY ) ) Defendants ) * * 11 NOW on this 23 day of January, 2010, the Court being presented with Plaintiffs' Petition for Temporary and Permanent Injunction, hereby sets this matter for it Al. day of 1'&) , 2010 at ' o'clock .m. Service hearing on the p is to be made on the Defendants' in the matter of service of an Original Notice at least 7 days before said hearing. 1�'`'°' -0-11-< ; Judge of the Sixth Judicial District o;. . Gam• L ._ fig`• Vh101 tAl313 AIM �`� c J . 8� :Z add 8- 83d 0102 a a311d • IN THE IOWA DISTRICT COURT IN AND FOR JOHNSON COUNTY E & L PRYBIL LIMITED ) PARTNERSHIP ) Plaintiffs, ) NO: CVC °7 Vs. ) ORIGINAL NOTICE CITY OF IOWA CITY and JOINT ) EMERGENCY ) o COMMUNICATION SERVICES ) ,Y, ASSOCIATION OF ) JOHNSON COUNTY O ca Defendants ) 7‹� ;7 rnri 3' p' t TO THE ABOVE-NAMED DEFENDANT: w You are hereby notified that there is now on file in the office of the Clerk of the above Court, a Petition at Law and Jury Demand in the above-entitled action, a copy of which Petition at Law and Jury Demand are attached hereto. The Plaintiff's attorney is Davis L. Foster, 720 S. Dubuque Street, P.O. Box 720, Iowa City, Iowa 52244, (319) 339-7727. You are further notified that unless you appear thereto and defend in the Iowa District Court for Johnson County, Iowa, at the county courthouse in Iowa City, Iowa, within twenty (20) days after the service of this Original Notice upon you,judgment by default will be rendered against you for the relief demanded in the Petition at Law and Jury Demand. (Seal) __� ' LERKOFTHE ' :OVECe RT Johnson County Courthouse Iowa City, Iowa NOTE: Person named as Defendant is told to "appear thereto and defend." These words are not always understood. The required appearance may be made either by the Defendant or by Defendant's attorneys. IT IS NECESSARY TO SERVE AND FILE A SPECIAL APPEARANCE, MOTION OR PLEADING TO PREVENT A DEFAULT (Rule 87). The attorneys who are expected to appear for the Defendant should be promptly advised by Defendant of the service of this notice. If you require the assistance of auxiliary aids or services to participate in court because of a disability, immediately call your district ADA coordinator at 319-398-3920. Ext. 1100 (If you are hearing impaired, call Relay Iowa TTY at 1-800-735-2942). C7 IN THE IOWA DISTRICT COURT IN AND FOR JOHNSON COialAY pD E & LPRYBILLIMITED ) c-s-‹ PARTNERSHIP ) tom'- �'TI Plaintiffs, ) NO: CVCV O r r Vs. ) PETITION FOR TEMPORARY AND ) PERMANENT INJUNCTION CITY OF IOWA CITY and JOINT ) EMERGENCY ) COMMUNICATION SERVICES ) o ASSOCIATION OF ) o� JOHNSON COUNTY ) (go y �' Defendants ) 'Ac N o: .o5(6 * * * * * * r1 t. oi 00 PREAMBLE 1. Plaintiff E & L Prybil Limited Partnership (Prybil) is a limited partnership whose general partners are Eldon R. Prybil and Lawrence D. Prybil, both individuals residing in Johnson County, Iowa. 2. Defendant Joint Emergency Communication Services Association of Johnson County (JECSA) is a public entity established pursuant to Chapter 28E of the Code of Iowa. All participants in the entity are governmental entities located in Johnson County, Iowa. 3. Iowa City (City) is a municipal corporation located in Johnson County, Iowa. 4. Prybil owns real property located in Johnson County, Iowa, including an 80 feet wide strip of real property which is adjacent to property owned by City. 5. City has leased the adjacent property to JECSA. 6. Prybil granted an access easement over the subject property which is being utilized by City/JECSA. 1 7. The access easement contains restrictions on the use of the property by the easement grantee as well as notice requirements. 8. JECSA has begun construction work on the property adjacent to the subject property. 9. Neither City nor JECSA notified Prybil of the construction prior to its beginning, in violation of the easement terms. 10.The initial phase of the construction has caused construction materials, including gravel, to be placed on the subject property, in violation of the easement terms. The placement of the materials, and the materials themselves, have caused damages to Prybil's property. 11.The grading work during the initial phase of the construction has diverted water onto the subject property and the ground formation left by the construction has created a permanent change in the location and quantity of the water flowing onto the Prybil's property, in violation of the easement terms and in violation of the Iowa Code. 12.Placement of marking pins on the adjacent property demonstrates that City/JECSA intend to construct a communications tower immediately adjacent to the subject property. 13.Location of the communications tower at the place indicated by the marking pins, will diminish the value, attractiveness, and utility of the subject property, will deprive the property of particular attributes which makes it particularly valuable and desirable, and will impair and destroy the view of Plaintiff. ti 0 0 np1 co : a 171 2 �,. ti J TEMPORARY INJUNCTION COMES NOW Plaintiff, through its attorney, and states the following cause of action against the Defendants: 14.Prybil repleads paragraphs 1 through 13 of the Preamble as if set out in full herein. 15.The construction work being done will cause irreparable injury to Plaintiff in its property, for which Plaintiff has no adequate remedy at law. 16.Unless restrained pending the trial hereof, Defendants will proceed to complete the threatened wrong. 17.This Petition has not been presented to or refused by any judge or justice. WHEREFORE, Plaintiff requests that a temporary injunction issue without notice restraining Defendants and their successors entitled to the premises on which the subject tower is being constructed from continuing the construction or from obstructing Plaintiffs view, and from placing construction materials on Plaintiff's property, and from diverting water onto Plaintiff's property, and that the Court immediately fix a time and place for hearing upon a temporary injunction and prescribe the notice therefor, and upon such hearing enjoin any construction of said structure and enjoin any further violation of the easement terms until after final hearing of this cause , and that try have o 0 >.� judgment against Defendants for costs. -<m rn 370N w 3 PERMANENT INJUNCTION COMES NOW Plaintiff, through its attorney, and states the following cause of action against the Defendants: 18.Prybil repleads paragraphs 1 through 13 of the Preamble as if set out in full herein. WHEREFORE, Plaintiff requests that a permanent injunction issue without notice restraining Defendants and their successors entitled to the premises on which the subject tower is being constructed from continuing the construction or from obstructing Plaintiffs view, and from placing construction materials on Plaintiff's property, and from diverting water onto Plaintiff's property, and from any further violation of the easement terms , and for such other relief as may be equitable, and that they have judgment against Defendants for costs. Dated this / OY1 day of January, 2010 3 rn FOSTER LAW OFFICE :71n �,.�„' �rn -o mc a ova � By: `, r�i__. avis L. Foster AT0002560 720 South Dubuque Street, Suite 1 P.O. Box 720 Iowa City, IA 52244-0720 Phone: (319) 339-7727 Fax: (319) 339-7712 Attorney for Plaintiffs 4 c ' IN THE IOWA DISTRICT COURT IN AND FOR JOHNSON COUNTY E & L PRYBIL LIMITED ) PARTNERSHIP ) 7 (� Plaintiffs, ) NO: AeAl , ( Vs. ) ORIGINAL NOTICE CITY OF IOWA CITY and JOINT ) EMERGENCY ) ^, COMMUNICATION SERVICES ) ASSOCIATION OF ) `� JOHNSON COUNTY ) >zi c C ( Defendants ) ry r"" 8l 3r ry TO THE ABOVE-NAMED DEFENDANT: cx) You are hereby notified that there is now on file in the office of the Clerk of the above Court, a Petition at Law and Jury Demand in the above-entitled action, a copy of which Petition at Law and Jury Demand are attached hereto. The Plaintiff's attorney is Davis L. Foster, 720 S. Dubuque Street, P.O. Box 720, Iowa City, Iowa 52244, (319) 339-7727. You are further notified that unless you appear thereto and defend in the Iowa District Court for Johnson County, Iowa, at the county courthouse in Iowa City, Iowa, within twenty (20) days after the service of this Original Notice upon you,judgment by default will be rendered against you for the relief demanded in the Petition at Law and Jury Demand. • (Seal) (SARK OF THEA OVE COURT -� Johnson County Courthouse Iowa City, Iowa NOTE: Person named as Defendant is told to "appear thereto and defend." These words are not always understood. The required appearance may be made either by the Defendant or by Defendant's attorneys. IT IS NECESSARY TO SERVE AND FILE A SPECIAL APPEARANCE, MOTION OR PLEADING TO PREVENT A DEFAULT(Rule 87). The attorneys who are expected to appear for the Defendant should be promptly advised by Defendant of the service of this notice. If you require the assistance of auxiliary aids or services to participate in court because of a disability, immediately call your district ADA coordinator at 319-398-3920. Ext. 1100 (If you are hearing impaired, call Relay Iowa TTY at 1-800-735-2942). (c: c.A f-r,J AL?C 1".... f IN THE IOWA DISTRICT COURT IN AND FOR JOHNSON COUNTY E & LPRYBILLIMITED ) PARTNERSHIP ) 7/5Plaintiffs, ) NO: eVOV G Vs. ) PETITION FOR TEMPORARY AND ) PERMANENT INJUNCTION CITY OF IOWA CITY and JOINT ) EMERGENCY ) COMMUNICATION SERVICES ) ASSOCIATION OF ) JOHNSON COUNTY ) Defendants ) r.. r , M * * w CDPREAMBLE oo 1. Plaintiff E & L Prybil Limited Partnership (Prybil) is a limited partnership whose general partners are Eldon R. Prybil and Lawrence D. Prybil, both individuals residing in Johnson County, Iowa. 2. Defendant Joint Emergency Communication Services Association of Johnson County (JECSA) is a public entity established pursuant to Chapter 28E of the Code of Iowa. All participants in the entity are governmental entities located in Johnson County, Iowa. 3. Iowa City (City) is a municipal corporation located in Johnson County, Iowa. 4. Prybil owns real property located in Johnson County, Iowa, including an 80 feet wide strip of real property which is adjacent to property owned by City. 5. City has leased the adjacent property to JECSA. 6. Prybil granted an access easement over the subject property which is being utilized by City/JECSA. 1 7. The access easement contains restrictions on the use of the property by the easement grantee as well as notice requirements. 8. JECSA has begun construction work on the property adjacent to the subject property. 9. Neither City nor JECSA notified Prybil of the construction prior to its beginning, in violation of the easement terms. 10.The initial phase of the construction has caused construction materials, including gravel, to be placed on the subject property, in violation of the easement terms. The placement of the materials, and the materials themselves, have caused damages to Prybil's property. 11.The grading work during the initial phase of the construction has diverted water onto the subject property and the ground formation left by the construction has created a permanent change in the location and quantity of the water flowing onto the Prybil's property, in violation of the easement terms and in violation of the Iowa Code. 12.Placement of marking pins on the adjacent property demonstrates that City/JECSA intend to construct a communications tower immediately adjacent to the subject property. 13.Location of the communications tower at the place indicated by the marking pins, will diminish the value, attractiveness, and utility of the subject property, will deprive the property of particular attributes which makes it particularly valuably, and desirable, and will impair and destroy the view of Plaintiff. ti 03 2 TEMPORARY INJUNCTION COMES NOW Plaintiff, through its attorney, and states the following cause of action against the Defendants: 14.Prybil repleads paragraphs 1 through 13 of the Preamble as if set out in full herein. 15.The construction work being done will cause irreparable injury to Plaintiff in its property, for which Plaintiff has no adequate remedy at law. 16.Unless restrained pending the trial hereof, Defendants will proceed to complete the threatened wrong. 17.This Petition has not been presented to or refused by any judge or justice. WHEREFORE, Plaintiff requests that a temporary injunction issue without notice restraining Defendants and their successors entitled to the premises on which the subject tower is being constructed from continuing the construction or from obstructing Plaintiffs view, and from placing construction materials on Plaintiff's property, and from diverting water onto Plaintiff's property, and that the Court immediately fix a time and place for hearing upon a temporary injunction and prescribe the notice therefor, and upon such hearing enjoin any construction of said structure and enjoin any further violation of the easement terms until after final hearing of this cause , and that they have judgment against Defendants for costs. " Z7 1.773 ^, co PERMANENT INJUNCTION COMES NOW Plaintiff, through its attorney, and states the following cause of action against the Defendants: 18.Prybil repleads paragraphs 1 through 13 of the Preamble as if set out in full herein. WHEREFORE, Plaintiff requests that a permanent injunction issue without notice restraining Defendants and their successors entitled to the premises on which the subject tower is being constructed from continuing the construction or from obstructing Plaintiffs view, and from placing construction materials on Plaintiff's property, and from diverting water onto Plaintiff's property, and from any further violation of the easement terms , and for such other relief as may be equitable, and that they have jimer ca against Defendants for costs. 5:3=4 co — �-< N rr CD :{'� -0 MDated this +V} day of January, 2010 v N, FOSTER LAW OFFICE CO By: allIP,„ Moe - OIPPP Davis L. Foster AT0002560 720 South Dubuque Street, Suite 1 P.O. Box 720 Iowa City, IA 52244-0720 Phone: (319) 339-7727 Fax: (319) 339-7712 Attorney for Plaintiffs 4 IN THE IOWA DISTRICT COURT IN AND FOR JOHNSON COUNTY E & L PRYBIL LIMITED ) PARTNERSHIP ) NO: C A C--\)°-11-5-1 Plaintiffs, ) ) ORDER SETTING HEARING ON Vs. ) TEMPORARY INJUNCTION A71J? PIrnOA) 7im(sS CITY OF IOWA CITY and JOINT ) EMERGENCY ) COMMUNICATION SERVICES ) ASSOCIATION OF ) JOHNSON COUNTY ) ) Defendants ) NOW on this Z3 day of January, 2010, the Court being presented with Plaintiffs' Petition for Temporary and Permanent Injunction, hereby sets this matter for 11 hearing on the 1 day of , 2010 at 1 o' ' clockP .m. Service is to be made on the Defendants' in the matter of service of an Original Notice at least 7 days before said hearing. 1 t r � � `- `s'�` wit • l Judge of the Sixth Judicial District V 01 'A113 VA 01 L . `D - e1370 A113 .. zr_:r 82 :0 14d Z- 833 010Z g 0 311 d �� • CIVIL PROCESS WORKSHEET JOHNSON COUNTY SHERIFFS OFFICE • PO BOX 2540, 511 S CAPITOL ST, IOWA CITY, IA 52244-2540• (319) 356-6030 PLAINTIFF : E&L PRYBIL LIMITED PARTNERSHI Docket No 10-00643 State IOWA VS. Court No CVCV071594 County JOHNSON DEFENDANT: CITY OF IOWA CITY Ref No Received 02/02/2010 DEFENDANT: JOINT EMERGENCY COMM. SRVC Requestor(s) Phone FOSTER,DAVIS (319)339-7727 Name CITY OF IOWA CITY Zone Party Type DEFENDANT Phone (319) 356-5030 Fax Address 410 E WASHINGTON ST IOWA CITY IA 52240- E-Mail Employer Comments • Documents Document Serve by Date OE PSR Description/Special Instructions ORDER 02/09/2010 u _ ORIGINAL NOTICE AND ❑ ❑ PETITION Service Information Date a Z • a 1---/n° Time t S 2- (4, Type C- t y Go a- Party VAT- ZAP /A f-I Relationship L( c taVIC Race GA—) Sex (P- DOB Location Q C S(x,:,'1(0 .L-c; Miles 1 `OD Fee I ciUO Officer 3-)--1 Attempts Log Date Time Server Notes Date Time Server Notes Notes: 211: E. -lc N r- o N p Printed:Tuesday,February 02,2010 Page 1 of 1 END OF CASE FILE CIVIL PROCESS WORKSHEET JOHNSON COUNTY SHERIFFS OFFICE• PO BOX 2540, 511 S CAPITOL ST, IOWA CITY, IA 52244-2540 • (319) 356-6030 PLAINTIFF: SAC HOME LOANS Docket No 110-01032 State !IOWA vs. Court No EQCV071704 County JOHNSON DEFENDANT: BRITTON, MICHEAL LEWIS Ref No Received 02/19/2010 Requestor(s) Phone HOPKINS,BENJAMIN W (515)222-9400 Name CITY OF IOWA CITY Zone Party Type DEFENDANT Phone (319)356-5030 Fax Address 410 E WASHINGTON ST 1 IOWA CITY IA 52240- E-Mail Employer Comments Documents Document Serve by Date OE PSR Description/Special Instructions ORIGINAL NOTICE AND PETITION Service Information Date 027 2:1-13 Time (g`T'` Type C,1 y G V 6-RA1 M EAJT Party s ik, 4(ze_. Relationship Race W Sex Y' DOB Location 4r O c W/St i\)(.9 Miles ) •W Fee kc (.1. Officer Attempts Log Date Time Server Notes Date Time Server Notes Notes: d Q O g *C) r Y A c")-(: N $�� C? rnCD�'1. N CI1 Printed: Friday,February 19,2010 Page 1 of 1 36360 IN THE IOWA DISTRICT COURT FOR JOHNSON COUNTY BAC HOME LOANS 13-2631719 : SERVICING, L.P. FKA COUNTRYWIDE < L 1\ ,.J 7( HOME LOANS SERVICING, L. P. • ORIGINAL NOTICE Plaintiff, : vs . MICHAEL L. BRITTON; • • SPOUSE OF MICHAEL L. • BRITTON, IF ANY; • STATE OF IOWA, IOWA • DEPARTMENT OF REVENUE `� ' o AND FINANCE; • n ri 71 STATE OF IOWA; • x''--; W THE CITY OF IOWA CITY, n IN) r__ IOWA; • M UNITED STATES OF • -70 AMERICA, INTERNAL N REVENUE SERVICE; • cin Defendants. : TO THE ABOVE NAMED DEFENDANTS : You are notified there is a petition now on file in the office of the clerk of the above court . A copy of this filing is attached hereto. The Plaintiff ' s attorneys are Petosa, Petosa & Boecker, L.L. P. , by Benjamin W. Hopkins , whose address is 1350 NW 138th Street, Suite 100, Clive, Iowa 50325-8308 . The Plaintiff ' s attorney' s phone number is (515) 222-9400, with a facsimile transmission number of (515) 222-9121 . You must serve a motion or answer, within 20- days after service of this original notice upon you and within a reasonable time thereafter file a motion or answer, in the Iowa District Court of Johnson County, at the county courthouse in Iowa City, Iowa. If you do not, judgment by default' may be rendered against you for the relief demanded in the petition. If assistance of auxiliary aids or services is required to participate in court due to a disability such as hearing impairment, call the Americans with Disabilities Coordinator at (319) 398-3920 "c5if you are iff need of dual party telephone relay services, call Relay Iowa TTY at 1-800-735-2942 . CC Ca) (CAW on(4) Cle of the Above Court' �1 r\C v1 C C / Johnson County Courthouse Iowa City, Iowa 52244-2510 YOU ARE ADVISED TO SEEK LEGAL ADVICE AT ONCE TO PROTECT YOUR INTERESTS. d 'o .111 • C� 636 IN THE IOWA DISTRICT COURT FOR JOHNSON COUNTY n 1,3 • BAC HOME LOANS 13-2631719 S SERVICING, L. P. FKA COUNTRYWIDE • �n � f O. \ HOME LOANS SERVICING, 07 (7 J L. P. PETITION Plaintiff, : vs. • _ MICHAEL L. BRITTON; 0...)? °'. SPOUSE OF MICHAEL L. • BRITTON, IF ANY; • � STATE OF IOWA, IOWA �-(1)+ ` � � DEPARTMENT OF REVENUE ,- AND FINANCE; • [�� N STATE OF IOWA; 3, THE CITY OF IOWA CITY, • IOWA; • UNITED STATES OF • AMERICA, INTERNAL • REVENUE SERVICE; • Defendants . . NOTICE THE PLAINTIFF HAS ELECTED FORECLOSURE WITHOUT REDEMPTION. THIS MEANS THAT THE SALE OF THE MORTGAGED PROPERTY WILL OCCUR PROMPTLY AFTER ENTRY OF JUDGMENT UNLESS YOU FILE WITH THE COURT A WRITTEN DEMAND TO DELAY THE SALE. IF YOU FILE A WRITTEN DEMAND, THE SALE WILL BE DELAYED UNTIL SIX MONTHS FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS YOUR RESIDENCE AND IS A ONE-FAMILY OR TWO-FAMILY DWELLING OR UNTIL TWO MONTHS FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS NOT YOUR RESIDENCE OR IS RESIDENCE BUT NOT A ONE-FAMILrY OR TWO-FAMILY DWEIJLING. YOU WILL HAVE NO RIGHT OF REDEMPTION AFTER THE SALE. THE PURCHASER AT THE SALE WILL BE ENTITLED TO IMMEDIATE POSSESSION OF THE MORTGAGED PROPERTY. YOU MAY PURCHASE AT THE SALE. 1 • Plaintiff, BAC Home Loans Servicing, L. P. fka Countrywide Home Loans Servicing, L.P. , for its cause of action states : 1 . That the Plaintiff is a corporation doing business in the United States of America. 2 . That on or about December 4, 2006 , Michael L. Britton and Lois M. Britton made, executed and delivered a promissory note in writing for the sum of $115, 300 . 00 payable in installments, with interest at 6 . 5% per annum from such date (the "Note") . A copy of the Note is attached hereto and made a part hereof as Exhibit "A" . 3 . That on or about December 4, 2006 in order to secure the payment of the Note, Michael L. Britton and Lois M. Britton (the "Mortgagor(s) " ) made, executed and delivered to Mortgage Electronic Registration Systems, Inc . , a real estate mortgage (the "Mortgage") on the following described real estate (thg, 11 "Mortgaged Property") : rri CO ...woo -- 1 Lot Seventy-Seven (77) in Block Five (5) , in_ Third._< 71 3 Highland Development Addition to Iowa City, Iowa, C according to the recorded plat thereof o N s" the Mortgage was filed for record December 8, 2006, in Book 4109, Page 161 in the Recorder' s Office of Johnson County, Iowa. A copy of the Mortgage is attached hereto and made a part hereof as Exhibit "B" . Said mortgage is a Purchase Money Mortgage. 2 4 . That the Mortgaged Property is and at all times relevant hereto was the homestead of the Mortgagor (s) . 5 . That the Plaintiff is currently the holder of record of the Note and Mortgage. 6 . That the Plaintiff is the sole and absolute owner of the Mortgage; that the Note and Mortgage provide that if default be made at any time in payment of any installment of principal or interest, at the election of the Plaintiff, all indebtedness, without notice of such election, shall become immediately due and payable; that the Plaintiff by reason of the failure of the Mortgagor(s) to pay said installments, declares the Note in default, that there is now due and owing the Plaintiff the sum of $111, 504 . 34 with interest at 6 . 5% per annum from and including September 1, 2009 plus late fees, attorney fees, abstract expense, protective advances and costs . 7 . That the Plaintiff has given the Mortgagor (s) all required notices, including notice of right to cure said default and notice of acceleration required pursuant to Iowa; Code Section 654 .4B (1) , and to date has received no rest f thereto. .--4{n ..� 8 . That the time to cure the default under Iowa 10haW ut now expired. 9 . That said Note and Mortgage provide that if suit be commenced thereon, Mortgagor (s) will pay reasonable attorneys ' 3 fees . An attorneys ' fee affidavit is attached hereto and made a part hereof as Exhibit "C" . 10 . That the Plaintiff now hereby in writing waives any right or claim to a deficiency judgment against the Mortgagor (s) . That the Mortgaged Property is the residence of the Mortgagor (s) and is a one-family or two-family dwelling. The Plaintiff hereby elects to foreclose without redemption and the sale of the Mortgaged Property shall occur promptly after en*ry of judgment, unless the Mortgagor (s) , pursuant to the Notice set forth above, files a written demand to delay the sale, in which event the sale shall be delayed until six months after entry of judgment . 11 . That the following parties are named as Defendant (s) because they claim some right, title or interest in the Mortgaged Property, including, without limitation a right, title or interest as described below but any- such right, title or interest is junior and inferior to the interest of C' p c� -*1 Plaintiff : .-t ® c 2-G N � N • The City of Iowa City, Iowa, $3; 525 . 00 Mortggc, r dated October 19, 2000, filed November 8, 20 ,j Book 3017, Page 163 , (Subordination Agreemer � filed December 8, 2006 in Book 4109, Page l'a') cn (Amendment of Mortgage filed 12/28/00 in Book 3027, Page 261) • The City of Iowa City, Iowa, $12 , 348 . 00 Mortgage, dated September 28 , 2004 , filed October 4, 2004 , Book 3801, Page 553, (Subordination Agreement filed December 8, 2006 in Book 4109, Page 172) 4 • The City of Iowa City, Iowa, $2, 179 . 00 Mortgage, dated September 28, 2004, filed October 4, 2004, Book 3801, Page 558, (Subordination Agreement filed December 8, 2006 in Book 4109, Page 172) • State of Iowa, Judgment, dated August 20, 2008, filed August 20, 2008, FECR082603 , costs • Spouse of Michael L. Britton, if any, for any interest in the subject property • State of Iowa, Iowa Department of Revenue and Finance, for possible inheritance tax due as a result of the death of Lois M. Britton on November 29, 2008 • United States of America, Internal Revenue Service, for possible estate tax due as a result of the death of Lois M. Britton on November 29, 2008 12 . That the Mortgage provides that any time after the proper commencement of an action in foreclosure or during the period of redemption, the Court having jurisdiction of the case shall, at the request of the Plaintiff, appoint a receiver to take immediate possession of the Mortgaged Property and of the rents and profits accruing therefrom, to rent the same as he may deem best for the interest of all parties concerned and shall be liable to account to the Mortgagor (s) only for the net profits after application of rents, issues and profits upon the cost of the expense of receivership and foreclosure and the indebtedness, charges and expenses hereby secured andaerei D-4 a 6 mentioned. n,4( Na ==.n N 7< --0 ri r„.) v � 5 WHEREFORE THE PLAINTIFF PRAYS THE COURT: 1 . That the Plaintiff have judgment in rem against the Mortgaged Property for the amount of unpaid principal and interest on the Note, as provided in the Note and Mortgage and for late fees, attorney fees, abstract expense, protective advances and costs . 2 . That a receiver be appointed immediately to take care of, manage, lease and collect the rents from the Mortgaged Property, and to apply the same in payment of costs and expenses of said receivership, repairs and expenses of said real estate, accrued and accruing taxes and special assessments, insurance premiums, and in partial payment of the judgment to be entered herein. 3 . That said judgment, together with interest, late fees, attorney fees, abstract expense, protective advances, costs and accruing costs be decreed a prior lien upon the Mortgaged Property from the date of the Mortgage, and that all rights, interests and equities of all Defendants to this suit be declared junior to the right, title and interest of titen D- c Plaintiff . =c) N i 7(t" -v m 4 . That in the event Plaintiff is required to m8glip protective advances, includirig without limitation, advanceCfor taxes or insurance on the Mortgaged Property, the Plaintiff be given an additional lien thereon for such amounts so advanced, which shall be included in the judgment to be entered herein. 6 5 . That the Mortgage be foreclosed and the Defendant (s) ' equity of redemption be barred and foreclosed save as guaranteed by law. That special execution issue for the sale the Mortgaged Property to satisfy said judgment, interest, late fees, attorney fees, abstract expense, protective advances and costs . 6 . That special execution issue to satisfy said judgment, interest and attorneys ' fees, and accruing costs herein, and the Mortgaged Property be sold according to law to satisfy the amount due under the Decree issued by this Court and the Defendants herein or anyone claiming by, through or under them, be forever barred and foreclosed of any interest in the Mortgaged Property, except such rights of redemption asCD provided by law. �? m c-s'( ) 7 . That if the Mortgaged Property is sold and not c, rnt.n redeemed, the Clerk of this Court shall issue to the S if ,of % said County, a writ of removal and possession, commanding hi'M to put the grantee named in the Sheriff ' s deed for said premises sold, or his grantee, in possession thereof, and to remove any Defendants, or persons claiming by, through or under any of them, or any person in possession thereof out of such possession. ' r 8 . That the Plaintiff has elected foreclosure without redemption and the sale of the Mortgaged Property shall occur promptly after entry of judgment or in the alternative, if a 7 written demand for delay is filed, the sale shall occur six months after entry of judgment . 9 . That the Plaintiff be granted such further relief as may be just and equitable. PETOSA, PETOSA & BOECKER, L.L.P. BY // Be/ JW .pkin�, AT0003573 1 �:� i E :t St , site 100 / f e, Iowa 5$ 25-8308 ephone : (515) 222-9400 acsimile : (515) 222-9121 ATTORNEYS FOR PLAINTIFF 0 a -til -71 `-`• -► — OOH ? • t. r 8 � Prepared by:JACKIE K.WOLUE LOAN (Pi 0 Cr �( NOTE ) ,a ." • ;A r� G:1". DECEMBER 04, 2006 CEDAR RAPIDS IOWA (Date) [City) [State] 1406 SPRUCE ST, IOWA CITY, IA 52240-2724. [Property Address) I. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. $ 115,300_00 (this amount is called "Principal"),plus interest,to the order of the Lender-The Lender is COUNTRYWIDE HOME LOANS, INC. I will make all payments under this Note in the form of cash,check or money order. I understand that the Lender may transfer this Note. The Lender or anyone who takesithis Note by transfer and who is entitled to receive payments under this Note is called the"Note Holder." 2. INTEREST interest will be charged on unpaid principal until the full amount of Principal has been paid.I will pay interest at a yearly rate of 6.500 %. The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 6(B) of this Note. 3. PAYMENTS (A)Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payment on the FIRST day of each month beginning on JANUARY 01, 2007 .I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal.If,on DECEMBER 01, 2036 ,I still owe amounts under this Note,I will pay those amounts in full on that date,which is called the"Maturity Date." I will make my monthly payments at P.O. Box 660694, Dallas, TX 75266-0694 or at a different place if required by the Note Holder. (B)Amount of Monthly Payments My monthly payment will be in the amount of U.S.$728.77 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due.A payment of Principal only is known as a "Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under the Note. I may make a full Prepayment or partial Prepayments without paying a Prepayment charge.The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note.However,the Note Holder may apply my Prepayment to the accrued and unpaid interest on the Prepayment amount,before applying my Prepayment to reduce the Principal amount of the Note. If I make a partial Prepayment, there will be no changes in the doe date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. 5. LOAN CHARGES If a law,which applies to this loan and which sets maximum loan charges,is 4Inally interpreted so that the interest or other • loan charges collected or to be collected in connection with this loan exceed the permitted limits,then: (a)any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b)any sums already collected from me which exceeded permitted limits will be refunded to me.The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me.If a refund reduces Principal,the reduction will be treated as a partial Prepayment 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A)Late Charge for Overdue Payments I If the Note Holder has not received the full amount of any monthly payment by the end of FIFTEEN calendar days after the date it is due,I will pay a late charge to the Note Holder.The amount of the charge will be 5.000 %of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B)Default If I do not pay the full amount of each monthly payment:on the date it is due,I will be int default. MULTISTATE FIXED RATE NOTE-Singte Family-Fannie Mae/Freddle Mac UNIFORM INSTRUMENT InmTle: _ VA 1R y Page t of 2 Cr)-5N(0207).01 CHL(010/04)(d) VMP Mortgage Solutions,Inc.(800)521-7291 Form 3200 1/01 11 EXHIBIT 2 3 9 9 1 " ^ , 0 0 2 0 0 5 N ` • LOAN #: (C)Notice of Default If I am in default,the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of Principal which has not been paid and all the interest that I owe on that amount.That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. (D)No Waiver By Note Holder Even if,at a time whcn I am in default,the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (E)Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above,the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable jaw.Those expenses include,for example,reasonable attorneys'fees. 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by delivering it or by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if 1 am given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note,each person is fully and personally obligated to keep all of the promises made in this Note,including the promise to pay the full amount owed.Any person who is a guarantor,surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations,including the obligations of a guarantor,surety or endorser of this Note,is also obligated to keep all of the promises made in this Note.The Note Holder may enforce its rights under this Note against each person individually or against all of us together.This means that any one of us may be required to pay all of the amounts owed under this Note. 9. WAIVERS I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions.In addition to the protections given to the Note Holder under this Note,a Mortgage, Deed of Trust,or Security Deed(the"Security Instrument"),dated the same date as th's Note,protects the Note Holder from possible losses which might result if I do not keep the promises which I make in this Note.That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note-Some of those conditions are described as follows: If all or any part of the Property or any Interest in the Property is sold or transferred(or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However,this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option,Lender shall give Borrower notice of acceleration.The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument.If Borrower fails to pay these sums prior to the expiration of this period,Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. N v CD -ri co I �.y Ci Irl , f D—? co . ... -- c-,-< N 1 •- --In rna Y I WITNESS THE HAND(S) EAL(S)OF THE UNDERSIGNED. (Seal) -r 7,) . j �ea: (Seal) MICfITEL L. BRITTON -Borrower LOIS M. BRITTON r -Borrower (Seal) _ (Seal) -Borrower -Borrower [Sign Original Only) 42:1;.6,)-51,7(0207).ot CHL(10/04) Page 2 of 2 Form 3200 1)01 ?age 1 of 11) I! I11011p11rry1 1111AW1Mp Doc ID: 020727690011 Type: OEN if Recorded: 12/08/2006 at 04:19:21 PM Fee Ant: $57.00 Paae 1 of 11 Johnson County Iava Kim Painter County Recorder 4109 PD161-171 [Space Above This Line For Recording Dada] • Prepared By: JACKIE K. WOLFE COUNTRYWIDE HOME LOANS, INC. 1190 TWIXT TOWN RD NE CEDAR RAPIDS IA 52402 d • Phone: (319)377-9495 - e1 -T1 After Recording Return To: p- COUNTRYWIDE HOME LOANS, INC. , N MS SV-79 DOCUMENT PROCESSING • P.O.Box 10423 r Van Nuys, CA 91410-0423 E Full Legal Description located on page 3 O' N Lender name located on page 2. —' [Eke :0 ti MORTGAGE MIN 1000157-0007308393-9 DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, !I, 13,18.20 and 21.Certain rules regarding the usage of words used in this document are also provided in Section 16. (A) "Security Instrument" means this document, which is dated DECEMBER 09, 2006 ,together with all Riders to this document (B)"Borrower"is MICHAEL L BRITTON, A SINGLE PERSON, AND LOIS N BRITTON, A SINGLE PERSON • Borrower is the mortgagor under this Security Instrument. IOWA-Single Family-Fannie Mae/Freddle Mac UNIFORM INSTRUMENT WITH MERS Pagel of 11 -6A(IA)I04o5) CHL(12105)(d) VMP Mortgage Souuttons,In,. Form 30161/01 r 1, 1 , . . 111111111 ' I i• � 1,11111,1i 2 3 9 9 1 ' 0 2 0 0 6 A EXHIBIT •s 3 . _...Book 4109. Paae. 111.. 1i.1.P ::umber ?age 2 of 11) DOC ID A': (C)"NIERS"is Mortgage Electronic Registration Systems,Inc.MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns.MERS is the mortgagee under this Security Instrument.MERS is organized and existing under the laws of Delaware,and has an address and telephone number of P.O.Box 2026,Flint,MI 48501-2026,teL(888)679-MERS. (1))"Lender"is COUNTRYWIDE HOME LOANS, INC. Lender is a CORPORATION organized and existing under the laws of NEW YORK Lender's address is 4500 Park Granada MSN$ SVB-314, Calabasas, CA 91302-1613 • (E) "Note" means the promissory note signed by Borrower and dated DECEMBER 09, 2006 .The Note states that Borrower owes Lender ONE HUNDRED FIFTEEN THOUSAND THREE HUNDRED and 00/100 Dollars(U.S.S 115,300.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than DECEMBER 01, 2036 . (F) "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. (II) "Riders" means all Riders to this Security Instrument that are executed by Borrower.The following r—, Riders are to be executed by Borrower[check box as applicable]: 0Adjustable Rate Rider 0 Condominium Rider El Second Home Rider HBalloon Rider FRPlanned Unit Development Rider 1-4 Family Rider VA Rider Biweekly Payment Rider Other(s)[specify] y-"-ri•+l N (1) "Applicable Law" means all controlling applicable federal. state and local statutes, regulations, �o� ordinances and administrative rules and orders (that have the effect of law)as well as all applicable final, rfl non-appealable judicial opinions. (J) "Community Association Dues, Fees,and Assessments" means all dues, fees,assessments and other d N charges that are imposed on Borrower or the Property by a condominium association,homeowners association 5. or similar organization. (K)"Electronic Funds Transfer"means any transfer of funds,other than a transaction originated by check, draft,or similar paper instrument,which is initiated through an electronic terminal, telephonic instrument, computer,or magnetic tape so as to order,instruct,or authorize a financial institution to debit or credit an account Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions,transfers initiated by telephone,wire transfers,and automated clearinghouse transfers. (L)"Escrow Items"means those items that are described in Section 3. (M)"Miscellaneous Proceeds"means any compensation,settlement,award of damages,or proceeds paid by any third party(other than insurance proceeds paid under the coverages described in Section 5)for.(i)damage to,or destruction of,the Property;(ii)condemnation or other taking of all or any part of the Property;(iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or _ condition of the Property. (N)"Mortgage Insurance"means insurance protecting Lender against the nonpayment of,or default on,the Loan. (0)"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 seq.)and its implementing regulation,Regulation X(24 C.F.R.Part 3500),as they might be amended from time to time,or any additional or successor legislation or regulation that governs the same subject matter.As used in this Security Instrument. "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan"even if the Loan does not qualify as a"federally related mortgage loan" under RESPA- (Q)"Successor in interest of Borrower"means any party that has taken title to the Property,whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender:(i)the repayment of the Loan,and all renewals,extensions and modifications of the Note; and (ii) the performance of Borrower's,ovenants and agreements under this Security Instrument and the Note.For this purpose, Borrower irrevocably mortgages,grants and conveys tat MERS(solely as nominee for Lender and Lender's successors and assigns)and to the successors and assigns of MERS,with power of sale,the following described property located in the COUNTY of JOHNSON Hype of Recording Jurisdiction! (Name of Recording Jurisdiction) CD-6A(IA)(0405) CHL(12105) Page 2 d t h Form 3016 1101 - - ----Book 4109. Paae 161. File Number •aye 3 of 11) DOC ID A: LO7 SEVENTY-SEVEN (77) IN BLOCK FIVE (5), IN THIRD HIGHLAND DEVEIOPMENT ADDITION 10 IOWA CITY, IOWA, ACCORDING TO THE RECORDED PLAT THEREOF. Parcel ID Number.1C14376004 which currently has the address of 1406 SPRUCE ST, IOWA. CITY (SrrreuCnyl Iowa 52240-2724 ("Property Address"): 17.43 Code) TOGETHER WITH all the improvements now or hereafter erected on the property,and all easements, t► appurtenances,and fixtures now UT hereafter a part of the properly.All replacements and additions shall also he covered by this Security Instntment.All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in this Security Instrument,but.if necessary to comply with law or custom.MERS(as nominee for Lender and Lender's successors and assigns)has the right:to exercise any or all of these interests,including, but nut limited to, the right to foreclose and sell the Property; and to take any action required of Lender o including,but not limited to,releasing and canceling this Security Instrument dORP WhR COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the n m- right to grant and convey the Property and that the Property is unencumbered,except for encumbrances of D \ record.Borrower warrants and will defend generally the title to the Property against all claims and demands, Ca subject to any encumbrances of record. �.. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform C, N covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real rn properly. •01 "O UNIFORM COVENANTS.Borrower and Lender covenant and agree as follows: 7-0 N I.Payment of Principal,Interest,Escrow Items,Prepayment Charges,and Late Charges.Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However,if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid,Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms,as selected by Lender: (a)cash;(b)money order;(c)certified check,bank check,treasurer's check or cashier's check,provided any st:ct...heck is ur..sn upon an institution whose deposits arc insured by a federal agency, instrumentality,or entity;or(d)Electronic Funds Transfer. Payments arc deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15.Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the _. Loan current. Lender may accept any payment or partial payment insufficient to bring the Leon current, ,_ without waiver of any rights hereunder or prejudice.to its rights to refuse such payment or partial payments in the future,but Lender is not obligated to apply such payments at the time such payments are accepted.If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current.If Borrower does not do so within a reasonable period of time. Lender shall either apply such putts or return them to Borrower.If not applied earlier,such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure.No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2.Application of Payments or Proceeds.Except as otherwise described in this Section 2,all payments accepted and applied by Lender shall be applied in the following order of priority:(a)interest due under the Note;(b)principal due under the Note;(c)amounts due under Section 3.Such payments shall be applied to each Periodic Payment in the order in which it became due.Any remaining amounts shall be applied first to late charges,second to any other amounts due under this Security Instrument,and then to reduce the principal balance c$f the Note. 44:1:1-64(1A)trios! CHL(12105) Page 3 ct It Form 3016 1/01 • Book 4109. Pane 161. File Number Page 4 of 11) COC It) t: If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due,the payment may be applied to the delinquent payment and the • !ate charge.If mo-c than one Periodic Payment is outstanding,Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if,and to the extent that,each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to tiny late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments,insurance proceeds,or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date,or change the amount,of the Periodic Payments. 3.Funds for'Escrow Items.Borrower shall pay to Lender on the day Periodic Payments are due under the Note,until the Note is paid in full,a sum(the"Funds")to provide for payment of amounts due for. (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Properly:(b)leasehold payments or ground rents on the Property,if any;(c)premiums for any and all insurance required by Lender under Section 5;and(d)Mortgage Insurance premiums,if any,or tiny sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10.These items are called"Escrow Items."At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees. and A.s:'essmenLs,if any,be escrowed by Borrower,and such dues,ices and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section.Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items.Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing.In the event of such waiver,Borrower shall pay directly,when and where payable, the amounts due for any Escrow Items for which payment of Funds has (t~� Peen waived by Lender and. if Lender requires,shall furnish to Lender receipts evidencing such payment 0 c within such time period as Lender may require.Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security p Y Instrumer.., as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay er N Escrow Items directly,pursuant to a waiver,and Borrower fails to pay the amount due for an Escrow Item, -13 Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated y y under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and,upon such revocation,Borrower shall J •• pay to Lender all Funds,and in such amounts.that arc then required under this Section 3. Lender may.at any time,collect and hold Funds in an amount(a)sufficient to permit Lender to apply the Funds at the time specified under RESPA,and(h)not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits arc insured by a federal agency,instrumentality, or entity(including Lender,if Lender is an institution whose deposits arc so insured)or in any Federal Home Loan Bank.Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA.Lender shall not charge Borrower for holding and applying the Funds,annually analyzing the escrow account,or verifying the Escrow Items,unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds,Lender shall not he required to pay Borrower any interest or earnings nn th"Funds. Bo-rower and Lender can agree in writing,however,that interest shall be paid on the Funds. Lender shall give to Borrower,without charge.,an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow,as defined under RESPA,Lender shall account to Borrower for the excess funds in accordance with RESPA.If there is a shortage of Funds held in escrow,as defined under RESPA.Lender shall notify Borrower as required by RESPA,and Bnrrnwer shall pay tn.Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than,,2 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA,but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument,Lender shall promptly refund to Borrower any Funds held by Lender. 4.Charges;Liens.Borrower shall pay all taxes,assessments,charges,fines,and impositions attributable to the Property which can attain priority over this Security Instalment,leasehold payments or ground rents on the Property,if any.and Community Association Dues,Fees,and Assessments,if any.To the extent that these items are Escrow Items,Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower.(a)agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender,but only so long as Borrower is performing such agreement;(b)contests the lien in good faith by.or defends against enforcement of the lien in,legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending,but only until such proceedings arc concluded. or(c)sicures 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 -6A(IA)(041)51 CHL(12/051 Pape 4 nt n Form 3016 1101 - Book 4109. Pane 161. File Number Page 5 of 11) DOC ID 8: priority over this Security Instrument.Lender may give Borrower a notice identifying the lien.Within 10 days of the date on which that notice is given,Borrower shall satisfy the lien or take one or more of the actions set full above in this Section 4. Lender may require Burrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5.Property Insurance.Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire.hazards included within the term"extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts(including deductible levels)and for the periods that Lender requires.What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the Insurance shall he chosen by Borrower subject to Lender's right to disapprove Borrower's choice,which right shall not he exercised unreasonably.Lender may require Borrower to pay,in connection with this Loan,either.(a)a one-time charge for flood zone determination.certification and tracking services;or(b)a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification.Borrower shall also he responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage,at Lender's option and Borrower's expense.Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Tender,but might or might not protect Borrower. Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or iiahility and might provide greater or lesser coverage than was previously in effect.Burrower acknowledges v 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 o 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 s+ requesting payment. "' N All insurance policies required by Lender and renewals of such policies shall he subject to Lender's right n fv to disapprove such policies,shall include a standard mortgage clause,and shall name Lender as mortgagee •r-.) rn and/or as an additional loss payee.Lender shall have the right to hold the policies and renewal certificates.If ^1, Lender requires,Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices.If l T yL Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or CD dcs,ruction of,the Property,such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss,Borrower shall give prompt notice to the insurance carrier and Lender.Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing,any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened.During such repair and restoration period,Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Properly to ensure the work has been completed to Lender's satisfaction,provided that such inspection shall he undertaken promptly.Lender may disburse proceeds for the repairs and restoration in a single paynrcnt 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 he - paid on such insurance proceeds. Lender shall not be required to pay Borrower any interest or earnings on such proceeds.Pecs 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 restoratiun 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 toi3orrowcr. _ ._ Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property,Lender may file,negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim,then Lender may negotiate and settle the claim.The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Seftion 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 Tnstrument,and(h)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 arc applicable to the coverage of the Property.Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument,whether or not then due. 6.Occupancy.Borrower shall occupy,establish,and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and dill continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in y+riting,which consent shall not he unreasonably withheld,or unless extenuating circumstances exist which arc beyond Borrower's control. -6A(tAl l04O5l CHL(12/051 Page Sell Form 3016 1/01 . • -- - -- -Book 4109. Pace 161. File Number Page 6 of 11) DOC ID #: 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy,damage or impair the Property,allow the Property to deteriorate or commit waste on the Property. Whiher 6.not Bon ower is residing in the Property,Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition.Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible.Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds arc paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes.Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work in completed. if the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. 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, Burrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent give materially false, misleading. or inaccurate information or statements to Lender(or failed to provide Lender with material information)in connection with the Loan.Material representations include,but arc 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 Icgel 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, (or condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or ty regulations), or(c) Borrower has abandoned the Property, then Lender may do and pay for whatever is O reasoaabk.of appropriate to protect Lender's interest in the Property and rights under this Security Instrument, ca including protecting and/or assessing the value of the Property,and securing and/or repairing the Property. O "rl .11 Lender's actions can include,but are not limited to:(a)paying any sums secured by a lien which has priority i oar. over this Security Instrument;(b)appearing in court;and(c)paying reasonable attorneys'fees to protect its D ,cheesed in the Property and/or rights under this Security instrument, including its secured position in a c?"‹ N N bankruptcy proceeding.Securing the Property includes,but is not limited to.entering the Property to make �n repairs,change locks,replace or board up doors and windows,drain water from pipes,eliminate building or '— rn other code violations or dangerous conditions,and have utilities turned on or off.Although Lender may take action under this Section 9,Lender does not have to do so and is not under any duty or obligation to do so.It px N is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Secu.ity Instrument.These amounts shall hear interest at the Note rate from the date of disbursement and shall be payable,with such interest,upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold,Borrower shall comply with all the provisions of the lease. If Burrower acquires fee title to the Property, the leasehold and the fee title shall nut merge unless Lender agrees to the merger in writing. 10.Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shalt pay the premiums required to maintain the Mortgage Insurance in effect.if,for any reason,tau; _ 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 the Mortgage Insurance previously in effect,from an alternate mortgage insure selected T , by Lender.if substantially 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 non-refundable loss reserve in lieu of Mortgage Insurance.Such loss reserve shall be non-refundable,notwithstanding the fact that the Loan is ultimately paid in full,and Lender shall not be required to pay Borrower any interest or carol Figs on 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 the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect,or to provide a non-refundable loss reserve.until Lender's requirement for Mortgage insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or unti4.termination is required by Applicabl Law.Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mor!lgage Insurance reimburses Lender(or any entity that purchases the Note)for certain losses 0 may incur if Borrower does not repay the Loan as agreed.Borrower is not a party to the Mortgage insurance. CitZ-anon)Casual CHL(12)05) Page 6011' Form 3016 1/01 . .- ...Book 4109. Pace 161. File Number >ago 7 of 11) DOC ID t Mortgage insurers evaluate their total risk on all such insurance in force from time to time,and may enter into agreements with other parties that share or modify their risk,or reduce losses.These agreements are on terms 'id conditions that arc satisfactory to the mortgage insurer and the other party (or parties) to these agreements.These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available(which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements,Lender.any purchaser of the Note,another insurer,any reinsurer,any other entity,or any affiliate of any of the foregoing,may receive(directly or indirectly)amounts that derive from(or might be characterized as)a portion of Borrower's payments for Mortgage Insurance,in exchange for sharing or modifying the mortgage insurers nsk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer,the arrangement is often termed"captive reinsurance.'Further: (a)Any such agreements will nut 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 Ltsurance under the Homeowners Protection Act of 1998 or any other law.These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance,to have the Mortgage Insurance terminated automatically,und/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 arc hereby assigned to and shall be paid to Lender. 1 the Property is damaged,such Miscellaneous Proceeds shall he applied to restoration or repair of the Property,if the restoration or repair is economically feasible and Lender's security is not lessened.During such repair and restoration period,Lender shall have the right to hold such 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.Lender may pay for the repairs and restoration in a:tilde disbursement or in a series of progress payments us the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds,Lender shalt not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds.If the restoration or repair is not economically feasible or Lender's security would be lessened,the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument,whether ur not then due,with the excess,if any, O paid to Borrower.Such Miscellaneous Proceeds shall he applied in the order provided for in Section 2. O • In the event of a total taking.destruction,or loss in value of the Property, the Miscellaneous Proceeds 0 -T'1 ■ shall be applied to the sums secured by this Security Instrument,whether or nut then due,with the excess,it co any,paid to Borrower.In the event of a partial taking,destruction,or loss in value of the Properly in which the fair market value .4 IN) cc tie Property immediately before the partial taking,destruction,or loss in value is equal to or greater than the amount of the sums-secured by this Security Instrument immediately before the partial taking,destruction, or loss in value,unless Borrower and Lender otherwise agree in writing, the sums secured by this Security . Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the followingfraction: 'i` P Q f�J (a)the total amount of the sums secured immediately before the partial taking,destruction,or loss in value • ' divided by(b)the fair market value of the Property immediately before the partial taking,destruction,or loss 7' r in value.Any balance shall be paid to Borrower. _ _ In the event of a partial taking,destruction,or loss in value of the Property iii which the fair market value of the Property immediately before the partial taking,destruction,or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing,the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the stuns are then due. y ._ If the Property is abandoned by Borrower,or if,after notice by Lender to Borrower that the Opposing Party(as defined in the next sentence)offers to make an award to settle a claim for damages.Borrower fails to respond to Lender within 30 days after the date the notice is given,Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or riot then due. -Opposing Party' means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding,whether civil or criminal, is begun that, in Lender's judgment,could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument.Borrower can cure such a default and,if acceleration has occurred,reinstate as provided in Section 19,by causing the action or proceeding to be dismissed with a ruling that,in Lender's judgment,precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Tip proceeds of any award or claim for damages that arc attributable to the impairment of Lender's interest in the Property arc hereby assigned and shall he Maid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. -6A(IA)(04051 CHL(12/05) Page 7 of 11 Form 3016 1/01 • - -- - Book 4109. Pane 161 File Number Ec g„ 8 of 11) DOC ID 3: 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Bcrruwcr or any Successor in interest of Borrower shall not operate to release the liability of Borrower or any Successrrs in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse in extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Suxessorx in interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation,Lenders acceptance of payments from third persons.entities or Successors in Interest of Borrower or in amounts less than the amount then due,shall not be a waiver of or preclude the exercise of any right or remedy. 13.Joint and Several Liability;Co-signers;Successors and Assigns Bound.Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note(a"co-signer"): (a)is co-signing this Security Instrument only to mortgage,grant and convey the co-signer's interest in the Property under the terms of this Security instrument;(h)is not personally obligated to pay the sums secured by this Security Instrument;and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signers consent. Subject to the provisions of Section 18,any Successor in Interest of Borrower who assumes Borrower's • obligations under this Security instrument in writing,and is approved by Lender,shall obtain all of Borrower's rights and benefits under this Security Instrument Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing.The covenants and agreements of this Security Instrument shall hind(except as provided in Section 20)and benefit the successors ane assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees fur services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this ;:ccurity Instrument,including,but not limited to,attorneys'fees,property inspection and valuation fees.In t� 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 fes.Lender may not charge fees that O arc expressly prohibited by this Security instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges,and that law is finally interpreted so d.. w� that the interest or other loan charges collected or to he collected in connection with the Loan exceed the •".si" permitted limits,then:(a)any such loan charge shall he reduced by the amount necessary to reduce the charge C3 N to the permitted limit;and(b)any sums already collected from Borrower which exceeded permitted limits will C be refu,ated to Borrower.Lender may choose to make this refund by reducing the principal owed under the _(r "0 Note or by making a direct payment to Borrower.If a refund reduces principal,the reduction will be treated as rn a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for O IV 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 tT be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mtut or when actually delivered to Borrowers notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless applicable Law expressly requires otherwise. The notice address shall be the Property Address unless _ Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address.If Lender specifies a procedure for reporting Borrower's change of address,then Borrower shall only report a change of address through that specified procedure.There may be only one designated notice address under this Security Instrument at tiny one time.Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unlesskcnder has , designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender.If any notice required by this Security Instrument is also required under Applicable Law,the Applicable Law requiretnerit will satisfy the corresponding requirement under this Security instrument. 16.Governing Law;Severability;Rules of Construction.This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security instalment 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 trot be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law,such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the mascjtlinc gender shall mean and include corresponding neuter words or words of the feminine gender.(b)words in the singular shall mean and include' the plural and vice versa; and(c)the word "may"gives sole discretion without any obligation to take any action. 17.Borrower's Copy.Borrower shall be given one copy of the Note and of this Security instrument. CI-6A(tA)i0t051 GML(1205) Page 8 0111 Form 3016 1101 • - Book 5109. Paoe 161. File Number Paye. 9 of 1.1) DOC I7 t: 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section IS, "Interest in the Property"means any legal or beneficial interest in the Property,including,but not limited to, those beneficial interests transferred in a bond for deed,contract for deed,installment sales contract or escrow agreement,.:.e intent of which is the transfer of title.by Borrower at a future date to a purchaser. If all or any part of the Property or any interest in the Property is sold or uansferred(or if Borrower is not a natural pe,son and a beneficial interest in Borrower is sold or transferred)without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However,this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law_ IfLender 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 runts secured by this Security Instrument.If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security instrument without further notice or demand on Borrower. 19.Borrower's Right to Reinstate After Acceleration.If Borrower meets certain conditions,Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a;five days before 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 Borrower's right to rautstate;or(c)entry of a judgment enforcing this Security Instrument.Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security instrument and the Note as if no • acceleration had occurred;tb)cures any default of any other covenants or agreements;(c)pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' ices, property inspection and valuation fees,and other fees incurred 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 under this Security Instrument, and borrower's obligation to pay the sums secured by this Security Instrument,shall continue unchanged.Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender:(a)cash;(h)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 arc insured by a federal agency, tv instrumentality or entity; or(d)Electronic Funds Transfer. Upon reinstatement by Borrower, this Secunty O lustniment and obligations secured hereby shall remain fully effective as if no acceleration had occurred. o However,this right to reinstate shall not apply in the case of acceleration under Section 18. —r1 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 Borrower. D^( A sale might result in a change in the entity(known as the"Loan Servicer")that collects Periodic Payments C'7"'< (NJ due under the Note and this Security Instrument and performs other mortgage loan servicing obligations under the Note,this Security instrument,and Applicable Law.There also might he one or more changes of the Loan ..(f "7 rn Servicer unrelated to a sale of the Note. if there is a change of the Loan Servicer, Borrower will be eiven "t written notice of the change which will state the name and address of the new Loan Servicer,the address to t+,./ which payments should be made and any other information RESPA requires in connection with a notice of �� I? transfer of servicing.If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note,the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer tT or be transferred to a successor Loan Servicer and arc not assumed by die Note purchaser unless 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,until such Borrower or Lender has notified the other party(with such notice given in compliant.,;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 prorinIes a time period which must elapse before certain action can he taken,that lime 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 substances, pollutants, or wastes by Environmental Law and the following substances:gasoline,kerosene,other flammable or toxic petroleum products,toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials; (h) "Environmental Law"means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental Cleanup' includes any response action, remedial action,or removal action, as defined in Environmental Law;and(d)an"Environmental Condition" means a condition that can cause,contribute to,or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal,storage, or release of any Hazardous Substances,or threaten to release any Hazardous Substances,on or in'the Property.Borrower shall not do,nor allow anyone else to do,anything affecting the Property(a)that is in violation of any Environmental Law,(h) which creates an Environmental Condition,or(e)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 -6A(lA)(0405) CFIL(12/05) Page 9 0l it Form 3016 1)01 •• •••--Book 4109. Paoe 161. File Number (Payr, 10 of 11) DOC ID Y: shall not apply to the presence,use,or storage on the Property of small quantities of Hazardous Substances that arc generally recognized to he appropriate to normal residential uses and to maintenance of the Property (including,l ut not limited to,hazardous substances in consumer products). Borrower shall promptly give Lender written notice of(a)any investigation,claim,demand,lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge,(b)any Environmental Condition, including but not limited to,any spilling, leaking,discharge, release or threat of release of any iiazardrrts Substance,and(c)any condition caused by the presence,use or release of a Hazardous Substance which adversely affects the value of the Property.If Borrower learns,or is notified by any governmental or regulatory authority,or any private party,that any removal or other remediation of any Hazardous Substance affecting the Property is nu;e.ss;try,Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law.Nothing herein shall create any obligation on Lender for an Environmental Ckanop. 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 acceleratia.r under Section 18 unless Applicable Law provides otherwise).The notice shall specify: (a) tie deianit;(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, foreclosure by judicial proceeding and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right In assert in the foreclosure proceeding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure.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 foreclose this Security Instrument by judicial proceeding, Lender shall he entitled to.r,tlect all expenses incurred in pursuing the remedies provided in this Section 22,including, but not limr:ed to,reasonable attorneys'fees and costs of title evidence. 23. Release.Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument.Lender may charge Borrower a fee for releasing this Security Instrument,but only if the fee is paid to a third party for.services rendered and the charging of the fee is permitted under Applicable Law. 24 Waivers.Borrower relinquishes all right of dower and waives all right of homestead and distributive sitar•an and to the Proper;y.Borrower waives any right of exemption as to the Property. 25. HOMESTEAD EXEMPTION WAIVER. f UNDERSTAND 'THAT HOMESTEAD PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AND EXEMPT FROM JUDICIAL SALE; AND THAT BY SIGNING THIS MORTGAGE, I VOLUNTARILY GIVE UP (IY RIGHT TO THIS PROTECTION FOR THIS MORTGAGED PROPERTY WITH RESPECT TO CLAIMS BASED UPON THIS MORTGAGE. x'iL;i p� (9C& Li 040 Borrower :i?•_HAE! L. 35155,5 Date o�C ltd,7''�-��►2 rU 1 - a 6 Borrow= LOTS 5. BP.IIT._N Uam Q _�y Ur".1. I'rl ii •. - Rorrower Dale v � N ...{ 7 Borrower Dais _ IN) �f 26. Redemption Period. If the Property is less than 10 acres in size and Lender waives in any CIN foreclosure proceeding any right to a deficiency judgment against Borrower,the period of redemption from judicial sale shall be reduced to 6 months.If the court finds that the Property has been abandoned by Borrower and Lender waives any right to a deficiency judgment against Borrower, the period of redemption from judicial sale shall be reduced to 60 days.The provisions of this Sectiorir26 shall be construed to conform to the provisions of Sections 628.26 and 628.27 of the Code of Iowa. -6A(IA)(0405 CHL(12105) Page 10 nt 11 Form 3016 1/01 • Book 4109. Pane 161. Pale Number ;Pago 11 of 11) • DOC ED is IIv1PORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE.NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED.YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Fecurity Instrument and in any Rider executed by Borrowcr and recorded with iL (Seal) H:CHAEL L. BRITTON .Borrowrr (Scat) ^:S M. 2P.!TT:i:4 -Borrower (Seal) • Borrower (Seal) Borrower STATE OF IOWA, -1 4 it AS J" County as: On this 'l `h day of rj t: c w b e r l J U 6 ,before me.a Notary Public in the State of Iowa,personally appeared IA',tt k t.� t a✓rL rfdwfS i ki(t z t.r,� Lu A 4:=14:=1L U t A /Ls_ r: I" a a 1/ , I C.S furl to mc personally known to be the person(s) named in and who executed the foregoing instrument, and >r-ICO acknowledged that he/she/they executed the same as his/her/their voluntary act and deed. t7—� N My Commission Expires: ry _ Nmary Public in sed Grt.id County atm)State "fit. 0 V a -6A(IA)(04051 CHL(12105) Page:1 o1)1 Form 3016 1/01 _.. . _.Book 4109. Paae 161. File Number • AFFIDAVIT • STATE OF IOWA ) SS COUNTY OF POLK ) I , Benjamin W. Hopkins, being first duly sworn on oath depose and state that I am one of the attorneys for the Plaintiff in this cause; that I am a regular practicing attorney engaged in this case; that there has been no agreement, express or implied, between myself and my client, or between myself and any other person except attorneys associated with me in this case, for any sharing or division of the attorney fees to be taxed herein. I further depose and state that true copies of the note and mortgage and any other documents declared upon in the foregoing Petition are now in my actual possession; that I have read the above and foregoing Petition, know the contents thereof, have personal knowledge of the facts therein stated, and that the statements and allegations therein are true as I verily believe. Ai Be ° , . Ho. . 'n AT0003573 Subscribed and sworn to before me th; 16th day of February , 2010 . A &kttzc /C)J1-97 PATRICIA S.W�L.P Notary Public in and for the 4. Msnbsr 7p3 State of I owl o 221CEtas O ' PI -0 r77 Exhibit "C" A` r.. 1J v END OF CASE FILE 615 N Classen Blvd. Oklahoma City OK 73106 (800)421-2153(405)606-8200 fax 290-2015 www.cmrclaims.com -CNIR �M�. , z-}{E� MANAGEMENT 1p. 'a f„ RESOURCES *****NOTICE OF CLAIM***** T01 APR 13 P!1 139 Date: 04-08-2010 10 WA CI r Y. I C t Y'/ CERTIFIED MAIL,RETURN RECEIPT REQUESTED To: CITY OF IOWA CITY CITY CLERK 410 E WASHINGTON ST IOWA CITY,IA 52240 CERTIFIED MAIL# 91 7108 2133 3935 8317 1247 RE: Damage to Qwest Property Qwest Claim Num: 488054 Damage/Discovery Date: 04-07-2010 Damage Location: TULANE&OBERLIN,IOWA CITY,IA Damage County: Damage Amount: UNDETERMINED Dear Sir/Madam: Please be advised that Qwest Facilities sustained damage as a result of the negligent acts or omissions by employees or agents of CITY OF IOWA CITY. Investigation has revealed that on or about 04-07-2010 employees or agents of CITY OF IOWA CITY, CITY OF IOWA CITY DAMAGED A QWEST 50 PAIR BURIED CABLE WITH A ' BACKHOE DURING HIGHWAY/STREET EXCAVATION in the area of TULANE&OBERLIN, IOWA CITY,IA. REQUEST FOR GOVERNMENTAL NOTICE FORM If your Governmental Entity requires the completion of its own form to complete proper notice, please forward a copy to the address listed above.Every good faith effort has been made to identify the proper office and address to perfect our notice. Please forward to your attorney, if misdirected, to contact us. Matters herein stated are alleged on information and belief this pleader believes to be true. If there is insurance to cover this matter, kindly advise as to the name of the insurance company, its address and the claim I}yy1�}}� assigned. If you have any questions,or need additional information,please contact me at 1-800-i�� 1S8y�� ,'��� `G.'0-CAR j> '9 #06011463 =_ _ Sincerely, _ _ EXP•11128110 ct.F. Destiny Wilson = N r \AV 1T Arg..,\ .G �0 M' j . . i •p . ) .....et i , • , .'// 0 F Olt(V\N ', NOTARY .A A V CMR Claims DEPT Commission Expires El VP r END OF CASE FILE T T P.c,7.EN7 0 �wQ*00 *01I U.S. Department of Housing and Urban Development IIIIIIII Des Moines Field Office Federal Building 210 Walnut Street, Room 239 44N°Eve.' Des Moines, Iowa 50309-2155 N April 6, 2010 a Matt Hayek, Board Chairperson Board of Directors 7_I c-, Housing Authority of Iowa City, Iowa :<'iT, -v Fri 410 E. Washington Street a Iowa City, Iowa 52240 ,�� Dear Mr. Hayek: SUBJECT: 07-10-0403-8,07-10-0403-4, Secrest v. Housing Authority of Iowa City,Iowa, et al. This letter is to inform you that the above referenced complaint has been assigned to me, Cynthia Ferrell, Civil Rights Analyst, for investigation. In the near future, I will contact you to arrange a date and time to conduct an interview with you regarding the allegations in the complaint. Also, I will mail a letter to you requesting documents or other information. If you have retained an attorney,please have the attorney send me a letter of appearance notifying me that he/she will be your representative for this case. During the investigation of the complaint, facts will be collected from all parties involved in an impartial and objective manner. After the investigation has been completed, the complaint can be concluded in a determination of probable cause or no probable cause. Alternatively, the complaint may be concluded and resolved through conciliation. Throughout the investigation my Department will engage conciliation efforts to resolve the complaint. Please be prepared to discuss with me your thoughts on actions that you would be willing take to resolve the complaint. During the investigation, I will conduct separate interviews with you and the Complainant, and witnesses, if available. During your interview, you will be asked questions pertaining to the complaint. Also, at the time of your interview,please have available any documentation in support of your defense and the names and phone numbers of any witnesses. I am enclosing for your review and signature, a document called"NOTICE OF RIGHTS AND RESPONSIBILITIES". Please read and sign the document and return it to me. c 5 . Ra-ces Fair Housing 2010:Time to Act! 2 If you have any questions or concerns regarding this complaint, you may contact me at (515)284-4456,Monday through Friday,between 8:30 a.m. and 5:00 p.m. If I am not available to take your call,please leave your name, a telephone number, and the best time to reach you at the number you provide. I will return your call at my earliest opportunity. Thank you for your cooperation. Sincerely, eitizek Cynthia Ferrell Equal Opportunity Specialist Enclosure 1. Notice of Rights &Responsibilities N O t:n a 33 'ern -0 ill �' N r • April 6, 2010 HOUSING DISCRIMINATION COMPLAINT CASE NUMBER: 07-10-0403-8,07-10-0403-4,07-10-0403-D 1. Complainants Lance E. Secrest 1433 Valley View Drive Apt.B Coralville,IA 52241 2. Other Aggrieved Persons Elisha Secrest ?/"," 1433 Valley View Drive *c, Apt.B Coralville,IA 52241 --1 rte-- 111 `D r Bob Secrest 6 1433 Valley View Drive •- Apt.B Coralville,IA 52241 3. The following is alleged to have occurred or is about to occur: Discriminatory terms,conditions,privileges,or services and facilities. 4. The alleged violation occurred because of: Disability 5. Address and location of the property in question(or if no property is involved,the city and state where the discrimination occurred): 1433 Valley View Drive Apt.B Coralville,IA 52241 1 6. Respondent(s) o 7 Robin Butler -• 23 a Housing Authority of Iowa City,Iowa 410 E.Washington Street 1;� M Iowa City, IA 52240 7.73 C/o Steven Rackis, Executive Director N Housing Authority of Iowa City,Iowa -j 410 E.Washington Street Iowa City,IA 52240 C/o Matt Hayek,Board Chairperson Board of Directors,Housing Authority of Iowa City,Iowa 410 E. Washington Street Iowa City,IA 52240 7. The following is a brief and concise statement of the facts regarding the alleged violation: Section: 804(f)(2)(A) Issue: Terms and Conditions Basis: Disability Allegation: Unjust Termination from the Section 8 Program The Complainant alleged the Respondents discriminated against him by unjustly terminating him from the Section 8 Program.He alleged that on/or about December 30, 2009,the Respondents served him with a notice indicating his Section 8 voucher was terminated effective April 1,2010,due to criminal activities. He alleged that on/or about January 4,2010,the Respondents held a hearing with him to discuss the termination, and subsequently decided to uphold their decision to terminate him from the Section 8 Program. He alleged the criminal activities in question did not rise to the level of justifying his termination from the Section 8 Program. He alleged the Respondents terminated him from the Section 8 Program due to his disabilities. 8. The most recent date on which the alleged discrimination occurred: January 4,2010. 9. Types of Federal Funds identified: Public and Indian Housing. 2 10. The acts alleged in this complaint, if proven, may constitute a violation of the following: Section 804(f)(2)(A)of Title VIII of the Civil Rights Act of 1968 as amended by the Fair Housing Act of 1988. Section 504 of the 1973 Rehabilitation Act and The Americans with Disabilities Act of 1990. Please sign and date this form: I declare under penalty of perjury that I have read this complaint(including any attachments)and that it is true and correct. Lance E. Secrest (Date) N 0 T E: HUD WILL FURNISH A COPY OF THIS COMPLAINT TO THE PERSON OR ORGANIZATION AGAINST WHOM IT IS FILED. C)-< t R.. ::<n -o 77 y• i v 3 07-10-0403-8, 07-10-0403-4/Secrest v.Housing Authority of Iowa City,Iowa,et aL NOTICE OF RIGHTS AND RESPONSIBILITIES PURSUANT TO THE FAIR HOUSING ACT, THE REGION VII OFFICE OF FAIR HOUSING AND EQUAL OPPORTUNITY(FHEO) IS COMMITTED TO ENSURING THAT ALL PARTIES TO A COMPLAINT UNDERSTAND THEIR RIGHTS AND RESPONSIBILITIES DURING THE PROCESS. You have previously been provided a letter outlining your legal rights and responsibilities. This notice supplements that letter and further describes many of your rights and responsibilities as follows: INVESTIGATION EACH PARTY HAS THE RIGHT TO A COMPLETE AND IMPARTIAL INVESTIGATION OF THE ALLEGATIONS. The HUD investigator is neutral and represents neither the interests of the complainant nor the interests of the respondent. The primary mission of the investigator is to gather and analyze evidence regarding the complainant's allegations and the respondent's defenses. After the investigation and if the complaint has not been successfully conciliated, HUD will determine whether or not reasonable cause exists to believe that a discriminatory housing practice has occurred. A determination shall be made within 100 days after filing of the complaint, unless it is impractical to do so. If no reasonable cause is found,HUD will issue a statement of the facts upon which HUD has based the determination; dismiss the complaint; notify the parties of the dismissal; and make public disclosure of the dismissal. If reasonable cause is found to exist, HUD will issue such a determination and direct the issuance of a charge on behalf of the aggrieved person. If a charge is issued, a copy of the determination and the charge will be served on the parties. • If HUD issues a charge of discrimination, either party may elect, in lieu of an administrative proceeding, to have the case commence in Federal District Court,with the Attorney General maintaining the action on behalf of the complainant. Alternatively, if neither party elects, the case instead will commence before an Administrative Law Judge with the General Counsel from HUD maintaining the action. Even if no reasonable cause is found and the complaint is dismissed, as discussed above, the complainant may still, on his own behalf, bring an individual suit pursuant to the Fair Housing Act in a federal, state, or local court within two years of the alleged discriminatory act. The computation of the two-year period does not include any time during which there was an administrative proceeding under the Act. 0 w(-) 33. ---4 c-, to r- t" N v 07-10-0403-8, 07-10-0403-4/Secrest v.Housing Authority of Iowa City,Iowa,et a1. CONCILIATION The law requires that FHEO make a good faith attempt to bring about the conciliation of a case. Parties can expect that conciliation will be attempted in the very early stages after a complaint is filed and will continue throughout the investigative process, if appropriate. The HUD investigator will not,however, discontinue or suspend an investigation merely because the parties are engaged in conciliation. PARTICIPATION IN THE CONCILIATION PROCESS IS PURELY VOLUNTARY. Neither complainant nor respondent is required to participate in conciliation or accept any offer of settlement. Participation in,or alternatively, failure to participate in conciliation, will have no impact on the findings in any case. Additionally, nothing said or done during the course of conciliation can be made public or used as evidence in subsequent litigation without the written consent of the persons concerned. If the complainant and respondent agree to conciliation terms, each party, along with HUD officials,will sign a conciliation agreement,which seeks to protect the interests of the parties and the public interest. If the conciliation agreement is later breached, enforcement may be achieved through legal proceedings initiated by the U.S. Department of Justice. Once the parties sign a conciliation agreement, the investigation, if already in progress, will cease and the case will be closed. SPECIFIC RESPONSIBILITIES OF COMPLAINANT Complainant or complainant's representative must provide relevant information to the HUD investigator upon request. Delays in providing information or responding to requests may lead to administrative closure of the case for failure to cooperate. N If complainant relocates, complainant must immediately inform the HUD isvestiggor of any new address or phone number. c) SPECIFIC RESPONSIBILITIES OF RESPONDENT C n,, M If respondent obtains legal representation, respondent's counsel must pro W the WUD investigator written notice of appearance. Respondent may,but is not required to, file an answer to the complaint not later than ten days after receipt of notice and may fairly and reasonably amend the answer at any time. The answer must be signed and affirmed by the respondent and state: "I declare under penalty of perjury that the foregoing is true and correct." The HUD investigator will seek voluntary cooperation of respondent to obtain access to premises, records, documents, individuals, and other sources of information; to examine, record, and copy necessary materials; and to take and record testimony or statements of persons reasonably necessary for the furtherance of the investigation. Any requests for delay by respondent should be based on necessity. Should the respondent refuse to voluntarily cooperate, appropriate HUD officials may issue a subpoena in support of the investigation. 2 07-10-0403-8,07-10-0403-4/Secrest v.Housing Authority of Iowa City,Iowa,et al. ACKNOWLEDGEMENT By signing this document, I certify that I understand my rights and responsibilities in the complaint process and have been provided a copy of this document. Signature of complainant/respondent Printed name Date o O �_< I _{n ,a -0 m m � .E- --J J 3 END OF CASE FILE CIVIL PROCESS WORKSHEET JOHNSON COUNTY SHERIFFS OFFICE•PO BOX 2540, 511 S CAPITOL ST, IOWA CITY, IA 52244-2540•(319)356-6030 PLAINTIFF: U OF I COMM CREDIT UNION Docket No 10-03504 State IOWA vs. Court No EQCV072121 County JOHNSON DEFENDANT: LEE, JOHN F., ET AL Ref No Received 06/15/2010 Requestor(s) Phone • RAIBER, CRYSTAL K. (319)351-1056 1402 WILLOW CREEK CT, PO BOX 1757, IOWA CITY, IA 5 Name CITY OF IOWA CITY Zone Party Type DEFENDANT Phone (319)356-5030 Fax Address 410 E WASHINGTON ST IOWA CITY IA 52240- E-Mail Employer Comments SERVE MARIAN KARR Documents Document Serve by Date OE PSR Description/Special Instructions ORIGINAL NOTICE AND ❑ ❑ PETITION Service Information • Date [9-4(2 '/O Time tee (4 33 Type G t A- 7 G 4 UT Party 04 1 -JJ Kw)w` a Relationship Race Sex F DOB Location q /V c- (4.-6.66.6\A )1,D.{- , Miles l -04z Fee r tc,CO Officer ,5.-- Attempts Log Date Time Server Notes Date Time Server Notes Notes: G7 O — r _.. •: 7 Printed:Tuesday,June 15, 2010 Johnson County Sheriffs Office Page 1 of 1 Robert S. Michael THE IOWA DISTRICT COURT FOR JOHNSON COUNTY LAW [ ] EQUITY [X] No.EQCVO 7 ) a2l UNIVERSITY OF IOWA COMMUNITY CREDIT UNION Plaintiff(s), VS. o JOHN F. LEE, LEAH J. LEE,NORMANDY COURT CONDOMINIUMS ASSOCIATION, CITY OF IOWA CITY, ALL PARTIES IN POSSESSION OF 425 PETERSON ST, IOWA CITY, = ry IA,AND ALL PARTIES IN POSSESSION OF 1402 ESTHER STREET, IOWA CITY, IA, Defendant(s). ORIGINAL NOTICE TO THE ABOVE-NAMED DEFENDANT(S): You are notified that a petition has been filed in the office of the clerk of this court naming you as the defendant(s) in this action. A copy of the petition (and any documents filed with it) is attached to this notice. The names and addresses of the attorneys for the plaintiff(s) are Robert S. Michael and Crystal K. Raiber of Lynch, Greenleaf& Michael, LLP . The attorneys'phone number is (319) 351-1056; facsimile number: (319) 338-6834. You must serve a motion or answer within 20 days after service of this original notice upon you, and within a reasonable time thereafter, file your motion or answer with the Clerk of Court for Johnson County, at the county courthouse in Iowa City, Iowa. If you do not, judgment by default may be rendered against you for the relief demanded in the petition. If you require the assistance of auxiliary aids or services to participate in court because of disability, immediately call your district ADA coordinator at (319) 398-3920 Ext 1100. (If you are hearing impaired, call Relay Iowa TTY at 1-800-735-2942.1 BERKLEY (SEAL) CA-)11,-)A__04,-L/athi's 4 # • CLERK OF C.URT Johnson County Courthouse Iowa City, Iowa 52240 IMPORTANT: YOU ARE ADVISED TO SEEK LEGAL ADVICE AT ONCE TO PROTECT YOUR INTERESTS CM ( vC.r CM Ft nand IN THE IOWA DISTRICT COURT FOR JOHNSON CO ,y=.1. UNIVERSITY OF IOWA COMMUNITYc./�' � CC`'� S . p'f' CREDIT UNION, -ry. Plaintiff, NO. EQCVO vs. JOHN F. LEE, LEAH J. LEE,NORMANDY COURT CONDOMINIUMS ASSOCIATION, PETITION IN EQUITY CITY OF IOWA CITY,ALL PARTIES IN POSSESSION OF 425 PETERSON ST, IOWA CITY, IA, AND ALL PARTIES IN POSSESSION OF 1402 ESTHER STREET, IOWA CITY, IA, o o c Defendants. >_.� s. m O N o NOTICE THE PLAINTIFF HAS ELECTED FORECLOSURE WITHOUT REDEMPTION, THIS MEANS THAT THE SALE OF THE MORTGAGED PROPERTY WILL OCCUR PROMPTLY AFTER ENTRY OF JUDGMENT UNLESS YOU FILE WITH THE COURT A WRITTEN DEMAND TO DELAY THE SALE. IF YOU FILE A WRITTEN DEMAND, THE SALE WILL BE DELAYED UNTIL TWELVE MONTHS-Cur-SDMO- ` deficiency judgment) FROM ENTRY OF1,NDGMENTncludes a waiver�of PROPERTY IS YOUR RESIDENCE AND IS A ONE-FAMILY OR TWO- FAMILY IF THE GED DWELLING OR UNTIL TWO MONTHS FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS NOT YOUR RESIDENCE OR IS YOUR RESIDENCE BUT NOT A ONE-FAMILY OR TWO-FAMILY DWELLING. YOU WILL HAVE NO RIGHT OF REDEMPTION AFTER THE SALE. THE PURCHASER AT THE SALE WILL BE ENTITLED TO IMMEDIATE POSSESSION OF THE MORTGAGED PROPERTY. YOU MAY PURCHASE AT THE SALE. 05/20/10 1 PREAMBLE COMES NOW, the Plaintiff University of Iowa Community Credit Union, by and through its attorneys, Robert S. Michael and Crystal K. Raiber of Lynch, Greenleaf&Michael, L.L.P., and for its Petition, states as follows: 1. Plaintiff is a credit union lawfully doing business with its principal place of business in Iowa City, Johnson County, Iowa. 2. The last known address of John Lee is 1402 Esther St., Iowa City, Iowa. The last kn avn address of Leah Lee is 308 Burlington St. #234, Iowa City, Iowa. ;E:3 c_ 3. The Defendants,John Lee and Leah Lee are a married couple. =sr 4. On or about March 3, 2006;Defendants John Lee and Leah Lee made, executed rri delivered a Note to Plaintiff(hereinafter Note 1), a copy of which is attached hereto and incorporated herein, marked Exhibit"1". Note 1 is in the principal sum of Eighty-Seven Thousand Seven Hundred Fifty Dollars ($87,750.00). The initial interest rate of Note 1 is 5.75%. Note 1 provides for payment in full of all principal and interest, with full balance due on April 1,2036. • 5. On or about April 14, 2006,Defendants John Lee and Leah Lee made, executed and delivered a Fixed Rate Home Equity Line of Credit to Plaintiff(hereinafter Note 2), a copy of which is attached hereto and incorporated herein, marked Exhibit "2". Note 2 is in the principal sum of Twelve Thousand One Hundred Fifty Dollars ($12,150.00). The initial interest rate p of Note 2 is 6.95%. Note 2 provides for payment in full of all principal and interest,with full balance due on March 15,2011. 6. On or about August 30, 2007,Defendants John Lee and Leah Lee made, executed and delivered a Note to Plaintiff(hereinafter Note 3), a copy of which is attached hereto and 05/20/10 2 incorporated herein,marked Exhibit"3". Note 3 is in the principal sum of One Hundred Twenty One Thousand Five Hundred Dollars ($121,500.00). The initial interest rate of Note 1 is 7.125%. Note 1 provides for payment in full of all principal and interest, with full balance due on September 1,2037. 7. On or about September 14, 2007, Defendants John Lee and Leah Lee made, executed and delivered a Home Equity Line of Credit to Plaintiff(hereinafter Note 4), a copy of which is attached hereto and incorporated herein, marked Exhibit "4". Note 4 is in the principal sum of Twenty-Three Thousand Five Hundred Dollars ($23,500.00). The initial interest rate of Note 4 is 7.00%. Note 4 provides for payment in full of all principal and interest, with full balance due on September 15, 2012. 8. Each Mortgage referred to herein provides in the event of default, suit, and foreclosure that Plaintiffs attorneys'fees shall be paid by mortgagor, and each Note referred to herein provides that Plaintiffs attorneys'fees incurred shall be paid by Borrower. Plaintiffs'attorneys attach their affidavit for such fee as requited by statute, which is attached hereto, and into her marked E �d c xhibit 5". Plaintiff requests-sash-,atter-ney-fees inks-matter. a► 9. Plaintiff elects to foreclose without redemption and waives its right to a deficient 2 m judgment, and in addition to the specific relief requested in each Count referring to the foreclosure of a mortgage, unless stated otherwise, the Plaintiff also requests the following relief: PLAINTIFF PRAYS that each Mortgage be established as a first and prior lien against the real estate described and as superior and paramount to the interests, lien, and claims of each and all Defendants; that said Mortgages be foreclosed for the full amount of said judgment, interest, and costs; that all claims, rights, title, and interest of the Defendants in this suit, and each of them, in or to or upon said real estate, may be decreed to be junior and inferior to the rights and 05/20/10 3 lien of this Plaintiff, and that the right, title, and interest of each Defendant be forever barred and foreclosed. PLAINTIFF FURTHER PRAYS that special execution may issue for the sale of said mortgaged real estate or so much thereof as is necessary to satisfy Plaintiffs judgment, together with interest, cost, and accruing costs, to satisfy the judgment to be entered herein. PLAINTIFF FURTHER PRAYS that in the event the Defendant John Lee or Leah Lee files a demand for delay of sale herein,the execution sale be delayed for a period of not more than two months from the entry of judgment in the event the mortgaged real estate is not his residence, and for a period of not more than six months from the entry of judgment in the event the mortgaged real estate is his residence, and hereby waives any right to a deficiency judgment against Defendants which might arise out of this proceeding. PLANT FF FURTHER PRAYS that if possession be not immediately surrendered to the grantee in the Sheriff Deed to be issued under said execution, a writ of possession m e 7 r immediately issued directing the Sheriff of this county to put such grantee in possessi f c --- mortgagedr- premises.- ..... PLAINTIFF FURTHER PRAYS that in the event Plaintiff is required to advanc6 any z- further sums for taxes or insurance upon the above described real estate,Plaintiff beiven an 1� additional lien against the real estate for the amount so advanced. PLAINTIFF ETHER PRAYS that upon further application byPlaintiff ff a receiver be appointed to take charge of the mortgaged premises at once and to hold possession of the same until the debt is fully paid and that all rents and profits derived from said premises be collected and applied by the receiver toward the satisfaction of plaintiffs judgment. 05/20/10 4 PLAINTIFF FURTHER PRAYS for such other and further relief as may be just and equitable in the premises. O C=, COUNT I: FORECLOSURE OF NOTE 1 AND NOTE 2 �' c 425 PETERSON STREETrri rn 10. Plaintiff hereby incorporates paragraphs 1-5, 8, 9 of this Petition. o a N 11. To secure Note 1, Defendants John F. Lee and Leah J. Lee on or about March 3, 2006,`=' made, executed and delivered to Plaintiff a written Purchase Money Mortgage and Mortgage Riders (hereinafter "First Mortgage") creating first and prior lien on the real estate described therein, a copy of which is attached hereto and incorporated herein, marked Exhibit"6". The First Mortgage covers the following described real property in Johnson County, Iowa: Unit 425,Normandy Court Condominiums,Phase No. 1,according to the Declaration thereof recorded in Book 532,Page 121,Miscellaneous Records of Johnson County,Iowa. This First Mortgage was duly filedfor record on April 4, 2006, in Book 4006, Page 897 of the records of the Recorder for Johnson County, Iowa. 12. To secure Note 2, Defendants John F. Lee and Leah J. Lee on or about April 14, 2006, made, executed and delivered to Plaintiff a written Open End - Second Mortgage (hereinafter "Second Mortgage") creating a lien on the real estate described therein, a copy of which is attached hereto and incorporated herein, marked Exhibit "7". The Second Mortgage covers the following described real property in Johnson County, Iowa: Unit 425,Normandy Court Condominiums,Phase No. 1,according to the Declaration thereof recorded in Book 532,Page 121,Miscellaneous Records of Johnson County, Iowa. This Second Mortgage was duly filed for record on April 24, 2006, in Book 4014, Page 574 of the records of the Recorder for Johnson County, Iowa. 05/20/10 5 13. Defendants John F. Lee and Leah J. Lee are the owners and holders of the following real estate: Unit 425,Normandy Court Condominiums,Phase No. 1, according to the Declaration thereof recorded in Book 532,Page 121,Miscellaneous Records of Johnson County,Iowa. 14. Defendants John F. Lee and Leah J. Lee are now delinquent in their payment on said Notes and Mortgage. 15. The Mortgages provide in the event of default that Plaintiff may procure a continuation of the abstract, obtain insurance for the property,pay taxes on the property, and add such amounts to the Mortgage debt. These amounts become a part of the Mortgage indebtedness andjre secured by the Mortgages. �' mow; rn 16. Plaintiff is the owner and holder of said Notes and Mortgages. -o 17. In accordance with the provisions of said Notes and Mortgages, PIaintiff has heretofore declared and hereby declares the entire indebtedness thereunder immediately due and payable. 18. Said Mortgages provide that if default shall be made in the payment of said Notes or any part of the interest thereon, the Mortgages may be foreclosed upon; and Plaintiff, by the commencement of this action, does elect to foreclose on the Mortgages. 19. Any and all unknown parties in possession of the real property located at 425 Peterson Street, Iowa City, Iowa, are added as defendants herein because they may claim some right, title or interest in the property which is the subject of this action, but any interest of such defendants would be junior and inferior to that of Plaintiff. 20. City of Iowa City is added as a defendant herein because it may claim some right, title or interest in the property which is the subject of this action pursuant to a mortgage recorded January 15, 2009, Book 4381, Page 496, but any interest of such defendant would be junior and inferior to that of Plaintiff 05/20/10 6 21. Normandy Court Condominiums Association is added as a defendant herein because it may claim some right, title or interest in the property which is the subject of this action pursuant to a judgment entered February 9, 2010, case number SCSC075829, but any interest of such defendant would be junior and inferior to that of Plaintiff 22. That the Defendants are not and have not been at anytime during the preceding six (6) months members of any of the Armed Forces of the United States of America and are not entitled in any way or manner to the benefit or relief provided by the Servicemembers Civil Relief Act. 23. Plaintiffs First Mortgage is superior and paramount to all interests of all Defendants in the real estate, and any interest of any Defendant in the real estate is subject to Plaintiffs ortga� ge and all amounts of all Notes are secured by the First Mortgage 24. Plaintiffs Second Mortgage is superior and paramount to all interests of all Defe i is a the real estate, and any interest of any Defendant in the real estate is subject to Plaintiff-s;Secori l- Mortgage, and all amounts of all Notes are secured by the Second Mortgage. Lo 25. After crediting-the-amounts-paid-on--s-aid Notes-secured by said Mortgagesth ere is.now-due and owing Plaintiff from Defendants John F. Lee and Leah J. Lee: A. An unpaid principal balance, as of April 7, 2010, in the amount of$95,725.90. B. Interest and late fees as provided in the Notes, on the unpaid principal balance to April 7, 2010, in the amount of$2,990.73. C. Interest as provided in the Notes, on the unpaid principal balance as of April 7, 2010, to date of filing herein, which interest currently accrues at the blended rate of 5.896%per annum in the amount of$15.463 per day. 05/20/10 7 WHEREFORE, Plaintiff prays for judgment in rem against Defendants John F. Lee and Leah J. Lee, and judgment in rem as to the,above described real estate against all Defendants, and for judgment in rem against the above described real estate for the following: A. $98,716.63 together with interest on the principal portion of the Note thereof at the rate of 5.896%percent per annum from April 7, 2010, to the date of filing of this petition,plus 5.896% interest on said judgment from and:after the date of filing of this petition, B. Plus all reasonable attorney's fees, taxes, insurance, abstracting fees, and the costs of this action. COUNT II: FORECLOSURE OF NOTE 3 AND NOTE 4rn 1402 ESTRER STREET 26. Plaintiff hereby incorporates paragraphs 1-3 and 6-9 of this Petition. 27. To secure Note 3, Defendants John F. Lee and Leah J. Lee on or about August 30, 2007, made, executed and delivered to Plaintiff a written Mortgage and Mortgage Rider (hereinafter Fir-st-Mar-tgage")-creating fust-andprior-1-ien on-the-real-estate deseribed thereina-copy of which is attached hereto and incorporated herein, marked Exhibit"8". The First Mortgage covers the following described realjproperty in Johnson County, Iowa: Lot 1,Village Green South,Iowa)City,Iowa, according to the plat thereof recorded in Book 17,Page 9, Plat Records of Johnson County,Iowa. This First Mortgage was duly filed for record on September 7, 2007, in Book 4214, Page 312 of the records of the Recorder for Johnson County, Iowa. 28. To secure Note 4, Defendants John F. Lee and Leah J. Lee on or about September 14, 2007, made, executed and delivered to Plaintiff a written Open-End Mortgage (hereinafter "Second Mortgage") creating a lien on the real estate described therein, a copy of which is 05/20/10 8 attached hereto and incorporated herein, marked Exhibit "9". The Second Mortgage covers the following described real property in Johnson County, Iowa: Lot 1,Village Green South,Iowa City,Iowa, according to the plat thereof recorded in Book 17,Page 9, Plat Records of Johnson County,Iowa. This Second Mortgage was duly filed for record on October 9, 2007, in Book 4224, Page 847 of the records of the Recorder for Johnson County, Iowa. 29. Defendants John F. Lee and Leah J. Lee are the owners and holdersof the following real estate: Lot 1,Village Green South,Iowa City,Iowa,according to the plat thereof recorded in Book 17,Page 9, Plat Records of Johnson County,Iowa. 30. Defendants John F. Lee and Leah J. Lee are now delinquent in their payment on said Notes and Mortgages. 31. The Mortgages provide in the event of default that Plaintiff may procure a continuation of the abstract, obtain insurance for the property,pay taxes on the property, and add such amounts to the Mortgage debt. These amounts become a part of the Mortgage indebtedness and-are secured by the Mortgages. aroma . 32. Plaintiff is the owner and holder of said Notes and Mortgages. rn 33. In accordance with the provisions of said Notes and Mortgages, Plaintiff has herrtaforer>.) declared and hereby declares the entire indebtedness thereunder immediately due and payable. 34. Said Mortgages provide that if default shall be made in the payment of said Notes or any part of the interest thereon, the Mortgages may be foreclosed upon; and Plaintiff, by the commencement of this action, does elect to foreclose on the Mortgages. 35. Any and all unknown parties in possession of the real property located at 1402 Esther Street, Iowa City, Iowa, are added as defendants herein because they may claim some right, title 05/20/10 9 or interest in the property which is the subject of this action, but any interest of such defendants would be junior and inferior to that of Plaintiff 36. Normandy Court Condominiums Association is added as a defendant herein because it may claim some right, title or interest in the property which is the subject of this action pursuant to a judgment entered February 9, 2010, case number SCSC075829,but any interest of such defendant would be junior and inferior to that of Plaintiff. 37. That the Defendants are not and have not been at anytime during the preceding six (6) months a member of any of the Armed Forces of the United States of America and are not entitled in any way or manner to the benefit or relief provided by the Servicemembers Civil Relief Act. 38. Plaintiffs First Mortgage is superior and paramount to all interests of all Defendants in the real estate, and any interest of any Defendant in the real estate is subject to Plaintiffs Mortgage and all amounts of all Notes are secured by the First Mortgage 39. Plaintiffs Second Mortgage is superior and paramount to all interests of all Defendants e-real-estate,—and-any inter-est of-any Defendant-in-the-real-estate-is-subject-to-RlaintifgeSe old=__- Mortgage, and all amounts of all Notes are secured by the Second Mortgage. -v rn 40. After crediting the amounts paid on said Notes secured by said Mortgages there isdues and owing Plaintiff from Defendants John Lee and Leah Lee.: `D A. An unpaid principal balance, as of April 7, 2010, in the amount of$142,958.62. B. Interest and late fees as provided in the Notes, on the unpaid principal balance to April 7, 2010, in the amount of$6,492.59. 05/20/10 10 C. Interest as provided in the Notes, on the unpaid principal balance as of April 7, 2010, to date of filing herein, which interest currently accrues at the blended rate of 7.105%per annum in the amount of$27.828 per day. WHEREFORE, Plaintiff prays for judgment in rem against Defendants John Lee and Leah Lee and for judgment in rem as to the above described real estate against all Defendants, and for judgment in rem against the above described real estate for the following: A. $149,451.21 together with interest on the principal portion of the Note thereof at the rate of 7.105%percent per annum from April 7, 2010, to the date of filing of this petition,plus 7.105% interest on said judgment from and rafter the date of filing of this petition, B. Plus all reasonable attorney's fees, taxes, insurance, abstracting fees, and the costs of t. is action. 0 -1C- LYNCH, GREENLEAF &MICHAEL, L.L.P. M ,44111 Robert S. Michael 00009240 By �/�.`' 1 Crystal Raiber#AT0009768 1402 Willow Creek Court P.O. Box 1757 Iowa City, Iowa 52244 (319) 351-1056 (319) 338-6834 FAX receptionist@1gmlawyers.corn ATTORNEYS FOR U OF I COMMUNITY CREDIT UNION 05/20/10 11 FIXED/ADJUSTABLE RATE NOTE (one-Year Treasury Index -Rate Caps) Loan # : 111111111.1111b THIS NOTE PROVIDES FOR A CHANGE IN MY FIXED INTEREST RATE TO AN ADJUSTABLEN INTEREST RATE. THIS NOTE LIMITS THE AMOUNT MY ADJUSTABLE INTEREST RATE CA CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE I MUST PAY. March 3rd, 2006 [Dace] Coralvi l l e [City] Ia [State] 425 Peterson St, Iowa City, IA 52245 I. BORROWER'S PROMISE TO PAY [Property Address] In return for a loan that I have received, I promise to pay U.S. $ 87, 750.00 (this amount is called "Principal"), plus interest, to the order of Lender. Lender is University of Iowa Community Credit Union I will make all payments under this Note in the form of cash, check or money order. I understand that Lender may transfer this Note. Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay yearly rate of 5.750 %. The interest rate I will pay may change in accordance with Section The interest rate required by this Section 2'and Section 4 of this Note is the rate I will pay both before and interest t. a default described in Section 7(B) 4 of this Note. of this Note. ���Y 3. PAYMENTS o (A) Time and Place of Payments MAIIIOND I will pay principal and interest by making a payment every month. I will make my monthlyc) payments on the first dayof each month be will make these paymentsevery ginning on May 1st, 2006 rr, -r� month until I have paid all of the elow that I may owe under this-Note.--Each monthly Principal and interest and any other charg ,describ Y payment will-be-applied as of its scheduled due date and will die plied to interest before Principal. If, on April 1st, 2036 founts in full on that date, which is called the "Maturity Date.^ I still owe amounts under this Note, I will pay those I will make my monthly payments at 825 Mormon Trek Blvd- PO Box 2630, Iowa Cit at a different place if required by the Note Holder. �' IA 52246 (B)Amount of My Initial Monthly Payments Each of my initial monthly payments will be in the amount of U.S. $ 512. 09 (C)Monthly Payment Changes This amount may change. Changes in my monthly payment will reflect changes in the unpaid principal of my loanst pay. The Note Holder will determine my new interest rate and thechanged amount ofdmonthly myinhe interestyest rate that i I ordance with Section 4 of this Note. payment in (A) ADJUSTABLE �IN'TEREST RATE AND MONTHLY PAYMENT CHANGES The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of -11 2011 , and the adjustable interest rate I will pay may change on that day every 12th month TISTATE FIXED/ADJUSTABLE RATE NOTE- ONE-YEAR TREASURY INDEX- Single Family-Fannie Mae UNIFORM INS RUMreafter. 1-843N (0205) ENT Form 3522 1/01 VMP MORTGAGE FORMS-1800)521-7291 of 5 Initials- Ek 1 The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change, is called a "Change Date." (B) The Index Beginning with the first Change Date, my adjustable interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date 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 information. The Note Holder will give me notice of this choice. (C) Calculation of Changes p Before each Change Date, the Note Holder will calculate my new interest rate by adding Two and three quarters percentage points %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D)below, this rounded amount will;be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthlypaymentw principal that I am expected to owe at the Change Date in full on the Maturity Date atomy new interest rate in be sufficient to repay sthe ubstantially equal payments. The result of this calculation will be the new amount of my monthly payment. (I)) Limits on Interest Rate Changes Y The interest rate I am required to pay at the.first Change Date will not be greater than 7.750 %than 5. 000 %. Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more than two percentage points from the rate of interest I have been payingfor the preceding or less months. My interest rate will never be greater than 11.7 5 0 % 12 (E)Effective Date of Changes My new interest rate will become effectiveon each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my month] a (F) Notice of Changes P Y payment changes again. The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any change. The notice will hepe amount of my monthly payment, any information required by law to be given to me and also the title and telephone lumber of a person who will answer any question I may have regarding the notice. include BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal onlyis s a "Prepayment." When I make a Prepayment, r�� s a "Pr a paymenteP yment, I will tell the Note Holder in writing that I am doingg as a Prepayment if I have not made all the monthly I may make-a-full-Pre a payments due under this Note. � x��y�ot , p yment or partici Pie a — P Yin is without Paying any Prepayment charge. The Not -�,� sem .... - =- ^ �'... Y Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Hold ayeap.�l l e`� ty Prepayment to the accrued and unpaid interest on the Prepayment ynl amnt of thisaNote. If I make a t St Prepayment,P yment amount before applying P Y 1r s my Prepayment �temon y s a ryments unless the Note Holder agrees in there will be no changes in the due dates of onth] g writing to those changes. My partial Prepayment y tof m y payments after the first Change Date following my partial Prepayment. P ynient may reduce the ato my a W. epayment may be offset by an interest rate increase. However, any reduction due to par LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or ter loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (a) anysuch n charge shall be reduced by the amount necesseary permittede to the lected from me that exceeded permitted limits.will be refu ded to mecharg The Noe Holderr maychooseto make this reducing the Principal I owe under this Note or by making a direct payment to me. If a refund (b) any sums already .action will be treated as a partial Prepayment. refund reduces Principal the -843N to2051 Page 2 of 5 Form 3522 1/01 Initials. a- . 7. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charges for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of Fifteen after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be 000 calendar days of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B) Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C) Notice of Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of Principal that has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. (D) No Waiver By Note Holder Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (E) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 8. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail.to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Unless the Note Holder requires a different method, any notice that must be given to the Note Holder under this Note will be given by mailing it by fust class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that different address. 9. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personallyobligated to in this Note, including the promise to pay the fill amount owed. Any g keep all surety orre nromises made Note is also obligated to do these things. Any, person who takes over these obligations, including the obligations of a who is a guarantor, endorser of this ;uarantor, surety or endorser of this Note, is also obligated to k nay enforce its rights under this Note a �P all of the promises made in this Note. The Notolder gainst each person individually or against all of us together. This means that >f us may be required to pay all of the amounts owed under this Note. . _ �y one mamas 0. WAIVERS A C�. - y I and any other person who has obligations under this Note waive the rights of Presentment and No Presentment" means the right to require the Note Holder to demand paymentf Dishonor to right to require the Note Holder to give notice to other persons that amounts due have not been paid. G of amounts due. Notice of Dt'�slronor�iean� I. UNIFORM SECURED NOTE protections given to e Note Holder under this Note, a Mortgage, Deed of Trust, or Security Deed (the "Security Instrument"), dated the same to as this Note, protects the Note Holder from possible losses that might result if I do not keep the promises that I make in .s Note. That Security Instrument describes how and under what conditions I may be required to make immediatePaYn>ent full of all amounts I owe under this Note. Some of those conditions read as follows: (A) Until.my initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section 4 above, iform Covenant 18 of the Security Instrument shall read as follows: ©)-843N(0205) Form 352 1 1 Page 3 of 5 Initials: i `to Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any pan of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. (B) When my initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section 4 above, Uniform Covenant 18 of the Security Instrument described in Section 11(A) above shall then cease to be in effect, and Uniform Covenant 18 of the Security Instrument shall instead read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable;Law, Lender may charge a reasonable fee as a condition to Lender's consenf to the loan assnnipfion—Lender also may require the transferee to sign an as acceptable to Lender and that obligates the transferee to keep all the promises agreements dei the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate immediatepayment in ve ce acceleration. The notice shall provide a period of not less than30 days om, Lendethee date shallr Borrower notice is notice o accordance with Section 15 within which Borrower must pay all sums secured bythis Security *itelatrX— Borrower fails to pay these sums prior to the expiration of this period, Lender mayinvoke anyremediespermitted— _ I } by this Security Instrument without further notice or demand on Borrower. p�nnitted� e� t^;. ty -77 i • ti 1 1 C CD Form -843N mos) 35 Page 4 of 5 / 01 Initials: ;dr WITNESS THE HAND(S)AND SEAL(S) OF THE UNDERSIGNED. /%� I "John F Lee (Seal) . -Borrower / - - (Seal) ah J Lee / -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower [Sign Original Only] 0 * 2 c d >_..1 ;;: — : -10 rn Y cn 0 >-843N 10205) Page 5 of 5 Form 3522 1/01 Crrd• ✓�UCi ��� 2 John F Lee and Leah J Lee �, UNIVERSITY OF IOWA 425 Peterson Street �0�` COMMUNITYIowaCityIA52245 O Borrower's Name and AddressCCREDED IT T UNION N CREDIT UNION "You"means each borrower above,jointly and severally Account: >r Welcom ' to a Better Way. Date: 04/14/2006 Line of Credit: $12,150.00 Initial Advance: N/A Minimum Advance: N/A Minimum Balance: N/A Minimum Payment: The finance charges that accrued on the outstanding balance during the preceding month, or$25, whichever is greater. /—Maturity date: 04/15/2011 Billing cycle; Ends the last day of every month Payment date: Fifteenth of every month, beginning on 05/15/2006 FIXED RATE HOME EQUITY LINE OF CREDIT GENERALLY: This is an agreement'about your home equity line of credit. Many of the terms we use in this agreement have special meanings. The term"loan account balance"means the sum of the unpaid principal'of loans made under this plan,plus unpaid but earned finance charges,plus any credit insurance premiums that are due. 'Transaction Account" means an account you carry with us. The number of this account is listed at the top of the form on the line labeled "Account". "Line of Credit"means the maximum amount of principal we will ordinarily allow you to owe us under this plan at any time. In ad-dition, we will-use.the following terms foi thisliome equity plan: "Initial Advance"means the amount of money we will require you to accept as an advance open the plan. "Minimum Advance"means the smallest amount of money we willc s n -11 advance you at your request. The"Minimum Balance"is the amount of principal o,—'l loans we will require you to maintain outstanding during the plan. If the principal =I rn balance outstanding falls below the minimum balance, you may have to pay a fee z<r": -o M described below. If any term of this agreement violates any law or for some other reason is not-5" ry enforceable, that term well not be part of this agreement. This agreement is subject tO the a laws of the state where we are located. TAX DEDUCTIBILITY: You should consult a tax advisor regarding the deductibility of interest and charges under this home equity plan. REQUESTING A LOAN: You request a loan under this plan whenever you: write a check or a share draft for at least the minimum advance listed above using one of the special checks or share drafts you have for that purpose. Eft. Z • request in person,by voucher or by phone that you be advanced directly an amount at least as large as the minimum advance listed above. HOW THE LOAN IS ADVANCED; When you request a loan, we will, subject to any limitations contained in this agreement, advance exactly the amount you request, so long as the requested amount equals or exceeds the minimum advance listed above. We will make the advance by depositing the amount in your transaction account, by advancing the money directly to you, or by paying a designated third person or account, depending on how we agree to make the advance. We will record the amount as a loan in you loan account. If your request is for less than the minimum advance, we may, at our option, grant the request. However, granting the request does not mean we will be required to grant requests for less than the minimum advance in the future. We always have the option to deny any such request. • However, we will not ordinarily grant any request for a loan which would cause the unpaid principal of your loan account balance to be greater than the Line of Credit listed above. We may, at our option, grant such a request without obligating ourselves to do so in the future. HOW FINANCE CHARGES ARE COMPUTED: Finance charges begin to accrue immediately when we make a loan to you. To figure the finance charge for a billing cycle, we apply a daily periodic rate of finance charge to the"principal balance"of your loan account each day. To fire the` o principal balance" for each day, we first take your loan account-P) c.... balance at the beginning of the day and subtract any unpaid finance charges and credit✓-=: insurance premiums (if any) that are due. Next, we subtract the portion of anya or credits received that day which apply to the repayment p Ymeis� each paymentyoueP yment of your loans. (A portion of. rn make is applied to finance charged and credit insurance premiums,jf'l; any.) Then we add any new loans made that day. The final figure is the "principal =• ry Cll The daily periodic rate of FINANCE CHARGE is .019042%which is equal to an ANNUAL PERCENTAGE RATE of 6.95%. The annual percentage rate includes interest and not other costs. HOW YOU REPAY YOUR LOANS: On or before each payment date, you agree to make a minimum payment to reduce your debt. The minimum payment amount will equal the finance charges that accrued on the outstanding balance during the preceding month, or $25, whichever is greater. FINAL PAYMENT: On the maturity date listed above,you must pay the amount of any remaining loan account balance outstanding. The minimum payment will not fully repay the principalthat is outstanding on your line. At that time you may be required to pay the entire balance in a single balloon payment. (The amount of your credit line, the timing of • your payments and your pattern of advances all affect whether you will have to make such a payment.) If you have any loan account balance at that time, we are not obligated to refinance your account, but will consider your request to do so. If you refinance this account at maturity, you may have to pay some or all of the closing costs normally associated with a new loan even if you obtain financing from us. ADDITIONAL REPAYMENT TE less than the minimum a I�.1VIS: If your loan account balance on a payment date is p yment amount,you must pay only the loan account balance. If you fail to make a payment, we may, but are not required to, advance money toou to make the payment. All the terms of this agreement would apply to such a loan. y You can pay off all or part of*hat you owe at any time. However, so longas any amount you must continuelto make your periodic minimum a you owe The amounts you pay will firstjreduce the amount owed for credit insurance(if an then will reduce the finance charges; and finally will reduce the amount of unpaid loans. � 0 AUTOIVIATTC'WTTgD ' RAIYjAL: If checked,you authorize us to automatically withdraw your payment from yiour transaction account on each a transaction account does not. halve enoughnt payment date. If your we may, but are not required to,]e>ad youmoney e moneyto ake themake the minimumpayment, ytss agreement will apply to such a loan. If your loan account balance is less than t s of this minimum payment amount,welwill withdraw only the amount necessary to reduce your loan account balance to zero. y r SECURITY: To secure the payment of what you owe a � owe, you agree that we have the right of set- off. This means that we can required to a P y the amount you owe us out of money that we are P y you(such as money in share savings account or share draft account, including dividends and interest earned). However, we cannot set-off any money inyour IRA or other tax-defer-ed reti ent account. We also have no right to set-off ifyou obtain credit under this plan by ng a debit or credit card. State law can our right of set-off may further limit `--fie have secured your olligations under this plan by taking a securityenter way of a separate securitya e - wa following gr einent,mortgage or other instrument dated 04/14/2006)iin property, described by item or type: �, ***See Attached Legal Description*** o -...-.c-) = 1 Filing fees$0,00 D'' `- � e You may buy property i�tunnce from anyone you want who is acceptable -v If you buy the insurance from or;through us, ,_' , to purchase. your premium will be disclosed to you pricey tri 0 CREDIT INSURANCE: Credit life insurance and credit disability insurance are not required to obtain credit. We will provide no coverage unless you sign and agree to pay the additional cost. The rates listed below are applied to your average daily principal balance to determine the premium you owe for one billing cycle. You ndo do not TYPE RATE want single credit life $0.72/mo/$1,000 You Lido do not want joint credit life $1.20/mo/$1,000 You Odo do not want credit disabilit You [�do do not want y $2.00/mo/$1,000 joint credit disability $3.20/mo/$1,000 or NO F Lee. .r,,,, 1 • %i °eah Lee / CHANGING THE TERMS OF THIS AGREEMENT: Generally, we may not change the terms of this agreement. However, we may change the terms in the following circumstances: • We may make changed that you have agreed to in writing. • We may make changes that unequivocally benefit you. • We may make changes to insignificant terms of this agreement. No change we make will be effective until we send you a written disclosure of the change at least sixty days before the effective of the change. If we are required to send notice of a change in terms, we will send the notice to your address listed above. (You:should inform us of any change in address.) ADDITIONAL CHARGES: You agree to pay the following additional ch_ares: • Af�of$ 0 per year in order to-parficipafe in this lan. We will add this amount to your loan account balance on an annual basis. Appraisal $0.00 N Documentation Fees $1 : �• o I,' Credit Report Fees $0_.00 i LATE FEES: If your payment is more than 14 days past due, $15.00. n-•C ATTORNEY'S FEES: To the extent permitted by the United States Bankruptcy rn agree to pay the reasonable attorney's fees and other costs we incur his debt �de,you � -� to realize upon any security as awarded by any court exercising jurisdiction under the '` cr Bankruptcy Code. c� NOTICE: See "Additional Terms"document accompanying th is for additional terms for information about your rights in the th �event of al billing rrorredit SIGNATURES: By Signing below, you agree to the terms on each page of this agreement and you promise to pay any amounts you owe under this agreement. You also state that you received a completed copy of the agreement on today's date. Signature: iefi' John F Lee Signature: `1/ I .� ir Leah J -e B r .�, .digip Josh Corp y • • C-- C", • N O • FIXED/ADJUSTABLE RATE NOTE (One-Year Treasury Index - Rate Caps) Loan # : 41111111111.1. THIS NOTE PROVIDES FOR A CHANGE IN MY FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THIS NOTE LIMITS THE AMOUNT MY ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE I MUST PAY. August 30th, 2007 Coralville Iowa [Date] [City] [State] 1402 Esther St, Iowa City, IA 52240 1. BORROWER'S PROMISE TO PAY [Property Address) In return for a loan that I have received, I promise to pay U.S. $ 121,500.00 is "Principal"), plus interest, to the order of Lender. Lender is University of Iowa Community (ClreditsouUnion called I will make all payments under this Note in the form of cash, check or money order. I understand that Lender may transfer this Note. Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of 7.125 %. The interest rate I will pay may change in accordance with Section 4 of this Note. The interest rate required by this Section 2 and Section 4 of this Note is the rate I will pay both before and after any default described in Section 7(B)of this Note. 3. PAYMENTS (A)Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payments on the first day of each month beginning on October 1st, -2.007 0 _ I will make these payments eye,month unriLr liave_paid_all_of_tht:_principal_and-interest-and an otkiiir-re. h below that I may owe under this Note. Each monthlypaymentappuled arldeser-ibe�i — applied to interest before Principal. If, on September st, 20371 beI still owe amounts unded as of its er this Q6,`I wgp wi amounts in full on that date, which is called the "Maturity Date." w ,Pay those I will make my monthly pa yments at 825 Mormon Trek Blvd. PO Box 2630, Iowa Ci ,r � f'�2A , �246� or at a different place if required by the Note Holder. fes. (B)Amount of My Initial Monthly Payments • r_n Each of my initial monthly payments will be in the amount of U.S. $ (C)Monthly Payment Changes 818.57 This amount may change. Changes in my monthly payment will reflect changes in the unpaid principal of my loan and in the interest rate that I must pay. The Note Holder will determine my new interest rate and the changed amount of my monthly payment in accordance with Section 4 of this Note. 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of September 2014 , and the adjustable interest rate I will pay may change on that day every 12th month thereafter. MULTISTATE FIXED/ADJUSTABLE RATE NOTE - ONE-YEAR TREASURY INDEX - Single Family- Fannie Mae UNIFORM INSTRUMENT -843N mos) Form 3522 1/01 VMP MORTGAGE FORMS-18001521-7291 1 Page 1 of 5 3 The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change, is called a "Change Date." (B) The Index Beginning with the first Change Date, my adjustable interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date 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 information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding Three and one quarter percentage points ( 3.250 %)to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D)below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 9.12 5 % or less than 5.125 %. Thereafter, my adjustable interest rate will never be increased or decreased on any • single Change Date by more than two percentage points from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 13 .125 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any change. The notice will include the amount of my monthly payment, any information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. 5. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a "Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not - designate a-payment as-a-P-r-epayment if-I-have-not-made-all-the-monthly_payments_due-un der_thi&Note.__..-..___._ _.. _ I may make a full Prepayment or partial Prepayments without paying any Prepayment charge. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holdermay apply my Prepayment to the accrued and unpaid interest on the Prepayment amount before applying my Prepayment tigeduce the Principal amount of this Note. If I make a partial Prepayment, there will be no changes in the due .of monthly payments unless the Note Holder agrees in writing to those changes. My •y+ monthly payments after the first Change Date followingmyg partial Prepayment may reduc�tlg�'amount of.mar partial Prepayment. However, any reductiorrdue t y paft"rtr Prepayment may be offset by an interest rate increase. • c 6. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan ches, is finallyO the interest or or az g interpreted so'tlZa[ other loan charges collected or to be collected in connection with this loan exceed the permitted limits,'then: (a;i iy such loan charge shall be reduced by the amount,necessary to reduce the charge to the permitted limit; and (b) any sums already collected from me that exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment. (a)-843N 10205) Form 3. it. /01 Page 2 of 5 Initials: ri -.400 7. BORROWER'S FAILURE TO PAY AS REQUIRED (A)Late Charges for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of Fifteen calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be .000 of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B)Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C)Notice of Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require"me to pay immediately the full amount of Principal that has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. •(D)No Waiver By Note Holder Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (E)Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 8. GIVING OF NOTICES Unless applicable law requires a different method, any notice that mast be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Unless the Note Holder requires a different method, any notice that must be given to the Note Holder under this Note will be given by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that different address. 9. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Nota, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one -of us-may-be-required-to-pay-al-1-of-the-amounts-owed-under_thi,s-Note_-.._-- --. 10. WAIVERS :? I and anyother p c_ person who has obligi'tions under this Note waive the rights of Presentment and tin "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice ZA.pilhonor" m ere the right to require the Note Holder to give notice to other persons that amounts due have not been paid. J 11. UNIFORM SECURED NOTE `. b This Note is a uniform instrument with limited variations in some jurisdictions. In addition to thelitho nilto the Note Holder under this Note, a Mortgage, Deed of Trust, or Security Deed (the "Security Instrument".);dated*ven same date as this Note, protects the Note Holder from possible losses that might result if I do not keep the promises that I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note..Some of those conditions read as follows: (A) Until my initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section 4 above, Uniform Covenant 18 of the Security Instrument shall read as follows: -843N (02051 Form 3522 1/0 Page 3 of 5 Inicla a: `�j Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the • Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred(or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these snme prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. (B) When my initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section 4 above, Uniform Covenant 18 of the Security Instrument described in Section 11(A) above shall then cease to be in effect, and Uniform Covenant 18 of the Security Instrument shall instead read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred(or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred)without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b)Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. .. ._._ ..._ ---=Fo-thyextent permitted-.by Ali$P� , cable-Lawv-Lender mayy-charge-a reasonable_fee_as_a_condition-tri T.P:ncier's,- consent to the loan assumption. Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements rnarie in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. (—) C7'• Q' i IN, C_1 O 44: -843N iozo5t Form 35 1 i © Pepe 4 of 5 In ls: WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED. mei OZT JoF ee (3‘.:9/0I(Seal) ��� ' l / I (Seal) -Borrower Leah J Le/ -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) -Borrower (Seal) -Borrower [Sign Original Only] O .ter; rn rte+ N Q cz-843N (02051 Page 5 of 5 go Form 3522 1101 • Home Equity Line of Credit This is a consumer credit transaction. Lender Borrower University of Iowa John F Lee Loan Number Community Credit Union Leah J Lee Agreement Date 09/14/07 500IOWA AVE•POBOX 2244 1402 Esther St Credit Limit $ 23,500.00 Iowa CIty,IA 52244 Iowa City, IA 52240 Trans. Acct. #AMIIIIIIM111•11 Maturity Data _ 09/15/2012 Generally The periodic rate used in calculating the FINANCE CHARGE is nl917A land thecorresponding Deflnonaen .In this Agreemt,these terms have the following meanings ThepronoANNUALPERCENTAGE hl tmsgees and your refer to all Borrowers signing this Agreemeoi;jointly and RATE is 7 0 0 Y.The annual percentage rete includes interest m y,and each other person or logal entity that agrees to pay this Agreement We,us and our refer to the Lender,or anyand not other costs. - Peson or entity that • acquires an interest in the Linc of Coedit Agreement refers to this Home Equity Payment Terrns Lina of Credit,and any extensions,renewals,modifications or substitutions of it. l>•arsacdon Account means an account you carry with tic.The Transaction Payment Date.During the term of this Agreement a Minimum Paymml 11411 Account number is stated at the beginning of this Agrodment Automatic be due on or before the Payment Date for any Bllmg Cycle in which that is an Withdrawal Account means the account that you have with us from which your outstanding balance on your account Your Mi imum Payments will be due Minimum Paymeals may be automatically withdrawn.The Automatic monthly,beginning 1 0/1 5/2 0 07 Withdrawal Account number is .Ming Mlhlmum Payment.On or before each Paymentyou Cyde means the interval between the daysor dance ofymea Date, agree to make a regular periodic payment of at hart the Minimum Payment amount. stataoents.AIIrn6nutn Payment meant the nim:...,,,,,payment amount required under the Minimum Payment section Payment Date isihe peymrnt due date as The Minimum Payment will equal the following: provided on yourpetiodic statements. Credit Limit means the maximum amount The amount of accrued finance charges on the last day of the Billing Cycle or of principal we will permit you to owe us under this Line of Credit,at any one 523.00,whichever is greater. time.Your Credit Limit is stated at the top of this Agreement Line of Credit refers to this transection generally,including obligation's and duties arising from Rounding.The Minimum Pe the tams of all documents prepared or submieed for this transaction such as Payment will be rounded to the nearest S.Ol. aeplications,security agreements,disclosures,and this Agreement Loan Payment At Maturity.On the Maturity Irate you must pay the arnica Account Ba means the arum of the unpaid principal balance advanced under outstanding Loaa Account Balance% the terms of this Agreement,finance charges,fns,and.other.chargea that arc due,and other amounts advanced to you or others under the terms of this Line of Principal Reduction. Credit Property means any real or personal property that secures your obligations under this Line of Credit Draw Period. During the Draw Period,the Minimum Payment❑wiO not reduce El may not fully repay the principal balance outstanding on Other important tams we defined throughout this Agreement your Loan Account Balance. o to a You.Pronaise to PaY us or other llsocationPaa we may designate,so touch of our Crorderedit at err adder y be ouch Final Payment At maturity,you must pay the amount of any remaining Loan advanced under this Agreement,plus finance charges,fees,charges,costs,and fullyAccrnt Balance principal lag.The Minimum Paymenp may not be you to expense as described-in this Lino of Credit fully reQay the that is outstanding on your line,If they be required to the entire not,you will ]aYoutstanding balance m a single balloon payment At that rime,you may refinance this line of Credit If you refinance this account at Agreement Term.This Agreement begins on the Agreement Data maturity,Yoi may have to pay some or allof the closingingcosts normally The Draw Period also begins on the Agreement Deto and is the associated with a new loan cum if you obtainfm tincmg from est, F n month period during the ram of this Agreement Additional PaymentTerms_IfurLonccoutBalancemaPaymeut. that you may request advances. Date is less than rte Winn Payment amount,you must pay only the amount Tarr Deductibility.You should consult a tax advisor regarding Ne dednctrbiliry °�6mry to retina your Loan Account Balance to zero or to any required of interest and charges tinder this home equity plan Minimum Balance If you otherwise fall to fully pay Minimum Payment amount,we may,but am not required to,advance money to you to make the Advances payment.All the mums of this Agreement will apply on each at advance.Subject many required Minimum Balance,you can pay off all or pert of what you owe Advance Methods.You may request advances by the followhtg methods: at any time.Ifyou pay more than the Minimum Payment amotui,you must continue to make your periodic Minimum Payments an otherwise required by this • You draw your Transaction Account below 50.00(Triggering Balance). Agreetnent • You request a withdrawal in person_ ._You request aavithdta sl is pbona--- Unless otherwise agreed or required by applicable law,payments and other ..-------_.___tredio- l be enpjl tttsl to an cberges esu owe other than isc' ' al and • You request a withdrawal by mai_ finance charges,then to any finance aio dug—std-ml'aBy spat,-- .. ..- - .... • You request an advance by using our Home Banking website. No late charge will be assessed on any payment when the only delinquency is ---. ... . due to late tees assessed on earlier payments and the payment is otherwise a full We will make the advance by advancing the amount directly to you,depositing it Payment. in your Transaction Account,ar by paying a designated third person or account. We will raced the amount as an advance and increase your Lose Account Balance ❑ Automatic Withdrawal.Yon authorize us to automatically withdraw the Advance Limitations.We do not terve to make nary advances during any Minimum Payment from your Automatic Withdrawal Account on each Payment period in which you have a right to cancel Your ability to request and access talc fully pay Automatic Withdrawal PaymentAccountue; does not haver enough re money in it advances is also subject to the following additional limitations: advance the tMinimum payment All may,but senor s money to your to make the the terms of this Agreement Advance Amount Whenrequest an advance,we will apply to such an advance,If your Loan Account Balance it less than the You S will,subject to the Miner=Pgrne ret amount,we will withdraw only the amountnecessary to limitations contained in this Agreement,advance exactly the amount you reduce your Lam Account Balance to zero. ^; request. Credit Limit.Subject to the terms and conditions of this Agreement,you may borrow on this Line of Credit up to the Credit Limit.You agree not to request or We have secured your obligations under this Line of Credit hey ,,.rd n obtain an advance tint will cause the unpaid principal Of your Loan Account a security interest(by way of a separate securityinstrument dated%` J C Balance to exceed die Credit Limit.You understand that we will not ordinarily n9,/4/07 —��1 �"• grant a request foram advance Char would cause the unpaid principal of your Loan )in the following t.' J , Account Balance to be greater than the Credit Limit,but that we may,at our r: , option,grant such a request without obligating ourselves to do so in the future. see Legal Description of Property as describeyiki Your Credit Limit will not be massed if you overdeale the Line of Credit.If you p exceed the Credit Limit,you agree to pay the amount by which the unpaid said security instrumenti principal of your Loan Account Balance exceeds the Credit Limit immediatelyf —0 oven if we have not yet billed you.Any gums in excess of the Credit Limit will —" - —�- eve not be scoured by the Property,unless they are for accrued but unpaid interest or , ..-" '.7. it expenditures made pursuant to the security instrumentaecuring the Property. "" cn ` N -`-_ Finance Charges __ Computation of Finance Charges.Finance charges begin to accrue Properly securing any other loans that you have with as may also secure this immediately when we make an advance to you. Finance charges will be Agreement computed as follows: To figurethe finance Filing Foes. S 0.00 charge for each Billing Cycle,a daily periodic rate is multiplied by the Daily Balance of your Loan Account Balance each day. To figure the Daily Balance,we first take your Loan Account Balance al We have secured your obligations under this plan with the following pledge the beginning of each day,and add any new advances,and subtract any agreement payments or credits that apply to debt repayment and any unpaid fmancc charges,fees and charges. This gives us the Daily Balance. 411116 Hama Fquay Um el Crede • •41�'�' 82002 Wottrn Kluwer Financial Services-eankera Systeme'. Form OCP-HE-CU-IA at23/2005 10050296£6006a-o10 EIAH0996 CUSTOM '1 o•1or 3 ,'X.' • Pledge Agreement By signing below,you pledges N/A of • You are in default of a material obligation under this Line of Credit. You understand,that we consider all of your obligations to be material.Categories shares held in account it as=Laity of obligations that we consider material include,but are not limited to:your for your obligations ands this open-end credit agreement After we disburse hinds obligation to not commit baud or to you according to the plan,you will not be anymisrepresentation in connection with this pof our to withdraw pledged Line of Credit;your obligation to meet the repayment terms of this Line of shares from the account without the approval of our loan officer or credal Credit:your obligation to not adversely affect the?meaty or our rights in the coalmine*. However,you may withdraw any shares in this account that ascent Property your obligation to pay.fees and charges;your advance obligations; the amount of your credit limit We resmve the right to obtain the approval of any your obligation to fulfill the terms of the instrument seeming this Agreement, co-makers who sign this credit agreement before releasing any pledged shuts, and any other security instrummb on the Prrooppererttyy your obligation to notify us;and your obligation to provide as with i nformatioo. • Government action prevents us 6rom imposing the annual percentage rate provided for In this Agreement. X N/A • to a priority riori y of that r ssecurity nf theme interest r adversely affected by government action Signature of Borrower/Account Owner your Credit Limit security interest b less than 120 percent of • We are notified by a regulatory agency that continued advances constitute an X N/A unsafe and unsound practice. •Signature of Borrower/Account Owner Any Borrower resumes a suspension of credit privilegas- In order to reinstate your credit privileges under the original terms of this Any person who signs in this space docs no m give you a security interest Agreement,you roust said us a written request to that effect Your credit the erson pledged n this but assumes r t personal obligationa security to pay pnvfeges will only be reinstated if we determine that the condition which caused this obligation us to prohibit additional extensions and/or reduce the Credit Limit no longs exists.Ifraisal or credit report fees are incurred in malting this detramnation, N/A o may('lowed by applicable law)charge you such fees If credit privileges were suspended al your request,they need not be reinstated unless all Borrowers request reinstatement X N/A Notice of Default and RJght to Cure.Except when otherwise provided by law,if this is a consumer credit transaction or this Agreement is seemed by a Date ono-family or Iwo-fanril y dwelling than is your home • teas we mayan the ti ow I/15UfJfiCCremedies onlyif you to e�tx•.y right to cure a default wthin the time providedby law after a written notice of your default and right to cave is mailed ----_ _.. ._i _ • or delt'es ved to you However m lrbtice of default and right to cure is necessary Property pertwhns You may Duty property insurance from Soanyone you times immediately maniac any and all of our remedies if you have reasonably acceptable to us Ifyou Day the fnstaaucc from or defaulted one or more within the previous 365 days and you have hem through us,your premium will be disclosed to you prior to purchase. given notice of default and right to care with respect to such default. Return of Credit Devices.You agree to roman to us,upon out request,all Credit I nsurant�.The insurance listed below is not.regtired to obtain credit checks,credit meds,or other access devices used to obtain advances under this and we will not_provide the mssaaneo unless you sign enol agree to pay the and you want the for for coaddition al cost.. fThe following rates arc pplied to the outste we will it ing balanu if ce oou n the qualify Remedies.After you default,and alts wo give any legally roqu•red notice and 27th of each month to determine the premium you owe for each billing cycle. opportunity to cure,we may at our option do any of the following: • We may terminate this Line of Credit and make all or any pan of the amount Type:Single Credit Life owing by the tams of this n e tinsdietey due, Rate.72/S1 o • We may teassponniy or permanently prohibit any additional advances. • We may temporarily or permanently reduce the Credit Limit You 0 doES,do not want Single Credit Life. • We may demand additional aecrinty or additional parties to be obligated to Type:Joint CreditLife pay this Agreement Rate 1.20/S 1000 • We may make a claim for any and all insurance berxJits or refunds that You O•dolt do not want Joint Credit Life, may available on your default • Wc may make amounts advanced OD ur behalf iType:Single Credit Disability may add these amounts to die Loan Account� t cr�tiwcty duo,and we e. es,/ Rata:2.00/51000 • We may use my and all remedies we have under applicable I`+rgr any O You❑do'j do not want Single Credit Disability, ung this Agreement_ _ W,1d� --; r— Type;Joint Credit Dltsablllty You agree to y heefasonable expenses we incur to realize Oftealall Fain:3.20/51000 in the event of your dault9' mttjt; You a do� do not want Joint Credit Disability. our nght to em another remedy.law, a�ulyiffwec��ve to O-1 _.-.. --- touse my we do not -right to nstdcr_taayY fattk and to use anv tmutra7Vdiea if the d alCcootlrw - ---rn X or occurs again , Date 9/ 4 D08 07!04/R f] Collection Expenses and Attorneys'Fee*.On or after default,tq the stent permitted by law,you'greetit all collection, forvmisc .,3 • or protection of out rights and remedies under this Line of Credit;Expenses X Q include,but are not limited to,court costs and other legal expenses.To the extant-II Date 0 9/1 4/0 7 permitted by the United States Bankruptcy Code,you agree to pay the reasorablr•J DOB 0 S/2 0/R 1 attorneys'fee we incur to collect this debt as awarded by any court exercising jurisdiction under the Bankruptcy Code Otter Fees end Charges set off.We 's toff anY amount dun and payable under the terms of this You agree to pay the following additional fees and charges: applicable licable your Eight to receive money from us,mien prohibited by • Documentation Fees: 10 0.0 0 Amendment*.Generally,the terms of this may,however,snake the followingAgreement®not be changed.W e Additional Totals changes: Cotrrrtlsslons You understand •and agreethat we(dr our affiliate)will term • We may make changes that you agree to in writing at the time of the change. commisioss or fees on any insurance products,and May earn such fees on other • W e may make changes that will.unequivocally bmcfit you services that you buy through m or our affiliate • W e rosy make lnsigniftcent changes. If we are required to send notice of a change in toms,we will send the notice to Default You will he in default if any of the following etches • You fail m make a payment widen 10 days of being due. your address listed above(yon should inform us of any change in address). • Your action or inaction adversely affects the Property or your rights in the Terrrtlnatlon.You they terminate the Line of Credit at any time upon wsittea Pour notice b re.Termination by one Borrows terminaux the Line of Credit for all • Borrowers.Temrination will not affect your obligation to repay advances made You arc an executive officer of us or our affiliate rind yen become indebted prior to the termination,nor will it alter your duties to perform under the hams to us or another lender in an aggregate amount greater than the amount of an irrstrtmeat seceasel Upon permitted under federal laws and regulations. termination you will return towuAgreement urnn7 such instrument is rel that were issued o withimnmg accessodevices in your possession Suspension of Credit and Reduction of Credit Limit We may or used m connection the Line of Credit_ temporarily prohibit you from obtaining additional adi'anccs or reduce your Waivers and Consent To the extent notprohibited Credit Limit during any period in which my of the following are in effectbytawand foranyrequired notice of right tocurc for the failure to make a required payment,you • The value of theuvarvc protest,presentment forY below its appraised v�yforcmimosaLi aCreditof declines significantly of intent to eceelerato and noticeaof'QishonoraTo flue itch l not prnhibitcd by s this Line deck • We reasonably believe that you will not be able tomeet the repayment requirements under your Linc of Credit due to a material change in your financial circumstances. Home Equity um of trout 02002 Wolters Kluwer Financial Sarvlcea-Bankers Systems"' Form OCP-HE•CU•IA 8123/20051005/998 480068-010 EIAH0996 CUSTOM Page 2 of 3 • law,you and any other parry to this Line of Credit,also consent to the following Notify Us In Case of Errors or Questions About Your Bill actions that we may take,and waive defenses that rimy be available based on these actions,or based on the status of a party to this Line o!Claire If you think your bill is wrong,or if you need mom information about a transaction on your bill,write us at the address Its'ted oar your bill.Write to us as • We may renew or=trod payments on this Agreement,regardless of the soon as possible,We must hear from you m Inter than 60 days after we scot you number of such renewals or extensions. the fust binon which the error or problem appeared You can telephone us.but • We may release any Borrower or other person who may be liable for the doing an will not preserve your rights. indebtedness under this Agreement In your tater,give us the following information: • We may release,substitute or impair any Property securing this Agreement • Your name and account ounsbar. • We may invoke ow right elect-off • The dollar amount of the suspected error. • We may alter into any sales or repurchases of this Agreement to any person • Deseibe the arm and explain,if you can,why you believe there is an error. • many amounts and you waive notice of snch sales or repurchaseto . If you ad more information,describe the item yon are not sure about agree that any Borrower is authorizedto modify the terms of this Agreement or any other Lac of Credit don/meatIf you have authorized us to pay your bill automatically from your savings, • We may infocom any peaty who guarantees antees this Line of Credit of an loan ch share draft or other account,you can stop the payment on any amount Y you think is wrong.To stop the payment your later must reach us three business aeeottanodalions,renewals,extensions,modifications,substittrtiotu,or days before the automatic payment is scheduled to occur, future advances. • No delay or forbearance on our part in exercising any of our rights or remedies will be construes]as a waiver by us,unless such waiver is in writing Your Rights and Our Responsibilities After We and is signed by us. Receive Your Written Notice Periodic Statements.If you have an outstanding balance on your account or have any account activity,wo will send you a periodic statement at the end of We must aclthen. dg your letter within 30 days,unless we have correxpla each Billieg Cycle.This periodic statement will reflect!among other things, the error by even. Within 90 days,we must either correct the error or explain credit advances,Inane charges,other charges,payments made,other credits, why we believe the bill was t:otrex:t. • your previous account balance and your new account balance The periodic After we receive your letter,we cannot try to collect any amount statement will also identify your Minimum Payment for the cycle and theyou question,t you Payment Date, or report you udelinquent. We can wen to bill you fax the amount you question,including finance charges,and eau apply any unpaid amount against aeons.Your obligation to pay this your Credit Limit You do nor have to any quegnoned amount while we arc Joint and Individual Liability and Sueeeas Line of Crain is independent of the obligation of any other person who has also my oostio og,but you are still obligated to pay the parts oCyovr bill that are not agreed to pay it We may sue you alone,or anyone elsejwho is obligated on this °j gestlon, Line of Credit,or any member of you together,to collect on this Line of Credit Extending this Line of Credit or new obligations under this Line of Credit,will If we find chatharges we made a anytque on questioned mo you will not have make pay any not affect your duty under this line of Credit and you vial still be obligated to finance r aux relatedsy to any igen and you will If have didn'tmake and missedake, pay this Line of Cedit.The duties and benefits of this Line of Credit will bind you may heves theo pie financeondmount In ci you case,w oe to up any and benefit the successors and assigns of you and us. payments t on questioned owe amount la either we will said you a statement of the amount you owes and the dare that it Is dna Integration and Severability,This Agreement is the complete and final expression of the agreement.U soy provision of this Agreement is unmforcaublq Jtt�fail In nay the amount that We think you owe,we may report you as then the taxaforaabls providoo will be severed and the remaining provisionsj ucot However,if our explanation does not satisfy you and you write to uswill still be enforceable tat days telling us that you still refuse to pay,we most tell anyone we Interpretation.W henever ns thereport you to that you have a question about your bill.And,we mutt kit you the en, singular includesorcthe plural and the phial name of an one we reported you to.We must tell anyone we report you m that includes the singular.The section headings arc for convenience only and are not the matter has been settled between us when it finally is. to be used to iotapat or define the tams of this Agreement Notice,Financial Reports and Additional Documents.Unless otherwise If We don't follow these rules,we can't collect the first 550 of the questioned required by law,any notice will be seaamount,even if your bill was correct. rias Mall to the aby delivering it any mailing it ess first appropriate party's address above,or to other address I I �- designatcd in writing.Notice to one Borrower will be deemed to be notice to all SignatUlCS Borrowers.You will inform us in writing of any change in your rams,address or othlcat n information Your will providetmusany m'fo fmancias ostatement or You understand that tams followings only apply if checked.By signing, will be information t taxi u� a te.Youy givens you agee tot the terms of this Agreement comp) agree to sign,ddiveir,and lite any additional greerment You also acknowledge receipt of a copy documents or txrtiHeations that we consider to of this A•,.., 's date. and preserve your obligationsn t soil confan our lien ��F status on Pro under theies Line. Credit and to caofirm lien any Iratlt. Time is of tssruca X Credit Information.You •# � e —' agree to supply us with are this L information we rea m:ably fed we need to decide whether to continue this Lloe of Credit.We _ will make tequ��for this information without undue frequency.and will give X r\ , I `k � you reasonable time in which to supply the informeti ah J Lee I • Applicable Law.This Agreenron is governed by the laws of lows,the United States of America, Y loo the required, by laws the ofth jurisdiction X . .. , where the YOUR BILLING RIGHTS KEEP THIS NOTICE FOR FUTURE USE � 4,' This notice contains important information about your rights and oar �!/-���i�... responsibilities under the Fair Credit Billing Act fide( '� L N O OC".... L= • i C.)—C — r) CT) < L-1 '--7. Ln 0 Homo Equity Un•of Creek 012002 Wolters Kluwer Ftnenclel Services-Banken Systema" Form OCP-HE-CU-IA 8123/2005 100519B6 480068-010 ElAH0996 CUSTOM Page 3 of 3 , Creditor. UNIVERSITY OF IOWA CREDIT UNION FIXED RATE TE 500 IOWA AVE•PO BOX 2244 HOME EQUITY LINE OF CREDIT IOWA CITY,IA 57244 C This disclosure contains Important information about otx Home Equity Line of Credit. You should read It carefully and keep copy o y��ur records. 1.AVAR.ABILRY OF TERMS. All of the terms described below are subject to change. If these terms change and you decide,as a result,not to enter into an agreement with us.you are entitled to a refund of any fees that you have paid to us or anyone else In connection with your application. 2.SECURITY INTEREST. We will take a security Interest In your home. You could lose your home If you do not meet the obligations In your agreement with us. 3.POSSIBLE ACTIONS. Under certain circumstances,we can: A. Terminate your line of credit and require you to pay us the entire outstanding balance in one payment: B. Refuse to make additional extensions of credit;and C. Reduce your credit limit. We can terminate your line of credit and require you to pay us the entire outstanding balance In one payment If: A. You fall to make a payment within 10 days of being due;or B. Your action or Inaction adversely affects the collateral or our rights In the collateral. • We can refuse to make additional extensions of credit or reduce your credit limit If: A. The value of the dwelling securing the tine of credit declines significantly below its appraised value for purposes of the line of credit; B. We reasonably believe you will not be able to meet the repayment requirements under the line of credit due to a material change in your financial circumstances; C. You are in default of a material obligation of the agreement; O. Government action prevents us from Imposing the annual percentage rate provided for in the agreement,or impairs our security interest such that the value of the Interest Is less than 120 percent of the credit limit on the line of credit or E. A regulatory agency has notified us that conttnuediadvances would constitute an unsafe and unsound practice. 4.MINIMUM PAYMENT REQUIREMENTS. You can obtain credit advances for 5 years. During this period,payments will be due monthly. Your minimum month) will equal the greater of the following: ♦ y payment • The amount of accrued finance charges on the last day of the billing cycle;or $25.00. The minimum payment amount w i be rounded to the nearest$.01. Whenever a flat dollar amount is used to determine the minimum payment however, the minimum payment will be rounded to the nearest$.01. The minimum monthly payments may not be sufficient to fully repay the principal that is outstanding on your line of credit at the end of 5 years. if they are not,you will then be required to pay the entire balance In a single payment. 5.MINIMUM PAYMENT EXAMPLE. if you made only the minimum monthly payment and look no other credit advances,11 would take 5 years to pay off a credit advance of $10,000.00 al an ANNUAL PERCENTAGE RATE of 6.750%. During that period,you would make 59 payments of$58.25 with a final payment of$10,058.25. 6.750%is an example of an ANNUAL PERCENTAGE RATE we have offered recently. The annual percentage rate includes only Interest and not other costs. 6.FEES AND CHARGES. To open and maintain a line of credit,you must pay the following fees to us: Documentation: $100.00(due at closing). You must carry Insurance on the properly,that secures the line of credit. 7.REFUNDABIUTY OF FEES, If you decide not to enter into this plan within three days of receiving this disclosure and the Home Equity Booklet,you are entitled to a refund of any fee you may have already paid. • 8.TAX DEDUCTIBILRY. You should consult a tax advisor regarding the deductibility of Interest end charges for the line of credit. ry.r= a D r-..- —<� rn .71 N cm rV 21-0 This is not a commitment to make a loan. You hereby Date acknowledge receipt of this Home Equity Plan Disclosure and a copy of the Home Equity Brochure on today's date. pre*III V;I WA OBI D 1389.2003 We liars Muwer Financial Services-Bankers Systems'' Form HE-DISC 9/1512003 4130025-03D MDF.EIAHEDS9 (page 1 of r) • AFFIDAVIT RE COMPENSATION STATE OF IOWA, COUNTY OF JOHNSON, SS: We, Robert S. Michael and Crystal K. Raiber, being first duly sworn, under oath, depose and swear that we are the attorneys of record for the Plaintiff; that there is no contract, agreement or arrangement, either oral or written, expressed or implied, contemplating any division of compensation for the services rendered in the above entitled proceedings as attorney or participation of such compensation, directly or indirectly, by any other person, firm or corporation with such attorney except other legal counsel in a regular and bonafide law partnership with the undersigned in the above entitled matter. O CAA/ :=7:-.(-= Cr= r'."1.1 Robert S. Mi hael -<r- m /46/ C�7 Crys Z1 K. Raiber Subscribed and sworn to before me the undersigned Notary Public by Robert S. Michael and Crystal K. Raiber this 3 day of J � , 2010. 6. A5 P JULIE B. LYNCH lA�d Julie B. Lynch NOTARY o tiA3- `� COMMISSION# 114588 =�= MY COMMISSION EXPIRES Jo. 6_ 1 - 1/ Ek . 5 1 IIII 1111! III 111111111111 !IIIIIIIIIII II Doc ID: 020491830022 Tvpe: GEN Recorded: 04/04/2006 at 09:57:33 AM Fee Amt: $112.00 Page 1 of 22 Johnson County Iowa Kim Painter County Recorder BK4006 PG897-918 [Space Above This Line For Recording Data] Prepared By: Nancy Jones University of Iowa Community Credit Union 825 Mormon Trek Blvd/P0 Box 2630 Iowa City, LA 52244 Return To: University of Iowa Community Credit Union 825 Mormon Trek Blvd. PO Box 2630 Iowa City, IA 52246 319-341-2125 Full Legal Description located on page 3 Lender Name located on page 2. MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined 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.-L6..--_. (A) "Security Instrument"means this document, which is dated March 3rd, 2 0 0 6 together with all Riders to this document. (B) "Borrower" is John F Lee, A Married Man and Leah J Lee, A Married Woman CD c� �3 Purchase Money Mortgage n� F Borrower is the mortgagor under this•Security Instrument. :Crn i Loan# N — IOWA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT C7 Form 3016 1/01 -6(IA)(0405) O Page 1 of 15 Initials:, • �� •y VMP Mortgage Solutions(800)52 72I� i i , . (C) "Lender" is University of Iowa Community Credit Union Lender is a state chartered credit union • organized and existing under the laws of Lender's address is 825 Mormon Trek Blvd. PO Box 2630, Iowa City, IA 52246 • Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated March 3rd, 2006 The Note states that Borrower owes Lender Eighty Seven Thousand Seven Hundred Fifty and no/100. Dollars (U.S. $ 87,750.00 )plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than April 1st, 2036 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "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. (G) "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]: x Adjustable Rate Rider x J Condominium Rider I I Second Home Rider Balloon Rider I Planned Unit Development Rider I 1 1-4 Family Rider U VA Rider I I Biweekly Payment Rider Other(s) [specify] (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. -(3) 1tEleetronic_Funds-Transfer`s-means--any transfer-of-funds,-other-than-a-transaction-originated-by. - check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "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: g damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any gait of tl& Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissioni-7as=1' value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or fiel t oast r- the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for i '� () Note, plus(ii) any amounts under Section 3 of this Security Instrument. pnncipal and interest-d%34. the c7 � tv c_=1 CD -6(IA) (0405) Page 2 of 15 Initials.- �/ Form 3016 1/01 (0) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i)the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably mortgages, grants and conveys to Lender, with power of sale, the following described property located in the County of Johnson [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] Unit 425, Normandy Court Condominiums, Phase No. 1, according to the Declaration thereof, recorded in Book 532, Page 121, Miscellaneous Records of Johnson County, Iowa. O O O _ 7-71 c-) cn 7_7) cn CD Parcel ID Number:1 0-13-104-005. 425 Peterson St which currently has the address of Iowa City [Street] ("Property Address"): [Ciry], Iowa 52245 [Zip Code] 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 and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. -6(IA) (0405) InKials: 41"6 „ Page 3 of 15 " •�aAw% Form 3016 1/01 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such;check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or(d)Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender chall either apply such funds or return them to Borro'v er. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. • 2. Application of Payments;or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If--Lender receives-a=pa tent €Eom Bor4ower-for-a-delis eat-P-er-iodic-P-a- � ymen�which_includciea.. _.._._ ....._..._... _. sufficient amount to pay any late charge due, the payment may be applied to the delinquent mens Ed the late charge. If more than one Periodic Payment is outstanding, Lender may apply any paynizje ecei d Pg.j from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payingn[=canLe paid in full. To the extent that any excess exists after the payment isapplied to the full a P ym payment':@€,ondPbr more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepapits s) 1 be applied first to any prepayment charges and then as described in the Note. -- Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principattne under "' the Note Ghali not extend or postpone the due date, or change the amount, of the Periodic Payme`n'ts. cn 3. Funds for Escrow Items.:Borrower shall pay to Lender on the day Periodic Payments are clue under the Note, until the Note is paid in full, a sum(the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Initials: -6(IA) (0405) Page 4 of 15 k' Form 3016 1/01 '1 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 the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount(a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity(including Lender, if Lender is an institution whose deposits are so insured)or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. _ - -- ---__ILthere_is_a-surplus-oL.lrunds,heldan_.escrow„—as-defined under--RESP-A,-Lender-shall-account-to- - Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to mWe up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. o Upon payment in full of all sums secured by this Security Instrument, Lender shall pro"".„3 crefur -11 to Borrower any Funds held by Lender. :�F. •mags, 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, anditions i attributable to the Property which can attain priority over this Security Instrument, leasehold pests o, 11 i ground rents on the Property, if any,.and Community Association Dues, Fees, and Assessments,:i1= iy. 'lam: the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in e,aitna Borrower shall promptly discharge any lien which has priority over this Security Instrunjt unlet Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptabP to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith -6(IA) 104051 Initials: Page 5 of 15 �J Form 3016 1/01 by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or(c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time,charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, hazard or liability and might provide greater or lesser coverage than was previously in effect. Binst orrower 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 Le_r si_ez t2.&auQw_ezz uestin _ All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, Or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, Whether or not the underlying insurance was required by Lender, shat be applied to restoration or repair of the Property, if the restoration or repair is economically fejble anima Lender's security is not lessened. During such repair and restoration period, Lender shall have�t t= hold such insurance proceeds until Lender has had an opportunity to inspect such Property to eittre thee= work has been completed to Lender's satisfaction, provided that such inspection shall be u promptly. Lender may disburse proceeds for the repairs and restoration in a single paymentiij res of progress payments as the work is completed. Unless an agreement is made in writiinroApplial Lav,�>° s'. ry / CZ)-6(IA) (0405) N a15: CII Page 6 of 15 Form 3016 1/01 • requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower chall not be paid out of the insurance proceeds and chall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower: Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower chalk occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which' consent shall not be unreasonably 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 commit waste on the Property. Whether or not Borrower;is residing in the Property, Borrower chalk maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower chall promptly repair the Property if damaged to avoid further deterioration _or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing oil 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 --pro-grecs-ayments-as-the-workZs-cornpleted: Ifthe surance--or-condemnatiorrproceeds-are-notsufficient- _.._ __. _.-.. to repair or restore the 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 the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not:limited to, 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) theme • is a legal proceeding that might significantly affect Lender's interest in the Property and/or rigas and o this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or fort , fqr enforcement of a lien which may attain priority over this Security Instrument or to enfore Cn -60A) (0405) Initials f ��'`y'� Page 7 of 15 ",,�' (� —D 6 Y �• Form 3.6-1-e41/0= 901 C7 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 in the Property and 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 priority 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 this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this 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 the Loan, Borrower shall pay the prenunma 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 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 coverage substantially equivalent to the Mortgage Insurance previously to obtain equivalent to the cost to Borrower of the Mortgage Insurace previously cin effect, a cost substantially p y;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 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 non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on 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 the premiums for Mortgage Insurance.If Lender required Mortgage Insurance as acondition of making the Loan and Borrower was required to make separately designated payments toward the premmms for'Mortgage tris-u- $oizower�fis ail pay t3ie premiums regiiue3 to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender'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 that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements 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 payments using any some of funds that the mortgage insurer may have available (which may include fiords obtained from Mortg ge Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, . Rknst r, any other entity, or any affiliate of any of the foregoing, may receive(directly or indirectly) .• irits kat Z derive from (or might be rharacterized as) a portion of Borrower's payments for Mortgage F cepin exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If sucE4greeme t f i rn 111V i: N -6(IA) (0405) Inhia Page 8 o1 15 ./er Form 3016 1/91- provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property 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 and restoration period, Lender 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. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the suras secured by this Security Instrument, whether or not then due, with the excess, if any,paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction; or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds • multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately_befoae-the-paatial-taking,,destruction,-or-loss-in-valuer-,Any-balance-shallbe-paid-to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or.loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if'any action or proceeding, whether civil or criminal,is begun that„ia Lender's judgment, could result in forfeiture of the Property or other material impairment of' Lender interest in the Property or rights under this Security Instrument. Borrower can cure such a deft and, acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceec) =to kn~ t dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or othePteateriaf' impairment of Lender's interest in the Property or rights under this Security Instrument. The pi%eeds , c. • -<rn —0 -6(IA) (0405) Page 9 of 15 /I d ® .� r) Form 3016' 1/O1 cl any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that 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 the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several.However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument onlyto mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the Pemu ed�imi[s, then- (a) any such loan charge shall 6e (educed by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptlik, notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower change of address, then Borrower shall only report a change of address through that specified ptocedurq' There may be only one designated notice address under this Security Instrument at any one tirne...Any`= notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender s'atldress— stated herein unless Lender has designated another address by notice to Borrower. Any notice i{ r., CD-6(1A) (0405) Inl[iais: % ` rry "C] Page 10 of 15 froN) —' Form 36- 1/01 ' , C11 connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17.Borrower's Copy. Borrower shall be given one copy of the Note and of this 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, to, those beneficial interests transferred in a bondractor P rtY, including, buts notn limited escrow agreement, the intent of which is the transferoftitle by Borrower at a fudeed, urinstallment ta purer t or If all or any part of the Property or any Interest in the Property is not a natural person and a beneficial interest in Borrower is sold r transferred) withouted Lender's prior written consent, Lender may require immeriiate payment in full of all Instrument. However, this option shall not be exercised b sums secured oh Security Applicable Law. Y Lender if such exercise is prrohibited by 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 these sums prior to the expiration of; this period, Lender may invoke any eIIemt. ediie permBorrower itted byto pay Security Instrument without further notice or demand on Borrower. Permitted this 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security prior to the earliest of: (a) five days before sale of the Property Instrument discontinuedwofsale ato any d in this Security Instrument; pursuant to any power of sale contained in Borrowees (b) such other period as Applicable Law might specify for the termination of --right-to-reinstate;--or-(:e)--entry-of-a-ju .ent-enforcin -d g__Securi conditions are that Borrower: (a) pays Lender all g due ndert this Security Instrument Instrument and the Note as if no acceleration had occurred; (b) cures woulddfItbunder covenants eor agreements; (c)pays all expenses incurred in enforcing this Securi y any default t of any other d to, reasonable attorneys' fees, property inspection and valuation fees,Instrument,oher including,fees ncurreedbut dt for purpose of protecting Lender's interest in the Property and rights under this Security takes such action as Lender may reasonably Instrument; and (d) rights under this SecurityIns require to assure that Lender's interest in the Property and Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; certified check, bank check, treasurer's check or cashier's check, provided any such check sedrawn rupon an institution whose deposits are insured by a federal agency, instrumentality or entity; Funds Transfer. Upon reinstatement.by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall nok, apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial ityrest iIF' the Note (together with this Security Instrument) can be sold one or more times without prior x*tW tc d C7-< al 02)-6(1A)maps) Pape 11 �f��II �' initials 1i_ C6 O of 15 ,6021Form 307-6--7/01r:%) ` U1 Borrower. 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 Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, 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 Loan Servicer, Borrower will be given written notice of the change 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 Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless 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, until 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 substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable 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 environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances,__or_threaten_to_release_any..Hazardous_Substances,_on.or.in_the_P_raperty.._.Borro_weL 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 residential uses and to maintenance of the Property(including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of(a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation, of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all_necessarig remedial actions in accordance with Environmental Law. Nothing herein shall create any oblfgatjpp Lender for an Environmental Cleanup. — C-3Crt i 10405) ® Page 12 of 15 �/ ��� Form 3x18 : OTS N l' 01 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 ut not prioto 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, foreclosure by judicial proceeding and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. 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 foreclose this Security Instrument by judicial proceeding. 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. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower relinquishes all right of dower and waives all right of homestead and distributive share arre iinandto the Property. Borrower waives any right of exemption as to the Property. EXEMPTION WAIVER. I UNDERSTAND THAT HOMESTEAD PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AND EtIMPT FROM JUDICIAL SALE; AND THAT BY SIGNING THIS MORTGAGE, I VOLUNTARILY GIVE UP MY RIGHT TO THIS PROTECTION:FOR THIS MORTGAGED PROPERTY WITH RESPECT TO CLAIMS BASED UPON THIS MORTGAGE. 1>2 3/31 a6, - B0 wer Jolzn F Lee �� � � Date :orrower Led Lee Date Borrower Date Borrower Date ru 0 co Borrower Date Borrower �.�•� Dattyl :gym M Borrower Date Borrower CJI Date^— e)-6(IA) (0405) Page 13 of 15 Form 3016 1/01 26. Redemption Period. If the Property is less than 10 acres in size and Lender waives in any foreclosure proceeding any right to a deficiency judgment against Borrower, the period of redemption from judicial sale shall be reduced to 6 months. If the court finds that the Property has been abandoned by Borrower and Lender waives any right to a deficiency judgment against Borrower, the period of redemption from judicial sale shall be reduced to 60 days. The provisions of this Section 26 shall be construed to conform to the provisions of Sections 628.26 and 628.27 of the Code of Iowa. IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS VVRITTEN MAY BE LEGALLY ENFORCED. YOU MAY CHANGE 'THE TERMS OF THIS AGRCEEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: (Seal) ohn F Lee -Borrower I I t, . / / i A / ' (Seal) ah J Lee/ -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) -Borrower (Seal) -Borrower ra ca _.4/ w'.ii �yy.ayw CD tU CD-60A)104051 jF Lri Page 14 of 15 Form 3016 1/01 STATE OF IOWA, Johnson County ss: On this 3rd day of March 2006 , before me, a Notary Public in the State of Iowa, personally appeared John F Lee and Leah J Lee to me personally known to be the person(s) named in and who executed the foregoing instrument, and acknowledged that he/she/they executed the same as his/her/their voluntary act and deed. My Commission Expires: *C: MA .FC /Commission Number 169358 I ///� �/MyCommissionEAires S/fin E Notary Public in and for said County and State N --ice a' y :<� rn z• ►, -6(1A) 10405) Initials: ��41 p 3JI Page 15 of 15 Form 3016 1/01 CONDOMINIUM RIDER THIS CONDOMINIUM RIDER is made this 3rd day of March 0 0 6 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Note to University of Iowa Community Credit Union "Lender") of the same date and covering the Property described in the Security Instrument and located(thate 425 Peterson St, Iowa City, IA 52245 The Pro e [Property Address] p rty includes a unit in, together with an undivided interest in the common elements of, a condominium project known as: Normandy Court Condominiums [Name of Condominium Project] (the "Condominium Project"). If the owners association or other entity which acts for the Condominium Project (the "Owners Association") holds title to property for the benefit or use of its members or shareholders, the Property also includes Borrower's interest in the Owners Association and the uses, proceeds and benefits of Borrower's interest. CONDOMINIUM COVENANTS In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. Condominium Obligations. Borrower shall perform all of Borrower's obligations under the Condominium Project's Constituent Documents. The "Constituent Documents" are the: (i) Declaration or any other.document.which creates the Condominium-Project;-(ii)--by-laws;-(iii)-code of-regulations; and (iv) other equivalent documents. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or "blanket" policy on the Condominium Project which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for the periods, and against loss by fire, hazards included within the term "extended coverage," and any other hazards, including, but not limited to, earthquakes and floods, from which Lender requires insurance, MULTISTATE CONDOMINIUM RIDER-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT C 1,1 (Z-8R (0008) Form 3148 1/01 Page 1 of 3 Initials: ,gyp ? —; VMP MORTGAGE FORMS- (800 'WATT] (—)—‹ -- n - 01 F3 _Ct�.1 then: (i) Lender waives the provision in Section 3 for the Periodic Payment to Lender of the yearly premium installments for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. What Lender requires as a condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, whether to the unit or to common elements, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender for application to the sums secured by the Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property, whether of the unit or of the common elements, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the Condominium Project, except for abandonment or termination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the Constituent Documents if the provision is for the express benefit of Lender; (iii) termination of professional management and assumption of self-management of the.Ownexs_Association;._or_(iv)_any action which would-have-the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable r. F. Remedies. If Borrower does not pay condominium dues and assessmenth n due, then Lender may pay them, Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. o �8R (0008) r • 1 Initials: m' Page 2 of 3 60 Form 3140-1/01N I/ • BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this Condominium Rider. (Seal) I / �` (Seal) ohn F Lee -Borrower ea J L�/e -Borrower • (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower -8R (0008) Page 3 of 3 Form 3140 1/01 N d O :71 In rn C.I1 ADJUSTABLE RATE RIDER (1 Year Treasury Index-Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 3rd day of March 2006 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed.(the "Security Instrument") of the same date given by the undersigned (the "Borrower")to secure Borrower's Adjustable Rate Note(the "Note") to University of Iowa Community Credit Union (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 425 Peterson St, Iowa City, IA 52245 • [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGE S_ The Note provides for an initial interest rate of 5.750 changes in the interest rate and the monthly payments as follows: % The Note provides for 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of April 2011 and on that day every 12th month thereafter. Each date on which my interest rate could change is called a "Change Date." MULTISTATE ADJUSTABLE RATE RIDER -ARM 5-2-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Fannie Mae 4-2/5-2/6-2 ARM N c-) -822R (0008).01 Form 1111 j -- o C9 �_.•a Page 1 of 4 Initials C-3 - VMP MORTGAGE FORMS- (800 'w-P-91 >—s .fit` –r7 n N .i • (B) The Index Beginning with the first Change Date, my interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable information. The Note Holder will give me nonce of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding Two and three quarters ( 2.750 %) to the Current Index. The Note Holder will then round the cresulteofoints this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the maturity date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (I))Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 7.750 % or less than 5.0 0 0 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than two percentage points (2.0%) from the rate of intere§t I rhave been paying for the preceding 12 months. My interest rate will never be greater than 11. 750 %. (E)Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount Of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. N C L. fi% CZ-822R (0008).01 C") Initials: '�' '' �"� 9 _"- Pa e 2 of 4 Form 31:1-4/010"1 CD C.1i • (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in It interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given to me 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 Section 18 of the Security Instrument is amended to read as follows:INTEREST IN BORROWER Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any Iegal or beneficial interest in the but not limited to, those beneficial interests transferred in a bond for deed�ntrraact for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Pro e Borrower is not a natural P nY is sold or transferred (or if person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require sums secured by this Security Instrument. However, this option immediate payment in fyll n all p if such exercise is prohibited by Applicable Law, shall not be exercised by Lender (a) Borrower causes to be submitted to Lender information re requirll not ed by Lender exercise this evaluate if: intended transferee as if a new loan were being made to the t to evaluate the reasonably determines that Lender's securitywill not be itransferee; and (b) Lender that the risk of a breach of any covenant or a impaired by!the loan assumption and Lender. agreement in this Security Instrument is acceptable to To the extent permitted by Applicable Law, condition to Lender's consent to the loan as Lender may charge a reasonable fee as a -sign_an_assumption a - assumption. Lender may also require the transferee to $reement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Borrower will continue to be obligated under the Note and this SeSecunty Instrument. Lender releases Borrower in writing. h' Instrument unless If Lender exercises the option to require immediatea Borrower notice of acceleration. The notice P Y�nt m;�). Lender shall give the date the notice is given accordance in shall provide a period of not less than 30 days from sums secured b with Section 15 within which Y this Security Instrument. If Borrower fails to payBorrower mustr tooy all he expiration of this period, Lender may invoke any remedies permitted Y these sums prior the without further notice or demand on Borrower. this Security Instrument c=, 0 n jf4i822R (0008).07 Initials; ( - Page 3 of 4 Q1 Form --4 CD-8228 7 " tri s 4 .-. N) „ '^ c_I BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. 40, 12/2 i'•hn F Lee Leah J L -Borrower ` (Seal) :T -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (Seal) -Borrower (M>-822R (0008).01 Page 4 of 4 Form 3111 1/01 C - C n � cn 1111111111111111111111111111111111 Doc ID: 020509250004 'Noe: DEN Recorded: 04/24/2006 et 02:21:29 PM Fee Amt: 822,00 Paae 1 of 4 Johnson County Iowa Klm Painter County Recorder eK4014 Po574-577 . ; Prepared by/Return to: Candi Tarrant Loan Number. University of Iowa Community Credit Union.500 Iowa Avenue P.O.Box 2240 Iowa City,Iowa 52244-2240,(319)339-1.010. Address Tax Statement: John F Lee and Leah J Lee 425 Peterson Street . lowa City. iA 52245 IOWA MORTGAGE OPEN END-SECOND MORTGAGE THIS INDENTURE made this 1 4 t h day of Apr i 1 • 2 0 D 6 batweenJohn F Lee and Leah J lee . husband and wife Mortgagor(s), whose address ls: 4 2 5 Petersonsstreet , I o w aStity , I A 5 2 2 4 5 and the UNIVERSITY OF IOWA COMMUNITY CREDIT UNION, a/k/a U OF I COMMUNITY CREDIT UNION,Mortgagee,having Its principal place of business at 500 Iowa Avenue,Iowa City,Iowa,WITNESSETH: Thal the said Morigagor(s)in consideration of T w e l v e Thousand O n e Hundred F i f t y DOLLARS ($ 1 2. 1 5 0 . 0 0 ) loaned by Mortgagee, received by Mortgagor(s) and evidenced by the promissory note(s) hereinafter referred to,do,by these presents SELL,CONVEY,AND MORTGAGE,unto the said Mortgagee the following described real estat situated In the County of Johnson ,State of Iowa,to-wit: Unit 425. Normandy Court Condominiums . Phase No. 1 according to the Declaration thereof . recorded in Book 532 . Page 121 . Miscellaneous Records of Johnson County . Iowa . N5) C'72 CD r? C% /AMMO 1(� D • i which has the address of 425 Petersen Siree_t Iowa C_i_Ly Iowa 52245 --; 1 Street City State Zip .✓ t:- �,,� csi together with all personal property that may Integrally belong to,or be,or hereafter become an Integral part of said real estate,and whether attached or detached,and hereby granting,conveying,and mortgaging also all of the easements,servient estates appurtenant thereto, rents,Issues,uses,profits,and right of possession of said real estate,and all crops raised thereon Irom now until the debt secured thereby shall be paid In full. As to any such personal property or fixtures,or both,a Security Interest hereby attaches thereto,as provided by the Uniform Commercial Code. This Mortgage is subject only to a prior mortgage from John F Lee and L e a h J L e e dated March 3. 2006 to U of I Community Credit Union at 0d recorded on April 4 . 2 0 0 6 ,in Book County Recorder. Page 8 9 7 of the Records of the Johnson Said Mortgagor(s)hereby covenant with Mortgagee,or successor in Interest,that said Mortgagor(s)hold said real estate by title In fee simple;that they have good and lawful authority to sell,convey,and mortgage the same;that said premises are Free and Clear of all Liens and Encumbrances whatsoever except as may be above stated;and said Mortgagor(s)Covenant to Warrant and Defend the said premises against the lawful claims of all persons whomsoever,except as may be above stated. Each of the undersigned hereby relinquishes all rights of dower, homestead, and distributive share In and to the above-described premises,and waives any rights of exemption,as to any of said property. CONDITIONED,HOWEVER,that If Mortgagor(s)shell pay,or cause to be paid to U of I Community Credit Union,500 Iowa Avenue/P.O, Box 2240,Iowa City,Iowa 52244,its successors or assigns,at such place as designated by the promissory nole(s),of even date herewith, given by Mortgagor(s)to U of I Community Credit Union,of Iowa City,Iowa,or al such place as the owner of such promissory note(s)shall designate from time to time,payment In legal tender of alt debts end dues,public and private,at the time of payment payable,as provided in said promissory note(s),with final payment due thereon,on or before the F i f t e e n t Hey of March obligations secured as set otherwise unless rin Paragraph 1 below,then d with Interest aa this Mortgd aegeelwilland be void,1 perform Mortgagee shall release saidther provisions rreal estate l tthhe expense of the Mortgagor(s),otherwise to remain In full force and effect. All payments received by the Mortgagee shell first be applied to credit insurance(If any),then finance charges,and lastly,the amount of unpaid principal. 1. OPEN-END FEATURE:Thla mortgage shall secure the payment and performance of the mortgage note,and for any and all future and additional advances made to the Mortgagor(s)or any of them,by the Mortgagee in such amount or amounts so that the total of such future additional advances outstanding and unpaid at any one lime shall not exceed Twelve Thousand One Hundred Fifty OOLLARS ( S 1 2. 1 5 0 . 00 ). This mortgage shall also secure all of the covenants, agreements and indebtedness of Mortgagor(s) whether existing now or the future, Band indebtedness Is reduced and increased thereafter, extinguished andrelnncued atHISPARAGRAPof at HSHALL NOT CONSTITUTE A COMMITMENTTOMAKE ADDITIONAL LOANS IN ANY AMOUNT. 2. NOTICE:This mortgage secures credit in the amount of$ 1 2 . 1 5 0 . 0 0 . Loan and advances up to this amount,together with Interest,are senior to indebtedness to Whet-creditors under subsequently recorded or filed mortgages and liens. 3. TAXES:Mortgagor(s)shall pay each Installment of all taxes and special assessments of every kind,now or hereafter levied against said property,or any part!hereof,before same become delinquent,without notice or demand;and shall procure and deliver to said Mortgagee,on or before the fifteenth day following due date of each Installment,duplicate receipts of the proper officers for the payment of ell such taxes and assessments then due. 4. INSURANCE:Mortgagor(s)shall keep In force Insurance,premiums Therefor to be prepaid without notice of demand,against loss by fire,tornado,and other hazards,casuahies,and contingencies as Mortgagee may require on personal property,as herein referred to and on all buildings and Improvements on said premises In companies to be approved by Mortgagee in an amount not less than the full insurable value of such personal propertyand Improvements,or not less than the unpaid balance herein,whichever amount Is smaller,with such insurance payable to Mortgagorand Mortgagee, as their Interests may appear. In the event of a loss, Mortgagor(s) will give Immediate notice by mall to the Mortgagee,who may make proof of lose to the Insurance company, and the Insurance proceeds, at the option of the Mortgagee, shall be received by Mortgagee and applied towards payment of this mortgage. Mortgagor(s) shall promptly deposit such policies with proper riders with the Mortgagee. Also,If required,the Mortgagor(s)agree to secure and maintain the maximum amount of flood Insurance required in compliance with the Flood Disaster Protection Ad of 1973, and to furnish such policies to the Mortgagee with the Insurance payable to the Mortgagee. 5. REPAIRS TO PROPERTY:Mortgagor(s)shall keep the buildings and other Improvements on said premises In as good repair and condition,as same may now be,or are hereafter placed,ordinary wear and tear only excepted;and shall not suffer or commit waste on or to said security. 6. COMPLIANCE WITH LAW:Mortgagor(s)shall comply with all present and future laws,regulations,and ordinances affecting the mortgaged property. 7. CONDEMNATION:All compensation awarded for any damages in connection with a condemnation proceeding for any part of the mortgaged property shall be paid directly to the Mortgagee and applied to the mortgage note. 8. JOINT AND SEVERAL LIABILITY:Mortgagor(s)agree to be Jointly and severally liable for the indebtedness evidenced by the mfor the purpo a of releasing de note and secured o er or dithis stributive eThe sharre but also for thof thls e express purpose age and the ofge note creating by thes liability of the spousenot for the indebtedness, 9. PRINCIPAL RESIDENCE:Mortgegor(s)agree that the paragraph of the Promissory Note(s)of even dale herewith,given by the Mortgegor(s)to the University of Iowa Community Credit Union,regarding the use of property which Is the subject of this Mortgage as a principal residence,Is Incorporated Into this Mortgage. A breach of the said paragraph of said Note(s)constitutes a default of this Mortgage, that shall entitle the Mortgagee,Its successors or assigns to exercise the remedies as set forth in paragraph No. 14 of this Mortgage. Th Note and Mortgage may be amended by mutual consent of Mortgagor(s)and Mortgagee. 10. RESTRICTIONS ON TRANSFER:Mortgagor(s)agree that in the event they shall in any manner transfer the title to any portto of the mortgaged premises,whether by deed,real estate contract,or otherwise,or in the event anyInterest in k is sold or transferred(or if beneficial interest In Mortgagor(s) is sold or transferred and Mortgagor is not a natural person) that!the whole unpaid balance of the obligation secured hereby shall become immediately due and payable at the option of Mortgagees;and Mortgagor(s)agree that they shall give Mortgagee no less than ten(10)days'advance written notice prior to making any such transfer. iliMortgegee exercises the option to require Immediate payment In full,Mortgagee shall give Mortgagor(s))hnotice of acceleration. The notice shall provide a period of not less than thirty Mortgagor(ss)fails tos from pay these sumethe priorce is to heellvered or expiration omalted this period,Mortgagein which e may In oke anmust y remedies permittesums secured bdybythis this mortgage without further notice or demand on Mortgagor(s). 11. ENFORCEABILITY:if any term In this mortgage or the mortgage note secured hereby violates any law or for some reason Is .nof.enlorceabla,that term will notbe apartof.this.mortgage. However,the pater terjns_pf.tjjismortgpge.Y)tllarttaip.eff.ctlYe._,Ifenactment'o expiration of applicable laws has the effect of rendering any Provision of this mortgage or the mortgage note seucred hereby unenforceable according to iia terms,Mortgagee,at Its option.may require Immediate payment In full of all stuns secured by this mortgage and may Invoke any remedies permitted by this mortgage. If Mortgagee exercises the option to require immediate payment In full, Mortgagee shall give Mortgagor notice of acceleration,In the manner described in Paragraph 9. 12. NON-WAIVER:Any forbearance by Mortgagee in exercising any right or remedy allowed for by the mortgage or mortgage note secured hereby shall not be a waiver of or preclude the exercise of any right or remedy. 13. ADVANCES OPTIONAL WITH MORTGAGEE:It is expressly understood and agreed that if the Insurance aboviprpvided c7' for le not promptly effected, or if the taxes or special assessments assessed against said property shall become delinquent,Mort gee C..- (whether electing to declare the whole mortgage due end collectible or not),may(but need not)effect the insurance above provided fo�,.end C it need not,but may and is hereby authorized to pay said taxes and special assessments(Irregularities in the levy or assessment oFsald.taxe MortgagorIsa expressly action,then and flsuch at the default rade provided In thewith Interest eon al the noteseuc edlghest heeby)frrom timeal rale ofshall be a lien the— pramises. to a natural �Sald CT Tr "t'1 -p 14. ACCELERATION OF MATURITY AND RECEIVERSHIP:And It Is agreed that if default shall be made In thea'-efi:ol -"r"said note(s),or any part of the interest thereon,or any other advance or obligation which maybe secured hereby or any agreed totecpve iV disbursement, such as taxes, special assessments, Insurance, end'repairs, or If Mortgagor(e) shall suffer or commit wattle on•or:to said security,or if there shall be a failure to comply with any and every condition of this mortgage,then at the option of the Mortgagee,:said note and the whole of the Indebtedness secured by this mortgage,including all payments for taxes,assessments,or Insurance premiums,shall [J7 become due and shell become collectible by foreclosure or otherwise after such default or failure; Mortgagee shall give notice to — Mortgagor(s)pror to acceleraati))on(except.for acceleration under paragraphs Nos.9 or 10). The notice shall specify(a)default;(b)the action mustrbe cured; end(d)tthat fa)lure toecu et thesthan de aulthonyo3be odgre the date specified Ins from the date the ottice Is he noticesn may esuft In acceleby ration oft the scums secured by the Mortgage,foreclosure by Judicial proceeding and sale of the property. If the default Is not cured by the date specified In the notice, Mortgagee,at its option,may require Immediate payment in full of all sums secured by this mortgage without further demand and may collect the sums by foreclosing this mortgage by Judicial proceeding or otherwise. Mortgagee shall be entitled to collect all expenses Incurred In pursuing the remedies provided In this paragraph. Mortgagor consents to the appointment of a receiver for the property,at the option of the Mortgagee. 15. to ATTORNEY'S FEES:In case of any action,or In any proceedings In any court,to collect any sums payable or secured by this fromtheMortgagor(s), lien of title hereln of the charged upon the above-described propertor In y,Mortgagorother case(s)agree to prmitted ay reasonable attornlaw in which ey fees fees.mey be collected 2 16. CONTINUATION OF ABSTRACT:In event of any default herein by Mortgagor(s),Mortgagee may,at the expense of Mortgagor(s),procure an abstract of title, or continuation thereof,for said premises,and charge and add to the mortgage debt the cost of such abstract or continuation with Interest upon such expense at the highest legal rate applicable to a natural person;or II the Mortgagor Is a corporation,then at the default rate provided in the note secured hereby. 17. SHORTENED REDEMPTION PERIOD:Ills further agreed that In the event of judicial foreclosure of this Mortgage,the Mortgagor may,at Its sole discretion,elect lo: A. Reduce the period of redemption after Judicial sale to six(8)months,if the property is less than ten(10)acres In size end Mortgagee waives In any foreclosure proceeding any right to a deficiency judgment against Mortgegor(s),pursuant to Iowa Code Section 628.26, Of B. Reduce the period of redemption after judicial sale to sixty(60)days,if the property Is less then ten(10)acres In size,Mortgagee waives In any foreclosre proceedings any tight to a deficiency Judgment against Mortgagor(s), and the court finds that the property has been abandoned by Mortgagor(s),pursuant to Iowa Coda Section 628.27,or C. Reduce the period of redemption after Judicial sale to the lime period set forth In Iowa Code Section 628.28 or any other Iowa Code Section to reduce the period of redemption after Judicial sale to such time as may be then applicable or provided by law,or D. Foreclose without redemption after judicial sale lithe property is not used for an agricultural purpose,pursuant to Iowa Code Section 664.20. 18. HAZARDOUS SUBSTANCES:Mortgagor(s)shall not allow the presence,use,disposal,storage or release on or in the properly of any substance which has been defined by any federal,state,or local law or regulation as a toxic or hazardous substance,which includes, buts not limited to: gasoline, kerosene, flammable or toxic petroleum products, pesticides, herbicides, solvents, asbestos, formaldehyde,and radioactive materlals. Mortgagor(s)shall promptly give Mortgagee written notice of any Investigation, action, or claim which Involves the property and any toxic or hazardous substance or federal,state,or local law or regulation which relates to health,safety or environmental protection. Upon notice that remediation or removal of a toxic or hazardous substance is necessary,Mortgagor(s)shall promptly take all necessary remedial action. The Mortgagors)may use or store on the property small quantities of hazardous substances which are generally and reasonably recognized to be appropriate to normal residential use end maintenance of the property. 19. NOTICES:Any notice to Mortgagor(s)provided for In this Mortgage may be given when delivered or mailed by first class melt. The notice shell be directed to the address of the Mortgagor(a)slated on the face of thio mortgage,unless Mortgagor(s)has designated a different address by notice to Mortgagee. Any notice to Mortgagee shall be given by first class mall to University of Iowa Community Credit Union, 500 Iowa Avenue/P.O. Box 2240, Iowa City, Iowa.62244,unless Mortgagee has designated a different address by notice to Mortgagor(s). 20. DEFINITION OF TERMS:Unless otherwise expressly stated the word'Mortgagor(s)',as used herein,Includes successors In Interest of such'Mortgagor(s)';the 'Mortgqgee', ae used herein,unless otherwise expreasly stated,includes the successors In Interest o such 'Mortgagee'. All words referring to 'Mortgagor or'Mortgagee' shall be construed to be of the appropriate gender and number. according to the context. This construction shalt Include the acknowledgment hereof. 21. WAIVER:I UNDERSTAND THAT HOMESTEAD PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AND EXEMPT FROM JUDICIAL SALE AND BY SIGNING THIS CONTRACT I VOLUNTARILY GIVE UP MY RIGHT TO THIS PROTECTION WITH THE RESPECT TO CLAIMS BASED UPON THIS CONTRACT.?-- /� • ohn F Le " 61/ld(blp /�t o c eI, /2i_JY Data e a h J L e (((!!!"`"""� "��� I r Data 22. RIDERS TO THIS MORTGAGE:If one or more riders are executed by Mortgegor(s)and recorded together with this Mortgage the covenants and agreements of each such.rlderahalLbe Incorporated into and.shell amend andsupplement the covenants and agreements of this Mortgage as If the rlder(s)were a part of this Mortgage. -, . - [Check applicable space(s)[. Variable Rate Rider Condominium Rider Other: IN WITNESS WHEREOF,said Mortgagor(s)have hereunto sat their hands the day and year first written. N O _ f 1 I 1 • /° a L •e ,< 11••••••••••C?-C STATE OF IOWA ) CD rT r.. as: p— i l COUNTY OF JOHNSON) 'rr l '73 '°� r. — ..i On This Fourteenth day of April 2 D D 6before me,the undersigned fl Notary Public Ine?td fV for the State of Iowa,personally appeared J o h n F Lee and Leah J L e e to me known to be the Identical person named and who executed the foregoing Instrument,and acknowledged that they executed the same CPI as their voluntary act and deed. • -r.::, JOSH CURPHY NotaryIn and theme P..Iic forti . t.Commission Number 7082ti8Iowa rcor( Qom' Commission Expires: • • 3 Prepared By:Kandi Tarrant 011111111/11.Return to; University of low.Community Credit Union,125 Mormon Trek Blvd,P.O.Boo 2630,Iowa City,lows 52244-2630(319)341-2125 CONDOMINTIJM RIDER ALL MORTGAGES THIS CONDOMINIUM RIPER is made this I4th day of April,2006,and is incorporated into and shall be deemed to amend and supplement the Mortgage of the same date given by the undersigned Mortgagor(s)to secure the Mortgagor(s)'Note to the University of Iowa Community Credit Union a/k/a U of I Community Credit Union(Mortgagee)of the same date and covering the Property described in the Mortgage and located at: Normandy Court Condominiums (the'Condominium Project")_ff the owners association or other entity which acts for the Condominium Project(ate"Owners Association")hold title to property for the benefit or use of its members of shareholders,the Property also includes Mortgagor(s)' interest in the Owners Association and the uses,proceeds and benefits of Mortgagors)interest. CONDOMINIUM COVENANTS.In addition to the covenants and agreements made in the Mortgage,Mortgagor(s),and Mongagee(s)further covenant and agree as follows: A. CONDOMINIUM OBLIGATIONS. Mort �Bm( "hall perform all Mongsgortsr obligations under the heCondominium Project's Constituent me �usQ1ea "ern the 1)Datat or anyother document which creates the Condominium Project;(ii)bylaws;(ii)code of rits;and(iv)mbarequivalent documents.Mortg°go a)shall promptly PeY,whcer due, ll dues and assessments Impaled pursuant• to the Constituent DocumrnU. B. HAZARD INSURANCE.So long as the Owners Association maintains,with a generally accepted insurance carrier,a"master"or"blanket"policy on the Condominium Project which is satisfactory to Mortgagee and which provides insurance coverage in the amounts,for the periods,end against the hazards Mortgagee requires, including Bre and hazards included within the term"extended coverage",then in the event of a distribution of hazard insurance proceeds in lieu of restoration or repair following a loss to the property,whether to the unit or to common elements,any proceeds payable to Mortgagta(s)are hereby assigned and shall be paid to Mortgagee for application to the sums secured by the Mortgagee for application to the auma secured by the Mortgage,with any excess paid to Mortgagor(s). C. PUBLIC LIABILITY INSURANCE.Martgagor(s)shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability policy acceptable In form,amount,and extent of coverage to Mortgagee. O. CONDEMNATION.The proceeds of any award or claim for damages, Mongegor(s)in connection with any condemnation or ocher takin1�wran or consequential,payable to the unit or of the common elements,or for anyconveyanceY Pass a the hereby Property, edetnd of shall be paid to Morta s applin by ortgag enmhes,areheiore assigned and gaB r().Such proeords shall be applied Mortgagee to the sums secured by the Mortgage- E. LENDER'S PRIOR CONSENT.mortgagor(s)shall not,except atter notice to Mortgagee and with Mortgagee's prior written consent,either partition or subdivide the ProPertY,or consent to: (i) the'abandosine for termination of the Condominium Pmject,'except for abandonment or- termination required by law in the case of substantial destruction by fire or other casualty or in the CM of taking by condemnation or eminent domain; (it) any aria a db( N as to any provision of the Constuut Documents if the provision is not for the express gce(s)- (iii) termination of professional management and assumption of self-management of the Owners Association;or (Iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Mortgagee(a). F. REMEDIES.IfM ngago(s)dpay oers a dues and aascas neoe when due,the Mortgagen(s) may pay thea. amu oe by Mo Y gox(s)under this Paragraph F.shall banner additional fpdebt of Mongeget(s)secured by the Mortgages Unless Mongegor(a)and Mongegee(s)agree motheroer turns of payment, these amounts shall beer interest from the date of disbursement at the Note rate and shall be payable,with Interest,upon notice from Mortgagoc(s)to Mortgagor(s)requesting payment,and from time of payment by Mongagee(s),shall be a lion against this property. BY SIGNING BELOW,Mortgagors)accepts)and agrees)to the terms and provisions contained in this Condominium Rider. • F[cc i4111 Leah)Lee � O Ql • C.fl _ . )135 111111111111111111111111111IIII IIIII1111111111IIIII11IIIIII 1111111111111111111 Doc ID: 020972330019 Tvoe: GEN Recorded: 09/07/2007 at 12:25:05 PP' Fee Amt: $97.00 Page 1 of 19 Johnson County Iowa Kim Painter County Recorder BK4214 PG312-330 [Space Above This Line For Recording Data] Prepared By: Michelle Segebart 825 Mormon Trek Blvd Iowa City, IA 52246 319-341-2125 Return To: University of Iowa Community Credit Union 825 Mormon Trek Blvd. PO Box 2630 Iowa City, IA 52246 319-341-2125 Full Legal Description located on page 3 • Lender Name located on page 2. MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined 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 August 30th, 2007 together with all Riders to this document. (B) 'Borrower"is John F Lee and Leah J Lee, Husband & Wife C7 Borrower is the mortgagor under this Security Instrument. r IOWA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT l-T( Form 3QT& i/01-- - (CI;)-61IA)(04051.01 1 Page 1 of 15 Initials: ( / C.TI VMP Mortgage Solutions,Inc. 53 (C) "Lender"is University of Iowa Community Credit Union Lender isa state chartered credit union • organized and existing under the laws of Iowa Lender's address is 825 Mormon Trek Blvd. PO Box 2630, Iowa City, IA 52246 Lender is the mortgagee under this Security Instrument. • (D) 'Note"means the promissory note signed by Borrower and dated August 30th, 2007 The Note states that Borrower owes Lender One Hundred Twenty One Thousand Five Hundred and no/100. (U.S. $ 121,500.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than September 1st, 2037 (E) 'Property"means the property that is described below under the heading "Transfer of Rights in the Property." (P) '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. (G) '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]: laJ Adjustable Rate Rider I I Condominium Rider Second Home Rider F-7 Balloon Rider Planned Unit Development Rider I 1-4 Family Rider C VA Rider I I Biweekly Payment Rider [] Other(s)( ) [sPecify] (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments"means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic • instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items"means those items that are described in Section 3. (L) 'Miscellaneous Proceeds"means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (M) 'Mortgage Insurance"means insurance protecting Lender against the nonpayment of, default or dery the Loan. , on = (N) 'Periodic Payment"means the regularly scheduled amount due for (i) principal and interest ut riche c —11 afteserm Note, plus (ii)any amounts under Section 3 of this Security Instrument. C7/ AMMO "Z<i -n r Initials: r 0 -6(IA) (04051.01 '` v Page 2 of 15 '10,1 Form 301 '.'1/01 u1 (0) ' SPA"means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (P) "Successor in Interest of Borrower"means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably mortgages, grants and conveys to Lender, with power of sale, the following described property located in the of Johnson [Type of Recording Jurisdiction] _ e of RecordinLot 1 in Village Green South, Iowa City, Iowa,�accordinggtoJuristhe nplat thereof recorded in Plat Book 17, Page 9, Plat Records of Johnson County, Iowa. 0 U o C f A —Cr- m CD-3 -= tU 3= cn Parcel ID Number: which currently has the address of 1402 Esther St [Street] Iowa City ("Property Address"): [City], Iowa 52240 [Zip Code] 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 and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. -6(IA) (0405).01 Initials: 11 Page 3 of 15 1116/ Form 3016 1/01 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or(d)Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments.or Proceeds, Except as otherwise described in this Section 2, all • payments accepted and applied by Lender shall be applied in the following:order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a.payment_.from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment receivesi from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can paid in full. To the extent that any excess exists after the payment is applied to the full paymeonec.or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayWuegs shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal 'oun�ei ` the Note shall not extend or postpone the due date, or change the amount, of the Periodic Paymezitsr 1 =? 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments a due .i under the Note, until the Note is paid in full, a sum(the "Funds") to provide for payment of amdtint's due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument asT lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community tia Is ert)-6(1A)104051.01 Page 4 of 15 Form 3016 1/01 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 the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to • be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9:to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount(a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the niaximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity(including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and iapplying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless anl agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge; an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds.held in escrow, as defined under.RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make .up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptaZ to Lender, but only so long-as Borrower is performing such agreement; (b) contests the lien in)od fail �- c „J C)-6(IA) (04051.01 Initials: 1 =� 0' i ® ri Page 5 of 15 �/'' Form 30Q ?:1 1I0 'i w .--,77) a w. N by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater Or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a serer of progress payments as the work is completed. Unless an agreement is made in writing or Applicable I CD .711 --� ©-6(IA) (04051.01 Initials: ��.. Page 6 of 15 pp Forrrailktp 1¢611 CJ1 requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in • Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy, Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably 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 commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. 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 the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, 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 significantly affect Lender's interest in the Property and/or rights undue), this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or fort ture, fry enforcement of a lien which may attain priority over this Security Instrument or to enforbrws �-6(IA)(0405).01 Initials: —4(--) Page 7 of 15 Form 3!1'4�. 1/010 0� • f C3 , N) � L7 N 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 in the Property and 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 priority 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 this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this 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 the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insuranee.in-effect.-If, for any reason, the 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 the 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 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 non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on 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 the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender'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 that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements 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 payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts theg derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Instnce, i exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agrnent_ 4-11 CZ-6)IA) (0405(.01 Pape 8 of 15 : Form 31:Ty 1/ora rn Ui N provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and; obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture, All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be nlied to restoration or repair of the Property, if the restoration or repair is economically feasible and Leender's security is not lessened. During such repair and restoration period, Lender 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. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds,.Lender shall..not.be-required.to pay Borrower any interest or earnings.on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, vahether or not then due, with the excess, if any, paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immrrliately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair rnarket value of the Property immediately before the partial taking, destruction, or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, ori loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower. has a right of action i n regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begua-that, iia Lender's judgment, could result in forfeiture of the Pront of .i. interest in the Property or rights under this Security Instrument°Borro can cure essu�edefau , iEL; acceleration has occurred, reinstate as provided in Section 19, by causing the action oro g-to b --- dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Propertyor lcr F impairment of Lender's interest in the Property or rights under this Security Instrument 'The pr y Seo-7) m r ) -6(IA) 104051.01 Initials: _ .. CJ1 (!) Page 9 of 15 Form 3016 1/01 i's) .� • any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that 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 the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the teams of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20)and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure.r There may be only one designated notice address under this Security Instrument at any one time. Ai notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender addres) stated herein unless Lender has designated another address by notice to Borrower. Any_-Zcattce fiTInitlals: -6(IA) (04051.01 Page 10 of 15 fl' 11 r, — ✓-�- Form 3:96 1/01 6 ii J h� connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the Jaw 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 panties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words; the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this 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, escrow agreement;.the intent of which is the transfer of title by-Borrower-a tu1e�ntosales a purchase or If all or any part of the Property or any Interest in the Property is sold or transferred(or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of jacceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instruct discontinued at any time prior to the earliest of: (a) five days before sale of the Property pursuant to nny this Security Instrument; (b) such othera power of saletermination mn ai on f Borrower's right to reinstate; or (c) entry period as Applicable Law might specify for the termination of conditions are that reinstate; ower: (a) of a judgment enforcing this Security Instrument Those pas Lender all sums which then would be'due under this Security Instrument 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 limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred 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 under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement 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 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 shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration 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 _ c) C_1 Initials. -6(IA)(04051.01 Page 11 of 15 ® � Form 30171.$1 _ rte. Noir' r— c_n Borrower. 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 Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, 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 Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new Loan Servicer, the address to which payments should be made and any other information RFSPA requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless 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, until 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 B?inower pnrsuai t 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 substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable 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 environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or(c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property(including, but not limited to, hazardous substances in consumer products). Borrower shall promptly give Lender written notice of(a) any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has Environmental Condition, including but not limited to, anyactual discharge, release el ase odge, threatb) aof release of any Hazardous Substance, and (c) any condi on caused lb�a::prnce, use or reelrease oa 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 ov Lender for an Environmental Cleanup. a n > Initials:_ _ CD-60A) 104051.01 Page 12 of 15 Form 30T6�q/01� 1 ,rCD �'r rn i'. N) U1 N 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, foreclosure by judicial proceeding and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. 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 foreclose this Security Instrument by judicial proceeding. 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. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower relinquishes all right of dower and waives all right of homestead and distributive share in and to the Property. Borrower waives any right of exemption as to the Property. 25. HOMESTEAD EXEMPTION WAIVER. I UNDERSTAND THAT HOMESTEAD PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AND EXEMPT FROM JUDICIAL SALE; AND THAT BY SIGNING THIS MORTGAGE, I VOLUNTARILY GIVE UP MY RIGHT TO THIS PROTECTION iFOR THIS MORTGAGED PROPERTY WITH RESPECT TO CLAIMS BASED UPON THIS MORTGAGE. CE1300. b&211 ' Bore er ohn F Lee D 1te Borrower Le. Lee Date Borrower Date Borrower Date Borrower Date Borrower Date O C -11 Borrower Date Borrower c-1 Date '_ :ter' rn F., .. tom) -6(IA) 104051.01 Page 13 of 15 Form 3016 1/01 • 26. Redemption Period. If the Property is less than 10 acres in size and Lender waives in any foreclosure proceeding any right to a deficiency judgment against Borrower, the period of redemption from judicial sale shall be reduced to 6 months. If the court finds that the Property has been abandoned by Borrower and Lender waives any right to a deficiency judgment against Borrower, the period of redemption from judicial sale shall be reduced to 60 days. The provisions of this Section 26 shall be construed to conform to the provisions of Sections 628.26 and 628.27 of the Code of Iowa. IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS A.GREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN'WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE '1'Hr: TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: ©" 5C(o1(Seal) Jo F ee -Borrower J A -1&_______IritZt2 (seal) an J le -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower; 0 6 o 53_y = _ .- -+mom :‹1 '71 m C-6{1A) (04051.01 '`` ry Ca Page 14 of 15 Form 30ft 1/Otfi N • STATE OF IOWA, Johnson County ss: On this 30th day of August 2007 in the State of Iowa, personally appeared John F Lee and Leah J Lee before me, a Notary Public to me personally known to be the person(s) named in and who executed the foregoing instrument, and acknowledged that he/she/they executed the same as his/her/their voluntary act and deed. My Commission Expires: "k° MAT FRASCHT , �� � THEW E. Commission Number 169358 .:r:�,;•t My Co issi. .fres tiw Notary Public in and for said County and State CD— c C rn c,-r — :� -� iii ezz Initials: -6(IA)(04051.01 ?'•' C IT Page 15 of 15 Form 3016 1/0 • FIXED/ADJUSTABLE RATE RIDER (One-Year Treasury Index-Rate Caps) IINMIROO THIS FIXED/ADJUSTABLE RATE RIDER is made this 30th day:of August 2007 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned ("Borrower") to secure Borrower's Fixed/Adjustable Rate Note (the "Note") to University of Iowa Community Credit Union ("Lender") of the same date and covering the property described in the Security Instrument and located at: 1402 Esther St, Iowa City, IA 5224-0 [Property Address] THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate of 7.125 he Note also provides for a change in the initial fixed rate to an adjustable interest rate,Tas follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of September 2014 , and the adjustable interest rate I will pay may change on that day every 12th month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change, is called a "Change Date." (B) The Index Beginning with the first Change Date, my adjustable interests rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." MULTISTATE FIXED/ADJUSTABLE RATE RIDER - ONE-YEAR TREASURY INDEX - Single Family - Fannie Mae Uniform Instrument Form 3182 1/01 • ©-843R (0405) , U Page 1 of 4 Initials: M.4q VMP Mortgage Solutions, Ing�' D (800)521-7291 '_ L al I .. �:. N CD N If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding Three and one quarter rcentage ( 3.250 %) to the Current Index. The Note Holder will thenpround thepre result ofof this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 9.125 % or less than 5.125 e interest rate will never be increased or decreased on any single o/Change s aafterte by more, my thantwo percentage points from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 13.125 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any change. The notice will include the amount of my monthly payment, any information required by law to be given to me 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 1. Until Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrument shall read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred ink o` bond for deed, contract for deed, installment sales contract or escrow agreeme the intent of which is the transfer of title by Borrower at a future date to� �c 9 � purchaser. If all or any part of the Property or any Interest in the Property is sold transferred (or if Borrower is not a natural Borrower is sold or transferred) without Lender's prior wrn itten beneficial Lender sm'I r 7. require immediate payment in full of all sums secured by this Secur' y Instrumei}t. ..! C1 Initials: -843R (0405) Page 2 of 4 Form 3182 1/01 v However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 2. When Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrument described in Section B1 above shall then cease to be in effect, and the provisions of Uniform Covenant 18 of the Security Instrument shall be amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. if Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. N 11 0 � Initials:( CD-843R (0405) Page 3 of 4 �, ,�' :I> d Y„ Form 31;> .�/0L, r- m m o rV r (n rV BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Fixed/Adjustable Rate Rider. afrfrSeaI) (Y1,Asid1 - �// D/O o F Lee -Borrower Leah J e h -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower ©-843R (0405) Page 4 of 4 Form 3182 1/01 • Q 5 �..,.Y N U9 r) 111111111111111,11111111_11 11111111111111111111111 Doc ID: 020997050006 Type: DEN Recorded. 10/05/2007 at 04:09:96 PM Fee Ami: 627.00 Paoe 1 of 5 Johnson County Iowa Kim Painter County Recorder 4224 Pa847-851 Stale of Iowa Space Above Thii Line For Recording Data Prepared By: Becky Koulavongsa 500 Iowa Ave / PO Box 2240 Iowa City, IA 52244-2240 319-339-1000 Return To: • University of Iowa Community Credit Union 825 Mormon Trek Blvd. PO Box 2630 Iowa City, 52246 319-341-2125 OPEN-END MORTGAGE 1111111•1•61 41), (WIth.Futu><eAdvance Clause) 1. DATE AND PARTIES.The date of this Mortgage(Security Instrument)is September 14, 2007 and the parties and their addrrsys are as follows: MORTGAGOR: John F Lee Leah J Lee 1402 Esther St Iowa City, IA 52240 If checked,refer to the attached Addendum incorporated herein,for additional Mortgagors,their signatures and acknowledgments,The Addendum is located on page LENDER: University of Iowa Community Credit Union 825 Mormon Trek Blvd. PO Box 2630 Iowa City, IA 52246 319-341-2125 2. CONVEYANCE. For good and valuable consideration, the receipt and sufficiency of which is acknowledged, and to secure the Secured Debt (defined below) and Mortgagor's performance under this Security Instrument, Mortgagor grants, bargains,warrants,conveys and mortgages to Lender the following described property: (If the legal description of the property is not on page one of this Security Instrument,it is located oh page ) Lot 1 in Village Green South, Iowa City, Iowa, according to the plat thereof recorded in Plat Book 17, Page 9, Plat Records of Johnson County, Iowa. O 0 O _ r Cn The property is located in f" Johnson at 1402 Esther (T1 Coon Y, St Iowa City (Address) (City) (ft Iowa 52240 (ZIP Code) Together with all rights, easements, appurtenances, royalties, mineral rights, oil and gas rights, all water and riparian rights, ditches, and water stock and all existing arid future improvements, structures, fixtures, and replacements that may now, or at any time in the future, be part of the real estate described above(all referred to as,"Property"). IOWA-HOME EQUITY UNE OF CREDIT MORTGAGE (NOT FOR FNMA,FHLMC,FHA OR VA .a') .f 6/ 01994 Bankers Systems,Inc.,Si.Cloud,MN Form OCP-REMTG-IA (/21/2005' R, �� ®C465(IA)(0608) VMP Mortgage Solutions,Inc.18001521-7291 / •' ek4. 1 • NOTICE:THIS MORTGAGE SECURES CREDIT IN THE AMOUNT OF$ 23,500.00 .LOANS AND ADVANCES UP TO THIS AMOUNT,TOGETHER WITH INTEREST, ARE SENIOR TO INDEBTEDNESS TO OTHER CREDITORS UNDER SUBSEQUENTLY RECORDED OR FILED MORTGAGES AND LIENS. 3. MAXIMUM OBLIGATION LIDHT.The total-principal amount secured by this Security Instrument at any one time shall not exceed the amount stated above. This limitation of amount does not include • interest and other fees and charges validly made pursuant to this Security Instrument. Also, this limitation does not apply to advances made under the terms of this Security Instrument to protect Lender's security and to perform any of the covenants contained in this Security Instrument. 4. SECURED DEBT AND FUTURE ADVANCES. The term "Secured Debt"is defined as follows: A. Debt incurred under the terms of all promissory note(s), contract(s), guaranty(ies) or other evidence of debt described below and all their extensions, renewals, modifications or substitutions. (You must specifically identify the debt(s) secured and you should include the final maturity date of such debt(s).) The promissory note signed and dated 09/14/2007, with a maturity date of 09/15/2012. • B. All future advances from Lender to Mortgagor or other future obligations of Mortgagor to Lender under any promissory note, contract, guaranty, or other evidence of debt executed by Mortgagor in favor of Lender after this Security Instrument whether or not this Security Instrument is specifically referenced or such future advances or future obligations are incurred for any purpose that was related or unrelated to the purpose of the Security Instrument.If more than one person signs'this Security Instrument, each Mortgagor agrees that this Security' Instrument will secure all future advances and future obligations that are given to or incurred by any one or more ao •ne or any one or more Mortgagor . and other future obligations are secured by this SecurityInstrument end others.All lr rtmay advances • not yet be advanced.All future advances and other future obligations are secured as if made mon the date of this Security Instrument. Nothingin this Securitymaule a commitment to make additional or future oans or advanes In Instrumentnamount. Anyconstisuchcommitment must be agreed to In a separate writing. C. All other obligations Mortgagor owes to Lender, which may later arise, to the extent not prohibited by law,including,but not limited to,liabilities for overdrafts relating to any deposit account agreement between Mortgagor and Lender. D. All additional sums advanced and expenses incurred by Lender for insuring, preserving or otherwise protecting the Property and its value and any other sums advanced and expenses incurred by Lender under the terms of this Security Instrument. In the event that Lender fails to provide any required notice of the right of rescission,Lender waives any subsequent security interest in the Mortgagor's principal dwelling that is created by this Security Instrument. 5. MORTGAGE COVENANTS. Mortgagor agrees that the covenants in this section are material obligations under the Secured Debt and this Security Instrument.If Mortgagor breaches any covenant in this section, Lender may refuse to make additional extensions of credit and reduce the credit limit. By not exercising either remedy on Mortgagor's breach,Lender does not waive Lender's right to later consider the event a breach if it happens again. Payments. Mortgagor agrees that all payments under the Secured Debt will be:paid when due and in accordance with the terms of the Secured Debt and this Security Instrument.- Prior Security Interests. With regard to any other mortgage, deed'of trust, security agreement or other lien document that created a prior security interest or encumbrance on the Property, Mortgagor agrees to make all payments when due and to perform or comply with all covenants. Mortgagor also agrees not to allow any modification or extension of, nor to request any future advances under any note or agreement secured by the lien document without Lender's prior written approval. Claims Against Title. Mortgagor will pay all taxes, assessments, liens, encumbrances, lease payments, ground rents, utilities, and other charges relating to the Property when due. Lender may require Mortgagor to provide to Lender copies of all notices that such amounts are due and the receipts evidencing.Mortgagor's payment. Mortgagor will defend title to the Property against any claims that would-impair the lien of this Security Instrument. Mortgagor agrees to assign to Lender,as requested by Lender, any rights, claims or defenses Mortgagor may have against parties who supply labor or • materials to maintain or improve the Propeity. Property Condition, Alterations and Inspection. Mortgagor will keep the Property in good condition and make all repairs that are reasonably necessary.Mortgagor shall not commit or allow any waste,impairment,or deterioration of the Property.Mortgagor agrees that the nature of the occupancy and use will not substantially change without Lender's prior written consent. Mortgagor will not permit any change in any license, restrictive covenant or easement'without Lender's prior written consent. Mortgagor will notify Lender of all demands, proceedings, claims and actions against era Mortgagor,and of any loss or damage to the Property. — Lender or Lender's agents may, at Lender's option,enter the Property at any reasonable time for the .n t_ Propose of inspecting the Property. Lender shall "" '! inspection specifying a reasonable give Mortgagor notice.at the:time of or before an '� ' .-- i entirely for Lender's benefit and Mortgagor fwilllin nino way rely onyLender soinsp thePropertyshall be )'< -_ •�� ��d 01 4 c -) rn C:fO 1994 Bankers Systems,Inc.,St.Cloud,MN Form OCP-REMTG-IA 1/21/2006 //P e 6/ r ii it s •-C465(1A1t0608) CJl fV Authority to Perform. If Mortgagor fails to perform any duty or any of the covenants contained in this Security Lnstruruertt, Lender may, without notice, perform or cause them to be performed. Mortgagor appoints Lender as attorney in fact to sign Mortgagor's name or pay any amount necessary for performance. Lender's right to perform for Mortgagor shall not create an obligation to perform, and Lender's failure to perform will not preclude Lender from exercising any of Lender's other rights under the law or this Security Instrument Leaseholds; Condominiums; Planned Unit Developments. Mortgagor agrees to comply with the provisions of any lease if this Security Instrument is on a leasehold.If the Property includes a unit in a condominium or a planned unit development, Mortgagor will perform all of Mortgagor's duties under the covenants,by-laws,or regulations of the condominium or planned unit development. Condemnation. Mortgagor will give Lender prompt notice of any pending or threatened action, by private or public entities to purchase or take any or all of the Property through condemnation,eminent domain,or any other means. Mortgagor authorizes Lender to intervene in Mortgagor'st name in any of the above described actions or claims. Mortgagor assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the Property. Such proceeds shall be considered payments and will be applied as provided in this Security Instrument. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or other lien document. Insurance.Mortgagor shall keep Property insured against loss by fire, flood,,theft and other hazards and risks reasonably associated with the Property due to its type and location. This insurance shall be • maintained in the amounts and for the.penods that Lender requires. What Lender requires pursuant to the preceding two sentences can change during the term of the Secured Debt. The insurance carrier providing the insurance shall be chosen by Mortgagor subject to Lender's.approval,.which shall not be unreasonably withheld. If Mortgagor fails to maintain the coverage described'above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the.-Property according to the terms of this Security Instrument. All insurance policies and renewals shall be acceptable to Lender and shall include a standard `mortgage clause' and, where applicable, loss payee clause.' Mortgagor shall immediately notify Lender of cancellation or termination of the insurance.Lender shall have the right to hold the policies and renewals. If Lender requires, Mortgagor shall immediately give to Lender all receipts of paid premiums and renewal notices. Upon loss. Mortgagor shall give immediate notice to the insurance carrier and Lender.Lender may make proof of loss if not made immediately by'Mortgagor. Unless otherwise agreed in writing, all insurance proceeds shall be applied to the restoration or repair of the Property or to the Secured Debt,whether or not then due, at Lender's option. Any application of proceeds to principal shall not extend or postpone the due date of the schedulitd payment nor change the amount of any payment. Any excess will be paid to the Mortgagor. If the Property is acquired by Lender, Mortgagor's right to any insurance policies and proceeds resulting from damage to the Property before the acquisition shall pass to.Lender to the extent of the Seethed Debt immediately before the acquisition. Financial Reports and Additional Documents;Mortgagor will provide to Lender upon request,any deft linciiaa tat fine t r information Lender may deem reasonably necessary. Mortgagor agrees to sign, any • • additional documents or certifications that Lender may consider necessary to perfect, continue, and preserve Mortgagor's obligations under this Security Instrument and Lender's lien status on the Property. 6. WARRANTY OF TITLE, Mortgagor warrants that Mortgagor is or will be lawfully seized of the estate conveyed by this Security Instrument and has the right to grant, bargain,warrant,convey,sell and mortgage the Property. Mortgagor also warrants that the Property is uneircaumbered, except for encumbrances of record. 7. DUE ON SALE. Lender may, at its option, declare the entire balance of the Secured Debt to be immediately due and payable upon the creation of,or contract for the creation of, a transfer or sale of all or any part of the Property,.This right is subject co the restrictions imposed by federal law (12 C.F.R.591),as applicable, 8. DEFAULT.Mortgagor will be in default if any of the following occur; Payments.Any Consumer Borrower on any Secured Debt that is an open end home equity plan fails to make a payment when due. Property. Any action or inaction by the Borrower or Mortgagor occurs that adversely affects the Property or Lender's rights in the Property. This includes, but is not limited to, the following: (a) Mortgagor fails to maintain required insurance on the Property;(b)Mortgagor transfers the Property; (c) Mortgagor commits waste or otherwise destructively uses or fails to maintain the Property such that the action or inaction adversely affects Lender's security; (d)Mortgagor fails to pay taxes on the Property or otherwise fails to act and thereby causes a lien to be filed against the Property that is senior to the lien of this Security Instrument; (e) a sole Mortgagor dies; (t) if snore than one Mortgagor, any Mortgagor dies and Lender's security is adversely affected; (g):the Property is taken through eminent domain; (It)a judgment is filed against Mortgagor and subjects Mortgagor and the Property to action that adversely affects Lender's interest; or,(i)a prior lienholder forecloses on the 0 Property and as a result, Lender's interest is adversely affected. _N Executive Officers.Any Borrower is an executive officer of Lender or an affiliate and such Borrower O— o becomes indebted to Lender or another lender in an aggregate amount greater than the amount C7 C ""`"'-,1 l permitted under federal laws and regulations. C-3–‹ — a c) C' d 01994 Bankers Systems,Inc.,St.Ooud,MN /M, 'age [ -c4S5CIAI(06081 Farm OCP•REMTG-IA 1/21/2005 C1 r c al 1`!/ Citi IV • • 9, REMEDIES ON DEFAULT. In addition to any other remedy available under the terms of this Security Instrument, Lender may accelerate the Secured Debt and foreclose this Security Instrument in a manner provided by law if Mortgagor is in default. In some instances, federal and state law will require Lender to provide Mortgagor with notice of the tight to cure, or other notices and may establish time schedules for foreclosure actions. At the option of the Lender, all or any part of the agreed fees and charges, accrued interest and principal shall become immediately due and payable, after giving notice if required by law, upon the occurrence of a default or anytime thereafter. The acceptance by Lender of any sum in payment or partial payment on the Secured Debt after the balance is due or is areelerated or after foreclosure proceedings are filed shall not constitute a waiver of Lender's right to require complete cure of any existing default. By not exercising any remedy on Mortgagor's default, Lender does not waive Lender's right to later consider the event a default if it happens again. 10. REDEMPTION, Mortgagor agrees that in the event of foreclosure of this Mortgage, al the sole • discretion of Lender, Lender may elect to reduce the period of redemption for the sale of the Property to a period of time as may then be authorized under the circtunstances and under any section of Iowa Code Chapter 628,or any other Iowa Code section, now in effect or as may be in effect at the dine of foreclosure. 11. EXPENSES;ADVANCES ON COVENANTS;ATTORNEYS' FEES;COLLECTION COSTS.If Mortgagor breaches any covenant in this Security Instrument, Mortgagor agrees to pay all expenses Lender incurs in performing such covenants or protecting its security interest in the Property. Such expenses include, but arc not limited to, fees incurred for inspecting, preserving, or otherwise protecting the ProPerty and Lender's security interest.These expenses are payable on demand and will bear interest from the date of payment until paid in full:at the highest rite of interest in effect as Lpender de in the theteem s o the hrorDebt.Mortgagor agrees to pay all costs and expenses incurred by g, enforcing protecting Lender's rights and remedies under this Security lnstrib lint,Tliis Itb]nut may ilatide,-btit is riot limited to, court costs,and other legal expenses.To the extent permitted by the United States Banlc uptcy Code, Mortgagor agrees to pay the reasonable attorneys' fees Lender incurs CO collect the Secured Debt as awarded by any court exercising jurisdiction under the bankruptcy Code.This Security Instrument shall remain in effect until released. Mortgagor agrees to pay for any recordation costs of such release. 12. ENVIRONMENTAL LAWS AND EAZARDOUS SUBSTANCES. As used in this section, (1) Environmental Law means, without limitation, the Comprehensive Environmental Response Compensation and Liability Act(CERCLA, 42 U.S.C.9601 et seq.), and all other federal,state and local laws, regulations, ordinances, court orders, attorney general opinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2) Hazardous Substance means any toxic, radioactive or hazardous material, waste, pollutant or comet which has characteristics which render the substance dangerous or potentially dangerous to the public health, safety, welfare or environment. The term includes, without limitation, arty substances defined as "hazardous material,' 'toxic substances,• 'hazardous waste' or 'hazardous substance'under any Environmental Law. Mortgagor represents,warrants and agrees that: A. Except as previously disclosed and acknowledged in writing to Lender, no Hazardous • Substance is or will be located,stored or released on or in the Property. This restriction does not apply to small quantities of Hazardous Substances that are generally recognized to be appropriate for the normal use and maintenance of the Property. B. Except as previously disclosed and acknowledged in writing to Lender, Mortgagor and every tenant have been, are, and shall remain in full compliance with any applicable Environmental Law. C. Mortgagor shall immediately notify Lender if a release or threatened release of a Hazardous Substance occurs on, under or about the Property or there is a violation of any Environmental Law concerning the Property. In such an event, Mortgagor shall take all action in accordance with any Environmental Law. necessary remedial D. Mortgagor shall immediately notify Lender in writing as soon as Mortgagor has reason to o_ believe there is any pending or threatened investigation, claim, or proceeding relating to the release or threatened release of any Hazardous Substance or the violation:of any Environmental CD Law. ronmental L I3. ESCROW FOR TAXES AND INSURANCE. Unless otherwise provided in a Mortgagor will not beseparate agreement, i �= 14. JOINT required to pay to Lender funds for taxes and insurance in escrow. c-)-( BOUND,AND INDIVIDUAL LIABILITY; CO-SIGNERS; SUCCESSORS AND ASSIGNS -4 C) All duties under this Security Instrument are joint and individual. If Mortgagor signs this —(r M Security Instrument but does not sign an evidence of debt, Mortgagor does so only to mortgage • Mortgagor's interest in the Property to secure payment of the Secured Debt and Mortgagor does ou s not CD agree to be personally liable on the Secured Debt. If this Secure E nty between Lender and Mortgagor, Mortgagor agrees to waive any rights that may. secures a bringing any action or claim against Mortgagor or anyY•prevent Leaner from > Ul rights may include, but are not limited to, any anti-deficiency one-act on er laws.e The dui and N benefits of this Security Instrument shall bind and benefit the successors and assigns of Mortgagor and Lender. 01994 Bankers Systems,Inc.,St.Cloud,MN Form OCP-REMTG-IA 1/21/200, /, I / ®C466(IA)10608) r1 15. SEVERABILITY;INTERPRETATION.This Security Instrument is complete and fully integrated. This Security Instrument may not be amended or modified.by oral agreement. Any section in this Security Instrument, attachments, or any agreement related to the Secured Debt that conflicts with applicable law will not be effective, unless that law expressly or impliedly,permits the variations by. written agreement If any section of this Security Instrument cannot be enforced according to its terms, that section will be severed and will not affect the enforceability of the remainder of this Security Instrument. Whenever used, the singular shall include the plural and the;plural the singular. The captions and headings of the sections of this Security Instrument are for convenience only and are not to be used to interpret or define the terms of this Security Instrument. Time is of the essence in this Security Instrument. 16. NOTICE. Unless otherwise required by law, any notice shall be given by delivering it or by mailing it by first class mail to the appropriate party's address on page 1 of this Security Instrument,or to any other address designated in writing. Notice to one mortgagor will be deemed to be notice to all mortgagors. 17. WAIVERS. Except to the extent prohibited by law, Mortgagor waives any rights relating to reinstatement, the marshalling of liens and assets, all rights of dower and distributive share and all homestead exemption rights relating to the Property. 18. LINE OF CREDIT.The Secured Debt includes a revolving line of credit,Although the Secured Debt may be reduced to a zero balance,this Security Instrument will remain in effect until released. 19. APPLICABLE LAW. This Security Instrument is governed by the laws as'agreed to in the Secured Debt, except to the extent required by the laws of the jurisdiction where the Property is located, and applicable federal laws and regulations. 20, RIDERS.The covenants and agreements of each of the riders checked below are incorporated into and supplement and amend the terms of this Security Instrument [Check all applicable boxes] 0 Assignment of I Paces and Rents Other 21. n PURCHASE MONEY MORTGAGE.This is a purchase money mortgage as defined by Iowa law. 22.0 ADDITIONAL TERMS. • NOTICE TO CONSUMER (For purposes of this Notice,"Yon"means Mortgagor) 1.Do not sign this paper before you read it.2.You are entitled in a copy of this paper.3-You may prepay the unpaid balance at any time without penalty and may be entitled to receive a refund of unearned charges in accordance with law.4.If you prepay the unpaid balance,you may have to pay a minimum charge not greater than seven dollars and fifty rents. SIGNATURES:Instrument aEd By in gning below,Mortgagor agrees to the terms and covenants contained in this Security any attachments. Mortgagor also acknowledges receipt of a copy of this Security Instrument on red e stated on page 1. 9lll 1/ • 7 (Signature) ... - Lee (Dale) (S hire Leah �- ) fee _ (Duey ACKNOWLEDG l T: n., STATE OF Iowa - (lmiividuai) COUNTY OF Johnson On this _ 14th_ day of September 2007 before me, a Notary public in the state of • Iowa,personally appeared John F Lee and Leah J Lee to me known to be the person(s)named in and who executed the foregoing instrument,and acknowledged that THEY • executed the same as THEIR N voluntary act and deed. o 777� si Hy 411. . Ale O DnN88 /ir /err .�J.( Sign and date the fo lowing statement if this contract affects ..•: , L §9H.1.(hi the following statement"I"means the Mortgagor.) lan' defined in Iowa Code t� -_ t al I understand that homestead property is in many cases protected from the claims of .....4f"— — creditors and exempt from judicial sale; and that bysigning `i'"_: _v ' s t voluntarily this contract, I , � �,� y give up my rights to this protection for this property with.respect to N ' - claim . ed upon this cop7c , J /� (Sig re -.. F Lee �O![// -- _ 9-Pi-O7 c.n . (Date) }' f L// ('� gnaNry Lee Lee (Dam) X01994 Bankers Systems,Inc.,St.Cloud,MN Form OCP-REMTG-IA 1/21/2005 (12:1-C485041(05081 (page 5 0151 END OF CASE FILE CIVIL PROCESS WORKSHEET JOHNSON COUNTY SHERIFFS OFFICE • PO BOX 2540, 511 S CAPITOL ST, IOWA CITY, IA 52244-2540 • (319) 356-6030 PLAINTIFF: ALLSTATE INSURANCE CO Docket No 10-04414 State IOWA vs. Court No SCSC077652 County JOHNSON DEFENDANT: CITY OF IOWA CITY Ref No Received 07/27/2010 Requestor(s) Phone ADVANCE FEES PAID VAN VOOREN,JOSEPH N. (309) 786-8497 PO BOX 3700, ROCK ISLAND, IL 612043700 Name CITY OF IOWA CITY I Zone Party Type DEFENDANT Phone (319)356-5030 Fax Address 410 E WASHINGTON ST IOWA CITY IA 52240- E-Mail Employer Comments ) Documents Document Serve by Date OE PSR Description/Special Instructions MALL CLAIMS ORIGINAL NOTICE Service Information Date -7 ^ ,� �) d Time I Z (/ Type i GO V / Party t q 11‘1'61 VN 1Cer yM f Relationship :"\A LI 421C K Race /�� Sex t DOB Location ' `56l Miles \ Fee Officer R..,\ Attempts Log Date Time Sei ier Notes Dote Time Server Notes Notes: 0 =� c C n� N r- �� v r m o- - 0 Printed:Tuesday,July 27,2010 Johnson County Sheriffs Office Page 1 of 1 IN THE IOWA DISTRICT COURT FOR JOHNSON COUNTY Small Claims Division ALLSTATE INSURANCE COMPANY, ) SUBROGEE OF ITS INSURED, ) JOSE ENRINQUE RODRIGUEZ, ) ORIGINAL NOTICE ) Plaintiff, ) ACTION FOR MONEY JUDGGAVVT p ,. J t' v. S IM NO• CITY OF IOWA CITY and SCOTT VAN ) SCHOYCK, ) DATE FILED: 410 E. Washington, Iowa City, IA 52240 ) w and 204 Schnoebelen St., Riverside, IA ) 52327 respectively, ) Defendants. ) ****************************************************************************** TO THE ABOVE-NAMED DEFENDANT(S): YOU ARE HEREBY NOTIFIED that the Plaintiff demands from you the amount of$2,736.84 based on property damage due to an accident caused by the negligence of defendant Van Schoyck while operating a bus owned by defendant City of Iowa City on May 15,2009,when Van Schoyck attempted to make a left-hand turn without signaling and caused an accident with plaintiff at the intersection of 1600 Sycamore Street in Iowa City, Iowa. UNLESS YOU APPEAR by completing and filing the attached appearance and answer form with the Clerk of the Court,Johnson County Courthouse in Iowa City,Iowa 52240,WITHIN 20 DAYS AFTER SERVICE OF THIS ORIGINAL NOTICE UPON YOU,judgment shall be rendered against you upon Plaintiffs claim together with interest and court costs. IF YOU DENY THE CLAIM AND APPEAR by filing the attached appearance and answer WITHIN 20 DAYS AFTER SERVICE OF THIS ORIGINAL NOTICE UPON YOU,you will then receive notification from the Court Administrator's office of the place and time assigned for hearing. a>'" ey for Plaintiff ry If you require the assistance of auxiliary aids or ame: Joseph N.Van Vooren #AT0008165 _ o services to participate in court because of a disability, SNYDER,PARK&NELSON,P.C. C) C' immediately call your district ADA coordinator at 326-8607. Attorney for: Plaintiff ZE C (If you are hearing impaired,call Relay Iowa TTY at Address: P.O.Box 3700 r-- 1-800-735-2942.) City: Rock Island,IL 61204-3700 C —t; N Telephone: (309)786-8497 -n�- r-- Fax No: (309)786-0463 _C r— e-mail address: snelson@snyderpark.com fT 7 1 c n JUDGMENT ENTRY: Gl IT IS HEREBY ORDERED THAT JUDGMENT BE ENTERED AGAINST Defendant, in the amount of$ with interest at the rate of percent from the day of 2007,and Attorney Fees in the amount of$ ,plus Court costs in the amount of$ IT IS FURTHER ORDERED THAT the foregoing judgment be paid at the rate of$ per � (month/week). CC• ant` DATE MAGISTRATE CA AFFDAvn OF Pi 111 IO TERo 0 C-, v -(, =,o tx " 4 co____ J, Joseph N. Van Vooren , bei duly sworn on .� �► t ��i oath., state thkt I am the atorney for the petitioner) in action filed"-- �' state insurance Co as subrogee Ola d o w, wherein Jose Enrinque Rodri gnp7 City of Iowa City and Scott Van Srhnyck crest the defendantqand that the amount prayed for in the petition is true and correct as I verily believe. 41111011.1 . rey for petitioner or petitioner 1600 4th Avenue, Ste. 200. Rock Island, IL 61201 . Address (309) 786-8497 Phone ` Subscribed and sworn to before me bytuoslairl Joseph N. Van vonrpn on this _day of July , 2010 . . .. ti_ t_.L..' DIS • - Bntkx a ►,; ..idikkrorttlei • Notary - OFFICIAL SEAL BONNIE J. MOORE NOTARY PUBLIC-STATE OF IWNOIS MY COMMISSION EXPIRES 9-24-2010 N • O --CD C_ "':' - 1 c tl r w C')-< N --I c) .-4 F""'� • -- N Z..d 53 Cn U., APPEARANCE AND ANSWER OF DEFENDANT IN THE IOWA DISTRICT COURT IN AND FOR JOHNSON COUNTY, IOWA Plaintiff(s) (Name) ) (Address) ) Appearance and Answer of Defendant (Name) ) (Address) ) VS. } SCSCO Defendant(s) (Name) ) (Address) ) (Name) ) (Address) ) Daytime Phone Number: I HEREBY enter my appearance and Deny / Admit (circle one) the claim of the Plaintiff(s). • O G, c — Defendant -i c) •7(Fn rn By r.... Attorney for Defendant 111111 - , JOHNSON COUNTY CLERK OF DISTRICT COURT '4: 1. P.O. Box 2510 Lodema Berkley, Clerk of Court Iowa City,Iowa 52244-2510 Barbara Bigelow, Supervisor PHONE 319_356.606o Tammie Christiansen,Supervisor If you wish to have a hearing to argue your side of this case before a Magistrate Judge, then fill out the attached APPEARANCE AND ANSWER OF DEFENDANT form and circle the word DENY. Then see that it gets to our office within the amount of time indicated on the ORIGINAL NOTICE form. If you circle the word ADMIT, a Hearing before a Magistrate will not be scheduled and a Judgment will be entered against you by default. . If you wish to settle this Small Claim, please contact the Plaintiff, or their Attorney, as soon as possible, so that a DISMISSAL is filed with our office before the time period shown on the ORIGINAL NOTICE has passed. Our office is located at 417 South Clinton Street, Iowa City, Iowa 52240. If you choose to mail your Appearance and Answer form to our office, do so at the mailing address listed above. PLEASE NOTE: Our office will notify you by ordinary mail of the date and time of the hearing. PLEASE WRITE YOUR CORRECT MAILING ADDRESS ON THE APPEARANCE AND ANSWER OF DEFENDANT form. This is the exact address that your Hearing Notice will be mailed to. Also, please indicate a phone number that you can be reached at during our office hours. If you require the assistance of auxiliary aids or services to participate in court because of a disability,immediately call your district ADA coordinator at 1-319-398-3920,Ext. 1100. (If you are hearing impaired, call Relay Iowa TTY at 1-800-735-2942) c 35:71 r— CI To search Iowa Court Records online,go to: 7-i VyrCr w w .lowacourts.goy P1 —o m in the left column click Online Court Services :21.2 then click Online Docket Records next click Online Docket Records Search under Trial Court click Case Search then type in the Name and click the drop down boxes for Role,County,and Case Type then click Search,when found,go to Filings,etc.to follow the proceedings in your case END OF CASE FILE IN THE IOWA DISTRICT COURT IN AND FOR JOHNSON COUNTY BAC HOME LOANS SERVICING, LP fka �. COUNTRYWIDE HOME LOANS CASE NO. EQ/\/c7 \T" SERVICING, LP, ORIGINAL NOTICE Plaintiff, vs. c5 :3 4 GARY D. MILLER, SPOUSE OF GARY D. F'" —' ' MILLER, IOWA STATE BANK& TRUST -, COMPANY, CITY OF IOWA CITY, IOWA o r" 7"?`' DEPARTMENT OF REVENUE, AND PARTIES IN POSSESSION, Defendants. TO THE ABOVE-NAMED DEFENDANT(S): ; -Sty C. [-� You are notified that a Petition has been filed in the office of the Clerk of this Court, naming you as a Defendant in this action. A copy of the Petition (and any documents filed with it) are attached to this notice. The attorney for the Plaintiff is Brian G. Sayer of the law firm of Dunakey & Klatt, P.C., whose address is 531 Commercial St., Suite 250, P.O. Box 2363, Waterloo, Iowa 50704. That attorney's phone number is (319) 232-3304; facsimile number(319) 232-3639. You must serve a motion or answer within 20 days after service of this Original Notice upon you and, within a reasonable time thereafter, file your motion or answer with the Clerk of Court for Johnson County, at the Johnson County Courthouse, in Iowa City, Iowa. If you do not, judgment by default may be rendered against you for the relief demanded in the Petition. If you require the assistance of auxiliary aids or services to participate in court because of a disability, immediately call your district ADA coordinator at 319-398-3920. (If xxaau are hearing impaired call RelayIowa TTY (800) 735-2942 . x' ` �v p ) �.���EIvIA I�ERKLE�� (1111-6-r (Ptof Court Johnson County Courthouse Iowa City, Iowa IMPORTANT: YOU ARE ADVISED TO SEEK LEGAL ADVICE AT ONCE TO PROTECT YOUR INTERESTS. CM (Co veroh/Ly CA �i v\ v)fe IN THE IOWA DISTRICT COURT IN AND FOR JOHNSON COUNTY BAC HOME LOANS SERVICING, LP fka COUNTRYWIDE HOME LOANS CASE�r�NO.SERVICING, LP, QA[O7Xo Plaintiff, t FORECLOSURE PE` T OI c:, m GARY D. MILLER, SPOUSE OF GARY D. r MILLER, IOWA STATE BANK& TRUST c`` COMPANY, CITY OF IOWA CITY, IOWA =+r; r DEPARTMENT OF REVENUE, AND ; • PARTIES IN POSSESSION, y, • _, -4 Defendants. NOTICE THE PLAINTIFF HAS ELECTED FORECLOSURE WITHOUT REDEMPTION. THIS MEANS THAT THE SALE OF THE MORTGAGED PROPERTY WILL OCCUR PROMPTLY AFTER ENTRY OF JUDGMENT UNLESS YOU FILE WITH THE COURT A WRITTEN DEMAND TO DELAY THE SALE. IF YOU FILE A WRITTEN DEMAND, THE SALE WILL BE DELAYED UNTIL SIX MONTHS FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS YOUR RESIDENCE AND IS A ONE-FAMILY OR TWO- FAMILY DWELLING OR UNTIL TWO MONTHS FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS NOT YOUR RESIDENCE OR IS YOUR RESIDENCE, BUT NOT A ONE-FAMILY OR TWO-FAMILY DWELLING. YOU WILL HAVE NO RIGHT OF REDEMPTION AFTER THE SALE. THE PURCHASER AT THE SALE WILL BE ENTITLED TO IMMEDIATE POSSESSION OF THE MORTGAGED PROPERTY. YOU MAY PURCHASE AT THE SALE. COMES NOW the Plaintiff, and respectfully states to the Court the followings its cause of action against the Defendants: cD ) I. The Plaintiff elects to foreclose without redemption pursuant tpit wa de Section 654.20. The mortgaged property which is the subject q?-ti s aetion i9 not used for agricultural purposes. The mortgaged property is a onrg4Mil :fir t$f1 family dwelling. 2. The Plaintiff is a company duly authorized to transact business in the United States of America. 3. The Defendants, Gary D. Miller and Spouse of Gary D. Miller, are a married couple and are residents of Johnson County, Iowa. 4. The Defendant, Iowa State Bank& Trust Company, is joined as a party to this action because it may claim some right, title or interest in the property which is the subject of this action including, but not limited to, by virtue of a Mortgage recorded in Book 4240 Page 359 in the Johnson County Recorder's Office. Any right or interest the Defendant may have in and to the property which is the subject of this action is junior and subordinate to the right and interest of the Plaintiff in and to the property. 5. The Defendant, City of Iowa City, is joined as a party to this action because it may claim some right, title or interest in the property which is the subject of this action including, but not limited to, by virtue of a Mortgage recorded in Book 4262 Page 617 in the Johnson County Recorder's Office. Any right or interest the Defendant may have in and to the property which is the subject of this action is junior and subordinate to the right and interest of the Plaintiff in and to the property. 6. The Defendant, Iowa Department of Revenue, is joined as a party to this action because it may claim some right, title or interest in the property which is the subject of this action including, but not limited to, by virtue of a Tax Lien entered in Book 4394 Page 370 in the records of Johnson County. Any right or interest the Defendant may have in and to the property which is the subject of this action is junior and subordinate to the right and interest of the Plaintiff in and to the property. 7. The Defendants, Parties in Possession, are made parties to this cause of action because they may claim some right, title or interest in the property which is the subject of this action. Any right or interest the Defendants may have in and to the property which is the subject of this action is junior and subordinate to the right and interest of the Plaintiff in and to the property. 8. On or about 05/25/2007, the Defendant(s), Gary D. Miller, executed and delivered to Iowa State Bank & Trust Company one certain Promissory Note in the principal sum of$87,650.00. A copy of the Note is attached hereto as Exhibit "A" and incorporated herein by this reference. 9. To secure payment of the Note, the Defendant(s), Gary D. Miller, executed and delivered to Iowa State Bank & Trust Company one certain Purchase Money Mortgage dated 05/25/2007, which Mortgage was filed on 05/31/2007, in Book 4164 Page 926 in the records for Johnson County and which was assigned to Countrywide Bank, FSB and recorded in Book 4164 Page 936, upon the following described real estate, to-wit: c i The east 60 feet of Lot 186 in Part Four Hollywood Manor AdZition taowa€it , Iowa, according to the plat thereof recorded in Plat Book 8, Pages 4-1, Pt Records of Johnson County, Iowa. 10. A copy of the Mortgage together with the Recorder's Certificate ere is attached hereto as Exhibit"B" and by this reference incorporated herein 7f\ 11. Plaintiff if successor by assignment from Countrywide Bank, FSB. A copy of the Assignment of Mortgage and prior Assignments of Mortgage, together with the Recorder's Certificates thereon, if available, are attached hereto as Exhibit "C" and by this reference incorporated herein. 12. The Mortgage and Note provide that in the case of default, the holder may declare the entire principal, and the interest accrued thereon, due and payable and the Mortgage may be foreclosed. 13. The Defendant(s), Gary D. Miller, has failed to pay the principal and interest thereon as provided by the terms of the Note. 14. By reason of the failure to pay the principal and interest, the Plaintiff has elected and does hereby elect, in accordance with the terms and conditions of the Note and Mortgage, to declare the whole of the Note due and payable forthwith and to exercise its right to enforce payment of the entire Note as provided by the Note and to foreclose the Mortgage given to secure the same. 15. The unpaid balance due on the Note after allowing all credits due to the Defendants is the principal balance of$85,156.37, plus interest to 10/20/2010 in the amount of$1,469.70. Interest accrues on the said sum at the rate of$10.35 per day. 16. In order to commence this foreclosure proceeding the Plaintiff has expended the following costs: report of title costs $250.00, escrow advance of$656.16, late charges of$134.52, to all which sums the Plaintiff is entitled to judgment against the property with interest at the rate of 4.375% per annum, plus costs and accruing costs including, but not limited to, any and all advances made by the Plaintiff for taxes, insurance, property preservation and other costs between the time of the Foreclosure Decree and the time of Sheriff's Sale, including reasonable attorney's fees. 17. The Plaintiff is the owner and holder of the Note and Mortgage, due demand has been made for payment, and payment has been refused. 17. Under the terms of the Mortgage a receiver may be appointed. 18. The Plaintiff, or its predecessor in interest or servicing agent,` .Ve a NIticeof Right to Cure and more than 30 days have elapsed since the trtsice w,4j given.-A copy of said Notice is attached hereto as Exhibit"D" and incur iatedherein by this reference. '' 20. The Plaintiff hereby waives its right to a deficiency judgment:' 21. Under the terms of said Note and Mortgage, the Defendant(s), Gary D. Miller, has agreed to pay reasonable attorney's fees and all costs in connection with the proceeding to enforce or foreclose the Mortgage. Attached hereto as Exhibit"E", and incorporated herein by this reference, is an Affidavit of Attorney's Fees as required by Iowa Code §625.22 (2005). 22. Pursuant to Iowa Code § 654.4B(1) a Demand for Payment was sent to the Defendant(s), Gary D. Miller. A copy of said Demand is attached hereto as Exhibit"F" and incorporated herein by this reference. 23. Pursuant to Iowa Code § 654.4B(2) a Mortgage Mediation Notice was sent to the Defendant(s), Gary D. Miller. A copy of said Notice is attached hereto as Exhibit "G" and incorporated herein by this reference. WHEREFORE, the Plaintiff, prays for judgment in rem against the real estate described above for the principal balance of$85,156.37, plus interest to 10/20/2010 in the amount of $1,469.70, plus continuing interest, which accrues on the said sum at the rate of 4.375% per annum and in the amount of$10.35 per day; for the costs of this action including report of title $250.00, escrow advance $656.16, late charges $134.52, plus reasonable attorney's fees and additional sums for continuing the abstract of title or other purposes authorized by said Note and Mortgage and by Iowa law; that said sums be declared a lien upon the premises above described from 05/25/2007, the date of the Plaintiffs mortgage, prior and superior to any right, title, lien or interest of the Defendants or any of them therein; that the Plaintiff's Mortgage be foreclosed; that any right, title, lien or interest of the Defendants or any of them in said property be declared junior and inferior to the lien of Plaintiff's Mortgage; that a special execution issue for the sale of the mortgaged premises or so much thereof as may be necessary to satisfy the judgment including interest, costs and accruing costs including, but not limited to, any and all advances made by the Plaintiff for taxes, insurance, property preservation and other costs between the time of the Foreclosure Decree and the time of Sheriffs sale, and that from and after said sale under special execution, the right, title, lien or interest of the Defendants in and to the mortgaged premises be forever cut off, barred and foreclosed, and the purchaser at said sale take free and clear of any right, title, lien or interest of the Defendants or any of them. The Plaintiff further prays for a Writ of Possession to be issued under the seal of this Court, directed to the Sheriff of Johnson County, Iowa, commanding him to put the purchaser at said sale under special execution, or a successor in interest, in possession of the premises; and that a receiver be appointed to take charge of the mortgaged premises during the period of foreclosure for the purpose of preserving the mortgaged premises for the benefit of all concerned. The Plaintiff further prays for such other and further relief as the Court may deem just and equitable under the circumstances. Respectfully submitted, DUNAKEY & KLATT, P.C. I� Brian G. Sayer A 101613 La C. Anthony Crnic AT00 8:.4 531 Commercial St., StO "; :; P.O. Box 2363 Waterloo, IA 50701 • 1;--; 319-232-3304 319-232-3639 (fax) r- r;; generalupdates@dandkpc.com Attorneys for the Plaintiff a. ' NOTE �3�.rig '>• -�,.:r.:ThJ_i;airy oftrt ..••-•-• : s , lig•, May 25,2007 Iowa City , Iowa [Date] [City] [State] 1601 California Ave Iowa City,IA 52240 [Property Address] 1. BORROWER'S PROMISE TO PAY i. In return for a loan that I have received,I promise to pay U.S.$87,650.00 (this amount is called'Principal"),plus interest,to the order of the Lender. The Lender is Iowa State Bank and Trust Company - ' •• . I will make all payments under this Note in the form of cash,check or money order. I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the"Note Holder." 2. INTEREST . Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of 6.000%. • The interest rate required by this Section 2 is the rate!will pay both-before and after any default described in Section 6(B)of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payment on the 1st day of each month beginning on July 1st , 2007 . I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If,on June 1st , 2037 ,I still owe amounts under this Note,I will pay those amounts in full on that date,which is called the"Maturity Date." I will make my monthly payments at 325 S.Clinton St PO Box 1700 Iowa City,IA 52244 or at a different place if required by the Note Holder. (B) Amount of Monthly Payments My monthly payment will be in the amount of U.S.$525.51 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a 'Prepayment." When I make a Prepayment,I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under the Note. I may make a full Prepayment or partial Prepayments without paying a Prepayment charge. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However,the Note Holder may apply my Prepayment to the accrued and unpaid interest on the Prepayment amount,before applying my Prepayment to reduce the Principal amount othe Note. If I make a partial Prepayment,there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. 5. LOAN CHARGES If a law,which applies to this loan and which sets maximum loan charges,is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits,then: (a)any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit;and(b)any sums already collected from me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment. 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charge for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of 15 calendar days after the date it is due,I will pay a late charge to the Note Holder. The amount of the charge will be 5.000%of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B) Default If I do not pay the full amount of each monthly payment on the date it is due,I will be in default. (C) Notice of Default If I am in default,the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date,the Note Holder may require me to pay immediately the full amount of Principal which has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. (D) No Waiver By Note Holder Even if,at a time when I am in default,the Note Holder does not require me to pay immediately in full as described above,the Note Holder will still have the right to do so if I am in default at a later time. (E) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above,the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Nate to the extent not prohibited by applicable law. Those expenses include,for example,reasonable attorneys'fees. 7. GIVING OF NOTICES Unless applicable law requires a different method,any notice that must be given to me under this Note will be giyea bydelivering it or by mailingg it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. • - Any notice that must be given to the Note Holder under this Note will be given by delivering it or by retailing it b st class mail - to the Note Holder at the address stated in Section 3(A)above or at a different address if I am given a notice ofthat d rent address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE : •- If more than one person signs this Note,each person is fully and personally obligated to keep all oftii-promit-e made.in this Note,including the promise to pay the full amount owed. Any p:;rson who is a guarantor,surety or endorser of this Note is.also obligated to do these things. Any person who takes over these obligations,including the obligations of a guarantor,saretyor endorser of this Note,is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note MULTISTATE FIXED RATE NOTE—Single Family—Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form 3200 1/0f(page r oft pager) 9847.CV(4.)5) 4492054-005 . Creatlt,Thinking„LIG ) 1 GOTO(00224a41) flo a _ _ against each person individually or against all of us together. This means that anyone of us may be required to pay all of the amounts owed under this Note. 9. WAIVERS I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor. "Presentment"means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor"means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. I0. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note,a Mortgage,Deed of Trust,or Security Deed(the"Security Instrument"),dated the same date as this Note, protects the Note Holder from possible losses which might result if I do not keep the promises which I make in this Note. That Security Instrument describes how and.under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions are described as follows: If all or any part of the Property or any Interest in the Property is sold or transferred(or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred)without Lender's prior written consent. Lender may require immediate payment in full of all sums secured by this Security Instrument. However,this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option,Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to paythese sums prior to the expiration of this period,Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. WITNESS THE HAND(S)AND SEAL(S)OF THE UNDERSIGNED. • t 11-ni (Seal) Borro Gary D.Miller (Seal) Borrower (Seal) Borrower (Seal) Borrower WITHOUT RECOURSE [Sign Original Only] PAY TO THE ORDER OF Countrywide Bank,FSB • Iowa State Bank and Trust Company Peggy . oerg@,Vice-Presi t • • G"7 O ti f i-•: C) C"—; rj• • N CJI MULTISTATE FIXED RATE NOTE—Single Family—Fannie Mac/Freddle Mac UNIFORM INSTRUMENT Fag rn 3200 1/01 (page 2 oft pages) 9847.CV(4/05) 4492054-008 Creative Thinking,Ina GOTO(0022ao41) 4110 Amk. IMF e) PURCHASE MONEY MORTGAGE MORTGAGE •:,in��- l: of 1,-. • Iowa St,.is ;snlc&Tru,.t Lk). • DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined 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"mcans this document,which is dated May 25th , 2007 ,together with all Riders to this document. (B) "Borrower"is Gary D.Miller,a single person Borrower is the mortgagor under this Security Instrument. (C) "Lender"is Iowa State Rank and Tract Company .Lender is a Corporation organized and existing under the laws ofthe State of Iowa Lender's address is'925 S.Clinton St P(7 Box 1700 Iowa("Iffy,TA 52244 Lender is the mortgagee under this Security Instrument. (D) "Note"means the promissory note signed by Borrower and dated May 25th , 2007 . The Note states that Borrower owes Lender Eighty Sgven Thousand Six Hundred Fifty and 001100 • Dollars(U.S.$87,650.00 )plus interest. Borrower has promised • to pay this debt in regular Periodic Payments and to pay the debt in full not later than June 1.2037 (E) "Property"means the property that is described below under the heading"Transfer of Rights in the Property." (F) "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. (G) "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 ❑ Condominium Rider 0 Second Home Rider 0 Balloon Rider 0 Planned Unit Development Rider ® Other(s)[specify] Tax Exempt 0 1-4 Family Rider 0 Biweekly Payment Rider Financing Rider (H) "Applicable Law" means all controlling applicable federal,state and local statutes,regulations, ordinances and administrative rules and orders(that have the effect of law)as well as all applicable final,non-appealable judicial opinions. (I) "Community Association Dues,Fees,and Assessments"means all dues,fees,assessments and other charges that are imposed on Borrower or the Property by a condominium association,homeowners association or similar organization. (J) "Electronic Funds Transfer"means any transfer of funds,other than a transaction originated by check,draft,or similar paper instrument,which is initiated through an electronic terminal,telephonic instrument,computer,or magnetic tape so as to order,instruct,or authorize a financial institution to debit or credit an account. Such term includes,but is not limited to, point-of-sale transfers,automated teller machine transactions,transfers initiated by telephone,wire transfers,and automated clearinghouse transfers. (K) "Escrow Items"means those items that are described in Section 3. (L) "Miscellaneous Proceeds"means any compensation,settlement,award of damages,or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5)for:(i)damage to,or destruction of,the Property;(ii)condemnation or other taking of all or any.part of the Property;(iii)conveyance in lieu of condemnation;or (iv)misrepresentations of,or omissions as to,the value and/or condition of the Property. (M) "Mortgage Insurance"means insurance protecting Lender against the nonpayment of,or default on,the Loan. (N) "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. (0) "RESPA"means the Real Estate Settlement Procedures Act(12 U.S.C.§2601 et seq.)and its implementing regulation, Regulation X(24 C.F.R.Part 3500).as they might be amended from time to time,or any additional or successor legislation or regulation that governs the same subject matter.As used in this Security Instrument,"RESPA"refers to all requirements and restrictions that are imposed in regard to a"federally related mortgage Ioan"even if the Loan does not qualify as a "federally related mortgage loan"under RESPA. (P) "Successor in Interest of Borrower"means any party that has taken title to the Property,whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender. (i)the repayment of the Loan,and all renewals,extensions and modifications of the Note;and(ii)the performance of Borrower's covenants and agreements under this Security Inst}u(nent and tjle Note. For this purpose,Borrower irrevocably mortgages,grants and conveys to Lender,with power of sale,tilt following described property located in the County of Johnson :X j [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] `. _._... 4 , IOWA—Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Fenn 3016 VO1•(page 2 o/9 pages) 9742.CV(7/05) 4492054-008 Creative Thinking,Inc.'71 GOTO(0022a042)_....r " • • unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver,Borrower shall pay directly,when and where payable,the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and,if Lender requires,shall furnish to Lender receipts evidencing such payment within such time period as Lender may require.Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument,as the phrase "covenant and agreement"is used in Section 9. If Borrower is obligated to pay Escrow Items directly,pursuant to a waiver, and Borrower falls to pay the amount due for an Escrow Item,Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and,upon such revocation, Borrower shall pay to Lender all Funds,and in such amounts,that are then required under this Section 3. Lender may,at any time,collect and hold Funds in an amount(a)sufficient to permit Lender to apply the Funds at the time specified under RBSPA,and(b)not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency,instrumentality,or entity (including Lender,if Lender is an institution whose deposits are so insured)or in any Federal HorneLoan Bank.Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds,annually analyzing the esciow account,or verifying the Escrow Items,unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds,Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing,however,that interest shall be paid on the Funds. Lender shall give to Borrower,without charge,an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow,as defined under RESPA,Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow,as defined under RESPA,Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA,but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow,as defined under RESPA,Lender shall notify Borrower as required by RESPA,and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA,but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument,Lender shall promptlyrefund to Borrower any Funds held by Lender. 4. Charges;Liens. Borrower shall pay all taxes,assessments,charges,fines,and impositions attributable to the Property which can attain priority over this Security Instrument,leasehold payments or ground rents on the Property,if any. and Community Association Dues,Fees,and Assessments,if any. To the extent that these items areEscrowItems,Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower:(a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender,but only so long as Borrower is performing such agreement;(b)contests the lien in good faith by,or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the hen 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 maygive Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given,Borrower shall satisfthe lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on theProperty 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 theeriods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term oftheLoan. 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 connection with this Loan, either: (a)a one-time charge for flood zone determination,certification and tracking services;or(b)a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above,Lender may obtain insurance coverage,at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore,such coverage shall cover Lender,but might or might not protect Borrower,Borrower's equity in the Property,or the contents of the Property,against any risk,hazard or liability and might provide greater or lesser coverage than was previously in effect Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable,with such interest,upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the•poticies 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,fur 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 Ioss payee. In the event of loss,Borrower shall give prompt notice to the insurance carrier and Lender.Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing,any insurance proceeds, whether or not the underlying insurance was required by Lender,shall be applied to restoration or repair of the Property,if the restoration or repair is economically feasible and Lender's security is not lessened.During such repair and restoration period,Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction,provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless.an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds,Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for•public adjusters,or other third parties,retained by Borrower shall not be paid out of the insurance proceeds andshall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security`would be lessened,the insurance proceeds shall be applied to the sums secured by this Security Instrument,whether or not then due, with the excess,if any,paid to Borrower. Such insurance proceeds shall be applied in the order provided,fQr in Seption?r. IOWA--Single Family--Fannie Mne/Freddie Mac UNIFORM INSTRUMENT Form 3016 -1/07 (page 44t9 page r ='ter 9742.CV(7/05) 4492054-008 Creative Th id5ing, GOTO(0022a54 j r"`•I N.) • • wir 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 clays to a notice from Lender that the insurance carrier has offered to settle a claim,then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event,or if Lender acquires the Property under Section 22 or otherwise,Borrower hereby assigns to Lender(a)Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Securitylnstrument, and(b)any other of Borrower's rights(other than the right to any refund of unearned premiums paid by Borrower)under all insurance policies covering the Property,insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument,whether or not then due. 6. Occupancy. Borrower shall occupy,establish,and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy,unless Lender otherwise agrees in writing,which consent shall not be unreasonably withheld,or unless extenuating circumstances exist which are beyond Borrowers control. 7. Preservation,Maintenance and Protection of the Property;Inspections. Borrower shall not destroy, damage or impair the Property,allow the Property to deteriorate or commit waste on the Property. Whether or notBorrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value duepto its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible,Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to,or the taking of,the Property,Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property,Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. 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 theLoan application process,Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading,or inaccurate information or statements to Lender(or failed to provide Lender with material information)in connection with the Loan. Material representations include,but are not limited to,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 significantly affect Lender's interest in the Property and/or rights under this Security Instrument(such as a proceeding iii bankruptcy,probate,for condemnation 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 Lender may do and pay for whatever is reasonable or appropriate to li3rotect Lender's interest in the Property and 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 priority 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 this Security Instrument,including its secured position in a bankruptcy proceeding. Securing the Property includes,but is not limited to,entering the Property to make repairs,change locks,replace or board up doors and windows,drain water from pipes,eliminate building or other code violations or dangerous conditions,and have utilities turned on or off. Although Lender may take action under this Section 9,Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest,upon notice from Lender to Borrower requesting payment. If this 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 the Loan,Borrower 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 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 the 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 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 non-refundable lossreserve in lieu ofMortgage Insurance. Such loss reserve shall be non-refundable,notwithstanding the fact that the Loan is ultimately paid in full,and Lender shall not be required to pay Borrower any interest or earnings on 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 obtaine6,and Lender requires separatelydesignated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance,Borrower shall pay the premiums required to maintain Mortgage Insurance in effect,or to provide a non-refundable loss reserve,until Lender'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 that purchases the Note)for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower Is not a party to the Mortgage insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time,and may enter into agreements with other parties that share or modify their risk,or reduce losses.These agreements are on teams 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 payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements,Lender,any purchaser of the Note,another insurer,any reinsurer,any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing-or modifying the mortgage insurer's risk,or reducing losses. If such agreement provides that an affiliate of Lender takes a state of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed2 captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay.forrMortgage 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. IOWA--Single Family—Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3016—t(Ol„(pagcS,yf9 pages) 9742-CV(7/05) 4492054-008 •tieative Thinking,Inc GQTc,ic0o22aad2)' i„ • t• (b)Any such agreements will not affect the rights Borrower has—if any—with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law.These rights may include the right to receive certain disclosures,to request and obtain cancellation of the Mortgage Insurance,to have the Mortgage Insurance terminated automatically,and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds;Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property 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 and restoration period,Lender 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. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds,Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened,the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument,whether or not then due,with the excess. if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction,or loss in value of the Property,the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument,whether or not then due,with the excess,if any,paid to Borrower. In the event of a partial takingdestruction,or loss in value of the Property in which the fair market value of the Property immediately before the partial taking,destruction,or loss in value is equal to or greater than the amountofthe sums secured by this Security Instrument immediately before the partial taking,destruction,or loss in value,unless Borrower and Lender otherwise agree in writing,the sums secured by this SecurityInstrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction:(a)the total amount of the sums secured immediately before the partial taking,destruction,or loss in value divided by(b)the fair market value of the Property immediately before the partial taking,destruction,or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking,destruction,or loss in value of the Property in which the fair market value of the Property immediately before the partial taking,destruction,or loss in value is less than the amount of the sums secured immediately before the partial taking,destruction,or loss in value,unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. - If the Property is abandoned by Borrower,or if,after notice by Lender to Borrower that the Opposing Party(as defined in the next sentence)offers to make an award to settle a claim for damages,Borrower fails to respond to Lender within 30 days after the date the notice is given,Lender is aythorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security instrument, whether or not then due. "Opposing Party"means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding,whether civil or criminal, is begun that,in Lender's judgment,could result in forfeiture of the Property or other material impairment of Lender's interest in the Propertyor rights under this Security Instrument. Borrower can cure such a default and,if acceleration has occurred,reinstate as provided in Section 19,by causing the action or proceeding to be dismissed with a ruling that,in Lender's judgment,precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that 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 the sums secured by this Security Instrument granted byLender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation,Lender's acceptance of payments from third persons,entities or Successors in Interest of Borrower or in amounts less than the amount then due,shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability;Co-signers;Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note(a"co-signer"):(a)is co-signing this Security Instrument only to mortgage,grant and convey the co-signer's interest in the Property under the terms of this Security Instrument;(b)is not personally obligated to pay the sums secured by this Security Instrument;and(c)agrees that Lender and any other Borrower can agree to extend, modify,forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co- signer's consent. Subject to the provisions of Section 18,any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing,and is approved by Lender,shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind(except as provided in Section 20)and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default,for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument,including, but not limited to,attorneys'fees,property inspection arid valuation fees. In regard to any other fees,the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly.prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges,and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits,then:(a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted-limit;and(b)any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower.Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal,the reduction will be treated as a partial prepayment without any prepayment charge(whether or not a prepayment charge is provided for under the Note).Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given toXtorrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means.Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires othpra�ise. 'lh.notice address shall be the Property Address unless Borrower has designated a substitute notice address b -itgtice to. .ender. IOWA--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3016 It/01-(page 6 0,49 pages) ' 9742.CV(7105) 4492054-00a restive Thloljng,Inc. :'• 'GOTO(0022aa42) • 4CM!.. ) Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice tp Lender shall be given by delivering it or by mailing it by first class mail to Lenders address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received byLender. If any notice required by this Security Instrument is also required under Applicable Law,the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law;Severability;Rules of Construction. This Security instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent,but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law,such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument:(a)words of the masculine gender shall mean and include correspondinneuter words or words of the feminine gender;(b)words in the singular shall mean and include the plural and vice versa;and(c)the word"may"gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this 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,installment sales contract or escrow agreement,.the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred(or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred)without Lender's prior written consent,Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option,Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period,Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions,Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of:(a)five days before 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 Borrower's right to reinstate;or(c)entry of ajudgment enforcing this Security Instrument. Those conditions are that Borrower:(a) pays Lender all sums which then would be due under this Security Instrument 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 SecurityInstrument,including,but not limited to, reasonable attorneys' fees,property inspection-and valuation fees,and other fees incurred 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 under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument,shall continue unchanged. Lender may require that Borrower pay such reinstatement 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 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 shall remain fully effective as if no acceleration had occurred. However,this right to reinstate shall not apply in the case of acceleration 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 mote times without prior notice to Borrower. 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 Instrument and performs other mortgage loan servicing obligations under the Note,this Security Instrument,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 Loan Servicer,Borrower will be given written notice of the change 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 Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless 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 Instrumentor that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until 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 substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable 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 environmental protection;(c)"Environmental Cleanup"includes any response action,remedial action,or removal action,as defined in Environmental Law;and(d)an "Environmental Condition"means a condition that can cause,contribute to,or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence,use,disposal,storage,or release of any Hazardous Substances,or threaten to release any Hazardous Substances,on or in the Property.Borrower shall not do,nor allow anyone else to do, anything affecting the Property(a)that is in violation of any Environmental Law, (b)which creates an Environmental Condition,or(c)which,due to the presence,use,or release of a Hazardous Substance,creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence,use,or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property(including,but not limited to,hazardous substances in consumer products). Borrower shall promptly give Lender written notice of(a)any investigation,claim,demand,lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Sittgstance or Environmental Law of which Borrower has actual knowledge, (b)anyEnvironmental Condition,including but reiclimited to, any spilling,leaking,discharge,release or threat of release of any Hazardous Substance,and(c)anycondition Wised by the. IOWA--Single FanUly--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3014- 1/01(pose;'of 9 pagesf 9752.CV(7815) 4492054.008 • .Creative Th{nking,Inc.a C.) •' Cf04Io(0022> 42su _ • Y • C.1 • 1110 • presence,use or release of a Hazardous Substance which adversely affects the value of the Property.IfBorrower 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,foreclosure by judicial proceeding and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. 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 foreclose this Security Instrument byudicial proceeding. 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. 23. Release. Upon payment of all SUMS secured by this Security Instrument,Lender shall release this Security Instrument. Lender may charge Borrower a fee for releasing this Security Instrument,but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower relinquishes all right of dower and waives all right of homestead and distributive share in and to the Property. Borrower waives any right of exemption as-to the Property. 25. HOMESTEAD EXEMPTION WAIVER.I UNDERSTAND THAT HOMESTEAD PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AND EXEMPT FROM JUDICIAL SALE;AND THAT BY SIGNING THIS MORTGAGE,•I VOLUNTARILY GIVE UP MY RIGHT TO THIS PROTECTION FOR THIS MORTGAGED PROPERTY WITH RESPECT TO CLAIMS BASED UPON THIS MORTGAGE. • ►i May 25,2007 Gary I). i 'tier [Date] [Date] 26. Redemption Period.If the Property is less than 10 acres in size and Lender waives in any foreclosure pro- ceeding any right to a deficiency judgment against Borrower,the period of redemption from judicial sale shall be reduced to 6 months. If the court finds that the Property-has been abandoned by Borrower and Lender waives any right to a deficiency judgment against Borrower,the period of redemption from judicial sale shall be reduced to 60 days. The provisions of this Section 26 shalt be construed to conform to the provisions of Sections 628.26 and 628.27 of the Code of Iowa. IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. • BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in.this Security Instrument and in any Rider executed by Borrower and recorded with it. • Witnesses: • • • a5. lFRIU � (Seal) Bdrro r Gary D.Miller (Seal) Borrower (Seal) Borrower • (Seal) Borrower N _ 7 c..� • IOWA—Single Family—Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3016' t/Ot'(p?�e 8a pagesl ., 9742.CV(7/05) 4492054.008 Creative Thinkipg,Inc. a • • dOT603a2aa422 asme. [Space Below This Line For Acknowledgment] STATE OF Iowa ) )ss: COUNTY OF Johnson ) On this 25th day of May 2007 ,before me,the undersigned,a Notary Public in and for said county and state,personally appeared:Gary A.Miller,a sinele person • to me personally known to be the person(s)named in and who executed the foregoing instrument,and acknowledged that he executed the same as his voluntary act and deed. My commission expires:OI/30/2008 PEGGY J DOERGE Notary F�d FKr said County and to Notarial Seat -/awe Peggy J.Doerge Comm(sslon#714812 My Commission Exp(rea_/-�j�..���' w This Line Reserved For Lender and Recorder c= CD o C.7! C) -) r" • l + IOWA—Single Family—Fannle Mae/Freddie Mac UNIFORM INSTRUMENT Form 3016 1/01 (page 9 of9 pages) 9742.CV(7/05) 4492054-008 Creative Thinking,Inc. • GOTO(0022aa42) i 1s 1s of t.:,o. (c:nta Ste ,cul ix.�'•TNS Prepared by end RETURN TO: Iowa Stale Bank and Trust PO Box 1700.Iowa City.IA 62244 • telephone 319-356-5980 116e of Document Rider to Mortgage Grantor. Gary D Miller (borrower(s)) Grantee: Iowa State Bank and Trust Company (fender) RIDER TO MORTGAGE This Tax-Exempt Financing Rider to Mortgage,made the date rated below,is Incorporated Into and shall be deemed to amend and supplement the Mortgage of the same date given by the undersigned(the`Mortgagor')to secure the Mortgagor's Note to Iowa State Bank and Trust (herein,the'Lender')and covering the property described In the Mortgage(the'Property')to which this Rider Is attached. The provisions hereof shall prevail notwithstanding any contrary provisions In any note or other instrument which evidences the obligations secured by the Mortgage. As long as the Mortgage is hold by the Iowa Finance Authority or packs a mortgage-backed security held by the Iowa Finance Authority,Countrywide Home Loans,Inc.(the"Servicer)or such of Its successors or assigns as may by separate Instrument assume responsibility for assuring compliance by the Mortgagor wltb the provisions of this Rider.may declare ell sums secured by the Mortgage to be Immediately due and payable If: (1)ell or part of the property Is sold or otherwise transferred(other than by devise,descent or operation of law) by the Mortgagor to a purchaser or other transferee: a. who cannot reasonable be expected to occupy the property as a principal residence within a reasonable time after the sale or transfer,all es provided In Section 143(c)and(I)(2)of the Internal Revenue Code of 1986,as amended(the'Code");or b. who has had a present ownership interest In a principal residence during any part of the three-year period ending on the dale of the sale or transfer,all as provided In Section 143(d)and(1)(2)of the Code(except that the language'100 percent-shall be substituted for'95 percent or more'where the latter appears In Section 143(d)(1)),unless the property Is In a Targeted Area;or c. at an acquisition cost which Is greater than 90 percent of the average area purchase price(greater than 110 percent for Targeted Area residences),all as provided In Section 143(e)and(i)(2)of the Code;or d. who has a gross family income In excess of applicable median family Income;all as provided in Section 143(f)and(i)(2)of the Coda;or (2)the Mortgagor falls,or ceases,to occupy the Property without the prior written consent of the Mortgagee or Its successors or assigns;or (3)the Mortgagor omits or misrepresents a fact that Is material with respect to the provisions of Section 143 of the Code In the application for the Mortgage which secures the Note. References are to the Code In effect on the date of the execution of the Mortgage and are deemed to Include the applicable N., Implementing regulations. By signing below,the Mortgagor(s)accepts and agrees to the terms of the Rider to Mortgage. Date: 5j'5 (AN 7 Borrows .• Co-Borrower � ) nJ Gary 0 Miller Typed Name C Typed Name r7-1 This instrument was acknowledged before me on ✓i L^ - bypry D Miller as Mortgagor(s). NOTARYL. a or said S PEGGY J DOERGE Notarial Seal -lawn Commission*714E12 4 My Commission Expires /JO-21P011" r15 — ....-A Aink— IMP The East 60 feet of Lot 186 in Part Four,Hollywood Manor Addition to Iowa City,Iowa,according to the plat thereof recorded in Plat Book 8,Page 41,Plat Records of Johnson County,Iowa. • • which currently has the address of 1601 California Ave [Street] Iowa City ,Iowa 52240 ("Property Address"): [City] [Zip Code] TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances,and fixtures now or hereafter a part ofµle 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 and convey the Property and that the Property is unencumbered,except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands,subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal,Interest,Escrow Items,Prepayment Charges,and Late Charges. Borrower shall pay when due the principal of,and interest on,the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S.currency. However,if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid,Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms,as selected by Lender:(a)cash;(b)money order;(c)certified check,bank check,treasurer's check or cashier's check,provided any such check is drawn upon an institution whose deposits are insured by a federal agency,instrumentality,or entity;or(d) Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current,without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future,but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date,then Lender need not pay interest on unapplied funds.Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time,Lender shall either apply such funds or return them to Borrower. If not applied earlier,such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2,all payments accepted and applied by Lender shall be applied in the following order of priority: (a)interest due under the Note;(b)principal due under the Note;(c)amounts due under Section 3.Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges,second to any other amounts due under this Security Instrument,and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due,the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding,Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if.and to the extent that,each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments,such excess may be applied to any late charges due.Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments,insurance proceeds,or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date,or change the amount,of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the dayPenodic Payments are due under the Note, until the Note is paid in full,a sum(the"Funds")to provide for payment of amounts due for.(a)taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property;(b)leasehold payments or ground rents on the Property,if any(c)premiums for any and all insurance required by Lender under Section 5; and(d)Mortgage Insurance premiums,if any,or any sums payable by Borrower to Lender in lieu of the payment ofMortgage Insurance premiums in accordance with the provisions of Section 10.These items are called"Escrow Items.' At origination or at any time during the term of the Loan,Lender may require that Community Association Dues,Fees,and Assessments,if any,be 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 c-� IOWA—Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3016 1/01 (page 9 pages) 9742.CV(7/05) 4492054-008 Creative Th4n14ng,Inc- i J GO1p 022aaa2) S C7- . N .. , • ' e --•% ^a N) C.Tt 11111 . 4110 EXHIBiT v,,y cert,•,= . is t♦tr'7. �''tf:o To. of r,;. 'u:.��c, 15901/79 IOWA°r j tJ'r.,:. - t7.0)_/ Smote;-;ank&Trust 0o. • Prepared By:Catherine M Franz Iowa State Bank and Trust Company 325 S.Clinton St PO Box 1700 Iowa City,IA 52244(319)356-5960 ASSIGNMENT OF MORTGAGE (Corporation) Know All Men by These Presents: _ That Iowa State Bank&Trust Company,a corporation incorporated under the laws of the State of Iowa,and having its principal place of business at 102 S.Clinton Street,Iowa City,Iowa,in the County of Johnson,and State of Iowa, for and in consideration of the sum of Eighty Seven Thousand Six Hundred Fifty and 00/100 DOLLARS,in hand paid,the receipt whereof is hereby acknowledged, does hereby sell',assign,transfer,and set over,to Countrywide Bank,FSB .a certain Indenture of Mortgage,bearing date the 25th day of May ,A.D., 2007 made and executed by Gary D.Miller,a single person to Iowa State Bank and Trust Company on the following described real estate in the county of Johnson and State of Iowa,to-wit: The East 60 feet of Lot 186 in Part Four,Hoilywocd Manor Addition to Iowa City,Iowa,according to the plat thereof recorded in Plat Book 8,Page 41,Plat Records of Johnson County,Iowa. and filed for record in the office of the Recorder of the said County of Johnson ,in the State of Iowa.on the day of ,A.D. .at o'clock .M.,and recorded on Page of Book No. of Mortgage Records of said County and State. Dated this 25th day of May ,A.D., 2007 CORPORATE `��,,,,•,,,,,,,,,,,�� Iowa State Bank and Trust Company SEAL .�` pIA & Tii. ,is -. ,. .„ •-sem By: •:c' �Q'• •.••• •.•• �c� a PPg .Anoir ,Vice-Press nt bz-▪ "' CORPQRATE • '- : 4111 • VV. •ii c4"::,.'cgoinc of to •..:-���.�. Iowa SLAta L,ank&7tv.:t Co. [Space above reserved for Recorder of Deeds certification] Prepared By: Catherine M Franz Iowa State Bank and Trust Company 325 S.Clinton St PO Box 1700 Iow City,IA 52244(319)356-5960 When Recorded Return To: Iowa State Bank and Trust Company 325 S.Clinton St PO Box 1700 Iowa City,IA 52244 1. Title of Document: MORTGAGE 2. Grantor(s): Gary D.Miller,a single person 3. Grantee(s): Iowa State Bank and Trust Company 4. Statutory Mailing Address(s): 325 S.Clinton St PO Box 1700 Iowa City,IA 52244 5. Legal Description:. Page 3 6. Parcel Identification Number: 1023285007 7. Document or Instrument#: 0 � _ :5:cp (c:2, ! C)-< N.) Page 1 of 9 C"• — '.� 9742.CV(7105) 4497054-0OBare82tIe'Thinking,Inc. - n- _ # 1 r GOTO(0022aa42) Preparer/Return to: C. Anthony Crnic, Dunakey & Klatt, P.C. 531 Commercial Street, Ste 250, Waterloo, Iowa 50701 (319) 232-3304 Grantor: Bank of America, N.A., successor by merger to Countrywide Bank, FSB Grantee: BAC Home Loans Servicing, LP fka Countrywide Home Loans Servicing, LP Legal Description The east 60 feet of Lot 186 in Part Four Hollywood Manor Addition to Iowa City, Iowa,according to the plat thereof recorded in Plat Book 8, Page 41, Plat Records of Johnson County, Iowa ASSIGNMENT OF MORTGAGE The undersigned, for valuable consideration received, hereby assigns to BAC Home Loans Servicing,LP fka Countrywide Home Loans Servicing,LP,all of its right and interest in and to that one certain mortgage from Gary D. Miller to Iowa State Bank & Trust Company, dated 05/25/2007, which Mortgage was filed on 05/31/2007, in Book 4164 Page 926 in the records of Johnson County. Assignor further assigns the notes therein described or referred to,the money due and to become due thereon with interest, and all rights accrued under said mortgage. This assignment is intended to provide constructive notice of a previously unrecorded assignment. Dated this 6th day of October, 2010. Bank of America, N.A.,successor by merger to Co •t •e Bank, FSB By: Charles Anthony Crnic As: Attorney in Fact Bank of America, N.A., successor by merger to Countrywide Bank, FSB State of Iowa ) County of Black Hawk ) ss. On October 6,2010, before me, personally appeared Brian G. Sayer, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)on the instrument the person(s), or the entity upon behalf of which the person(s)acted, executed the instrument. I certify under the PENALTY OF PERJURY under the laws of the State of Iowa-that th€Toregoing paragraph is true and correct. 7.57. WITNESS my ha1d and official seal. Signature /;t!' L i:%. , ��' (Seal) ` rn rn Lir I. „r;, Ir, ;Rt.n R. GRONVIALL N. 7-1/4, { •:). :1 .a,' c n:v NC). S3293 c_:'i A1,,CL, v;i-=iO'J RES LIMITED POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS, THAT Bank of America, N.A.. ("Principal") has made, constituted and appointed, and by these presents does make, constitute and appoint, Brian Sayer, Charles Augustine and Charles Anthony Crnic of Dunakey & Klatt, f.C., 531 Commercial St., Ste. 250, Waterloo, IA 50701, as its attorneys)-in-fact ("Attorney(s)-in-Fact") to act with the following limited powers, to wit: Execution on behalf of Principal of the fellowir+g document or documents. Assignment of RMortgaeAssignment ofDeed of Trust Substitution of Trustee. Foreclosure Deed. FURTHER, the Attorneys)-in-Fact is authorized to execute, acknowledge and deliver any instrument under seal or otherwise, and to do all things necessary to carry out the intent hereof, hereby granting full power and authority to act in and concerning the conduct of foreclosures and related proceedings as fully and effectually as the Principal may do if personally present, limited however, to the purpose for which this authorization is executed, and subject to the terms and conditions set forth herein and in accordance with the standard of care of a fiduciary agent. l further declare that any act or thine lawhilly done hereunder and within the powers herein stated shall be binding on the Principal, provided however that such power shall be limited to the purposes stated in said instrument(s). :i! 11, .i; : tlnilN or ti-.:_. ! ts• ,. `-)-:ii-!-.... . ., a`. .;, ,.:i: ,n '_ters relating to any powc; granted In them hereunder, and the powers ttr:aiited hicicundir shaii .Untuiue for Appointment three years 11-(1111 the date of CreCUt1(lil UI' thissr-spllUintinCllt of until said Ailil(11tIt171C1lI E:i revoked in writing by Print_ipal. whichever occurs Iirst. Nothing contained in this Limited Power of Attorney shall be construed or interpreted to relieve the Attorney(s)-in-Fact trial a proper accounting of their actions to Principal and its successors and assigns, but persons dealing with the Attorney(s)-in-Fact shall be under no duty to sec that this is done. IN WITNESS WHEREOF, Bank of America, N.A. has caused this document to be executed by its undersined officer/authorized agent who has hereunto set his hand and seal this ��t day of • 6_ .. 2010. Bank of America, N.A. By: ..k. nuette Grodsky ~^ -- 'I itle: SVP n o ---iia i rm. — :,..fl c� _f - LtNlrrFl) POWERor c)tt E i>;ltic I oh 2 ,� r.) (Ji State of CalifoEia County of Ventura On B • a l - a U I o before me, Jennifer R. Gordon, personally appeared Jeannette Grodsky, who provided to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature , A Notary Public My Commission [ xpires: I0/03/2010 til C C) :~-ti t") LIMITED POWER OF ATTORNEY—Page 2 of 2 N Cil AFFIDAVIT STATE OF IOWA ) )ss. COUNTY OF BLACK HAWK ) I, C. Anthony Crnic, a regular practicing attorney in the State of Iowa, being first duly sworn on oath, make the following statements which are true and correct as I verily believe. 1. I hereby certify that the attached Limited Power of Attorney are true and correct copies of the original Limited Power of Attorney. .l ■_._ C. 1Fthon' Crnrc Dunakey and Klatt, P.C. 531 Commercial Street, Ste. 250 P.O. Box 2675 Waterloo, IA 50704-2363 (319) 232-3304 !n Subscribed and sworn to before me this (.0day of hl: 20 ID . / jo)(1 ary Public in aridy`for the State of Iowa KARLA R. Gf1ONWA!L I COMMISSION NO. 763293 MY CO .hirSS'ON-XPI° S O �-: 8 rn N • Bank of America Home Loans P.O. Box 650070 Send Payments to: Dallas. TX 75265-0070 P.O.Box 650070 Dallas, TX 75265-0070 August 20.2010 Date of Mailing this Notice Gary D Miller Account No.: 161568195 1601 CALIFORNIA AVE 1-877-327-9225 IOWA CITY, IA 52240-5863 Telephone Number of Creditor Loan Counseling Center Creditor Contact NOTICE OF RIGHT TO CURE DEFAULT Legal Description of mortgaged property:Lot TractBlock Book Pages Dear Gary 0 Miller. The home loan note described above is now in default because the required installment payments on the loan have not been made. You have the right to cure this default. To cure this default, on or before September 19, 2010, BAC Home Loans Servicing, LP must receive the following payments: Monthly Charges: 07/01/2010 $1.349.80 Deferral or delinquency charges: $67.26 TOTAL REQUIRED TO CURE THE DEFAULT AS OF THE DATE OF THIS LETTER: $1,417.06 Please note that additional regular monthly payments, late charges.fees and charges may become due on or before September 19.2010 and these amounts must be received by BAC Home Loans Servicing, LP by September 19.2010 to cure the default. If this default is cured, this obligation can continue as though it were not late. The default will not be considered cured unless BAC Home Loans Servicing, LP receives "good funds" in the amount of $1.417.06 on or before September 19, 2010. If any check(or other payment)is returned to us for insufficient funds or for any other reason,"good funds" will not have been received and the default will not have been cured. No extension of time to cure will be granted due to a returned payment. BAC Home Loans Servicing. LP reserves the right to accept or reject a partial payment of the total amount due without waiving any of its rights herein or otherwise. For example, if less than the full amount that is due is sent to us. we can keep the payment and • apply it to the debt but still proceed to foreclosure since the default would not have been cured. If this default and breach of the terms of your home loan is not cured by the date set forth above, the sums secured by your property will be accelerated, and we will immediately proceed with initiating a foreclosure action or procedure. You may. if required by law or your loan documents, have the right to cure the default after the acceleration of the mortgage payments and prior to the foreclosure sale of your property if all amounts past due are paid within the time permitted by law. Further,you may have the right to bring a court action to assert the non-existence of a default or any other defense you may have to acceleration and foreclosure. If a foreclosure action or procedure is necessary, we may seek judgment for all attorney fees, abstracting expenses and all other costs associated therewith, in addition to a decree of foreclosure. Further. if BAC Home Loans Servicing. LP forecloses on your property, BAC Home Loans Servicing, LP may pursue a deficiency judgment against you to collect the balance of your loan, if permitted by law. If a default on your home loan occurs again within the next year. BAC Home Loans Servicing.LP may accelerate the balance of your home loan and immediately commence foreclosure on your property without sending another notice like this one. Your loan is In default. Pursuant to your loan documents, BAC Home Loans Servicing, LP may. enter upon and conduct an inspection of your property. The purposes of such an inspection are to (i)observe the physical condition of your property. (ii) verify that the property is occupied and/or(iii)determine the identity of the occupant. If you do not cure the default prior to the inspection,other actions to protect the mortgagee's interest in the property(including,but not limited to,winterization,securing BAC Home Loans Servicing,LP is a subsidiary of Bank of America,N.A. Please white your account number on al checks and correspondence. We may charge you a fee for any payment returned or rejected by your financial institution.subject 10 applicable law. BLOIA 102688371 061122008 Payment Instructions: (Account Number:161568185-2 Balance Due for charges listed above:$1,417.06 as of August 20,2010. • Make your check payable to BAC Gary C Miller Hmre Loans Serwarg,LP 1601 California Ave Please update email i teregrt on the reverse sided this coupon. • om'I send cash • Please include coupon with your payment BLOIA Anne, C-7, CD For an full month payment periods.interest �dbcraar �s calculated on a monthly basis. � Accordtngty. interest for all tun months, =Y„ including February. is calculated as BAC Home Loans Servicing,LP ' 301380 of annual interest irrespective of PO BOX 650070 Check the actual runber of days in the month. For partial months.interest is calwated Dallas,TX 75265-0070 rd�,.- ri? Ly"'•'Z dady on the basis Of a 365 day year R 161568195200000141706000141706 I: 5E169900581: L6156E119En' the property, and valuation services) may be taken. The costs of the above-described inspections and property preservation efforts will be charged to your account as provided in your security instrument. If you are unable to cure the default on or before September 19, 2010, BAC Home Loans Servicing, LP wants you to be aware of various options that may be available to you through BAC Home Loans Servicing, LP to prevent a foreclosure sale of your property. For example: • Repayment Plan: It is possible that you may be eligible for some form of payment assistance through BAC Home Loans Servicing, LP. Our basic plan requires that BAC Home Loans Servicing. LP receive, up front, at least'/2 of the amount necessary to bring the account current,and that the balance of the overdue amount be paid,along with the regular monthly payment,over a defined period of time.Other repayment plans also are available. • Loan Modification:Or, it is possible that the regular monthly payments can be lowered through a modification of the loan by reducing the interest rate and then adding the delinquent payments to the current loan balance. This foreclosure alternative,however, is limited to certain loan types. • Sale of Your Property: Or, if you are willing to sell your home in order to avoid foreclosure, it is possible that the sale of your home can be approved through BAC Home Loans Servicing, LP even if your home is worth less than what is owed on it. • Deed-in-Lieu:Or.if your property is free from other liens or encumbrances,and if the default is due to a serious financial hardship which is beyond your control,you may be eligible to deed your property directly to the Noteholder and avoid the foreclosure sale. If you are interested in discussing any of these foreclosure alternatives with BAC Home Loans Servicing, LP. you must contact us immediately. If you request assistance. BAC Home Loans Servicing, LP will need to evaluate whether that assistance will be extended to you. In the meantime. BAC Home Loans Servicing. LP will pursue all of its rights and remedies under the loan documents and as permitted by law, unless it agrees otherwise in writing. Failure to bring your loan current or to enter into a written agreement by September 19, 2010 as outlined above will result in the acceleration of your debt. Time is of the essence. If you have any questions concerning this notice, please contact Loan Counseling Center immediately at 1-877-327-9225. Sincerely. BAC Home Loans Servicing,LP ry c, CD o C-71 rso --((.7 �l_: elms N tr BAC Horne Loans Servicing,LP is a subsidiary of Bank of America,N.A. Account Number.161588195 How we post your payments: All accepted E-mail use'Providing your e-mail address below will allow us to send you inforrnation on your account. payments of pnnopal and interest will be applied to Gary D Miller Email address: the longest outstanding installment due, unless otherwise expressly prohibited ix limited by law.If you submit an amount in addition to your scheduled monthly amount, we will apply your payments as follows. (i) to outstanding monthly payments of principal and interest, (ii) escrow deficiencies, (iii)late charges and other amounts you owe in connection with your loan and (iv)to reduce the outstanding principal balance of your loan Please specify if you want an additional amount applied to future payments, rather than principal reduction Postdated checks: Postdated checks will be processed on the date received unless a loan counselor agrees to horror the date written on the check as a condition of a repayment plan. EX§iNgIT E- IN THE IOWA DISTRICT COURT IN AND FOR JOHNSON COUNTY BAC HOME LOANS SERVICING, LP fka COUNTRYWIDE HOME LOANS CASE NO. SERVICING, LP, AFFIDAVIT FOR ATTORNEY FEES Plaintiff, vs. GARY D. MILLER, SPOUSE OF GARY D. MILLER, IOWA STATE BANK & TRUST COMPANY, CITY OF IOWA CITY, IOWA DEPARTMENT OF REVENUE, AND PARTIES IN POSSESSION, Defendants. STATE OF IOWA ) )ss. COUNTY OF BLACK HAWK ) I, C. Anthony Crnic, being first duly sworn on oath, hereby depose and state that I am a member of the firm of Dunakey & Klatt, P.C., the attorneys for the Plaintiff in the above-entitled cause; that the Note and Mortgage sued upon herein are in my possession as attorney for the Plaintiff; that I have read the foregoing Petition and am familiar with the contents thereof, and the allegations contained therein are true as I verily believe. I further depose and state that I am a regular practicing attorney in the Courts of the State of Iowa; that the attorney's fees prayed for herein are for services rendered and to be rendered by me as attorney for the Plaintiff in this action; that there has been no agreement, express or implied, between me and any other person or persons except other practicing attorneys engaged with me in this action, for a division or sharing of the attorney's fepraye• for herein.,t C. ' nthony rnic Acknowledged before me this 20th day of October, 10., 7-) /1 HA & ia2&zL/ Notary Public in and for the Sate of Iowa KARLA R. {1R1WAI = ChoiYn�OrissfiscSvo r�Qqas.s } a -- — I . V-71 , ° 7 r.) EV 11 FI DUNAKEY & KLATT, P.C. ATTORNEYS AT LAW DAVID D.DUNAKEY • CURTIS J.KLATT • DAVID P.ODEKIRK • CHARLES P.AUGUSTINE • BRIAN G.SAYER MICHAEL O.TREINEN • TERESA A.RASTEDE • C.MORGAN LASLEY • CRYSTAL W.RINK • C.ANTHONY CRNIC WATERLOO OFFICE INDEPENDENCE OFFICE 531 COMMERCIAL STREET,SUITE 250 221 FIRST STREET WEST P.O.BOX 2363 P.O.BOX 484 WATERLOO,IOWA 50704-2363 INDEPENDENCE,IOWA 50644-0484 TELEPHONE: (319)232-3304 TELEPHONE: (319)334-2590 FACSIMILE: (319)232-3639 FACSIMILE: (319)334-5975 October 6,2010 Gary D. Miller 1601 California Ave Iowa City, IA 52240 DEMAND FOR PAYMENT Re: Loan No. 161568195 Property Address: 1601 California Ave, Iowa City, IA 52240 Name of current creditor/servicer: Bank of America Address of current creditor/servicer: 7105 Corporate Drive PTX B-35,Plano,TX 75024 Deed of Trust/Mortgage Dated: May 25,2007 Accelerated Balance: $87,416.75 Dear MORTGAGOR(S): Bank of America,on behalf of the owner and holder of your mortgage loan,and in accordance with the referenced Deed of Trust/Mortgage and applicable state laws,provides you with formal notice that your balance has been accelerated. Below is a summary of your accelerated balance: Principal: $ 85,156.37 Interest: $ 1,469.70 Late Charges: $ 134.52 Escrow Advances $ 656.16 Total Due $ 87,416.75 You must pay the accelerated balance of$87,416.75 within 14 days of the date of this letter or your property that is collateral for the Note may then be scheduled for foreclosure in accordance with the terms of the Deed of Trust/Mortgage and applicable state laws. If you have not cured the default by October 20, 2010 additional amounts may become due and payable under your Note and Deed of Trust/Mortgage. You have the right to reinstate your loan after acceleration and the right to bring a court action to claim that your loan is not in default or any other defense to acceleration and sale that you may have. This notice remains in effect until the default is cured. Payment must be in the form of cashier's check, money order,or bank certified funds. IF YOU ARE NOT OBLIGATED ON THE DEBT OR IF THE DEBT HAS BEEN DISCHARGED IN A BANKRUPTCY PROCEEDING,THIS IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT AN ATTEMPT TO ASSESS OR COLLECT THE DEBT FROM YOU PERSONkLLY. This matter is very important. Please give it your immediate attention. Sincerely, N) 1-r-. r ' Default Administration Department _ ;v . EXHIBIT Mortgage Mediation Notice You are receiving this notice because (1) your lender believes that your mortgage is seriously delinquent, or (2) a foreclosure petition was recently filed against you. The purpose of this notice is to inform you that help is available through Iowa Mortgage Help, a State of Iowa-sponsored program. Iowa Mortgage Help is a group of organizations partnering with the Iowa Attorney General's Office and the Iowa Finance Authority to offer all Iowans access to free, confidential mortgage counseling with local organizations located right here in Iowa. Iowa Mortgage Help is here to assist you in working through your situation. Please call 1-877-622-4866 as soon as possible. The earlier you call, the more options that are available to you. When you call, you will be referred to a trained, professional counselor who will listen to your situation and offer free, confidential advice through each step of the process. In some cases, we are able to work with lenders and borrowers to restructure mortgage terms. While we are not able to help everyone, we are able to help the majority of homeowners who call Iowa Mortgage Help. The fact that a foreclosure petition may be or has been filed against you does not necessarily mean that you will lose your house. It is NOT too late. There is still time for help. Do Not Delay. This may be your best chance for saving your home from foreclosure. Call 1-877-622-4866 today or go to IowaMortgageUelp.com. This free call could save your home. C7 N Iowa Mortgage Help d • 1-877-622-4866 www.lowaMortgageHelp.com This notice is being provided as required by Iowa Code section 654.46(2). END OF CASE FILE CIVIL PROCESS WORKSHEET JOHNSON COUNTY SHERIFFS OFFICE• PO BOX 2540, 511 S CAPITOL ST, IOWA CITY, IA 52244-2540•(319)356-6030 PLAINTIFF: U S BANK Docket No 10-06589 State IOWA vs. Court No EQCV072665 County JOHNSON DEFENDANT: CITY OF IOWA CITY Ref No Received 11/02/2010 DEFENDANT: UNKNOWN OCCUPANTS OF Requestor(s) • Phone SARCONE,JAMES V JR (515)283-4624 666 WALNUT ST STE 2000, DES MOINES, IA 50309 Name CITY OF IOWA CITY Zone Party Type(DEFENDANT Phone (319) 356-5030 Fax Address 410 E WASHINGTON ST IOWA CITY 34588 52240- E-Mail Employer Comments SERVE CITY CLERK Documents Document Serve by Date OE PSR Description/Special Instructions MORTGAGE MEDIATION ❑ ❑ NOTICE ORIGINAL NOTICE AND ❑ ❑ PETITION Service Information Date j i ' '1) 0 Time ILA O; Type I Party mutlc 'r Relationship s I'Re Race (AZ Sex t"-- DOB Location Ll 0 l r/w5 . kl 9- Miles l Fee Officer Attempts Log Date Time Server Notes Date Time Server Notes ry 0 o Notes: CD Printed:Tuesday,November 02,2010 Johnson County Sheriffs Office Page 1 of 1 , IN THE IOWA DISTRICT COURT FOR JOHNSON COUNTY ) U.S. BANK,NATIONAL ASSOCIATION, ) EQUITY O. SUCCESSOR BY MERGER TO FIRSTAR BANK, ) çç N.A. ) etuo/o-oco(tos Plaintiff ) ORIGINAL NOTICE t" v. ) — c.) JEFFREY M. GONZALES; LAURA M. ) GONZALES; CITY OF IOWA CITY, IOWA; ) I UNKNOWN OCCUPANTS OF 2517 SYLVAN ) _-.,c G71 LEN COURT, IOWA CITY, IOWA - `' „a : Defendants. ) : ' : c---- TO THE ABOVE-NAMED DEFENDANTS: You are notified that a petition has been filed in the office of the clerk of this court naming you as the Defendants in this action. A copy of the petition, and any documents filed with it, is attached to this notice. The name and address of the Plaintiff's attorney is James V. Sarcone, Jr., Belin McCormick, P.C., 666 Walnut Street Suite 2000, Des Moines, Iowa 50309-3989. The attorney's phone number is 515-283- 4624; facsimile number 515-283-4653. You must serve a motion or answer within twenty (20) days after service of the Original Notice upon you. Within a reasonable time thereafter you must file your motion or answer with the Clerk of Court for Johnson County, at the County Courthouse in Iowa City, Iowa. If you do not,judgment by default may be rendered against you for the relief demanded in the Petition. If you require the assistance of auxiliary aids or services to participate in court because of a disability, immediately call your district ADA coordinator at 319-398-3920 ext. 2X. (If you are hearing E+ impaired, call Relay Iowa TTY at 1-800-735-2943.) ,ODMA BERKLEY 'l() / l/c)G ,i, i ‘ ; CLE OF THE ABOVE COURT ' le IMPORTANT: YOU ARE ADVISED TO SEEK LEGAL ADVICE AT ONCE TO PROTECT YOUR INTERESTS (IC : Ll`A_ ( COie r Or\I CIA I- ( Y\_-Ct---►'L-C,2 • �J IN THE IOWA DISTRICT COURT FOR JOHNSON COUNTY �..� ..� ) U.S. BANK,NATIONAL ASSOCIATION, ) EQUITY NO. SUCCESSOR BY MERGER TO FIRSTAR BANK, ) N.A. ) Qm0.7 n Plaintiff ) PETITION(FOR MORTGAGE ) FORECLOSURE AND RECEIVER) v. ) 7 JEFFREY M. GONZALES; LAURA M. ) f ' GONZALES;CITY OF IOWA CITY,IOWA; ) ; UNKNOWN OCCUPANTS OF 2517 SYLVAN • __-- GLEN COURT,IOWA CITY, IOWA ) N • N rn Defendants. ) • ® ..y cGaa COMES NOW the Plaintiff and for cause of action against the Defendants,the Plaintiff states: NOTICE THE PLAINTIFF HAS ELECTED FORECLOSURE WITHOUT REDEMPTION. THIS MEANS THAT THE SALE OF THE MORTGAGED PROPERTY WILL OCCUR PROMPTLY AFTER ENTRY OF JUDGMENT UNLESS YOU FILE WITH THE COURT A WRITTEN DEMAND TO DELAY THE SALE. IF YOU FILE A WRITTEN DEMAND, THE SALE WILL BE DELAYED UNTIL TWELVE MONTHS (OR SIX MONTHS IF THE PETITION INCLUDES A WAIVER OF DEFICIENCY JUDGMENT)FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS YOUR RESIDENCE AND IS A ONE-FAMILY OR TWO-FAMILY DWELLING OR UNTIL TWO MONTHS FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS NOT YOUR RESIDENCE OR IS YOUR RESIDENCE BUT NOT A ONE-FAMILY OR TWO-FAMILY DWELLING. YOU WILL HAVE NO RIGHT OF REDEMPTION AFTER THE SALE. THE PURCHASER AT THE SALE WILL BE ENTITLED TO IMMEDIATE POSSESSION OF THE MORTGAGED PROPERTY. YOU MAY PURCHASE AT THE SALE. 1. That Plaintiff is a foreign corporation; Defendants Jeffrey M. Gonzales and Laura M. Gonzales are natural persons last known to reside in Bend, Oregon; Defendant Unknown Occupants of 2517 Sylvan Glen Court, Iowa City, IA are natural persons last known to reside in Johnson County,Iowa; Defendant City of Iowa City, Iowa is a political subdivision of the State of Iowa 2. That on or about the 31st day of May, 2001, the Defendants, Jeffrey M. Gonzales and Laura M. Gonzales made, executed and delivered to Firstar Bank, N.A. one certain Promissory Note in writing bearing the date aforesaid in the principal sum of$73,600.00 bearing interest at the rate of 7.0 percent per annum after maturity,and Exhibit"A"hereto attached and by this reference incorporated herein and made a part hereof is a true and correct copy of said Promissory Note. 3. That at the time of the execution of said Promissory Note, Exhibit"A" aforesaid, and as a part of the same transaction for the purpose of securing said Note with interest thereon and other sums hereinafter mentioned, the said Defendants, Jeffrey M. Gonzales and Laura M. Gonzales made, executed and delivered to Firstar Bank, N.A. one certain Mortgage in writing, transferring and conveying unto Firstar Bank,N.A. the following real estate situated in Johnson County,Iowa,to-wit: Lot 52, Walden Ridge Part 2, an Addition to the City of Iowa City, Iowa, according to the plat thereof recorded in Book 23, Page 11, Plat Records of Johnson County, Iowa. and Exhibit"B"hereto attached and by this reference incorporated herein and made a part hereof, is a true and correct copy of said Mortgage. 4. That on June 5, 2001, the said Mortgage was duly recorded in Book 3071, Page 125, of the records of the office of the Recorder of Johnson County, Iowa. 5. U.S. Bank,National Association, is successor by merger to Firstar Bank,N.A. 6. That the said Defendants, Jeffrey M. Gonzales and Laura M. Gonzales, have defaulted in the monthly payment of interest and principal and have neglected and failed to pay the installments as provided in the written instrument aforesaid and are now in default of the said payments for several months last past, and the Plaintiff does now elect to and hereby does declare the whole of said,Note and Mortgage due and payable forthwith. 7. That the balance due on said Note and Mortgage as of October 15, 2010, is $72,859.70, including principal and interest and advancements, after allowing due credit to the Defendants for all payments made. 8. That in the preparation of this Petition and cause of action for presentation to the Court, it was necessary for Plaintiff to employ an attorney to represent and serve it herein, and for this purpose Plaintiff has retained and employed Belin McCormick,P.C., Attorneys at Law of this Court. 9. That the Plaintiff is willing and now offers, upon payment of the amount due it as heretofore set forth, to cancel the Note declared on, discharge of record the Mortgage securing the same, and to do all things that equity and good conscience may require of it. 10. That the Plaintiff has been made to incur the expense in the sum of$200.00 for continuing the abstract of title to the mortgaged premises,which is the reasonable charge for same. 11. That the Defendants herein have or claim to have some lien upon or interest in the mortgaged premises, but the Plaintiff avers that whatever lien or interest they or any of them may have thereon or herein, the same is junior and inferior to the lien of Plaintiffs Mortgage, Exhibit"B" and the amounts hereinbefore set out. 12. That Plaintiff waives its rights to a deficiency judgment in this matter. 13. That a Notice of Right to Cure Default, Exhibit"C", was mailed to the Defendants Jeffrey M. Gonzales and Laura M. Gonzales, more than 30 days prior to the filing of this foreclosure action/Petition and the defaults set out therein have not been cured. 14. That a fourteen day demand for payment of the accelerated balance of this mortgage was mailed to the Defendants, Jeffrey M. Gonzales and Laura M. Gonzales, borrowers herein, on October 15, 2010, Exhibit "D". This mailing was more than 30 days after the mailing of the Right to Cure Default referenced in Paragraph 13 of the petition. 15. Attached hereto is a Mortgage Mediation Notice, Exhibit "E", which was mailed,to Jeffrey M. Gonzales and Laura M. Gonzales, owners of the above property on October 15, 2010. + €', ' .J (T) 16. City of Iowa City, Iowa is included as a Defendant herein because of judgment for fine, surcharge and costs filed October 21, 2009 against Jeffrey M. Gonzales and Laura Gonzales in CISC075386 of the Johnson County, Iowa records. 17. Unknown Occupants of 2517 Sylvan Glen Court, Iowa City, Iowa are included as Defendants herein because they are parties in possession of the property being foreclosed herein. WHEREFORE, Plaintiff prays: FIRST: That a Receiver be appointed by the Court to take immediate possession of the mortgaged premises hereinbefore described, with power and authority and the duty to keep, repair, maintain and insure the premises, buildings and other improvements thereon; to lease the same and collect the rents, issues and profits arising which may be had therefrom, and to retain and dispose of said rents and profits as said Mortgage provides and as the Court may hereafter determine and direct. SECOND: (a) That the Plaintiff have judgment in rem, against the mortgaged premises in the sum of$72,859.70 with interest at 7.0 percent from October 15, 2010, and have such additional sum or sums as may hereafter be advanced for continuing the abstract of title or other purposes authorized by said Note and Mortgage and by Iowa law. (b) For reasonable attorney's fees upon the Note, interest and other sums advanced by the Plaintiff as set out above, and for the costs of this action. THIRD: That said judgment be declared to be a lien upon the mortgaged premises involved herein from and after the date of execution of said Mortgage, Exhibit"B", to-wit, May 31, 2001, and upon the rents, issues and profits arising and which may be had therefrom from and after the date of filing of this Petition, and that said lien be declared to be prior and paramount to the lien and interest of the Defendants upon and in the said property. FOURTH: That Plaintiff's Mortgage aforesaid, Exhibit"B", be foreclosed, and that a special execution issue for the sale for the mortgaged premises, or so much thereof as may be necessary-to satisfy the said judgment with interest and costs. FIFTH: That in the event the property aforesaid does not sell for sufficient to satisfy the judgment herein, the net proceeds from the rents, issues and profits which may be had therefrom, from and after this date, be applied upon said judgment until the same is fully satisfied. _ . SIXTH: That after the Sheriff's sale of the above described premises pursuant to a special execution issued herein, a Writ of Possession issue herein under seal of this Court directed to the Sheriff of Johnson County, Iowa, commanding him to put the Grantee under Sheriff's Deed in possession of the premises deeded to him, and to remove any Defendants, or persons claiming by, through or under any of them, or any person in possession thereof, out of such possession of said premises. SEVENTH: That Plaintiff have such other and further relief as the Court may find it to be entitled to in equity. Belin McCormick,P.C. BY 45. JA S V. SARCONE,JR. AT0006913 666 Walnut Street, Suite 2000 Des Moines, IA 50309-3989 Telephone: (515)283-4624 Fax No.: (515) 283-4653 e-mail:jvsarcone@belinmccormick.com ATTORNEYS FOR PLAINTIFF D:\Firstar\gonzales\petset.docx ra _ -r, r CD • US Bank#: 7810151987 FHLMC#: 079611370 ADJUSTABLE RATE NOTE (1 Year Treasury Index-Rate Caps) THIS NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN MY INTEREST RATE AND MY MONTHLY PAYMENT. THIS NOTE LIMITS THE AMOUNT MY INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE!MUST PAY. MAY 31,2001 IOWA CITY IOWA [Date] [City] [State] 2517 SYLITAN OLEN CT, IOWA CITY, IOWA 52240 [Property Address] 1. BORROWER'S PROMISE TO PAY M' In return for a loan that I have received,I promise to pay U.S.$ 73,600.00 (this amo%t is Calle neiriiil"), plus interest,to the order of the Lender. The Lender is f FIRSTAR BANK, N.A. • I will make all payments under this Note in the form of cash,check or money order. O I understand that the Lender may transfer this Note.The Lender or anyone who takes this Note by transfers who is entitled to receive payments under this Note is called the "Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of 7.000 %. The interest rate I will pay will change in accordance with Section 4 of this Note. The interest rate required by this Section 2 and Section 4 of this Note is the rate I will pay both before and after any default described in Section 7(B)of this Note. 3. PAYMENTS (A)Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payment on the first day of each month beginning on JULY 1,2001 I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal.If,on JUNE 1,2031 , I still owe amounts under this Note, I will pay those_amounts in full on that date,which is called the "Maturity Date." . I will make my monthly payments at 4801 FREDERICA STREET OWENSBORO, KY 42301 or at a different place if required by the Note Holder. (B)Amount of My Initial Monthly Payments Each of my initial monthly payments will be in the amount of U.S.$ 489.67 .This amount may change. (C) Monthly Payment Changes Changes in my monthly payment will reflect changes in the unpaid principal of my loan and in the interest rate that I must pay. The Note Holder will determine my new interest rate and the changed amount of my monthly payment in accordance with Section 4 of this Note. MULTISTATE ADJUSTABLE RATE NOTE -ARM 5-2 -Single Family -Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Fannie Mae 4-2/5-2/6-2 ARM C®822N (OM] Form 35021/01 vMPMORTGAGE FORMS- 1-7291 EXHI IT 11111 1 IUhIlHhIIIII Page 1 014 Initials: a • 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A)Change Dates The interest rate I will pay may change on the first day of JUNE 2006 ,and on that day every 12th month thereafter. Each date on which my interest rate could change is called a "Change Date." (B) The Index Beginning with the first Change Date,my interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year,as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the 'Current Index." If the Index is no longer available, the Note Holder will choose a new index whichis based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date,the Note Holder will calculate my new interest rate by adding TWO AND THREE-QUARTERS percentage points( 2.750 %)to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I amexpected.to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 9.000 % or less than 5.000 %.Thereafter,my interest rate will never be increased or decreased on any single Change Date by more than two percentage points (2.0%) from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 13.000 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment 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 information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. 5. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a "Prepayment."When I make a Prepayment,I will tell the Note Holder in writing that I am doing so.I may not-de'Signate.a'Payment as a Prepayment if I have not made all the monthly payments due under the Note. • I may makea full Prepayment or partial Prepayments without paying a Prepayment charge. The Note4lolder will use my Prepayments.:to reduce the amount of Principal that I owe under this Note.However,the Note Holder may applj my Prepayment to the accrued and unpaid interest on the Prepayment amount, before applying my Prepayment to reduce the"Principal amount of the Note. If I make a partial Prepayment, there will be no changes in the due dates of my monthly payment iifiless the Note Holder agrees in writing to those changes. My partial Prepayment may reduce the amount of my monthly paymts after the first Change Date following my partial Prepayment. However, any reduction due to my partial Prepayment may be offset by an interest rate increase. 6. LOAN CHARGES - If a law,which applies to this loan and which sets maximum loan charges,is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits,then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums alreadycollected from Form 3502 1 1 el-822N (0009) Page 2 of 4 • Initlalo: + me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal,the reduction will be treated as a partial Prepayment. 7. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charges for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of FIFTEEN calendar days after the date it is due,I will pay a late charge to the Note Holder. The amount of the charge will be 5.000 % of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B) Default If I do not pay the full amount of each monthly payment on the date it is due,I will be in default. (C) Notice of Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date,the Note Holder may require me to pay immediately the full amount of Principal which has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. (D)No Waiver'By Note Holder • Even if,at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (E)Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include,for example,reasonable attorneys'fees. 8. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by delivering it or by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that different address. 9. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note,each person is fully and personally obligated to keep all of the promises made in this Note,including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note,is also obligated to keep all of the promises made in this Note.The Note Holder may enforce its rights under this Note against each person individually or against all of us together.This means that any one of us may be required to pay all of the amounts owed under this Note. 10. WAIVERS I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor' means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 11. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note,a Mortgage,Deed of Trust,or Security Deed (the "Security Instrument"),dated the same date as this Note, Forth 3502CP t 5.822N (0009) Page 304 - Infl(alt:_2 protects the Note Holder from possible losses which might result if I do not keep the promises which I make in this.Note.That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note.Some of those conditions are described as follows: If all or any part of the Property or any Interest in the Property is sold or transferred(or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However,this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law.Lender alsoshall not exercise this option if: (a) Borrower cnn-ses to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee;and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security_Instrument is acceptable to Lender. • To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in:the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this.Security Instrument unless Lender releases Borrower in writing. . If Lender exercises the option to require immediate'payment in full,Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in . accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period,.Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. • • WITNESS THE HAND(S)AND SEAL(S)Of-THE UNDERSIGNED. C`' heal) /'^� /;1A1 (Seal) X� ila 'TN pt. GONZALES -Borrower v, . vr.. orrower. / • �� G cid • 4" I 0 (Seal) iiit `I• S 55/o (Seal) .'P 2 t "S? M.M. GONZ -Borrower m 0 I (Seal) . (Seal) O'ku '; . -Borrower -Borrower �y'� 'fry 4 • G d 19 . .. (Seal) (Seal) -Borrower -Borrower [Sign Original Only] -822Tt (0009) Page 4 of 4 - FOrm 3502 1/01 - �® J • LOAN: 7810151`_ ADDENDUM TO NOTE: NOTICE ORAL OR IMPLIED CHANGES TO THE ACCOMPANYING CREDIT AGREEMENT OR ANY OTHER CREDIT AGREEMENT(S) (EXCEPT CONSUMER LOANS OR OTHER EXEMPT TRANSACTIONS) WITH THIS LENDER ARE NOT ENFORCEABLE AND SHOULD NOT BE RELIED UPON. IMPORTANT: READ BEFORE SIGNING THE AGREEMENT(S) ACCOMPANYING THIS NOTICE. THE TERMS OF THE AGREEMENT(S) SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THE WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THE AGREEMENT(S) ONLY BY ANOTHER WRITTEN AGREEMENT. THIS NOTICE ALSO APPLIES TO ANY OTHER CREDIT AGREEMENT(S) (EXCEPT CONSUMER LOANS OR OTHER EXEMPT TRANSACTIONS) NOT IN EFFECT BETWEEN YOU AND THIS LENDER. The undersigned Borrower(s) acknowledge(s) receipt of a copy of this Instrument. MAY 31,2001 V Date JEr EY/ . GO ES MAY 31,2001 Air11A4 Date • M.M. GONZALES Date • Date N � y r-� co LJ Iowa Addendum to Note I4044(3/22/96)revised 12/99 ALLONGE TO THE NOTE ez, c=2 ACCOUNT NUMBER: 7810151987 rit) Vti r-7 NAME: JEFFREY M GONZALES AND LAURA M GONZALES CO cc.% NOTE DATE: 05/31/01 ADDRESS: 2517 SYLVAN GLEN CT IOWA CITY, IA 52240 17.c LOAN AMOUNT: S73,600.00 PAY TO THE ORDER OF WITHOUT RECOURSE U.S. BANK N.A. as successor in interest to FIRSTAR BANK NA BY: Gordana Tomasevic, Vice President c_ ..7-1-C I 7 BOX NUMBER: 206 • ) • *ticl ),\\• • /6/o/6/Q01 • X)23544 FILED NO. LOAN:# 7810151987 BOOK3OT7/TACE/ `.J Prepared By: BRENDA WERNING 01 JE -5 AM 10: 25 FIRSTAR BANK, N.A. 222 SECOND AVENUE S.E. JOHNSON COUNTY RECORD' CEDAR RAPIDS, IA 52401 IOWA CITY,IOW Return To: FIRSTAR BANK, N.A. 1550 EAST 79TH STREET BLOOMINGTON, MN 55425 O , /� _ [Space Above This Line For Recording natal MORTGAGE C:=> CwAi 69949 it t✓ '+"' 1° 1;7 This No is he,eby oan engirt . Jur3: ez �. enter there• .this a3ra' ;u. w oau No 4. . �: .-. .. J gement cooket '" PaFtNo. .... . _..... l _ . DEFINITIONS Cier= ' Diatrat Court Words used in multiple sections of this document are defined ,-Iow and other words are defined 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 MAY 31,2001 together with all Riders to this document. (B) "Borrower" is JEFFREY M. GONZALES AND LAURA M. GONZALES , HUSBAND AND WIFE . C.72 Jj C7 -5 Borrower is the mortgagor under this Security Instrument. IOWA-Single Family-.Fannie.Mae/Freddle Mac UNIFORM INSTRUMENT Form 3016 1/01 (j-6(1A) mos) Paye 10115 Initials o 11111UI 1111 111 VMP MORTGAGE FORMS-(800)521- 000125 EXHIBIT • (C) "Lender" is FIRSTAR BANK, N.A. / Lender is a NATIONAL ASSOCIATION organized and existing under the laws of THE UNITED STATES OF AMERICA Lender's address is 4801 FREDERICA STREET, OWENSBORO, KY 42301 • Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated MAY 31,2001 The Note states that Borrower owes Le r SEVENTY THREE THOUSAND SIS HUNDRED AND NO/100 Dollars (U.S. S' 73,600.00 plus interest. Borrower has promised tq pay this debt in regular Periodic Payments and to pay the debt in full not later than JUNE 1,2031 ✓ (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." -. (F) "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.. (G) "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]: ®Adjustable Rate Rider ®Condominium Rider n Second Home Rider 0 Balloon Rider El Planned Unit Development Rider El 1-4 Family Rider n VA Rider 0 Biweekly Payment Rider El Other(s) [specify] (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect.of law) as well'as all applicable final, non-appealable judicial opinions. (I) "Community Association'Dues;.Fees,and Assessments" means all dues, fees, assessments-,and other charges that are imposed on Borrower or the Property by.a:.condominium association, homeowners association or similar organization. (J)."Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, . draft,•or similar paper insimment, which is initiated through an electronic terminal, telephonic..instrument, 'computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit,an account. Such term includes, but is not limited to, point-of-sale transfers. automated.:teller machine transactions,transfers initiated by telephone,wire transfers,and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "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;(u)condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of,or omissions as to, the value and/or condition of the.Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "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. • htHala:r • al-6(1A) (0005) Papa 2 ot 15 / Form 3016 1/01 / t 3 `x 000126 4„_,r (0) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C.Section 2601 et seq.) and its implementing regulation,Regulation X (24 C.F.R.Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter.As used in this Security Instrument, "RFSPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (P) "Successor in Interest of Borrower" means any party that has taken title to the Property,whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY -This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals,extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably mortgages, grants and conveys to Lender, with power of sale, the following described property located in the PUBLIC RECORDS of JOHNSON COUNTY [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] LOT 52, WALDEN RIDGE PART 2, AN ADDITION TO THE 'CITY OF IOWA CITY,. IOWA, ACCORDING TO TRE PLAT THEREOF RECORDED IN PLAT BOOK 23, PAGE 11, PLAT RECORDS OF JOHNSON COUNTY, IOWA , c . CD C; I THIS IS A PURCHASE MONEY MORTGAGE. _13 wj C) Parcel ID Number: 1017 3 2 8 0 2 4 which currently has the address of 2517 SYLVAN GLEN CT [Street] IOWA CITY [City],Iowa 52240 [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 and convey the Property and that the Property is unencumbered, except for encumbrances of record.Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. • hlirals: y IM-6011) (000s) Page 3 of 15 Form 3016 1/01 • • UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument •shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security'Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments • due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, • provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or(d) Electronic Funds Transfer. • Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future,but Lender is not obligated to apply such payments at the time such payments are accepted.If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds, Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier,such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security • Instrument or performing the covenants and agreements secured by this Security Instrument. 2.Application of Payments or Proceeds:Except as otherwise described in this Section 2,all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount•to pay any late charge due, the payment may be applied to the delinquent payment and the late charge.If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if,and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied fust to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds,or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amount,of the Periodic Payments. 3..F unds for Escrow Items.Borrower shall pay to Lender on the day Periodic Payments are due under the Note,until the Note is paid in full, a sum (the "Funds")to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10.These items are called "Escrow Items."At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and InitiF;ls: a _ - �O-$(IA) (0005) Page 4 of 15 / Form 3016 1A11 '-e a • 000128 C', • Assessments,if any,be escrowed by Borrower, and such dues,fees and assessments chain be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver,Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires,shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly,pursuant to a waiver,and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and,upon such revocation, Borrower shall pay to Lender all Funds,and in such amounts,that are then required under this Section 3. Lender may,at any time,collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under .RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency,instrumentality, or entity (including Lender,if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RFSPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge.Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds,Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing,however,that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow,as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow,as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA,but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property,if any,and Community Association Dues,Fees,and Assessments, if any.To the extent that these items are Escrow Items,Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender;but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in,.legal proceedings which in Lender's opinion operate to h;Uela:j. ©.60A) (0005) Pace 5°115 ./ d15 -/ Form 3016 1101 RCS -009 prevent the enforcement of the lien while those proceedings are pending, but'only until such proceedings are concluded; or(c)secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. ' 5 Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires.What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time rernappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of'any flood zone determination resulting from an objection by Borrower. If.Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower,Borrower's equity in the Property,or the contents of the Property,against any risk,hazard or liability and might provide greater or lesser coverage •than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable,with such interest,upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender 'shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums•and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to,or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss,Borrower shall give prompt notice to the insurance carrier and Lender.Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law lnitlals: , • (0)-60A) (0005)(0005) Page 6 d 15 - .Form 3016 1/01 000130., - • • requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters,or other third parties,retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due,with the excess,if any,paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file,negotiate and settle any available insurance claim and related matters.If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim,then Lender may negotiate and settle the claim.The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender(a) Borrower's rights to any insurance proceeds in an amount not-to exceed the amounts unpaid under the Note or this Security Instrument,and(b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument,whether or not then due. 6.Occupancy. Borrower shall occupy,establish,and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably 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 commit waste on the Property. Whether or not Borrower is residing in the Property,Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible,Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. 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 the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include,but are not limited to,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 significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation 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 Lender may do and pay for-whatever is Inniats -6(IA) (0005) Page 7 of 15 , / Form so16 1/01 0 / ' 000131 • reasonable or appropriate to protect Lender's interest in the Property and, -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 priority 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 this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower'requesting payment. If this 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 the Loan, Borrower 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 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 the 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 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 non-refundable loss reserve in lieu of Mortgage Insurance.Such loss reserve shall be non-refundable, notwithstanding the fact that the loan is ultimately paid in full,and Lender shall not be required to pay Borrower any interest or earnings on 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 the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect,or to provide a non-refundable loss reserve,until Lender'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 that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk,or reduce losses.These agreements 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 payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender,any purchaser of the Note,another insurer,any reinsurer,any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk,or reducing losses. If such agreement provides that an . Initials:_ - . C-60p) (apps Page 8 of 15 '-, -Form 3/06 1/01 0®0la � 1 • affiliate'of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer,the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law.These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance,to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property 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 and restoration period, Lender 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. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds. Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds.If the restoration or repair is not economically feasible or Lender's security would be lessened,the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due,with the excess, if any,paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due,with the excess,if any,paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction,or loss in value,unless Borrower and Lender otherwise agree in writing,the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a)the total amount of the sums secured immediately before the partial taking,destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction,or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if,after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages,Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment,could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and,if acceleration has occurred,reinstate as provided in Section 19,by causing the action or proceeding to be dismissed with a ruling that, in.Lender's judgment, precludes forfeiture of the.Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim hiflab:tr 431)-60A) (0005) Page s 0115 / / L) Form 3016 1/01 000133 =4 p, a`r for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that 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 the sums secured by this Security Instrument granted by Lender • to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13.Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"):(a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and arty other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18,any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing.The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20)and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to,attorneys' fees,property inspection and valuation fees.In regard to any other fees,the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Lnstrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is fmally interpreted so that the interest or other Ioan charges collected or to be collected in connection with the Loan exceed the permitted limits,then: (a) any such loan charge shall he reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower: If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15.Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address,then Borrower shall only report a change of address through that specified procedure.There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument initials: C?-6(tA) (000s) Page 10 0115 l .-- . Form 3018 1101 , •C`) C) a.. 000134 • 0 • • shall not be deemed to have been given to Lender until actually received by Lender.If any notice required by this Security Instrument is also required under Applicable Law,the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16.Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent,but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law,such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As •used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in'the singular shall mean and include the plural and vice versa;and (c) the word "may"gives sole discretion without any obligation to take any action. 17.Borrower's Copy.Borrower shall be given one copy of the Note and of this 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,installment sales contract or escrow agreement,the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred)without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However,this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide'a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before 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 Borrower's right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a)pays Lender all sums which then would be due under this Security Instrument 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 limited to, reasonable attorneys' fees,property inspection and valuation fees, and other fees incurred 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 under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement 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 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 shall remain fully effective as if no acceleration had occurred.However,,this right to reinstate shall not apply in the case of acceleration 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 timeswithout prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer")that collects Periodic Payments • hVtle15:W , ©..6(IA) (0305) Page 11 or 15 / Form 3016 1/01 .tom z n 000135 ddie under the Note and this Security Instrument and performs other mortgage..loan servicing obligations under the Note,this Security Instrument, and Applicable Law. There also mightbe one or more changes of the Loan Servicer unrelated to a sale of the Note.If there is a change of the Loan Servicer,Borrower will be given written notice of the change 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 Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless 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,until such Borrower or Lender has notifiedthe 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 toSection 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 substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable 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.environmental protection; (c) 'Environmental CIeanup" includes any response action, remedial action,or removal action,as defined in Environmental Law;and(d) an "Environmental Condition" means a condition that can cause,contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence,use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting'the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence,use,or release of'a Hazardous Substance, creates a condition that adversely affects the value of the Property.The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property(including,but not limited to,hazardous substances in consumer products). Borrower shall promptly give Lender written notice of(a) any investigation, claim,demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and.any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance.which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary,Borrower shall promptly take all'necessary remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. C3 c " c ` e I Initials:.3 ©o-6(1A) (0005) Page 12«,5 / Form 3016 1/01' 00013G • 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 IS 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, foreclosure by judicial proceeding and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. 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 foreclose this Security Instrument by judicial proceeding. 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. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Lender may charge Borrower a fee for releasing this Security Instrument,but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24.Waivers.Borrower relinquishes all right of dower and waives all right of homestead and distributive share in and to the Property.Borrower waives any right of exemption as to the Property. 25. HOMESTEAD EXEMPTION WAIVER. I UNDERSTAND THAT HOMESTEAD PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AND EXEMPT FROM JUDICIAL SALE; AND THAT BY SIGNING THIS MORTGAGE, I VOLUNTARILY GIVE UP MY RIGHT TO THIS PROTECTION FOR THIS MORTGAGED PROPERTY WITH RESPECT TO CLAIMS BASED UPON THIS MORTGAGE. BolhEFFRE M. GONZALES ate wer LACJRA M. GONDLES Date Borrower Date Borrower Date Borrower Date Borrower Date Borrower Date Borrower Date 000137 0.6QA) ( 5) Page 19 of 15 C - Form 3016 1101�. F71 —0 < �a • 26. Redemption Period. If the Property is less than 10 acres in size and Lender waives in any foreclosure proceeding any right to a deficiency judgment against Borrower,the period of redemption from judicial sale shall be reduced to 6 months. If the court finds that the Property has been abandoned by Borrower and Lender waives any right to a deficiency judgment against Borrower,the period of redemption from judicial sale shall be reduced to 60 days.The provisions of this Section 26 shall be construed to conform to the provisions of Sections 628.26 and 628.27 of the Code of Iowa. IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ. CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: "INA/ (seal) .7E iS -Borrower x4 dee' Zeal) f1:-i 7• M.. 0• • l -Borrower • (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal).. -Borrower -Borrower CJ 000i-38 • -6(IA) (0005) Page 14 or 15 Form 3016 1/01 O 4/ 10/1 910£ur10J 7 Sl to Si el3ed (5904) (VI)9-dD :s{eMN GUc000 o .. IR CD 4 C ) c0 N eooa /timer o se.gdx3 uoissiwwoo/ini ieza JegwnN uo)ssiwwoo ,��' SITitM'N 01Y4:1O ' alvls pue 6runo)p)es o;pue ui Donna faelON //J . v', I :sa.ndxa uoissnuuo0 X4\1 wail)pue iae faeiunion iiagi/aaq/siq SE OWES alai palnaaxa,Cage/aqs/aq lexp papainnou)iae pue 'ivaurulsm $uxoaa.ro3 aqi pair oaxa opzk pue u[ palueu (s)uoszad aqi aq o1 umoul Xiieaos.rad aur of • :3aim arm Qlwasnil ' s.`IKZNOJ vfl' I QNV Sa7VZNO '11 xaudaar pa.readde Aiieuos.rad`en\oi Jo 01E1S ata UT arignd r'.reioN e 'aur a ropaq' too z ANtra JO/CRP SST£ snit 110 :ss,CiunoO uosutiop `YMOI dO L.LV.LS v. LOAN: 7810151987 CONDOMINIUM RIDER THIS CONDOMINIUM RIDER is made this 31ST day of MAY 2001 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or (/ Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Note to PIRSTAR BANK, N.A. (the "Lender")of the same date and covering the Property described in the Security Instrument and located at: 2517 SYLVAN GLEN CT, IOWA CITY, IOWA 52240 [Property Address) The Property includes a unit in, together with an undivided interest in the common elements of, a condominium project known as: WALDEN RIDGE PART 2 [Name of Condominium Project/ (the "Condominium Project"). If the owners association or other entity which acts for the Condominium Project (the "Owners Association") holds title to property for the benefit or use of its members or shareholders,the Property also includes Borrower's interest in the Owners Association and the uses,proceeds and benefits of Borrower's interest. CONDOMINIUM COVENANTS. In addition to the covenants and agreements made in the Security Instrument,Borrower and Lender further covenant and agree as follows: A. Condominium Obligations. Borrower shall perform all of Borrower's obligations under the Condominium Project's Constituent Documents.The "Constituent Documents" are the:(i)Declaration or any other document which creates the Condominium Project;(ii)by-laws; (iii) code of regulations; and (iv) other equivalent documents. Borrower shall promptly pay,when due,all dues and assessments imposed pursuant to the Constituent Documents. B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier,a "master"or "blanket"policy on the Condominium Project which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for the periods, and against loss by fire,hazards included within the term"extended coverage,"and any other hazards,including, but not limited to,earthquakes and floods, from which Lender requires insurance, then: (i) Lender waives the MULTISTATE CONDOMINIUM RIDER-Single Family- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT CD-8R (0008) Form 3140 11 VMP MORTGAGE FORMS-(800) , 291 ! II 111E11111 000140 / (.) N 't' O LLD provision in Section 3 for the Periodic Payment to Lender of the yearly premium installments for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. What Lender requires as a condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, whether to the unit or to common elements, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender for application to the sums secured by the Security Instrument, whether or not then due,with the excess, if any,paid to Borrower. C.Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. D:Condemnation. The proceeds of any award or claim for damages,direct or consequential,payable to Borrower in connection with any condemnation or other taking of all or any part of the Property,whether of the unit or of the common elements,or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not,except after notice to Lender and with Lender's prior written.consent, either partition or subdivide the Property or consent to: (i)the abandonment or termination of the Condominium Project, except for abandonment or termination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the Constituent Documents if the provision is for the express benefit of Lender; (iii) termination of professional management and assumption of self-management of the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F.Remedies.If Borrower does not pay condominium dues and assessments when due,then Lender may pay them. Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest,upon notice from Lender to Borrower requesting payment. initials: , 44:1)0-8R (0008) Page 2 of 3 / / Form 3140 1/01 / v rf -10 rn 000141 = BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this Condominium Rider. (Seal) •,e '7. 1/D f (Seal) -Borrower "TE G $9 -Borrower -31-01 (Seal) .�� � (Seal) -Borrower M• GONZ S / -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower �-8R (0008) Page 3 of 3 Form 31401/01 N G.7 I Y 111 :,;-: cp LOAN: 7810151987 ADJUSTABLE RATE RIDER (1 Year Treasury Index-Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 31ST day of ICY 2001 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust,or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower")to secure Borrower's Adjustable Rate Note(the "Note")to FIRSTAR BANK, N.A. (the 'Lender") of the same date and covering the property described in the Security Inst,pit and located at: 2517 SYLVAN GLEN CT, IOWA CITY, IOWA 52240 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument,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 7.000 %.The Note provides for changes in the interest rate and the monthly payments 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 Jt71JE 2006 and on that day every 12th month thereafter.Each date on which my interest rate could change is called a "Change Date." MULTISTATE ADJUSTABLE RATE RIDER -ARM 5-2-Single Family- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Fannie Mae 4-2/5-216-2 ARM R (0008) Form 3111 /0 11I !i Page tot 4 Initials:4). [ IfIl1� Ai 1E1111 VMP MORTGAGE FORMS-(800)/' till11 000143 - '- 1 1 --1C) co i 0 0 • (B)The Index Beginning with the first Change Date, my interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable information. The Note Holder will give me notice of this choice. (C)Calculation of Changes • Before each Change Date, the Note Holder will calculate my new interest rate by adding TWO AND THREE-QUARTERS percentage points ( 2.750 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D)below,this.rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the maturity date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (I)) Limits on Interest Rate Changes • ' The interest rate I am required to pay at the fust Change Date will not be greater than 9.0 0 0 % or less than 5.0 0 0 %.Thereafter,my interest rate will never be increased or decreased on any single Change Date by more than two percentage points (2.0%)from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 13.000 %. (E)Effective Date of Changes • . My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. • Initials: a ©.822R (0008) Page 2 o 4 •i Form 3111 1/01 • L a co tV - 00011' • r p3 co crA (F) Notice of Changes G4 The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the" of O my monthly payment before the effective date of any change. The notice will include information req by law to be given to me 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 Section 18 of the Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property,including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However,this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee;and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continne to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. Initials: 0®-822R (0008) Page 3 of 4 Form 311111x1 j/ N Q N y .1.7005 • BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. /Y (sem) B- orrower) JBF ZALES -Borrower • / 61672 (Seal) # 90( / (Seal) -Borrower M' - -Borrower • (Seal) ' (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower • 4M-822R (0008) Page 4 of 4 Form 3111 1A1 <. .� • • • 1. CV1 '1~ 000146 r::z N r. .01 11 U % _ ., • • • • : -,s... NAME AFFIDAVIT 1, the undersigned, do hereby certify that fi1j LAURAM. GONZALES is also known as LAURA GONZALES rand is one in the same person.6f2 -Zaa M 1 / 5'3(-a( rrower LA, :' M. GONZALES N 0 0 1 c) �- f o MAY 31,2001 .5173—i "•• —,— Date `) w i,....., - ''''''l -- r.j •STATE OF IOWA COUNTY OF JOHNSON On this 31ST day of MAY 2001 before me personally appeared LAURA N. GONZALES to me known to be the person(s) described in, and who executed the foregoing instrument, and acknowledge that S he executed the same as HER free act and deed. My Commission expires: Notary Pu I c rA. CRAIG N.' MWS CommissionNumber12291 My Commission Expires Janua 15 2003 invfi nanameafi.doc I4032 4/25/95 NAME AFFIDAVIT I, the undersigned, do hereby certify that JEFFREY M. GONZALES is also known as JEFFREY GONZALES, JEFF M. GONZALES, JEFF GONZALES and is one in the same person. • Cifil Borr.; -r EFFREY M. GON ES MAY 31,2001 Date N O Q C) .�.. 71 -,..4.3 -C - -—A. I r.+ STATE OF IOWA I } a', COUNTY OF JOHNSON r:• On this 31ST day of MAY 2001 before me personally appeared JEFFREY M. GONZALES , to me known to be the person(s) described in, and who executed the foregoing instrument, and acknowledge that he executed the same as HIS free act and deed. My Commission expires: 61\1( Notary Public CFAIG N.WILLIS I Commission Nurnber 12291 MJanuar scion F invfnneinameaffi.doc 14032 4/25/95 • • tMbank. :.,iC �� :1� . ° ;R :, Qlt o r�tii .Yoi ' ti 4'; r��x .r r. "= `'. a 0 I s. w '4 Ft i �5 4a xc 101 {. Axc U.S. BANK HOME MORTGAGE 4801 Frederica street Remit payments to: PO Box 2005 U.S. Bank Home Mortgage Owensboro,KY42301 4801 Frederica Street P.O. 20005 September 02, 2010 Owensboro, KY 42304 `� -101 Jeffrey M Gonzales Laura M Gonzales ca 2654 Jill CT -+c. m Bend OR 97701 ir RE: Loan No. 7810151987 Dear Mortgagor(s) : This letter will serve as notice on your breach of your mortgage encumbering the above referenced loan number. You are in breach of the mortgage for your failure to pay the monthly installments due thereunder. In order to cure this breach of the mortgage, you must send certified funds in the amount of $ 2773 .40 for payments and $ 160 . 63 for late charges, plus any additional payments that may come due within thirty (30) days from the date of this letter. If you fail to bring this account current, the full balance of the loan will be accelerated. You are hereby notified that we will be making periodic inspections of the property in .accordance with the Mortgage or Deed of Trust to protect our investment. Foreclosure and public sale of the property in accordance with the applicable state laws will follow if this account is not current within thirty (30) days . You have the right to reinstate the mortgage after acceleration pursuant to the terms of the mortgage and you have the right to assert in any foreclosure action the non-existence of a default and any other defense you may have to acceleration and foreclosure. Unless you notify this office within thirty (30) days after receiving this notice that you dispute the validity of the debt or any portion thereof, this office will assume this debt is valid. We urge you to protect your investment by promptly bringing your account to a current status. Please govern yourselves accordingly. Sincerely, EX BIT Cary Campbell Assistant Vice President Collection Department 800-365-7900 We are attempting to collect a debt, any information obtained will be used for that purpose. usbank.com • BELINMCORMICK ATTORNEYS AT LAW Direct Dial(515)283-4663 Direct Fax: (515)283-4653 October 15, 2010 Jeffrey M. Gonzales and Laura M. Gonzales 2654 Jill Court Bend, OR 97701 Re: Creditor: U.S. Bank, National Association Loan No.: 7810151987 Property Address: 2517 Sylvan Glen Court, Iowa City, IA 52240 Dear Mr. and Mrs. Gonzales: We represent U.S. Bank, National Association in connection with a possible mortgage foreclosure action against your property at 2517 Sylvan Glen Court, Iowa City, Iowa. You have previously received from U.S. Bank, National Association a Notice of Right to Cure Default which was mailed to you more than 30 days ago. Under Iowa Code Section 654.4B it is necessary before filing the foreclosure action to provide you with a payoff of your mortgage indebtedness with U.S. Bank, National Association. With the expiration of the Notice of Right to Cure, your mortgage indebtedness has been accelerated and the entire amount of the Mortgage is due and owing. Attached hereto as Exhibit "A" is a payoff of the mortgage indebtedness. Unless you pay in full the entire amount shown on the payoff within fourteen (14) days of the mailing of this letter, a foreclosure action will be initiated against the above property. You are also advised that there is available to you counseling and mediation services which might be of assistance to you should you desire to explore options to keep your home. Enclosed is a Mortgage Mediation Notice developed by the Iowa Attorney General which provides information on help which is available. You are encouraged to contact the persoi}nel at the number provided in the Notice for the free assistance which is available to youl Respectfully, - t j , - rn JAMES V. SARCONE, JR. For the Firm o JVS/sw D:1Firstar\gonzales114 day.docx EXHIBIT Bwt.wv McCoRmicn.P.C. 666 Walnut Street I Suite 2000 I Des Moines,Iowa 50309 P 515.243.7100 I BelinMcCormick.com MORTGAGE PAYOFF EXHIBIT "A" Principal Balance $69,967.80 Interest to 10/29/2010 2,408.64 Pro Rata MIP/PMI 143.52 Escrow Advance 628.67 Suspense Balance -431.43 Accumulated Late Charges 186.67 Total -Fees 9.00 Other Fees Due 134.71 TOTAL TO PAY OFF AS OF 10/29/10 $73,047.58 Per diem $13.42 N q ...^ -1 �+ I CA) rpm`q, -a Y • i N) CD BEI.IN MCCORMICK, P.C. 666 Walnut Street I Suite 2000 I Des Moines,Iowa 50309 P 515.243.7100 I BelinMcCormick.com `( Mortgage Mediation Notice You are receiving this notice because (1) your lender believes that your mortgage is seriously delinquent, or (2) a foreclosure petition was recently filed against you. The purpose of this notice is to inform you that help is available through Iowa Mortgage-lelp, a State of Iowa-sponsored program. c� a ter' �� 11 • D5-.7.-,„ i help is avai/ab/e -� y =� . ,\ Iowa Mortgage Help is a group of organizations partnering with the Iowa Attorney General's Office and the Iowa Finance Authority to offer all Iowans access to free, confidential mortgage counseling with local organizations located right here in Iowa. Iowa Mortgage Help is here to assist you in working through your situation. Please call 1-877-622-4866 as soon as possible. The earlier you call, the more options that are available to you. When you call, you will ' be referred to a trained, professional counselor who will listen to your situation and offer free, confidential advice through each step of the process. In some cases, we are able to work with lenders fir'° and borrowers to restructure mortgage terms. While we are not able t to help everyone, we are able to help the majority of homeowners _� who call Iowa Mortgage Help. The fact that a foreclosure petition may be or has been filed against you does not necessarily mean that you will lose your house. It is NOT too late. There is still time for help. 3 A Do Not Delay. This may be your best chance for saving your } home from foreclosure. Call 1-877-622-4866 today or go to lowaMortgageHelp.com. This free call could save your home. Iowa Mortgage Help 1-877-622-4866 www.lowaMortgageHelp.com • This notice is being provided as required by Iowa Code section 654.48(2). Mortgage Mediation Notice You are receiving this notice because (1) your lender believes that your mortgage is seriously delinquent, or (2) a foreclosure petition was recently filed against you. The purpose of this notice is to inform you that help is available through Iowa Mortgage Help, a State of Iowa-sponsored program. he/p is availa Iowa Mortgage Help is a group of organizations partnering with the Iowa Attorney General's Office and the Iowa Finance Authority to offer all Iowans access to free, confidential mortgage counseling with local organizations located right here in Iowa. Iowa Mortgage Help is here to assist you in working through your situation. Please call 1-877-622-4866 as soon as possible. The earlier you call, the more options that are available to you. When you call, you will be referred to a trained, professional counselor who will listen to your situation and offer free, confidential advice through each step of the process. In some cases, we are able to work with lenders and borrowers to restructure mortgage terms. While we are not able to help everyone, we are able to help the majority of homeowners who call Iowa Mortgage Help. The fact that a foreclosure petition may be or has been filed against you does not necessarily mean that you will lose your house. It is NOT too late. There is still time for help. Do Not Delay. This may be your best chance for saving your home from foreclosure. Call 1-877-622-4866 today or go to IowaMortgageHefp:com. This free call could save your home. • 04 Iowa Mortgage Help 1-877-622-4866EXHIBIT"E" www.lowaMortgageHelp.com This notice is being provided as required by Iowa Code section 654.46(2). END OF CASE FILE CIVIL PROCESS WORKSHEET JOHNSON COUNTY SHERIFFS OFFICE•PO BOX 2540, 511 S CAPITOL ST, IOWA CITY, IA 52244-2540•(319)356-6030 PLAINTIFF: UNIVERSITY OF IOWA COMMUNIT Docket No 10-06648 State IOWA vs. Court No EQCV072655 County JOHNSON DEFENDANT: CITY OF CORALVILLE Ref No Received 11/03/2010 DEFENDANT: FOREST PARK PARTNERS, LLC DEFENDANT: CITY OF IOWA CITY Requestor(s) Phone MICHAEL,ROBERT S (319) 351-1056 LYNCH GREENLEAF MICHAEL, PO BOX 1757, IOWA CITY, Name CITY OF IOWA CITY Zone Party Type DEFENDANT Phone (319)356-5030 Fax Address 410 E WASHINGTON ST IOWA CITY 34588 52240- E-Mail I Employer( I Comments SERVE CITY CLERK MARIAN KARR Documents Document Serve by Date OE PSR Description/Special Instructions ORIGINAL NOTICE AND [! Li PETITION Service Information Date I I a Time \ 3c.5° Type � v Party l t(c/ a r) )(C,4(( Relationship C:(� A-1 /�C1 e 1 X Race Sex r DOB Location Miles 1 Fee Officer Attempts Log Date Time Server Notes Date Time Server Notes Notes: a o m —O r c, Printed:Wednesday,November 03,2010 Johnson County Sheriffs Office Page 1 of 1 s • Robert S. Michael IN THE IOWA DISTRICT COURT FOR JOHNSON COUNTY UNIVERSITY OF IOWA COMMUNITY ) CREDIT UNION, ) ) NO. eUivUlac5.5 Plaintiff, vs . ) DAVID W. THRASHER; LINDA N . THRASHER ) j FOREST PARK APARTMENTS A/K/A FOREST `. PARK PARTNERS, L. L.C. ; LINCOLN REAL ) ESTATE; RIVER CITY PROPERTY MANAGEMENT ) ORIGINAL NOTICE' _ _ , ' r & SALES, L.L.C. ; CITY OF ) ---- IL CORALVILLE, IA; CITY OF IOWA CITY, ) c. � IA; and ANY AND ALL UNKNOWN PARTIES IN POSSESSION OF THE REAL PROPERTY LOCATED AT 919 DOVER ST. IOWA CITY, IOWA, Defendants . TO THE ABOVE-NAMED DEFENDANT(S): You are notified that a petition has been filed in the office of the clerk of this court naming you as the defendant(s) in this action. A copy of the petition (and any documents filed with it) is attached to this notice. The names and addresses of the attorneys for the plaintiff(s) are Lynch, Greenleaf& Michael, LLP by Robert S. Michael and Crystal K. Raiber. The attorneys'phone number is (319) 351-1056; facsimile number: (319) 338-6834. You must serve a motion or answer within 20 days after service of this original notice upon you, and within a reasonable time thereafter, file your motion or answer with the Clerk of Court for JOHNSON County, at the county courthouse in Iowa City, Iowa. If you do not,judgment by default may be rendered against you for the relief demanded in the petition. If you require the assistance of auxiliary aids or services to participate in court because of disability, immediately call your district ADA coordinator at (319) 398-3920 Ext 1100. (If you are hearing impaired, call Relay Iowa TTY at 1-800-735-2942.) LODEMA BERKLEY (SEAL) Ad 642 - eC) P°4)'4 CLERK OF/COUR JOHNSON County Courthouse Iowa City, Iowa 52240 IMPORTANT: YOU ARE ADVISED TO SEEK LEGAL ADVICE AT ONCE TO PROTECT YOUR INTERESTS cc*. C A140rKey C', Mctn�ger Lc-CCer SI-gee+ Qrdy IN THE IOWA DISTRICT COURT FOR JOHNSON COUNTY UNIVERSITY OF IOWA COMMUNITY 113 CREDIT UNION, ) _ (P6 : -5-N0. III Plaintiff, ) vs . ) DAVID W. THRASHER; LINDA N. THRASHER ) FOREST PARK APARTMENTS A/K/A FOREST ) PARK PARTNERS, L.L. C. ; LINCOLN REAL ) ESTATE; RIVER CITY PROPERTY MANAGEMENT ) & SALES, L.L.C. ; CITY OF ) CORALVILLE, IA; CITY OF IOWA CITY, n IA; and ANY AND ALL UNKNOWN ) rte. PARTIES IN POSSESSION OF THE REAL ) „, `', PROPERTY LOCATED AT 919 DOVER ST. ) t; r IOWA CITY, IOWA, ) :` -' �A Defendants . ) ,,, „•,, PETITION IN EQUITY C' NOTICE ----- 7^ THE PLAINTIFF HAS ELECTED FORECLOSURE WITHOUT REDEMPTION. THIS MEANS THAT THE SALE OF THE MORTGAGED PROPERTY WILL OCCUR PROMPTLY AFTER ENTRY OF JUDGMENT UNLESS YOU FILE WITH THE COURT A WRITTEN DEMAND TO DELAY THE SALE . IF YOU FILE A WRITTEN DEMAND , THE SALE WILL BE DELAYED UNTIL TWELVE MONTHS (or SIX MONTHS if the petition includes a waiver of deficiency judgment) FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS YOUR RESIDENCE AND IS A ONE-FAMILY OR TWO-FAMILY DWELLING OR UNTIL TWO MONTHS FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS NOT YOUR RESIDENCE OR IS YOUR RESIDENCE BUT NOT A ONE-FAMILY OR TWO-FAMILY DWELLING . YOU WILL HAVE NO RIGHT OF REDEMPTION AFTER THE SALE . THE PURCHASER AT THE SALE WILL BE ENTITLED TO IMMEDIATE POSSESSION OF THE MORTGAGED PROPERTY . YOU MAY PURCHASE AT THE SALE . COMES NOW, the Plaintiff University of Iowa Community Credit Union, by and through its attorneys, Lynch, Greenleaf & Michael, L.L. P. , by Robert S . Michael and Crystal K. Raiber, and for its Petition in Equity, states as follows : 1 . Plaintiff is a credit union lawfully doing business with its principal place of business in Iowa City, Johnson County, Iowa . 2 . The last known address of David W. Thrasher and Linda N. Thrasher is 919 Dover St, Iowa City, IA. 3 . The Defendants, David W. Thrasher and Linda N. Thrasher are a married couple. 4 . On or about February 13, 2007, Defendants David W._ .M Thrasher and Linda N. Thrasher made, executed and delivered a Fixed/Adjustable Rate Note to Plaintiff ("First Note") . On = ' February 27, 2009, Defendants David W. Thrasher and Linda N. Thrasher made, executed and delivered a Variable Rate Mortgage Note to Plaintiff. Copies of the above are attached hereto and incorporated herein, marked Exhibit "1" . Pursuant to the terms of the Notes, the principal sum is One Hundred Seventeen Thousand Eight Hundred Fifty-Five Dollars and Three Cents ($117, 855 . 03) ; the initial interest rate is 4 . 00%; and payment in full of all principal and interest is due on March 1, 2039 . 5 . To secure the First Note, Defendants David W. Thrasher and Linda N. Thrasher on or about February 13, 2007, made, 2 executed and delivered to Plaintiff a written mortgage, Fixed/Adjustable Rate Rider and Condominium Rider (hereinafter "First Mortgage" ) creating first and prior lien on the real estate described therein, a copy of which is attached hereto and incorporated herein, marked Exhibit "2" . The First Mortgage covers the property located at 919 Dover St, Iowa City, Iowa, which is the following described real property in Johnson County, Iowa : Unit I in Dover Condominiums Part II, according to the plat thereof recorded in Book 705, Page 405, Records of Johnson County, Iowa. This first Mortgage was duly filed for record on February 26, 2007, Book 4132, Page 286, in the records of the Recorder for Johnson County, Iowa. A Modification and Extension of Mortgage , was recorded on March 24, 2009, in Book 4411, Page 934, in the records of the recorder for Johnson County, Iowa, and is attached hereto. 6. On or about February 13, 2007, Defendants David W. Thrasher and Linda N. Thrasher made, executed and delivered a Note (hereinafter "Second Note") to Plaintiff, a copy of which is attached hereto and incorporated herein, marked Exhibit "3" . The Second Note is in the principal sum of Thirteen Thousand Two Hundred Fifty Dollars ($13, 250 . 00) . The interest rate of the Second Note is 7 . 25% . The Second Note provides for payment of 3 monthly installments of principal and interest, with full balance due on March 1, 2012 . 7 . To secure the Second Note, Defendants David W. Thrasher and Linda N. Thrasher on or about February 13, 2007, made, executed and delivered to Plaintiff a written mortgage and condominium rider (hereinafter "Second Mortgage") creating lien on the real estate described therein, a copy of which is attached hereto and incorporated herein, marked Exhibit "4" . The Second Mortgage covers the property located at 919 Dover St . , Iowa City, Iowa, which is the same property as covered by the First Mortgage, and was described on the Second Mortgage as real property in Johnson County, Iowa : Unit I in Dover Condominiums Part II, according to the plat thereof recorded in Book 705, Page 1 405, Records of Johnson County, Iowa. This Mortgage was duly filed for record on March 5, 2007, Book 4134, Page 288 in the records of the Recorder for Johnson- County, ohnsonCounty, Iowa. 8 . Defendants David W. Thrasher and Linda N. Thrasher are the owners and holders of said real estate. 9. Defendants David W. Thrasher and Linda N. Thrasher are now delinquent in their payments on said Notes and Mortgages . 10 . Any and all unknown parties in possession of the real property located at 919 Dover St Iowa City, Iowa, are added as defendants herein because they may claim some right, title or 4 1 interest in the property which is the subject of this action, but any interest of such defendants would be junior and inferior to that of Plaintiff. 11 . Forest Park Apartments a/k/a Forest Park Partners, L.L.C . , Lincoln Real Estate, and River City Property Management & Sales, L. L.C. are added as defendants herein because they may claim some right, title or interest in the property which is the subject of this action pursuant to a small claims judgment iq, case No. SCSC70181, but any interest of such defendants. woyld:be ., -, junior and inferior to that of Plaintiff. ' __ 12 . City of Coralville is added as a defendant herein _ because they may claim some right, title or interest in-the property which is the subject of this action pursuant to a judgment in case No. 06521C0STA0057463, but any interest of such defendant would be junior and inferior to that of Plaintiff. 13 . City of Iowa City is added as a defendant herein because they may claim some right, title or interest in the property which is the subject of this action pursuant to a judgment in case No. 06521ICSTA0066544, but any interest of such defendant would be junior and inferior to that of Plaintiff. 14 . The Mortgages provides in the event of default, suit, and foreclosure that Plaintiff ' s attorneys ' fees shall be paid by mortgagor. Plaintiffs ' attorneys attach their affidavit for such fee as required by statute, which is attached hereto, and 5 incorporated herein, marked Exhibit "5" . Plaintiff requests such attorney fees in this matter. 15 . The Mortgages provides in the event of default that Plaintiff may procure a continuation of the abstract, obtain insurance for the property, pay taxes on the property, pay r � assessments, and add such amounts to the Mortgage debt ; 'I'he-ge ' 1 amounts become a part of the Mortgage indebtedness and .:ar-e -' i secured by the Mortgages . 16. Plaintiff is the owner and holder of said Notes and. - Mortgages . 17 . In accordance with the provisions of said Notes and Mortgages, Plaintiff has heretofore declared and hereby declares the entire indebtedness thereunder immediately due and payable. 18 . Said Mortgages provides that if default shall be made in the payment of said Notes or any part of the interest thereon, the Mortgages may be foreclosed upon; and Plaintiff, by the commencement of this action, does elect to foreclose on the Mortgages . 19 . That the Defendants, nor any of them, are or have been at anytime during the preceding six (6) months members of any of the Armed Forces of the United States of America and are not entitled in any way or manner to the benefit or relief provided by the Servicemembers Civil Relief Act . 6 20 . Plaintiff waives its rights to a deficiency judgment in this matter. 21 . Plaintiff' s mortgages are superior and paramount to all interests of all Defendants in the real estate, and any interest of any Defendant in the real estate is subject to Plaintiff' s above-described mortgages . 22 . After crediting the amounts paid on said Notes secured by said Mortgages there is now due and owing Plaintiff from �, Defendants David W. Thrasher and Linda N. Thrasher: C`7r; �y A. An unpaid principal balance on the Notes, as of-=i:- rri October 4, 2010 of $140, 331 . 23, which includes real estate takes '-1 redeemed from tax sale and delinquent taxes paid, in the amount of $9, 739. 00. B. Interest and late fees as provided in the Notes, on the unpaid principal balance to October 4, 2010, in the amount of $1, 864 . 64 . C. Interest as provided in the Notes, on the unpaid principal balance as of October 4, 2010, to date of filing herein, which interest currently accrues at the rate of 4 . 00% per annum in the amount of $15 . 379 per day. WHEREFORE, Plaintiff prays for judgment in rem against the above described real estate and David W. Thrasher and Linda N. Thrasher for $142, 195. 87, together with interest on the $140, 331 . 23 principal portion thereof at the rate of 4 . 00% 7 percent per annum from October 4 , 2010, to date of filing of this petition, plus interest at the rate of 4 . 00% per annum on said judgment from and after the date of filing of this petition, plus all reasonable attorney' s fees, taxes, assessments, insurance, abstracting fees, and the costs ;of this action. PLAINTIFF FURTHER PRAYS that said First Mortgage be established as first and prior lien against the real estate above described and as superior and paramount to the interests, lien, and claims of each and all Defendants and that said First Mortgage be foreclosed and all claims, rights, title, and interest of the Defendants in this suit, and each of them, in or to or upon said real estate, may be decreed to be junior and inferior to the rights and lien of this Plaintiff, and that the right, title, and interest of the Defendants, and each of them be forever barred and foreclosed. PLAINTIFF FURTHER PRAYS that said Second Mortgage be established as a prior lien against the real estate above described, except for said First Mortgage, and as superior and paramount to the interests, lien, and claims of each and all Defendants and that said Second Mortgage be foreclosed and all claims, rights, title, and interest of the Defendants in this suit, and each of them, in or to or upon said real estate, may be decreed to be junior and inferior to the rights and lien of 8 this Plaintiff, and that the right, title, and interest of the Defendants, and each of them be forever barred and foreclosed. PLAINTIFF FURTHER PRAYS that special execution may issue for the sale of said mortgaged real estate or so much thereof as is necessary to satisfy Plaintiff ' s judgment, together with interest, cost, and accruing costs, to satisfy the judgment to be entered herein . PLAINTIFF FURTHER PRAYS that in the event the Defendant David W. Thrasher and Linda N . Thrasher files a demand for delay of sale herein, the execution sale be delayed for a period of not more than two months from the entry of judgment in the event the mortgaged real estate is not his residence, and for a period of not more than six months from the entry of judgment in the event the mortgaged real estate is his residence, and hereby waives any right to a deficiency judgment against Defendants which might arise out of this proceeding. ' PLAINTIFF FURTHER PRAYS that if possession be not 7-1 immediately surrendered to the grantee in the Sheriff Deed to bel issued under said execution, a writ of possession may be immediately issued directing the Sheriff of this county to put such grantee in possession of the mortgaged premises . PLAINTIFF FURTHER PRAYS that in the event Plaintiff is required to advance any further sums for taxes or insurance upon the above described real estate, Plaintiff be given an 9 4 additional lien against the real estate for the amount so advanced. PLAINTIFF FURTHER PRAYS that upon further application by Plaintiff a receiver be appointed to take charge of the mortgaged premises at once and to hold possession of the same until the debt is fully paid and that all rents and profits derived from said premises be collected and applied by the receiver toward the satisfaction of plaintiff' s judgment . PLAINTIFF FURTHER PRAYS for such other and further relief as may be just and equitable in the premises . LYNCH, GREENLEAF & ' L, L. L. P. _,e Aif By 41! Rober S. Michael # AT0005259 64/ _ ..._ Y Cr tal Raiber # AT0009768 14 2 Willow Creek Court/POB 1757 Iowa City, Iowa 52244 (319) 351-1056 FAX (319) 338-6834 E-mail address:receptionist@lgmlawyers.com ATTORNEYS FOR PLAINTIFF v r, c-7 r,, 10 FIXED/ADJUSTABLE RATE NOTE (One-Year Treasury Index-Rate Caps) Loan #: THIS NOTE PROVIDES FOR A CHANGE IN MY FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THIS NOTE LIMITS THE AMOUNT MY ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE I MUST PAY. February 13th, 2007 North Liberty Iowa [Date] [City] [State] 919 Dover St, Iowa City, IA 52245 [Property Address] 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. $ 119,250.00 (this amount is called "Principal"), plus interest, to the order of Lender. Lender is University of Iowa Community Credit Union I will make all payments under this Note in the form of cash, check or money order. I understand that Lender may transfer this Note. Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of 7.125 %. The interest rate I will pay may change in accordance with Section 4 of this Note. The interest rate required by this Section 2 and Section 4 of this Note is the rate I will pay both before-.and after any default described in Section 7(B)of this Note. 3. PAYMENTS = (A)Time and Place of Payments , I will pay principal and interest by making a payment every month. ; �T —73 F I will make my monthly payments on the first day of each month beginning on April 1st, 2007 ,_:M — . I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due dare and will-be be applied to interest before Principal. If, on March 1st, 2037 , I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date." I will make my monthly payments at 825 Mormon Trek Blvd. PO Box 2630, Iowa City, IA 52246 or at a different place if required by the Note Holder. (B) Amount of My Initial Monthly Payments Each of my initial monthly payments will be in the amount of U.S. $ 803.41 . This amount may change. (C) Monthly Payment Changes Changes in my monthly payment will reflect changes in the unpaid principal of my loan and in the interest rate that I must pay. The Note Holder will determine my new interest rate and the changed amount of my monthly payment in accordance with Section 4 of this Note. 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of March 2010 , and the adjustable interest rate I will pay may change on that day every 12th month thereafter. MULTISTATE FIXED/ADJUSTABLE RATE NOTE- ONE-YEAR TREASURY INDEX- Single Family- Fannie Mae UNIFORM INSTRUMENT -843N(0205) Form 3522 1/01 VMP MORTGAGE FORMS-1800)521-7291 b� g Page t of 5 Initials' 9 ,The date us which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change, is called a "Change Date." (B)The Index Beginning with the first Change Date, my adjustable interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change.Date 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 information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding Three and five eighths percentage points ( 3.625 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point(0.125%). Subject to the limits stated in Section 4(D)below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D)Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 9.125 % or less than 5.125 %. Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more than two percentage points from the rate of.interest I have been paying for the preceding 12 months.My interest rate will never be greater than • 13 .125 %. (E)Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any change. The notice will include the amount of my monthly payment, any information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. 5. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a "Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under this Note. I ma -make- full Prepayment - --- _ ... Y or partial Prgany ._.. .. r will use my Prepayments to reduce the amount of Principal that It owe under this Note. Ho ever the NoteeHolderma e apply my Prepayment to the accrued and unpaid interest on the Prepayment amount beforeYmg I myPrepayment to reduce the aPP Principal amount of this Note. If I make a partial Prepayment, there will be no changes in the due dates of my monthly payments unless the Note Holder agrees in writing to those changes. My partial Prepayment may reduce the amount of my monthly payments after the first Change Date following my partial Prepayment. However, any reduction due to my partial Prepayment may be offset by an interest rate increase. 6. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from me that exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment. , .! } �j 1`.! y 1. 1 f�_ ,r;..., r,r ,7 .V10 Ji,L I µ II .1 `-, Form 3522 1101 843N t0205) Page 2 of 5 4‘./r74::;7"-Initials: t 7. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charges for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of Fi f teen calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be .000 of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B)Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C)Notice of Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of Principal that has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. (D)No Waiver By Note Holder Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (E)Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 8. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Unless the Note Holder requires a different method, any notice that must be given to the Note Holder under this Note will be given by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that different address. 9. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. 10. WAIVERS I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor. "Presentment"means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor"means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 11. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust, or Security Deed (the "Security Instrument"), dated the same date as this Note,protects the Note Holder from possible losses that might result if I do not keep the promises that I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions read as follows: (A) Until my initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section 4 above, Uniform Covenant 18 of the Security Instrument shall read as follows:,. 7`;,','`: ) Fr'r' n1r7 • i`=J I F,.J11 btu:, CD-843N (0205) Form 352 1/0 ® Page 3 of 5 Initials: • Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred(or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. (B) When my initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section 4 above, Uniform Covenant 18 of the Security Instrument described in Section 11(A) above shall then cease to be in effect, and Uniform Covenant 18 of the Security Instrument shall instead read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the P,crperty or any Interest in the Property is sold or transferred(or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option chall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a)Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b)Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loati as-. _-tion:-Lend-er also rda-re - - a m �P y require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. -. - . J1. 17 ..V.i Jv • - • 4 of 5 Form 352 1f0 ®B 43N Io2081Page •`�� A� Initial WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED. 7 (Seal) i .%!0/AMINO / eal) David W Thrasher -B..:. erLinda N Th, asher /J -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower [Sign Original Only] c) C , r C:)-843N(0205) Page 5 of 5 Form 3522 1/01 3/1 ARM VARIALE RA'TE MORTGAGE NOTE l 35 5yZ1� B (One Year Treasury Index-Rate Caps) THIS NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN MY INTEREST RATE AND MY MONTHLY PAYMENTS. THIS NOTE LIMITS THE AMOUNT MY INTEREST RATE CAN CHANGE AT ANY ONE TIME AND TI1E MAXIMUM RATE! MUST PAY. February 27,2009 Iowa City,Iowa (Date),(City),(State) 919 Dover St,Iowa City,Iowa 52245 1. BORROWER'S PROMISE TO PAY: In return for a loan that I have received,I promise to pay U.S.$117,855.03,(this amount is called"principal"),plus interest,to the order of the Lender.The Lender is the University of lows Community Credit Union.I understand that the Lender may transfer this Note.The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the Note Holder. 2. INTEREST: Interest will be charged on unpaid principal until the full amount of principal has been paid.I will pay interest at a yearly rate of 4.000%.The interest rate 1 will pay will change in accordance with Section 4 of this Note.The interest rate required by Section 2 and Section 4 of this Note is the rate I will pay both before and after any default described in Section 7(B)of this Note. 3. Payments: (A)Time and Place of Payments • I will pay principal and interest by making payments every month. • I will make my monthly payments on the I"day of each month beginning on April 1,2009.1 will make these payments on the I"day of every month thereafter until 1 have paid all of the principal and interest and any other charges described below that]may owe under this Note.My payments will be applied to interest before principal.If,on March 1,2039,I still owe amounts under this Note,1 will pay those amounts in full on that date,which is called the"maturity date". • I will make my monthly payments at 825 Mormon Trek Blvd,PO Box 2630,Iowa City,IA 52246 or at a different place if required by the Note Holder. 03)Amount of My Initial Monthly Payments Each of my initial monthly payments will be in the amount of U.S.$563.02.This amount may change. (C)Monthly Payment Changes Changes in my monthly payment will reflect changes in the unpaid principal of my loan and in the interest rate that I must pay. The Note Holder will determine my new Interest rate and the changed amount of my monthly payment in accordance with Section 4 of this Note. 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES: (A)Change Dates The interest rate I will pay may change on the first day of March 2012,and on that day every 12"'month thereafter.Each date on which my interest rate could change is called a Change Date. (B)The Inde( The Annual Percentage Rate(the"interest rate")may increase during the term of this transaction.Beginning with the first Change Date,the interest rate will be based on an Index.The Index is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year,as make available by the Federal Reserve Board,rounded to the nearest'''4%.The Annual Percentage Rate on existing balances will change on the Change Date,subject to annual and lifetime interest rate limits described In paragraph 4(D).Any increase in the interest rate will result in payments of a higher amount. If the Index Is no longer available,the Note Holder will choose a new index which is based upon comparable information.The Note Holder will give me notice of this choice. fC)Calculation of Changes On each-Change-Date,the-Note-Holder will calculate my new interest rate_by_adding two and three quarters percentage=points ry -• (2.750%)to the current Index.Subject to the limits stated in Section 4(D)below,this rounded amount will be my new interest-rate until the next Change Date. o The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal • • i that 1 am expected to owe at the Change Date In full on the maturity date at my new interest rate in substantially equal payment,—-• i d...... The result of this calculation will be the new amount of my monthly payments. G+w Limits On Interest Rate Changes ;(71 The Interest rate I am required to pay at the first Change Date will not be greater than 6.000%or less than 4.000%.Thereafter,my "V interest rate will never be increased or decreased on any single Change Date,by more than 2.00%from the rate of Interest I have _ rn been paying for the preceding twelve months.If the interest rate is increased on any single Change Date,the amount of the change- will never be less than.25%front the rate of interest I have been paying for the preceding twelve months.My interest rate will "— r ( never be greater than 10.000%.The interest rate will never be less than 4.000%. fE)Effective Date of Changes f.t7 My new Interest rate will become effective on each Change Date.1 will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment 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 a payment at the new level is due.The notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I may Piave regarding this notice. 5. BORROWER'S RIGHT TO PREPAY: I have the right to make payments of principal at any time before they are due.A payment of principal only is known as a"pre- payment"When!make a prepayment,I will tell the Note Holder in writing that I am doing so. I may make a full prepayment or partial prepayments without paying any prepayment charge_The Note Holder will use all of my prepayments to reduce the amount of principal that I owe under this Note.If I make a partial prepayment,there will be no changes In the due dates of my monthly payments unless the Note Holder agrees in writing to those changes.My partial prepayment may reduce the amount of my monthly payments after the first Change Date following my partial prepayment However,any reduction due to my partial prepayment may be offset by an interest rate increase. 1 CLOSED END 3/1 ARM 6. LOAN CHARGES: If a law,which applies to this loan and which sets maximum loan charges,is finally interpreted to so that the interest or other loan charges collected or to be collected in connection with this loan exceed permitted limits,then: (i)aoy such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limits;and(ii)any sums already collected from me which exceeded permitted limits will be refunded to me.The Note Holder may choose to make this refund by reducing the principal I owe under this Note or by making a direct payment to me.If a refund reduces principal,the reduction will be treated as a partial prepayment. 7. BORROWER'S FAILURE TO PAY AS REQUIRED fA)Late Charges for Overdue Payments If the Note Holder has not received tbe full amount of any monthly payment by the end of ten(10)calendar days after the date it is due,I will pay a late charge to the Note Bolder.The amount of the charge will be 0%of my overdue payment of principal and interest or that amount which is legally permissible under Iowa law.I will pay this late charge promptly but only once on each late payment. fB)Default If I do not pay the full amount of each monthly payment on the date it is due,I will be in default. (C)Notice of Default If I am in default,the Note Holder may send me a written notice telling me that If I do not pay the overdue amount plus an additional amount necessary to reduce the principal to the amount required by amortization contemplated by this note,the Note Holder may require me to pay immediately the full amount of principal which has not been paid and all tbe interest that I owe on that amount. If I do not pay the full amount so requested within 30 days of delivery or mailing said notice,the Note Holder may accelerate the required note and require me to pay immediately the full amount of principal which has not been paid and all the Interest that I owe on that amount. fD)No Waiver By Note Holder Even if,at a time when I am in default,the Note Holder does not require me to pay immediately in full as described above,the Note Holder will still have the right to do so If I am in default at a later time. fE)Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above,the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law.Those expenses include,for example,reasonable attorney's fees and costs of continuing or procuring an abstract of title. 8. GIVING OF NOTICES:Unless applicable law requires a different method,any notice that must be given tome under this Note will be given by delivering it or by mailing it by first class mail tome at the address under my signature below or at a different address if 1 give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this note will be given by mailing it by first class mail to the Note Holder at the address stated in Section 3(A)above or at a different address ill am given a notice of that different address. 9. OBLIGATIONS OF PERSONS UNDER THIS NOTE:If more than one person signs this Note,each person is fully and personally obligated to keep all of the promises made in this Note,including the promise to pay the full amount owed.Any person who is a guarantor,surety or endorser of this Note is also obligated to do these things.Any person who takes over these obligations, including the obligations of a guarantor,surety or endorser of this Note,is also obligated to keep all of the promises made in this Note,The Note Holder may enforce its rights under this Note against each person individually or against all of us together.This means that any one of us may be required to pay all of the amounts owed under this Note. 10. PRINCIPAL RESIDENCE:Borrower(s)agree that the BORROWERS STATEMENT UNDER OATH,COVENANT AND INDUCEMENT AGREEMENT,attached hereto,is incorporated in its entirety to this Note. 11. WAIVERS:1 and any other person who has obligations under this Note waive the rights of presentment and notice of dishonor. "Presentment"means the right to require the Note Holder to demand payments of amounts dne."Notice of dishonor"means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 12. UNIFORM SECURED NOTE:This Note is uniform instrument with limited variations in some jurisdictions.In addition to the protections given to the Note Holder under this Note,a Mortgage,Deed of Trust or Security Deed(the"Security Instrument"), dated the same date as this Note,protects the Note Holder from possible losses which might result If I do not keep the promises which I make in this Note.That Security Instrument describes bow and under what conditions I may be required to make Immediate=payment in fulIot aluamounts 1=owe-uudea this Note.Some-of-those conditions are-described i<a follows: A. Transfer of the Property or a Beneficial Interest in Borrower.If all or any part of the Property or any interest in it is sold or transferred(or If a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person)without Note Holder's prior written consent,Note Holder may,at Its option,require immediate payment In full of all sums secured by this Security Instrument. B. Principal Residence.HI breach paragraph 10 of this Note,Note Holder may,at its option,require Immediate payments in full of all sums secured by the Security Instrument.The Note and Mortgage may be amended by mutual consent of Note Holder and Borrower. 13. ENFORCEABILITY:If any term in this Note or the mortgage securing this Note violates any law or for some other reason Is not enforceable,that term will not be a part of this Note.However,the other terms of this Note will remain effective.This Note is subject to Iowa law and any applicable Federal law.If enactment or expiration of applicable laws has the effect of rendering any provision of this Note or the mortgage securing this Note unenforceable according to its terms,Note Holder,at its option,may require immediate'payment in full of all sums loaned in connection with this Note. WITNESS THE HAND(S)AND SEAL(S)OF THE UNDERSIGNED. / - N O Air cm /L�w45�e/ (S /�i L%moi'//�� '" Borrower:David W.Thrasher ower:Li,, .Thrashers (Seal) ,-7-3'—..i MOO ()—< I 919 Dover St.Iowa City,IA 52245 919 Dover St,Iowa City,IA 52245 --.1�: .i•••• Address Address —{1-- "D t""4 'r Cr' 1',) 2 I IIIIIII IIIIII IIIIIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIIi illi illi Doc ID: 020786040022 Tvoe: GEN Recorded: 02/26/2007 at 11:43:25 AM Fee Amt: $112.00 Page 1 of 22 Johnson County Iowa Kim Painter County Recorder BK4132 PG286-307 ,l70 [Space Above This Line For Recording Data] Prepared By: =MOMS Deanna Emerson 825 Mormon Trek Blvd Iowa City, IA 52246 319-341-2125 Return To: University of Iowa Community Credit Union 825 Mormon Trek Blvd. PO Box 2630 Iowa City, IA 52246 319-341-2125 Full Legal Description located on page 3 • Lender Name located on page 2. MORTGAGE DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined 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 thisdoCtfinerit;iitilti is dated-February 13th, 2007 together with all Riders to this document. (B) "Borrower" is David W Thrasher and Linda N Thrasher, Husband & Wife co .71 •ice�'i "�: ws� I^Zz- -71 in i Borrower is the mortgagor under this Security Instrument. IOWA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3016 1/01 -611A)10405).01 4T-3m Page 1 of 15 Initials: VMP Mortgage Solutions,Inc. E 1111 • 1.0. (C) "Lender" is University of Iowa Community Credit Union • Lender is a state chartered credit union organized and existing under the laws of Iowa Lender's address is 825 Mormon Trek Blvd. PO Box 2630, Iowa City, IA 52246 • Lender is the mortgagee under this Security Instrument. (D) "Note"means the promissory note signed by Borrower and dated February 13th, 2007 The Note states that Borrower owes Lender One Hundred Nineteen Thousand Two Hundred Fifty and no/100 . Dollars (U.S. $ 119,250_00 )plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than March 1st, 2 037 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "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. (G) "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]: !. r='_ -, x Adjustable Rate Rider I x _ Condominium Rider Second Home Rider r'—•, Balloon Rider Planned Unit Development Rider 1-4 Family Rider ? •t•- I I VA Rider Biweekly Payment Rider 1 I Others) [specify] -� rn til a (H) "Applicable•Law" means all controlling applicable federal, state and local statutes, regulations,- ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by _ check;draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "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. Initial • -6(IA)l0405l.01 Page 2 of 15 Form 3016 1/01 m (0) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i)the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably mortgages, grants and conveys to Lender, with power of sale, the following described property located in the County of Johnson [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] Unit I in Dover Condominiums Part II, according to the plat thereof recorded in Book 705, Page 405, Records of Johnson County, Iowa. r-+ CD C) -6- n-< t - �, -2 Ill 1-1 cn Parcel ID Number:10-13-2 8 6-016 which currently has the address of 919 Dover St [Street] Iowa City [City], Iowa 52245 [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 and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. Initials: -6(IA) n405).01 Page 3 of 15 Form 3016 1/01 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or(d)Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immeiiiately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender than relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a 6-aft-dent amount-o pay any late-c arge due,--11i-e payment may- -applied to the delinquent the late charge. If more than one Periodic Payment is outstanding, Lender may1 any payment and apply received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due tinder o the Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments. 7 "? 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum(the "Funds") to provide for payment of amounts-due • for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a -o rn lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) - •7) premiums for any and all insurance required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage r-'t Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Initials. da Cp-6(1A) 104051.01 Page 4 of 15 V Form 3016 1/01 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 the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower-for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long'as Borrower is performing such agreement; (b) contests the lien in good faith I utia -61IA))0405).01 Page 5 of 15 Form 3016 1101 by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. MI insuranceolicies required p quired by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the - work has been.completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may.disburse proceeds**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 -7 -- .-.J _. _ •.' Initial -6(IA)10405).01 Page 6 of 15 Form 3016 1/01 requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use,the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably 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 commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order•to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progresspaymmits as the work is completed. If the insurance or condemnation proceeds_arenot sufficient to Te—pair or restorethe Pioperty,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. h� 8. Borrower's Loan Application. Borrower shall be in default if, during the Loan applittion process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's ` m'°^ knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender ,: + i (or failed to provide Lender with material information) in connection with the Loan. Material r— representations include, but are not limited to, representations concerning Borrower's occupancy:of the Property as Borrower's principal residence. ;71 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 condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to enforce laws or Initials:f/1/6T- CZ-611A)104051.01 Page 7 o1 15 Form 3016 1/01 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 in the Property and 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 priority 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 this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this 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 the Loan, Borrower 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 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 the 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 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 non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on 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 the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments-towarcHle-premiums-for-IF6rtgage-insuram tu to Mar pay the premi-ums requued to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender'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 that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage 2 Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, andiia --6 enter into agreements with other parties that share or modify their risk, or reduce losses. These agreement are on terms and conditions that are satisfactory to the mortgage insurer and the other party(or parties))t f ; these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, . any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement Initial -611A)104051.01 Page 8 of 15 Form 3016 1101 provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance."Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property 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 and restoration period, Lender 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. Lender may_pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any,paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial • taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the partial taking, destruction, or loss in value_Anxbalance shall_be_paid to Borrower. _ -Tn the event of a partiartakYng, destruction,or loss m value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless r,., Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums ca' secured by this Security Instrument whether or not the sums are then due. cp If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that theme 6 9 Opposing Party (as defined in the next sentence) offers to make an award to settle a claim for damages, -' •- Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party"means the third party -° 6 that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in u regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in cri Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's ") interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of Initials. d -611A) 10405).01 Pape 9 of 15 Form 3016 1101 • any award or claim for damages.that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that 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 the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security, Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain • all of Borrower's rights and benefits under this Security Instrument. Borrower chall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20)and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower chall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the tted-Iimi---- -_ permitted:_ -hs-, then==(a):-any-suerh-Town=charge=el-iall=lie-reduced�y=rtlse=-am�ounr.riecessaty_EY-reduce- charge to the permitted limit; and(b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by o direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out- of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's 1 i1 notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers - ` unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address 7' • unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly c.n notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's �' change,of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in Initial. -60IA)(0405).01 Page 10 of 15 Form 3016 1/01 connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy.Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial_Interest in Borrower. As tined in this Section 18, "Interest in the Property"means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred(or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before 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 Borrower's right to reinstate; or (O. entry of a_judgn nt enforcing this__Security Instrument-=qh -- - --.__ . .. -. conditions are-tliat Borrower:-(a) pays Leede ill-sums which then would be due under this Security Instrument 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 limited to, reasonable attorneys' fees, property inspection and valuation fees, and other fees incurred 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 under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money ori1ei•;-(c) :. certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn.tlatzn ....Y_+ 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 ftereby d shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not --3 apply in the case of acceleration 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 rR Initlals. +'" CD-60A) (0405).01 Page 11 of 15 Form 3016 1/01 Borrower. 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 Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, 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 Loan Servicer, Borrower will be given written notice of the change 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 Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless 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, until 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 Jake 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 substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable 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 environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower_shall_not_da,. 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 residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products): C' Borrower shall promptly give Lender written notice of(a) any investigation, claim, demand, lawsuit cm or other action by any governmental or regulatory agency or private party involving the Property and any ` •,;..,u- Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b) any - Environmental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of f release of any Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other remediation cn of any.Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary w remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. Initial . i,Pr -6(IA)fo405).o1 Page 12 of 15 Form 3016 1/01 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, foreclosure by judicial proceeding and sale of the Property.The notice shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. 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 foreclose this Security Instrument by judicial proceeding. 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. 23. Release. Upon payment of all sums secured by this Security Instrument, Leader shall release this Security Instrument. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower relinquishes all right of dower and waives all right of homestead and distributive share in and to the Property. Borrower waives any right of exemption as to the Property. 25. HOMESTEAD EXEMPTION WAIVER. I UNDERSTAND THAT HOMESTEAD PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AND EXEMPT FROM JUDICIAL SALE; AND THAT BY SIGNING THIS MORTGAGE, I VOLUNTARILY GIVE UP MY RIGHT TO THIS PR. CTION FOR THIS MORTGAGED PROPERTY WITH RESPECT TO CLAIMS BASED UPON`►of MORTGAGE. 41 ./// I?' .A3/97 -fAILL Borrower David W Phi as ter Date Bo 'wer Linda N Thrashes late7,1 Borrower Date Borrower Date Borrower Date Borrower Date Borrower Date Borrower • Date -6(IA)(04051.01 Page 13 of 15 Form 3016 60_. . o n'i 26. Redemption Period. If the Property is less than 10 acres in size and Lender waives in any foreclosure proceeding any right to a deficiency judgment against Borrower, the period of redemption from judicial sale shall be reduced to 6 months. If the court finds that the Property has been abandoned by Borrower and Lender waives any right to a deficiency judgment against Borrower, the period of redemption from judicial sale shall be reduced to 60 days. The provisions of this Section 26 shall be construed to conform to the provisions of Sections 628.26 and 628.27 of the Code of Iowa. IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: llll i�ta 4S/1 — Seal David W Thrasher -Borrower /f!/L .Await (Seal) _. jnda N Thrasher -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) _ (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower C:-_, c_7 : - C)–< 1 —t c-) a.. 1 `-<;171 � r n ezt)-6(IA)(0406).01 Pae 14 of 16 ® eForm 3016-1/01 C_r1 STATE OF IOWA, Johnson County ss: On this 13th day of February 2007 in the State of Iowa, personally appeared David W Thrasher and Linda N Thrashert�Public to me personally known to be the person(s) named in and who executed the foregoing instrument, and acknowledged that he/she/they executed the same as his/her/their voluntary act and deed. My Commission Expires: `C11'1i Notary Public in and ford County and State KIMBERLY K.McCOY MY Commics9arion Number 169067 LI 1114311TO-W'X • N G. ;n j ' S - s.we. C..} ` p. n- . -7.. +..o al Initials�'J 4� (C)-611A)(0405).01 Initial* m Page 15 of 15 Form 3016 1/01 FIXED/ADJUSTABLE RATE RIDER (One-Year Treasury Index- Rate Caps) THIS FIXED/ADJUSTABLE RATE RIDER is made this 13th day of February 2007 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned ("Borrower") to secure Borrower's Fixed/Adjustable Rate Note (the "Note") to University of Iowa Community Credit Union ("Lender") of the same date and covering the property described in the Security Instrument and located at: 919 Dover St, Iowa City, IA 52245 [Property Address] THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security. Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate of 7.125 %. Note also provides for a change in the initial fixed rate to an adjustable interest rate,Thes follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of March 2010 , and the adjustable interest rate I will pay may change on that day every 12th month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change, is called a "Change Date." (B) The Index Beginning with the first Change Date, my adjustable interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." MULTISTATE FIXED/ADJUSTABLE RATE RIDER - ONE-YEAR TREASURY INDEX - Single ` Family - Fannie Mae Uniform Instrument Form 3182 1/01 -71 C)-843R (0405) Page 1 of 4 Initials: Ill �"" VMP Mortgage Solutions, -v �'� (800)521-7291 `moi If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding Three and five eighths ( percentage points 3.625 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 9.125 % or less than 5.125 %. Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more than two percentage points from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 13.125 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to an adjustable_interest_rate_and._of-any-changes-in-my—adjustable=interest--rate before the effective date of any change. The notice will include the amount of my monthly payment, any information required by law to be given to me 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 1. Until Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrument shall read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this. c' Section 18, "Interest in the Property" means any legal or beneficial interest in the .- Property, including, but not limited to, those beneficial interests transferred inCD bond for deed, contract for deed, installment sales contract or escrow agreement,'"?—‹ i �#-- the intent of which is the transfer of title by Borrower at a future date to a4 purchaser. r; ( _p "n If. all or any part of the Property or any Interest in the Property is sold or" y",I transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. CD-843R (0405) Page 2 of 4 Initials. Form 3182 1/01 However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 2. When Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 18 of the Security Instrument described in Section B1 above shall then cease to be in effect, and the provisions of Uniform Covenant 18 of the Security Instrument shall be amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as _if_a__new__loan__were__being_made–to–the---trans.feree; and (b)- Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee- o as a condition to Lender's consent to the loan assumption. Lender also may require.c) o the transferee to sign an assumption agreement that is acceptable to Lender and that------1— obligates the transferee to keep all the promises and agreements made in the Note'< �-- and in this Security Instrument. Borrower will continue to be obligated under th,(7.2 Note and this Security Instrument unless Lender releases Borrower in writing. r.; M If Lender exercises the option to require immediate payment in full, Lender shall-)=' CJ give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower . fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. Initial 4,r,� CO-843R (0405) Page 3 of 4 Form 3182 1/01 m BY SIGNING BELOW, Borrower accepts and agrees o the terms and covenants contained in this Fixed/Adjustable Rate Rider. / C.�lU�2✓ 5�� (Seal) 4fL//� API David W Thrasher -Borrower inda N Thrash�� -Borrower orrower (Seal) -Borrower (Seal) -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower CZ-843R (0405) Page 4 of 4 Form 3182 1/01 O CD • +rgl CONDOMINIUM RIDER ilmwe THIS CONDOMINIUM RIDER is made this 13th day of February 2007 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Note to University of Iowa Community Credit Union (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 919 Dover St, Iowa City, IA 52245 [Property Address] The Property includes a unit in, together with an undivided interest in the common elements of, a condominium project known as: Dover Condominiums [Name of Condominium Project) (the "Condominium Project"). If the owners association or other entity which acts for the Condominium Project (the "Owners Association") holds title to property for the benefit or use of its members or shareholders, the Property also includes Borrower's interest in the Owners Association and the uses, proceeds and benefits of Borrower's interest. CONDOMINIUM COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. Condominium Obligations. Borrower shall perform all of Borrower's obligations under the Condominium Project's Cflstituent-Documents.._The -Constituent=-Doeurnents"=are-=the:-(i) Declaration or any other document which creates the Condominium Project; (ii) by-laws; (iii) code of regulations; and (iv) other equivalent documents. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or "blanket" policy on the Condominium Project which -_` warn is satisfactory to Lender and which provides insurance coverage in the amounts (including 7:1- deductible levels), for the periods, and against loss by fire, hazards included within the term t "extended coverage," and any other hazards, including, but not limited to, earthquakes-and "' floods, from which Lender requires insurance, then: (i) Lender waives the provision in rn c , MULTISTATE CONDOMINIUM RIDER - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT ©-8R (0411) Form 3141 1/1 Page 1 of 3 Initials. A Ar VMP Mortgage Solutions, Inc.t (800)521-7291 Section 3 for the Periodic Payment to Lender of the yearly premium installments for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. What Lender requires as a condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, whether to the unit or to common elements, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender for application to the sums secured by the Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property, whether of the unit or of the common elements, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the Condominium Project, except for abandonment or termination required by law in the case_of substantiaLdestruction-by—fire-or-other—casualty-or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the Constituent Documents if the provision is for the express benefit of Lender; (iii) termination of professional management and assumption of self-management of the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F. Remedies. If Borrower does not pay condominium dues and assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. N O CD CJ C-) 1 ram C3 -10 Initials. f� 8R (041 1) I r op Page 2 of 3 Form 3140 1/01 -' BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Condominium Rider. !//1/ (Seal) J4,/y��- ' ��'_t Seal) David W Thrasher -Borrower inda N Th .er -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower -8R (041 1) Page 3 of 3 Form 3140 1/01 cm C) V r- -II Fri o 3' U, I I I III II I II II 1111 IIII I IIIII IIIII lllll 11 111 III II III JIII I IIII I III/IIIII II II Ili/ Doc ID: 021420030002 Tvoe: GEN Recorded: 03/24/2009 at 12:39:34 PM Fee Amt: 512.00 Paae 1 of 2 Johnson County Iowa Kim Painter County Recorder BK4411 PG934-935 Prepared by/Return to:Connie Welk Loan#! Prepared by:University of Iowa Community Credit Union,825 Mormon Trek Blvd,P.O.Box 2630,Iowa City.Iowa 52244,(319)341-2125 MODIFICATION AND EXTENSION OF MORTGAGE This Modification and Extension of Mortgage Agreement is made this 27th day of February,by and between David W.Thrasher and Linda N.Thrasher,Mortgagor(s),and University of Iowa Community Credit Union,Mortgagee. On February 13,2007 Mortgagor(s)executed a Note and Mortgage to Mortgagee which was secured by a Mortgage dated February 13,2007 and recorded February 26,2007,in Book 4132,Page 286-307,of the records of the Recorder of Johnson County,Iowa, and which covered the real property located in Johnson County,Iowa,described as follows: Unit I in Dover Condominiums Part 13,according to the plat thereof recorded in Book 705,Page 405,Records of Johnson County,Iowa. In exchange for valuable consideration,the receipt of which is hereby acknowledged,Mortgagor(s)and Mortgagee have agreed to modify and extend the maturity date of the Note and the Mortgage securing said Note.Mortgagor(s)and Mortgagee agree that as of this date,the unpaid balance due under the Note is$117,855.03 and the accrued and unpaid interest is$0.00.The Note is modified to consist of the terms as set forth in the Note executed by Mortgagor(s)on this date,and the maturity date of the Note and Mortgage is extended to March 1,2039. The Mortgage securing said Note shall not be prejudiced by this Agreement. The covenants and agreements of the rider(s)attached hereto shall be incorporated into and shall amend and supplement the covenants and agreements of the Mortgage as lithe rider(s)where a part of the Mortgage_ All terms,covenants,obligations and conditions of the Note and the Mortgage securing said Note shall remain in full force and effect except as expressly modified herein,and Mortgagor(s)agrees to execute any documents(s)reasonably required by Mortgagee to fulfill this Agreement. Each of the undersigned acknowledge receipt of a copy of this document on the date executed. MORTGAGORS: / /.� 1 77-4-71 S-i-- 2/278009 ff /� k �;' By:David W.Thrasher Date 2/27/2009 Ry ands N.Thrasher Date STATE OF IOWA,COUNTY OF JOHNSON,ss: On this 27th day of February,2009,before me,a Notary Public,personally appeared,David W.Thrasher and Linda N.Thrasher, tome known to be this persons)named in and who executed the foregoing instrument and acknowledged that be/she/they executed the same as his/her/their voluntary act and deed. TANN S.liii:GARY -,�-, *Commission NurnbergjilritC-"1r//C , IN Notary Public in and for the of to o MORTGAGEE:UNIVERSITY OF IOWA COMMUNITY CREDIT UNION C J C=, .711 4121 _ / '=1 -`mac 2/27/2009 �.; 1 •�R 2/27/2009 By:Donald R Wells Date 7 CD M By:Amy Hen arson Date STATE OF IOWA,COUNTY OF JOHNSON,ss: ^<" Fri i-rl -t7 —11. On this 27th day of February,2009,the undersigned,a Notary Public in and for the State of Iowa,personally appeared70 Amy Henderson&ponald R Wells tome personally known,who being by me duly sworn,did say that they are the Vice President&First Vice President respectively,of said corporation executing the within and foregoing instrument that no seal has been procured by the said Cf. corporation;tbat said instrument was signed on behalf of said corporation by authority of its Board of Directors;and that the said Vice President&First Vice President as such officers acknowledged the execution of said instrument to be the voluntary act and deed of said corporation,by it and by them voluntarily executed. 6-71ZZ-e_e 0 / ,e.{/(_-- Notary Public in and fora. State of Iowa Connie J.Welkr CONNIEJ.WELK a S Commission Number 720951 • My Commission Expires ww • 02/y-2-9/Z- 4 • Prepared By:University of lows Community Credit Union,825 Mormon Trek Blvd,_P.O.Box 2630,Iowa City,Iowa,52244-,(319)341-2125 CLOSED END 3/1 ARM VARIABLE RATE RIDER (One Year Treasury Index-Rate Caps) TitS VARIABLE RATE RIDER is made this 271° day of February,2009,and is incorporated into and shall be deemed to amend and supplement the Mortgage of the same date or earlier date given by the undersigned(the"Mortgagor(s)"and"Borrower(s)")to secure Borrower's Variable Rate Note(the"Note")to University of Iowa Community Credit Union,its successors and/or assigns(the"Mortgagee" and"Note Holder")of the same date and covering the property described in the Mortgage and located at: 919 Dover St,Iowa City,Iowa 52245 Property Address THIS NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS TH1'.AMOUNT IRE MORTGAGOR'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE MORTGAGOR MUST PAY. ADDITIONAL COVENANTS.In addition to the covenants and agreements made in the Mortgage,Mortgagor and Mortgagee further covenant and agree as follows: INTEREST RATE AND MONTHLY PAYMENTS CHANGES The Note provides for an initial interest rate of 4.000%.The Note provides for changes in the interest rate and the monthly payments 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 March 1,2012,and on that day every 12th month thereafter.Each date on which my interest rate could change Is called Change Date. (B) The index The Annual Percentage Rate(the"interest rate")may Increase during the term of this transaction.Beginning with the first Change Date,the interest rate will be based on an Index.The Index is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year,as make available by the Federal Reserve Board,ronuded to the nearest%%.The Annual Percentage Rate on existing balances will change on the Change Date,subject to annual and lifetime interest rate limits described in paragraph 4(D).Any increase in the interest rate will result In payments of a higher amount. If the Index is no longer available,the Note Holder will choose a new index which is based upon comparable information.The Note Holder will give me notice of this choice. (C) Calculation of Changes On each Change Date,the Note Holder will calculate my new interest rate by adding two and three quarters percentage points (2.750%)to the current Index.Subject to limits stated in Section 4(D)below,this rounded amount will be my new interest rate until the next Change Date. The Note Bolder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the maturity date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits On Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater that'6.000%_or lesstbanA.000%..Thereafter,.my_...._..-._.._- ioteres gate will never a increased or decreased on tinysingle-Change Date,by more than 2.00%from the rate of interest I have been paying for the preceding twelve months.If the interest rate is Increased on any singe Change Date,the amount of the change will never be less than.25%from the rate of interest I have been paying for the preceding twelve months.My interest rate will never be greater than 10.000%.The interest rate will never be less than 4.000%. (E) Effective Date of Changes My new interest rate will become effective on each Change Date.I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment 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 a payment at the new level is due.The notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any questions I may have regarding the notice. BY SIGNING BELOW,Mortgagor(s)accept(s)and agree(a)to the terms:'d covenants contained in is V_ 'able Rate Rider. Seal Borrower:David W.Thrasher sal) ., er: Indo N.Thrasher A ^� it C.)-‹ 1 r.ria • fT1 .- ni GT � 5 CLOSED END FIXED RATE BALLOON BALLOON MORTGAGE NOTE February 13,2007 Closing date David W Thrasher Linda N Thrasher WEINInge 919 Dover Street Iowa City,IA 52245 Name Account Number Property Address (1) BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. $ 13,250.00 (this amount is called • "principal"), plus Interest, to the order of the Lender. The Lender Is the University of Iowa Community Credit Union,a/k/a U of I Community Credit Union. I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." (2) INTEREST Interest will be charged on unpaid principal until the full amount of principal has been paid. I will pay Interest at a yearly rate of 7.25% The interest rate required by this Section 2 of this Note is the rate I will pay both before and after any default described in section 6(B)of this Note. (3) PAYMENTS (A) Time and Place of Payments I will pay principal and Interest by making payments every month. v' I will make my monthly payments on the 1st day of each month beginning on the 1st day of April,2007. I will make these payments on the 1st day of every month thereafter until I have paid all of the principal and interest and any other charges described below that I may owe on th0 Note,except that a balloon payment of $11,577.20 shall be due and payable on the 1st day of March, 2012. My payments will be applied to Interest before principal. If on March 1,2012 I still owe amounts under this Note, I will pay these amounts In full on that date which Is called the"maturity date". I will make monthly payments at 825 Mormon Trek Blvd.,P.O.Box 2830,Iowa City,Iowa 52244-2630,or at a different place if required by the Note Holder. (8) Amount of Monthly Payments. Each of my monthly payments will be In the amount of U.S. $104.72. (4) BORROWER'S RIGHT TO PREPAY I have the right to make payments of principal at any time before they are due after payment of accrued interest--_/kpaymentof-principal-only-Is-known-as-a-"prepayment=When-l-make-a prepayment, Fwlll=telt=the-Note-- -------- _ _ - Holder In writing that I am doing so. I may make a full prepayment or partial prepayments without paying any prepayment charge. The Note Holder will use all of my prepayments to reduce the amount of principal that I owe under this Note. If I make a partial prepayment,there will be no changes in the due dates of my monthly payments unless the Note Holder agrees In writing to those changes. (5) LOAN CHARGES If a law,which applies to this loan and which sets maximum loan charges,is finally interpreted to so that the Interest or other loan charges collected or to be collected In connection with this loan exceed permitted limits, then(I)any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limits,and(ii)any sums already collected from me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the principal I owe under this Note or by making a direct o payment to me. It a refund reduces principal,the reduction will be treated as a partial prepayment. _3 (6) BORROWER'S FAILURE TO PAY AS REQUIRED r "`Tr" - 0 611 (A) Late Charges for Overdue Payments. If the Note Holder has not received the full amount of arty---. "e monthly payment by the end of fourteen(14)calendar days after the date It Is due,I will pay a late charge to the I „ Note Holder. The amount of the charge will be 5.00%of my overdue payment of principal and Interest or that• amount which Is legally permissible under Iowa law. I will pay this late charge promptly but only once on each; late paymenL I (B) Default. If I do not pay the full amount of each monthly payment on the date it Is due, I will be In -' default. (C) Notice of Default. If I am In default,the Note Holder may send me a written notice telling me that s,; if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full __ amount of principal which has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice Is delivered or mailed to me. (D) No Waiver By Note Holder. Even If, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above,the Note Holder will still have the right to do so If I am in default at a later time. (E) Payment of Note Holder's Costs and Expenses. If the Note Holder has required me to pay Form 03/07/03 EON. 3 I' Immediately in full as described above,the Note Holder will have the right to be paid back by me for all of its costs and expenses In enforcing this Note to the extent not prohibited by applicable law. Those expenses Include,for example,reasonable attorneys'fees. (7) GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the address under my signature below or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by mailing it by first class mail to the Note Holder at the address stated in section 3(A)above or at a different address if I am given a notice of that different address. (8) OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who Is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, Is also obligated to keep all of the promises made in this Note. The Note Holder may enforce Its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. (9) WAIVERS I and any other person who has obligations under this Note waive the rights of presentment and notice of dishonor. "Presentment" means the right to require the Note Holder to demand payments of amounts due. "Notice of dishonor"means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. (10) PRINCIPAL RESIDENCE Borrower(s) agree that the BORROWERS STATEMENT UNDER OATH, COVENANT AND INDUCEMENT AGREEMENT,attached hereto,Is incorporated in its entirety in this Note. (11) UNIFORM SECURED NOTE This Note Is a uniform Instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note,a Mortgage,Deed of Trust or Security Deed(the"Security Instrument"),dated the same date as this Note,protects the Note Holder from possible losses which might result if I do not keep the promises which I make In this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment In full of all amounts I owe under this Note. Some of those conditions are described as follows: (A) Transfer of the Property or a Beneficial Interest/n Borrower. If all or any part of the Property or any interest in it is sold or transferred(or if a beneficial Interest in Borrower Is sold or transferred and Borrower is not a natural person) without Note Holder's prior written consent, Note Holder may, at Its option, require immediate payment in full of all sums secured by this Security Instrument. (B) Principal Residence. If I breach paragraph 10 of this Note,Note Holder may,at its option,require immediate payment in full of alt sums secured by the Security Instrument The Note and Mortgage may be amended by mutual consent of Noteholder and Borrowers. (12) DISCLOSURE THIS LOAN IS PAYABLE IN FULL AT MATURITY.YOU MUST REPAY THE ENTIRE PRINCIPAL BALANCE OF THE LOAN AND UNPAID INTEREST THEN DUE.THE CREDIT UNION IS UNDER NO OBUGATION TO REFINANCE THE LOAN AT THAT TIME. YOU WILL, THEREFORE, BE REQUIRED TO MAKE PAYMENT OUT OF OTHER ASSETS THAT YOU MAY OWN,OR YOU WILL HAVE TO FIND A LENDER,WHICH MAY BE THE CREDIT UNION YOU HAVE THIS LOAN WITH, WILLING TO LEND YOU THE MONEY. IF YOU REFINANCE THIS LOAN AT MATURITY, YOU MAY HAVE TO PAY SOME OR ALL OF THE CLOSING COSTS NORMALLY ASSOCIATED WITH A NEW LOAN EVEN IF YOU OBTAIN REFINANCING FROM THE SAME CREDIT UNION. N (13) ENFORCEABILITY (-- If any term in this Note or the mortgage securing this Note violates any law or for some other reason Is `' not enforceable, that term will not be a part of this Note. However, the other terms of this Note will remain : p �*I a effective. __-t —< "s,,, This Note Is subject to Iowa law and any applicable Federal law. If enactment or expiration of applicable _.- I laws has the effect of rendering any provision of this Note or the mortgage securing this Note unenforceable .s- r. according to its terms, Note Holder, at its option, may require immediate payment in full of all sums loaned in ril connection with the Note. -`F-_ —!7 • , WITNESS THE HAND(S)AND SEAL(S)OF THE UNDERSIG/.. t� v �,. > ��i 46.41L—.4/ / 77 `rt BOR4i6ROWER David W Thrasher (seat) .u•ROWER LI .a �..•mer (seal) 919 Dover Street • •Dover Street Iowa City,IA 52245 Iowa City,IA 52245 ADDRESS ADDRESS Form 03/07/03 i X3(31 111111111111111111111111 Doc I0: 020791170005 Tvoe: 0EN Recorded: 03/05/2007 at 12:33:47 PH Fee Amt: $27.00 Pace 1 of 5 Johnson County lows Kim Painter County Recorder 4134 P.288-292 Prepared by/Retum b: Lisa/Ryan Loan Number. 1111.11111M111,- University of Iowa Community Credit Union_P O Rox 2240.Iowa CdtyJowa 52244-2240.1319)339-100Q R-A IOWA MORTGAGE CLOSED END- FIXED RATE-BALLOON THIS INDENTURE made this 13th day of February,2007,between David W Thrasher and Linda N Thrasher, Husband and Wife,Mortgagor(s),whose address Is:919 Dover Street,Iowa City,IA 52245,and the UNIVERSITY OF IOWA COMMUNITY CREDIT UNION,a/k/a U OF I COMMUNITY CREDIT UNION, Mortgagee,having Its principal place of business at 825 Mormon Trek Blvd,Iowa City, Iowa,WITNESSETH: That the said Mortgagor(s)In consideration of $13,250.00 loaned by Mortgagee,received by Mortgagor(s)and evidenced by the promissory note(s)hereinafter referred to,do,by these presents SELL,CONVEY,AND MORTGAGE,unto the said Mortgagee the following described real estate situated in the County of Johnson, State of Iowa,to-wit: Unit I In Dover Condominiums Part 1I,according to the plat thereof recorded in Book 705,Page 405,Records of Johnson County,Iowa. which has the address of 919 Dover Street,Iowa City,IA 52245 • Street/City/State/Zip together with all personal property that may Integrally belong to,or be,or hereafter become an Integral part of said real estate,and whether attached or detached,and hereby granting,conveying,and mortgaging also all of the easements,servient estates appurtenant thereto,rents,Issues,uses,profits,and right of possession of said real estate,and all crops raised thereon from now until the debt secured thereby shall be paid In full. As to any such personal property or fixtures,or both,a Security Interest hereby attaches thereto,as provided by the Uniform Commercial Code. This mortgage-secures-the-payment of-the-loan-made-by-Mortgagee-to-Mort a g gor(s)-which-is-euldenced-by-a_ note dated this date,In the amount of$13,250.00 with a due date of March 1,2012,along with any renewals, extensions,modifications,or refinancing thereof and any notes issued In substitution therefor,and any additional loans and advances for any purpose whatsoever which hereafter may be made by the Mortgagee to the Mortgagor(s),or any Mortgagor If there Is more than one,which shall have the same priority and privileges as If made on this date;and any advances made by Mortgagee for the purpose of protecting Its mortgage and security Interest in the above-described property. This paragraph does not constitute a commitment to make additional bans in any amount. This Mortgage is subject only to a prior mortgage from David W Thresh r and Linda N Thrasher,Husband and Wife to U of I Community Credit Union,dated 02/13/2007 recorded on (-.14-61,In Book4132 ,Page 286 0 ,of the Records of the Johnson County Recorder. _ — CD Said Mortgagor(s)hereby covenant with Mortgagee,or successor In Interest,that said Mortgagor(s)g gor(s)holo said ---__. o i � real estate by title In fee simple;that they have good and lawful authority to sell,convey,and mortgage the sam ,, that said premises are Free and Clear of all Liens and Encumbrances whatsoever except as may be above I stated;and said Mortgagor(s)Covenant to Warrant and Defend the said premises against the lawful claims otalf• •- persons whomsoever,except as may be above stated. - ... ,. -77 r Each of the undersigned hereby relinquishes all rights of dower,homestead,and distributive share in and to the- . above-described premises,and waives any rights of exemption,as to any of said property. 777 — ' CONDITIONED,HOWEVER,that if Mortgagor(s)shall pay,or cause to be paid to U of I Community Credit ul Union,500 Iowa Avenue/P.O.Box 2240,Iowa City,Iowa 52244,Its successors or assigns,al such place as designated by the promissory note(s),of even date herewith,given by Mortgagor(s)to U of I Community Credit Union,of Iowa City,Iowa,or at such place as the owner of such promissory note(s)shall designate from time to time,the sum of$13,250.00,In legal tender in payment of all debts and dues,public and private,at the time of payment,payable as provided in said promissory note(s),with final payment due thereon,on or before the 1st day of March,2012,unless otherwise extended,with Interest as provided therein,and shall perform the other 03/07/03 e.tift . P tAnimmumummin provisions hereof,then these presents shall be void,and Mortgagee shall release said real estate at the expense of the Mortgagor(s),otherwise to remain in full force and effect. All payments received by the Mortgagee shall first be applied to protective advances under paragraph No. 11,then to late charges,and then to unpaid interest, and lastly,unpaid principal. 1. TAXES: Mortgagor(s)shall pay each installment of all taxes and special assessments of every kind, now or hereafter levied against said property,or any part thereof,before same become delinquent,without notice or demand;and shall procure and deliver to said Mortgagee,on or before the fifteenth day following due date of each installment,duplicate receipts of the proper officers for the payment of all such taxes and assessments then due. 2. INSURANCE: Mortgagor(s)shall keep in force insurance,premiums therefor to be prepaid without notice of demand,against loss by tire,tornado,and other hazards,casualties,and contingencies as Mortgagee may require on personal property,as herein referred to,and on all buildings and improvements on said premises in companies to be apprpved by Mortgagee In an amount not less than the full insurable value of such personal property and improvements,or not less than the unpaid balance herein,whichever amount is smaller,with such insurance payable to Mortgagor(s)and Mortgagee,as their interests may appear. In the event of a loss, Mortgagor(s)wip give Immediate notice by mail to the Mortgagee,who may make proof of loss to the Insurance company,and the insurance proceeds,at the option of the Mortgagee,shall be received by Mortgagee and applied towards payment of this mortgage. Mortgagor(s)shall promptly deposit such policies with proper riders with the Mortgagee. Also,if required,the Mortgagor(s)agree to secure and maintain the maximum amount of flood insurance required in compliance with the Flood Disaster Protection Act of 1973,and to furnish such policies to the Mortgagee with the insurance payable to the Mortgagee. 3. REPAIRS TO PROPERTY: Mortgagor(s)shall keep the buildings and other improvements on said premises in as good repair and condition,as same may now be,or are hereafter placed,ordinary wear and tear only excepted;and shall not suffer or commit waste on or to said security, 4. COMPLIANCE WITH LAW: Mortgagor(s)shall comply with all present and future laws,regulations, and ordinances affecting the mortgaged property. 5. CONDEMNATION: All compensatlnn awarded_for any_damages-in_connection-with-a-condemnation--- proceeding for any part of the mortgaged property shall be paid directly to the Mortgagee and applied to the mortgage note. 6. JOINT AND SEVERAL LIABILITY: Mortgagor(s)agree to be jointly and severalty liable for the Indebtedness evidenced by the mortgage note and secured by this mortgage. The signing of this mortgage and the mortgage note by the spouse of the owner is not only for the purpose of releasing dower or distributive share but also for the express purpose of creating personal(lability of the spouse for the indebtedness. 7. PRINCIPAL RESIDENCE: Mortgagor(s)agree that Paragrapho 10 of the Promissory Note(s)of even date herewith,given by the Mortgagor(s)to the University of Iowa Community Credit Union,regarding the use of) o the property which Is the subject of this Mortgage as a principal residence,is Incorporated into this Mortgage.:A:C breach of Paragraph 10 of said note(s)constitutes a default of this Mortgage,that shall entitle the Mortgagee,:its:=.,i successors or assigns,to exercise the remedies as set forth In paragraph No.12 of this Mortgage- The Note, —4; •OMA• and Mortgage may be amended by mutual consent of Mortgagor(s)and Mortgagee. 8. RESTRICTIONS ON TRANSFER: Mortgagor(s)agree that In the event they shall In any manner —13 transfer the title to any portion of the mortgaged premises,whether by deed,real estate contract,or otherwise,-or in the event any interest in it is sold or transferred(or if a beneficial interest in Mortgagor(s)Is sold or transferred ' ' and Mortgagor Is not a natural person),that the whole unpaid balance of the obligation secured hereby shall become Immediately due and payable at the option of Mortgagees;and,Mortgagor(s)agree that they shall give CJ1 Mortgagee no less than ten(10)days'advance written notice prior to making any such transfer. If Mortgagee exercises the option to require immediate payment in full,Mortgagee shall give Mortgagor(s)notice of acceleration. The Mortgagee shall provide a period of not less than thirty(30)days from the date the notice is delivered or mailed within which Mortgagor(s)must pay all sums secured by this Mortgage. If Mortgagor(s)fails to pay these sums prior to the expiration of this period,Mortgagee may invoke any remedies permitted by this mortgage without further notice or demand on Mortgagor(s). 9. ENFORCEABILITY: If any term In this mortgage or the mortgage note secured hereby violates any law or for some reason Is not enforceable,that term will not be a part of this mortgage. However,the other terms of this mortgage will remain effective. If enactment or expiration of applicable laws has the effect of rendering any 03/07/03 / 2 ►i • provision of this mortgage or the mortgage note secured hereby unenforceable according to its terms. Mortgagee,at its option,may require Immediate payment in full of all sums secured by this mortgage and may invoke any remedies permitted by this mortgage. If Mortgagee exercises the option to require immediate payment in full,Mortgagee shall give Mortgagor(s)notice of acceleration,in the manner described in Paragraph 8. 10. NON-WAIVER: Any forbearance by Mortgagee in exercising any right or remedy allowed for by the mortgage or mortgage note secured hereby shall not be a waiver of or preclude the exercise of any right or remedy. 11. ADVANCES OPTIONAL WITH MORTGAGEE: It is expressly understood and agreed that if the insurance above provided for is not promptly effected,or If the taxes or special assessments assessed against said property shall become delinquent, Mortgagee(whether electing to declare the whole mortgage due and collectible or not),may(but need not)effect the insurance above provided for,and need not,but may and is hereby authorized to pay said taxes and special assessments(irregularities In the levy or assessment of said taxes being expressly waived),and all such payments with interest thereon at the highest legal rate applicable to a natural person(or,if the Mortgagor is a corporation,then at the default rate provided in the note secured hereby)from time of payment shall be a lien against said premises. 12. ACCELERATION OF MATURITY AND RECEIVERSHIP. And it is agreed that if default shall be made in the payment of said note(s),or any part of the interest thereon,or any other advance or obligation which may be secured hereby or any agreed protective disbursement,such as taxes,special assessments,insurance,and repairs,or if Mortgagor(s)shall suffer or commit waste on or to said security,or if there shall be a failure to comply with any and every condition of this mortgage,including Paragraph 10 of the note(s)of even date herewith and described in Paragraph 7 of this Mortgage,then,at the option of the Mortgagee,said note and the whole of the indebtedness secured by this mortgage,including all payments for taxes,assessments,or insurance premiums,shall become due and shall become collectible by foreclosure or otherwise after such default or failure,Mortgagee shall give notice to Mortgagor(s)prior to acceleration(except for acceleration under paragraphs Nos.B or 9). The notice shall specify(a)default;(b)the action required to cure the default;(c) date,not less than thirty(30)days from the date the notice is given to Mortgagor(s),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 the Mortgage,foreclosure by judicial proceeding and sale of the property. If the default Is not cured by the date specified in the notice,Mortgagee,at its option,may require immediate payment in full of all sums secured by this mortgage without further demand and may collect the sums by foreclosing this mortgage by judicial proceeding or otherwise. Mortgagee shall be entitled to collect all expenses Incurred In pursuing the remedies provided in this paragraph. Mortgagor consents to the appointment of a receiver for the property,at the option of the Mortgagee. 13.. ATTORNEY'S FEES: In case of any action,or in any proceedings In any court,to collect any sums payable or secured by this Mortgage,to protect the lien of title herein of the Mortgagee,or in any other case permitted by law In which attorney fees may be collected horn the Mortgagor(s),or charged upon the above- described property,Mortgagor(s)agree to pay reasonable attorney fees. 14. CONTINUATION OF ABSTRACT: In event of any default herein by Mortgagor(s),Mortgagee may,at the expense of Mortgagor(s),procure an abstract of title,or continuation thereof,for said premises,and charge and add to the mortgage debt the cost of such abstract or continuation with Interest upon such expense at the highest leg rate applicable tQa natural'lemon-or if the MortgagQ.Cis,ra_poreAratipp_tllen_at.be-defaultrate-..___ providedln the nose secured hereby. 15. SHORTENED REDEMPTION PERIOD: It is further agreed that in the event of judicial foreclosure of this Mortgage,the Mortgagee may,at its sole discretion,elect to: A. Reduce the period of redemption after Judicial sale to six(6)months,if the property is less than ten(10) acres in size and Mortgagee waives In any foreclosure proceeding any right to a deficiency judgment against Mortgagor(s),pursuant to Iowa Code Section 628.26,or B. Reduce the period of redemption after judicial sale to sixty(60)days,if the property is less than ten(10) acres in size,Mortgagee waives in any foreclosure proceedings any right to a'deficiency judgment against Mortgagor(s),and the court finds that the property has been abandoned by Mortgagor(s),pursuant to Iowa Code Section 628.27,or C. Reduce the period of redemption after judicial sale to the time period set forth in Iowa Code Section 628.28 or any other Iowa Code Section to reduce the period of redemption after judicial sale to such timqae� e may be then applicable or provided by law,or �eml r I -,.1,.e D:Foreclose without redemption after judicial sale if the property Is not used for an agricultural purpose, pursuant to Iowa Code Section 654.20. _ a 16. HAZARDOUS SUBSTANCES: Mortgagor(s)shall not allow the presence,use,disposal,storage or: r0 release on or in the property of any substance which has been defined by any federal,state,or local law or - m regulation as a toxic or hazardous substance,which includes,but is not limited to:gasoline,kerosene, flammable or toxic petroleum products,pesticides,herbicides,solvents,asbestos,formaldehyde,and radioactive — materials. Mortgagor(s)shall promptly give Mortgagee written notice of any investigation,action,or claim which involves the property and any toxic or hazardous substance or federal,state,or local law or regulation which relates to health,safety,or environmental protection. Upon notice that remediatlon or removal of a toxic or hazardous substance is necessary,Mortgagor(s)shall promptly take all necessary remedial action. The 03/07/03 n 3 J ' Mortgagor(s)may use or store on the property small quantities of hazardous substances which are generally and reasonably recognized to be appropriate to normal residential use and maintenance of the properly. 17. NOTICES: Any notice to Mortgagor(s)provided for in this Mortgage may be given when delivered or mailed by first class mail. The notice shall be directed to the address of the Mortgagor(s)stated on the face of this mortgage,unless Mortgagor(s)has designated a different address by notice to Mortgagee. Any notice to Mortgagee shall be given by first class mail to University of Iowa Community Credit Union,825 Mormon Trek Blvd/P.O.Box 2630,Iowa City,Iowa 52244,unless Mortgagee has designated a different address by notice to Mortgagor(s). 18. DEFINITION OF TERMS. Unless otherwise expressly stated the word"Mortgagor(s)",as used herein, includes successors in interest of such"Mortgagor(s)";the"Mortgagee",as used herein,unless otherwise expressly stated,includes the successors in Interest of such"Mortgagee". All words referring to"Mortgagor'or "Mortgagee"shall be construed to be of the appropriate gender and number,according to the context. This construction shalt include the acknowledgment hereof. 19. WAIVER: I UNDERSTAND THAT HOMESTEAD PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AND EXEMPT FROM JUDICIAL SALE AND BY SIGNING THIS CONTRACT I VOLUNTARILY GIVE UP MY RIGHT TO THIS PROTECTION WITH THE RESPECT TO CLAIMS BASED UPON THIS CONTRACT. / how4/b/ sf4-/-- 2//3,/,17 ./ .=_✓ David W Thrasher . Date Linda N Thrasher Date 1 7 20. RIDERS TO THIS MORTGAGE: If one or more riders are executed by Mortgagor(s)and recorded together with this Mortgage the covenants and agreements of each such rider shall be incorporated Into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider(s)were a part of this Mortgage. [Check applicable space(s)]. Condominium Rider Other: IN WITNESS WHEREOF,said Mortgagor(s)have hereunto set their•. ds the day and year first written. , P44 4 1 14/11411--V— 444 A1161111/ MORTGAGOR David W Thrasher MORTGAGOR Linda N Thrasher ------------- STATE OF IOWA ) ) ss: COUNTY OF JOHNSON ) On this 131"day of February,2007,before me,the undersigned,a Notary Public in and for the State of Iowa, personally appeared David W Thrasher and Linda N Thrasher to me known to be the identical person named and who executed the foregoing instrument,and acknowledged that they executed the same as their voluntary act and deed. ,J J cD cm Notary Public in and for the State of Iowa —rm -----,,,, Commission Expires: L(I I J).3Gt'irl >""'' " ii i `�f' " 'Z] Fri KIMBERLY K McCAY .:_`_ I) ii ComNuron Nunt*(t8GOB7 _.__ f CP 03/07/03 4 I Prepared By:Usa/Ryan University of Iowa Community Credit Union,825 Mormon Trek Blvd,P.O.Box 2630,Iowa City,Iowa 522442630(319)341.2125 CONDOMINIUM RIDER ALL MORTGAGES THIS CONDOMINIUM RIDER is made this 13th day of February,2007,and is incorporated into and shall be deemed to amend and supplement the Mortgage of the same date given by the undersigned Mortgagor(s)to secure the Mortgagor(s)'Note to the University of Iowa Community Credit Union a/k/a U of I Community Credit Union(Mortgagee)of the same date and covering the Property described in the Mortgage and located at: Dover Condominiums Part U (the"Condominium Project").-if the owners association or other entity which acts for the Condominium Project(the"Owners Association")hold title to property for the benefit or use of its members of shareholders,the Property also includes Mortgagor(s)' interest in the Owners Association and the uses,proceeds and benefits of Mortgagor(s)interest CONDOMINIUM COVENANTS.In addition to the covenants and agreements made in the Mortgage.Mongagor(s),and . Mortgagee(s)further covenant and agree as follows: A. CONDOMINIUM OBLIGATIONS.Mortgagors)shall perform all of Mortgagor(s)'obligations under the Condominium Project's Constituent Documents.The"Constituent Documents"are the(I)Declaration or any other document which creates the Condominium Project;(ii)bylaws;(iii)code of regulation;and(iv)other equivalent documents.Mortgagor(s)shall promptly pay,when due,all dues and assessments imposed pursuant to the Constituent Documents. B. HAZARD INSURANCE.So long an the Owners Association maintains,with a generally accepted insurance carrier,a"master"or'blanket"policy on the Condominium Project which is satisfactory to Mortgagee and which provides insurance coverage in the amounts,for the periods,and against the hazards Mortgagee requires, including fire and hazards included within the term"extended coverage",then in Use event of a distribution of hazard insurance proceeds in lieu of restoration or repair following a loss to the property,whether to the unit or to common elements,any proceeds payable to Mortgagor(s)are hereby assigned and shall be paid to Mortgagee for application to the sums secured by the Mortgagee for application to the sums secured by the Mortgage,with any excess paid to Mortgagor(s). C. PUBLIC LIABILITY INSURANCE.Mortgagor(s)shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability policy acceptable in form,amount,and extent of coverage to Mortgagee. D. CONDEMNATION.The proceeds of any award or claim for damages,direct or consequential,payable to Mortgagor(s)in connection with any condemnation or other taking of all or any part of the Property,whether of the unit or of the common elements,or for any conveyance in lieu of condemnation,are hereby assigned and shall be paid to Mortgagor(s).Such proceeds shall be applied by Mortgagee to the suns secured by the Mortgage. E. LENDER'S PRIOR CONSENT.Mortgagors)shall not,except after notice to Mortgagee and with Mortgagee's prior written consent,either partition or subdivide the Property,or consent to: _ . (i) the abandonment or termination of the Condominium Project,except for abandonment or or termination required by law in the case of substantial destruction by fire or other casualty or in the case of taking by condemnation or eminent domain; (ii) any amendment to any provision of the Constituent Documents if the provision is not for the express benefit of Mortgagee(s); (iii) termination of professional management and assumption of self-management of the Owners Association;or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Mortgagee(s). F. REMEDIES.If Mortgagor(s)does not pay condominium dues and assessment when due,the Mortgagee(s) may pay Them Any amounts disbursed by Mortgagee(s)under this Paragraph F.shall become additional debt of Mortgagor(s)secured by the Mortgage.Unless Mortgagor(s)and Mortgagee(s)agree to other terms of payment, ty J these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable,with O interest,upon notice Born Mortgagee(s)to Mortgagor(s)requesting payment,and from time of payment by Mortgagee(s),shall be a lien against this property. - J x7rti, CDy BY SIGNING BELOW.Mongagor(s)accept(s)and agrcc(s)rn the te- d provisions contained in this Condominium �. =mute Rider. / I _ • David W Thrasher .tnda N Thrasher -70 Ui r } • AFFIDAVIT RE COMPENSATION STATE OF IOWA, COUNTY OF JOHNSON, SS: We, Robert S. Michael and Crystal K. Raiber, being first duly sworn, under oath, depose and swear that we are the attorneys of record for the Plaintiff; that there is no contract, agreement or arrangement, either oral or written, expressed or implied, contemplating any division of compensation for the services rendered in the above entitled proceedings as attorney or participation of such compensation, directly or indirectly,by any other person, firm or corporation with such attorney except other legal counsel in a regular and bonafide law partnership with the undersigned in the above entitled matter. (40 Rob- S. Michael c-)—' / y CrystiK. Raiber Subscribed and sworn to before me the undersigned Notary Public by Robert S. Michael and Crystal K. Raiber this 27th day of October, 2010. ()LNOTARY PUBLIC P\ALJULIE B. LYNCH y oP ^ COMMISSION # 114588 z yv4 MY COMMISSION EXPIRES �oWA. (- I -1 1 Lxh , 5— END OF CASE FILE IN THE DISTRICT COURT OF IOWA IN AND FOR JOHNSON COUNTY Patsy Mott,John Mott,Andrew J. ) Litton and Lindsey R. Litton, Plaintiffs, ) ) Equity No. L Q cif 012 7`t v. ) ACCEPTANCE OF SERVICE City of Iowa City and unknown ) OF ORIGINAL NOTICE claimants to the real estate described as ) AND PETITION TO Tract A: Commencing at the QUIET TITLE southwest corner of Lot 5 Block"I"of Black's Park Addition to Iowa City, Iowa according to the recorded plat thereof,thence west 30 feet,thence north 131.80 feet,thence east 30 feet, thence south 131.80 feet to the place of beginning,as more particularly described as the tract west of Lot 5 Block"I" of said Black's Park Addition located in Auditor's Parcel 2009043 on the plat of survey recorded in Book 54, page 86,plat records of Johnson County,Iowa. Tract B: Commencing at the southwest corner of Lot 5 Block"I"of Black's Park Addition to Iowa City, Iowa according to the recorded plat thereof,thence west 30 feet,thence north 320 feet,thence east 30 feet, thence south 320 feet to the place of beginning,excepting the southerly o 131.80 feet thereof as said 131.80 foot strip is described as the tract west of c„ Lot 5 Block"I"of said Black's Park Addition located in Auditor's Parcel ^ ' -v 2009043 on the plat of survey recorded 6.7?in Book 54,page 86,plat records of c Johnson County,Iowa, AND including Commencing at the northwest corner of Lot 6 Block"I"of said Black's Park Addition,thence west 30 feet,thence north 60 feet,thence east 150 feet,thence south 60 feet, thence west 120 feet to the place of beginning, AND including , o Commencing at the northwest corner of Lot 5 Block"I"of said Black's Park Addition,thence =�n N -0 north 20 feet,thence east 120 feet, • o thence south 20 feet,thence west 120 feet to the place of beginning. w Both Tracts A and B subject to, however,the Storm Sewer and Drainage Way Agreement with the City of Iowa City recorded in Book 1357, Page 73,Records of the Recorder of Johnson County,Iowa, Defendants. The undersigned accepts service of Original Notice and Quiet Title Petition on behalf of the City of Iowa City,Iowa. Dated this day of , ,o/O . Office of the City Clerk of Iowa City, Iowa • BY: 1L> - 2 - northwest corner of Lot 6 Block"I"of said Black's Park Addition,thence west 30 feet,thence north 60 feet,thence east 150 feet,thence south 60 feet, thence west 120 feet to the place of beginning, o AND including zo Commencing at the northwest corner of Lot 5 Block"I"of said Black's Park Addition,thence north 20 feet,thence east 120 feet, G - a thence south 20 feet,thence west 120 N? feet to the place of beginning. Both Tracts A and B subject to, however,the Storm Sewer and Drainage Way Agreement with the City of Iowa City recorded in Book 1357, Page 73,Records of the Recorder of Johnson County, Iowa, Defendants. The undersigned accepts service of Original Notice and Quiet Title Petition on behalf of the City of Iowa City, Iowa. Dated this day of Office of the City Clerk of Iowa City,Iowa BY: - 2 - IN THE DISTRICT COURT OF IOWA IN AND FOR JOHNSON COUNTY Patsy Mott, John Mott,Andrew J. ) Litton and Lindsey R. Litton,Plaintiffs, ) n��O.7 a.7� ) Equity No. K v. ) PETITION TO QUIET TITLE City of Iowa City and unknown ) claimants to the real estate described as ) Tract A: Commencing at the southwest corner of Lot 5 Block"I"of Black's Park Addition to Iowa City, - c, Iowa according to the recorded plat =� thereof,thence west 30 feet,thence n : north 131.80 feet, thence east 30 feet, thence south 131.80 feet to the place of c• `'' beginning, as more particularly y `8; described as the tract west of Lot 5T. r' + N Block"I"of said Black's Park Addition c)G o located in Auditor's Parcel 2009043 on the plat of survey recorded in Book 54, page 86,plat records of Johnson County,Iowa. Tract B: Commencing at the southwest corner of Lot 5 Block"r of Black's Park Addition to Iowa City, Iowa according to the recorded plat thereof,thence west 30 feet, thence north 320 feet,thence east 30 feet, thence south 320 feet to the place of beginning, excepting the southerly - J o 131.80 feet thereof as said 131.80 foot CD z strip is described as the tract west of _^n 7 ry Lot 5 Block"I" of said Black's Park r o .r' Addition located in Auditor's Parcel -v 2009043 on the plat of survey recorded in Book 54,page 86,plat records of Johnson County,Iowa, AND including Commencing at the O t•D f3 - CD L � r-. .P J• northwest corner of Lot 6 Block "I" of o �? said Black's Park Addition, thence west 30 feet,thence north 60 feet, thence east 150 feet,thence south 60 feet, thence west 120 feet to the place of beginning, :Q AND includingn ' Commencing at the yrt N b a� northwest corner of Lot 5 Block"I"of n;, c� �� said Black's Park Addition, thence -o north 20 feet,thence east 120 feet, thence south 20 feet,thence west 120 o c:, N feet to the place of beginning. c' 37 Both Tracts A and B subject to, however,the Storm Sewer and Drainage Way Agreement with the City of Iowa City recorded in Book 1357, Page 73,Records of the Recorder of Johnson County, Iowa, Defendants. The undersigned, attorney for Plaintiffs,being first duly sworn on oath, deposes and states as follows: 1. That the Plaintiffs and their predecessors in title have been in possession of,have cared for and have been paying the real estate taxes on the following described real estate since it was conveyed to the parents of Patsy Mott, W.H. Crawford and Bertha W. Crawford,by deed recorded August 9, 1947 in Book 200,page 66,records of the Recorder of Johnson County, Iowa: Tract A: Commencing at the southwest corner of Lot 5 Block "I"of Black's Park Addition to Iowa City,Iowa according to the recorded plat thereof,thence west 30 feet,thence north 131.80 feet,thence east 30 feet,thence south 131.80 feet to the place of beginning, as more particularly described as the tract west of Lot 5 Block"I"of said Black's Park Addition located in Auditor's Parcel 2009043 on the plat of survey recorded in Book 54,page 86,plat records of Johnson County, Iowa. - 2 - Tract B: Commencing at the southwest corner of Lot 5 Block"I" of Black's Park Addition to Iowa City, Iowa according to the recorded plat thereof, thence west 30 feet,thence north 320 feet, thence east 30 feet, thence south 320 feet to the place of beginning, excepting the southerly 131.80 feet thereof as said 131.80 foot strip is described as the tract west of Lot 5 Block "I" of said Black's Park Addition located in Auditor's Parcel 2009043 on the plat of survey recorded in Book 54,page 86,plat records of Johnson County, Iowa, AND including Commencing at the northwest corner of Lot 6 Block"I"of said Black's Park Addition, thence west 30 feet, thence north 60 feet,thence east 150 feet, thence south 60 feet, thence west 120 feet to the place of beginning, AND including Commencing at the northwest corner of Lot 5 Block"I"of said Black's Park Addition, thence north 20 feet, thence east 120 feet,thence south 20 feet,thence west 120 feet to the place of beginning. Both Tracts A and B subject to, however, the Storm Sewer and Drainage Way Agreement with the City of Iowa City recorded in Book 1357,Page 73, Records of the Recorder of Johnson County, Iowa. 2. That the above described parcels are portions of vacated Magowan Avenue, Gould Street and alley,privately platted and privately vacated prior to the time said real estate was annexed to the City of Iowa City, Iowa. 3. That title objections have arisen because the portions of vacated streets and alley described above have never been formally vacated by the City of Iowa City,Iowa. Because said vacated streets and alley were never dedicated to the City of Iowa City,Iowa as public rights of way, it is questionable that a city vacation is the proper course to resolve the title objections. 4. That Tract A described above has been conveyed by the beneficiaries of the estates of W.H. Crawford and Bertha W. Crawford to Andrew J. Litton and Lindsey Litton. Wherefore Plaintiffs pray for the establishment of Plaintiffs' estates as follows: title to Tract A is to be established in Andrew J. Litton and Lindsey Litton, as joint tenants with full rights of survivorship; title to Tract B is to be established in Patsy Mott and John Mott, as joint tenants with full rights of survivorship. The title to said tracts is to be established free and clear of any an all claims by the Defendants and Plaintiffs pray that the Defendants be barred and forever estopped from having or claiming any right,title or interest in and to the premises described above which claims would be adverse to the Plaintiffs. Plaintiffs pray for such other relief as the Court deems just,reasonable and equitable. r., c_r . - orm _© (y) �rR- T Ll r N 7ast:.. rrr.ci'%•.'•!)'',.:, - 3 - c-�. e, ® ATZ hung' oma: co --o 0402 ¶ ti AON oma' Ra • D o --2 Dated this 2 3 day of November,2010. AO Nancy B. Willis Willis Law Firm 500 S. Dubuque Street,P.O. Box 143 Iowa City, IA 52244-0143 Ph: (319)337-9621 /Fx: (319)337-4581 ATTORNEY FOR PLAINTIFF kk�— Subscribed and sworn to by Nancy B. Willis this LJ—day of November,2010. • • No Public in and for sai State My commission expires: ch o v o N cv = J JANELL MAASS r. Commission Number 709672 My Commission Expires N May 2,2013 O N C: r- cn'. ra 2 Z) Cn . AC O ' O C-) C:-;• N qtr.. G.) o'er • -4 - IN THE DISTRICT COURT OF IOWA IN AND FOR JOHNSON COUNTY Patsy Mott,John Mott,Andrew J. ) Litton and Lindsey R. Litton, Plaintiffs, ) ) Equity No. Q( 0 7 VP-i7 V. ) ORIGINAL NOTICE City of Iowa City and unknown ) claimants to the real estate described as ) Tract A: Commencing at the southwest corner of Lot 5 Block"I"of Black's Park Addition to Iowa City, Iowa according to the recorded plat thereof,thence west 30 feet,thence north 131.80 feet,thence east 30 feet, o thence south 131.80 feet to the place of co beginning,as more particularly described as the tract west of Lot 5 z n, Block"I"of said Black's Park Addition o located in Auditor's Parcel 2009043 on r " �' 'o the plat of survey recorded in Book 54, N `� N page 86,plat records of Johnson l:x County, Iowa. Tract B: Commencing at the southwest corner of Lot 5 Block"I"of Black's Park Addition to Iowa City, Iowa according to the recorded plat thereof,thence west 30 feet,thence north 320 feet,thence east 30 feet, thence south 320 feet to the place of beginning,excepting the southerly 131.80 feet thereof as said 131.80 foot strip is described as the tract west of Lot 5 Block"I"of said Black's Park Addition located in Auditor's Parcel 2009043 on the plat of survey recorded in Book 54,page 86,plat records of Johnson County, Iowa, AND including Commencing at the northwest corner of Lot 6 Block"I"of said Black's Park Addition, thence west 30 feet,thence north 60 feet,thence east 150 feet,thence south 60 feet, thence west 120 feet to the place of beginning, AND including Commencing at the northwest corner of Lot 5 Block"I"of said Black's Park Addition, thence north 20 feet,thence east 120 feet, thence south 20 feet,thence west 120 ,, i feet to the place of beginning. N N Both Tracts A and B subject to, o however,the Storm Sewer and Drainage Way Agreement with the City of Iowa City recorded in Book 1357, Page 73,Records of the Recorder of Johnson County, Iowa, Defendants. TO THE ABOVE-NAMED DEFENDANTS: You are hereby notified that there is now on file in the office of the clerk of the above court a petition in the above-entitled action,a copy of which petition is attached hereto. The plaintiffs attorney is Nancy B. Willis,whose address is P.O. Box 143, 500 S. Dubuque Street, Iowa City, Iowa, 52244-0143 (319-337-9621). You are further notified that unless, within 20 days after service of this original notice upon you, you serve, and within a reasonable time thereafter file a motion or answer, in the Iowa District Court for Johnson County,at the courthouse in Iowa City, Iowa,judgment by default will be rendered against you for the relief demanded in the petition. TEM BBB ' . ,'`� , _ (SEAL) • � 111 4 � CL'4i OF THE ABOVE COURT Johnson County Courthouse Iowa City, Iowa, 52240 - 2 - If you require the assistance of auxiliary aids or services to participate in court because of disability, immediately call your district ADA coordinator at 319-398-3920, Ext. 1100 (If you are hearing impaired, call Relay Iowa TTY at 1-800-735-2942). _O O Z N LJ N N-73 o O (0) -3 - END OF CASE FILE IN THE IOWA DISTRICT COURT FOR JOHNSON COUNTY UNIVERSITY OF IOWA COMMUNITY ) CREDIT UNION, ) NO. EQCV072655 Plaintiff, ) vs . ) DAVID W. THRASHER; LINDA N . THRASHER ) FOREST PARK APARTMENTS A/K/A FOREST ) PARK PARTNERS, L. L.C. ; LINCOLN REAL ) ESTATE; RIVER CITY PROPERTY MANAGEMENT ) & SALES, L.L. C. ; CITY OF ) NOTICE OF INTENT TO CORALVILLE, IA; CITY OF IOWA CITY, ) FILE WRITTEN IA; and ANY AND ALL UNKNOWN )APPLICATION FOR DEFAULT PARTIES IN POSSESSION OF THE REAL ) PROPERTY LOCATED AT 919 DOVER ST. ) IOWA CITY, IOWA, ) Defendants . ) TO: DEFENDANT: City of Iowa City DATE OF NOTICE: December 1,2010 IMPORTANT NOTICE YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO TAKE ACTION REQUIRED OF YOU IN THIS CASE. UNLESS YOU ACT WITHIN TEN DAYS FROM THE DATE OF THIS NOTICE, A DEFAULT JUDGMENT WILL BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD SEEK LEGAL ADVICE AT ONCE. LYNCH, GREENLEAF &MICHAEL, L.L.P. / /1 7 ) ;, ) By O l O Z ti- 3 3 1 Crystal K. Raiber : #AT0009768 1402 Willow Creek Court H !!.` P.O. Box 1757 Iowa City, Iowa 52244 (31 ) 351-1056 C6' Y(/""1-e--e--). 61 :11 WV Z- 330 O I OZ (319) 3389 O 338-6834 FAX ATTORNEY FOR PLAINTIFF IN THE IOWA DISTRICT COURT FOR JOHNSON COUNTY U.S. BANK,NATIONAL ASSOCIATION, ) EQUITY NO. EQCV072665 SUCCESSOR BY MERGER TO FIRSTAR ) BANK,N.A. ) ) Plaintiff, ) ) v. ) NOTICE OF INTENT TO FILE ) WRITTEN APPLICATION FOR JEFFREY M.GONZALES; LAURA M. ) DEFAULT GONZALES;CITY OF IOWA CITY, IOWA ) Defendants. ) TO: Jeffrey M. Gonzales Laura M.Gonzales City of Iowa City, Iowa DATE OF MAILING NOTICE: December 1, 2010 IMPORTANT NOTICE YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO TAKE ACTION REQUIRED OF YOU IN THE ABOVE CASE. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A DEFAULT JUDGMENT WILL BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD SEEK LEGAL ADVICE AT ONCE. Bclin McCormick,P.C. By o 414ES V. SARCONE,JR.•AT0006913 74 N o 666 Walnut Street, Suite 2000 Des Moines, IA 50309-3989 Telephone: (515)283-4624 i Fax No.: (515)283-4653 CD e-mail: ivsarcone@belinmccormick.com ATTORNEYS FOR PLAINTIFF 0 D:\Firsstttar\gonzales\default notice.doc / /7�ill�irl END OF CASE FILE r IOWA DISTRICT COURT JOHNSON COUNTY LIBERTY BANK, F.S.B., ) ) CASE NO. EQCV 072837 Plaintiff; ) ) vs. ) ACCEPTANCE OF SERVICE OF ) DEFENDANT, CITY OF IOWA CARLENISE L. COLEMAN; JESSE D. ) CITY, IOWA COLEMAN; and CITY OF IOWA ) CITY, IOWA, ) ) Defendants. ) I, Julie Voparil, Deputy City Clerk for City of Iowa City, Iowa, have been authorized to accept service and I do hereby accept service of the Original Notice and Petition as to Defendant City of Iowa City, Iowa on this day of , 2010. Julie aril �� t �} � I` Subscribed and sworn to before me this a'a day of clacn - , 2010. _ rComSOoDAmeOr R1T9791• ,v42 My Commission Expires NOTARY PUBLIC - STATE OF IOWA avr� C7 r*� - c-� N CO t� � a _ v • J IOWA DISTRICT COURT JOHNSON COUNTY LIBERTY BANK, F.S.B., ) ! V 7 ) CASE NO. EQCV 0 Plaintiff, ) ) vs. ) ) ORIGINAL NOTICE CARLENISE L. COLEMAN; JESSE D. ) COLEMAN; and CITY OF IOWA ) �' CITY, IOWA, ) �' o oc n Defendants. ) a) TO THE ABOVE-NAMED DEFENDANTS: You are notified that a petition to foreclose on real property has been filed in the office of the Clerk of this Court naming you as the defendants in this action.A copy of the petition to foreclose on real property(and any documents filed with it)is attached to this notice. The attorney for the plaintiff is Abbe M.Stensland whose address is Simmons Perrine Moyer Bergman PLC, 115 Third Street SE, Suite 1200, Cedar Rapids,Iowa,52401.The attorney's phone number is 319-366-7641; facsimile number 319-366-1917. ) The petition to foreclose on real property was filed on ,�_)e. p1YJl 9 2010.You must serve a motion or answer within 20 days after service of this original notice upon you and,within a reasonable time thereafter, file your motion or answer with the Clerk of Court for Johnson County, at the county courthouse in Iowa City, Iowa. If you do not,judgment by default may be rendered against you for the relief demanded in the petition. If you require the assistance of auxiliary aids or services to participate in court because of a disability,immediately call your district ADA coordinator at 1-319-398-3920, ext. 110 (If you are hearing impaired, call Relay Iowa TTY at 1-800-735-2942). LODEMA I ER.KLEY (SEAL) CLE � OF COURT I Johnson County Courthouse Iowa City, Iowa 52244 YOU ARE ADVISED TO SEEK LEGAL ADVICE AT ONCE TO PROTECT YOUR INTERESTS. c �, IOWA DISTRICT COURT JOHNSON COUNTY LIBERTY BANK, F.S.B., ) CASE NO. EQCV 11 Plaintiff, ) 4^moi. vs. ) PETITION TO FORECLOSE-.OI ., ) REAL PROPERTY CARLENISE L. COLEMAN; JESSE D. ) ;: r `cD COLEMAN; and CITY OF IOWA ) °, "4-1 CITY, IOWA, ) Defendants. ) THE PLAINTIFF HAS ELECTED FORECLOSURE WITHOUT REDEMPTION. THIS MEANS THAT THE SALE OF THE MORTGAGED PROPERTY WILL OCCUR PROMPTLY AFTER ENTRY OF JUDGMENT UNLESS YOU FILE WITH THE COURT A WRITTEN DEMAND TO DELAY THE SALE. IF YOU FILE A WRITTEN DEMAND, THE SALE WILL BE DELAYED UNTIL TWELVE MONTHS (or SIX MONTHS if the petition includes a waiver of deficiency judgment) FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS YOUR RESIDENCE AND IS A ONE-FAMILY OR TWO-FAMILY DWELLING OR UNTIL TWO MONTHS FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS NOT YOUR RESIDENCE OR IS YOUR RESIDENCE BUT NOT A ONE-FAMILY OR TWO-FAMILY DWELLING. YOU WILL HAVE NO RIGHT OF REDEMPTION AFTER THE SALE. THE PURCHASER AT THE SALE WILL BE ENTITLED TO IMMEDIATE POSSESSION OF THE MORTGAGED PROPERTY. YOU MAY PURCHASE AT THE SALE. IF YOU DO NOT FILE A WRITTEN DEMAND TO DELAY THE SALE AND IF THE MORTGAGED PROPERTY IS YOUR RESIDENCE AND IS A ONE- FAMILY NE-- FAM LY OR TWO-FAMILY DWELLING, THEN A DEFICIENCY JUDGMENT WILL NOT BE ENTERED AGAINST YOU. IF YOU DO FILE A WRITTEN DEMAND TO DELAY THE SALE, THEN A DEFICIENCY JUDGMENT MAY BE ENTERED AGAINST YOU IF THE PROCEEDS FROM THE SALE OF THE MORTGAGED PROPERTY ARE INSUFFICIENT TO SATISFY THE AMOUNT OF THE MORTGAGE DEBT AND COSTS. IF THE MORTGAGED PROPERTY IS NOT YOUR RESIDENCE OR IS NOT A ONE-FAMILY OR TWO-FAMILY DWELLING, THEN A DEFICIENCY JUDGMENT MAY BE ENTERED AGAINST YOU WHETHER OR NOT YOU I .,E A WRITTEN DEMAND TO DELAY THE SALE. rn m c-) C ) N co a° ; • -v "1".- COMES NOW, the Plaintiff, Liberty Bank, F.S.B. ("Liberty Bank")by and through undersigned counsel and in support of its action against Defendants, Carlenise L. Coleman ("Carlenise") and Jesse D. Coleman("Jesse"), states as follows: GENERAL ALLEGATIONS 1. Liberty Bank, F.S.B., is a national bank organized under federal law doing business in Coralville, Iowa. 2. Carlenise is an individual residing in West Chester, Ohio. 3. Jesse is an individual residing in West Chester, Ohio, and is the husband of Carlenise. 4. City of Iowa City, Iowa ("Iowa City") is a municipal corporation in Johnson County, Iowa. 5. Carlenise and Jesse are the legal title holders of real property(hereinafter th PO n *11 "Real Estate")located at 940 Longfellow Court, Iowa City, Johnson County, Iowa, legalT 'No r oc l� described as: o_ 940 Longfellow Court of Lot 12, Longfellow Manor Condominiums, t�v according to the Declaration recorded July 3, 2006, in Book 4047, Page 4, Records of the Recorder of Johnson County, Iowa. 6. The Real Estate is a residential property but upon information and belief, is not Carlenise and Jesse's current residence. 7. On or about July 21, 2006, Carlenise executed an Adjusted Rate Note No. 41501116 (the "Note") in favor of Liberty Bank for a principal sum of$116,000.00. A copy of the Note is attached hereto as Exhibit 1 and is incorporated by the reference as if fully set forth herein. 8. On or about July 21, 2006, Carlenise and Jesse executed a Mortgage covering the Real Estate in favor of Liberty Bank as security for payment on the Note. A copy of the 2 J • Mortgage is attached hereto as Exhibit 2 and is incorporated by the reference as if fully set forth herein. 9. The Mortgage was recorded with the Johnson County Recorder on July 24, 2006, at Book 4059, Page 92-111. 10. The Note provides that Liberty Bank may declare the entire principal balance of the Note, and interest accrued thereon, due and payable upon an event of default. The Mortgage further provides that, in the event of default, the Mortgage on the Real Estate may be foreclosed. 11. Carlenise has defaulted on the Note by failing to make payments as provided by the terms thereof. 12. By reason of the failure to pay the Note, Liberty Bank has elected and does hereby elect, in accordance with the terms and conditions of the Note and Mortgage, to declare the whole of the Note due and payable forthwith and to exercise its right to enforce payment of the entire Note and to foreclose the Real Estate given to secure the same 13. On or about July 1, 2010, Liberty Bank issued a Notice to Cure to CarlenisU 0 giving her until August 1, 2010 to cure the delinquent balance on the Note. A copy of therm o `4 .71 Notice is attached hereto as Exhibit 3 and incorporated by this reference as if fully set forth ao f.T, herein. r o 14. To date, Carlenise has refused to cure the default despite demand. N 15. There is now due and owing to Liberty Bank, as of October 28, 2010, the principal sum of$111,245.06, force placed insurance of$1,017.00, advanced past due property taxes in the amount of$3,039.00, late charges of$196.80, and continuing interest accruing at a rate of 7.2%per annum, together with applicable attorney fees and costs. 3 r 16. Under the terms of the Note, Carlenise agreed to pay attorney fees and all costs in connection with a proceeding to enforce the Note and/or foreclose the Mortgage. WHEREFORE, Liberty Bank, F.S.B., prays for judgment in rem against the Real Estate for the principal sum of$111,245.06, force placed insurance of$1,017.00, advanced past due property taxes in the amount of$3,039.00, late charges of$196.80, and continuing interest accruing at a rate of 7.2%per annum, the costs of this action, and reasonable attorney fees; that said sums be declared a lien upon the Real Estate from July 21, 2006, the date of Liberty Bank's Mortgage, prior and superior to any right, title, lien or interest of the Defendants or any of them therein; that Liberty Bank's Mortgage on the Real Estate be foreclosed; that any right, title, lien or interest of the Defendants or any of them in the Real Estate be declared junior and inferior to the lien of Liberty Bank; that a special execution issue for the sale of the Real Estate, or so much thereof as may be necessary to satisfy the judgment including interest, costs, accruing costs, and advances made by Liberty Bank to safeguard its security in the Real Estate, and that from and after said sale under special o 0 execution, the right, title, lien or interest of the Defendants in and to the Real Estate be I n N�-r forever cut off, barred and foreclosed, and the purchaser at said sale take free and clear oP° -0 opo any right, title,lien or interest of the Defendants or any of them in the Real Estate; that .. o the event Liberty Bank is required to advance further sums for taxes, insurance, or other expenses to safeguard its security in the property, Liberty Bank be given an additional lien against the real estate for the sums so advanced. Liberty Bank further prays for a Writ of Possession to be issued under the seal of this Court, directed to the Sheriff of Johnson County, Iowa, commanding the Sheriff to put the purchaser at said sale under special execution, or a successor in interest, in the possession of 4 the Real Estate, and to remove Defendants, or persons claiming by, through or under the Defendants, or any person in possession thereof, out of possession of the Real Estate. Liberty Bank further prays for judgment in personam against Carlenise L. Coleman, for breach of Adjusted Rate Note No. 41501116 in the principal sum of$111,245.06, force placed insurance of$1,017.00, advanced past due property taxes in the amount of $3,039.00, late charges of$196.80, and continuing interest accruing at a rate of 7.2%per annum, the costs of this action, and reasonable attorney fees, and for such other and further relief as may be just and proper under the circumstances. SIMMONS PERRINE MOYER BERGMAN PLC By Abbe M. Stensland AT0008831 115 Third Street SE, Suite 1200 Cedar Rapids, IA 52401-1266 Telephone: (319) 366-7641 Facsimile: (319) 366-1917 Email: astensland@simmonsperrine.com ATTORNEYS FOR PLAINTIFF co d 5 Y i • • Coleman 0810112036 CarIonise ADJUSTABLE RATE NOTE MFRS Phone: (688)679-6377 Loan No: 41501116 INH IAC (I Year Treasury Index-Rate Caps) THIS NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN MY INTEREST RATE AND MY MONTHLY PAYMENT. THIS NOTE LIMITS THE AMOUNT MY INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE I MUST PAY. July 21,2006 Iowa City Iowa pole] (We) 940 Longfellow Court Iowa City,IA 52240 IPropenr Addwsrl I. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. S 116,000.00 (this amount is called "Principal"),plus interest,to the order of the Lender. The Lender is Liberty Bank F.S.B.,a Corporation 1 will make all payments under this Note in the form of cash,check or money order. I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the"Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of 7.200 %. The interest rate I will pay will change in accordance with Section 4 of this Note. The interest rate required by this Section 2 and Section 4 of this Note is the rate I will pay both before and after any default described in Section 7(B)of this Note. 3. PAYMENTS (A) Time and Place of Payments 1 will pay principal and interest by making a payment every month. I will make my monthly payment on the first day of each month beginning on September 1,2006 I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If, on August 1,2036 , I still owe amounts under this Note,I will pay those amounts in full on that date,which is called the"Maturity Date." I will make my monthly payments at 6400 Westown Parkway West Des Moines,IA 50266 or a different place if required by the Note Holder. (B) Amount of My Initial Monthly Payments Each of my initial monthly payments will be in the amount of U.S. S 787.39 . This amount may change. (C) Monthly Payment Changes Changes in my monthly payment will reflect changes in the unpaid principal of my loan and in the interest rate that I must pay. The Note Holder will determine my new interest rate and the changed amount of my monthly payment in accordance with Section 4 of this Note. 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of August,2011 , and on that day every 12th month thereafter. Each date on which my interest rate could change is called a"Change Date." N MULTISTATE ADJUSTABLE RATE NOTE-ARM 5-2-Single Family-FNMAtFHLMC Uniform Instrument Form 3502 1/01 _ Lagar Foens Int.(000)4e8.335S LPI rFNMASStS 1A/ Pagel of 4 Intlal3: -• r n CO _ " r COO tri s • o w EXHIBIT • (B) The index Beginning with the first Change Date, my interest rate will be based on an Index. The"Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board, The most recent Index figure available as of the date 45 days before each Change Date is called the"Current Index." If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date,the Note Holder will calculate my new interest rate by adding Two and Seven Eighths percentage points( 2.875 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below,this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 9.200 %or less than 5.200 %, Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than two percentage points(2.0%) from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 13,200 ^A (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment 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 information required by law to be given me and also the title and telephone number of a person who will answer any question I may have regarding the notice. S. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a"Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under the Note. I may make a full Prepayment or partial Prepayments without paying a Prepayment charge.The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holder may apply my Prepayment to the accrued and unpaid interest on the Prepayment amount,before applying my Prepayment to reduce the Principal amount of the Note.If I make a partial Prepayment, there will be no changes in the due dates of my monthly payment unless the Note Holder agrees in writing to those changes. My partial Prepayment may reduce the amount of my monthly payments after the first Change Date following my partial Prepayment. However, any reduction due to my partial Prepayment may be offset by an interest rate increase. 6. LOAN CHARGES If a taw,which applies to this loan and which sets maximum loan charges,is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits,then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and(b) any sums already collected from me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal,the reduction will be treated as a partial Prepayment. 7. BORROWER'S FAILURE TO PAY AS REQUIRED. (A) Late Charges for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of 15 calendar days after the date it is due,I will pay a late charge to the Note Holder. The amount of the charge will be MULTISTATE ADJUSTABLE RATE NOTE•ARM 5-2-Single Family.FNMAJFHLMC Uniform Instrument Form 55021101 taw Forms Inc.WO)446.3555 /1 p _ LFINFNMA3502 tat Page 2 of 4 Initials; rn ,� t7 r t D co n Cf:, '-1'1 �.T No 1142 N 5.000 % of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B) Default if I do not pay the full amount of each monthly payment on the date it is due,I will be in default. (C) Notice of Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of Principal which has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. (D) No Waiver By Note Holder Even if, at a time when I am in default, the Note Holder does rot require me to pay immediately in full as described above,the Note Holder will still have the right to do so if I am in default at a later time, (E) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately In full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include,for example,reasonable attorneys'fees. 8. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note wilt be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by delivering it or by mailing it by first class mail to the Note Holder at the address stated in Section 3(A)above or at a different address if I am given a notice of that different address. 9. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations,including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together.This means that any one of us may be required to pay all of the amounts owed under this Note. 10.WAIVERS I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 11.UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust, or Security Deed(the"Security Instrument"), dated the same date as this Note,protects the Note holder from possible losses that might result if I do not keep the promises which I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions are described as follows: If all or any part of the Property or any Interest in the Property is sold or transferred(or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b)Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. Q LND MULTISTATE ADJUSTABLE RATE NOTE-ARM 5-2 -&ogle Fami!y-FNMA/FHLMC Uniform Instrument OrD w.r+1 Form 35021/01 / .' Inter FOOTS 150 ms inc. 0)a-me sS'5 I r f� r` tftarNMn9502 ruor Pago 3 ofd Initials: l/t/ _ N To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument, If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. WITNESS THE HAND(S)AND SEAL(S)OF THE UNDERSIGNED. (Seal) —.-.__..--.... (Seal) 4rrtonise Coleman -Sommer -e«,ower (Seal) (Seal) -Borrower -Brewer [Sign Original Only] N rTl N CO —o fV MULTISTATE ADJUSTABLE RATE NOTE-ARM 5-2-Single Family-FNMA/FHLMC Uniform Instrument Form 35D2 1/01 Lam Forret Ne.OM 44.8.3555 LFI/FNlIA3502 set Page 4 of 4 —6700 --- lSpacoAbove This Line For Recording Data) MORTGAGE Loan No: 41501116 INH IAC (Cover Sheet) After Recording Return To: Prepared By: Jan Czerwonke Liberty Bank FSB Liberty Bank FSB 13523 University Avenue 13523 University Avenue Clive,IA 50325 Clive,IA 50325 (515)224-3723 This document is dated: July 21,2006 Taxpayer Name: Carlenise Coleman 940 Longfellow Court,Iowa City,IA 52240 Reconveyance Information: c 0 The Grantor(s) is: Carlenise Coleman and Jessie Coleman,Wife and Husband C7 rel c-) ;1. rrl Grantor's primary address is: 940 Longfellow Court n) Iowa City,IA 52240 CO co The Grantee(s) is: Liberty Bank F.S.B. .0 07.• [T� Grantee's address is: 6400 Westown Parkway Z C) West Des Moines, IA 50266 N o Property Parcel/Tax Identification Number: C N The Property Address is: 940 Longfellow Court Iowa City,IA 52240 The Legal Description of the property is: 940 Longfellow Court of Lot 12,Longfellow Manor Condominiums, according to the Declaration recorded July 3,2005 In Book 4047, Page 4,Records of the Recorder of Johnson County,Iowa COVER SHEET FOR THE IOWA -Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3016 1101 Loser Forms Inc.(800)4463555 LH#FNMA3016 5/05 EXHIBIT 3 O PI N = a CO � 7 O N When Recorded Return To: Liberty Bank FSB 13523 University Avenue Clive,IA 50325 (Space Above This Line For Recording Data] Loan No: 41501116 INH IAC MORTGAGE IMPORTANT NOTE: For additional information,as required by Iowa Senate File 371,see page four. DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined 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 July 21, 2006 together with all Riders to this document. (B) "Borrower"is Carlenise Coleman and Jessie Coleman,Wife and Husband Borrower is the mortgagor under this Security Instrument. (C) "Lender"is Liberty Bank F.S.B. Lender is a Corporation organized and existing under the laws of United States of America Lender's address is 6400 Westown Parkway West Des Moines, IA 50266 Lender is the mortgagee under this Security Instrument. (D) "Note"means the promissory note signed by Borrower and dated July 21,2006 The Note states that Borrower owes Lender One Hundred Sixteen Thousand DOLLARS and Zero CENTS Dollars (U.S. $ 116,000.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than August 1,2036 (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "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. IOWA-Single Family-Fannie Mao/Froddie Mac UNIFORM INSTRUMENT Form3016 1/01 Laser Forms Inc.(800)448-3555 800)440-3555 LFI 0FNMA3076 5!05 Page 1 of 13 Initials: r • (G) "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]: (1 Adjustable Rate Rider 0 Condominium Rider 0 Second Home Rider —1 Balloon RiderPlanned Unit Development Rider Q 1-4 Family Rider Biweekly Payment Rider [� V.A.Rider Other(s)[specify] (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions,transfers initiated by telephone,wire transfers,and automated clearinghouse transfers. (K) "Escrow Items"means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party(other than insurance proceeds paid under the coverages described in Section 5) for: (i)damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance"means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "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. (0) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (P) "Successor in Interest of Borrower"means any party that has taken title to the Property, whether or notes that party has assumed Borrower's obligations under the Note and/or this Security Instrument. N coCO m Z — � co IOWA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form o0161!01 Laser Forms Inc.(800)448.3555 LFI#FNMA3016 5105 Page 2 of 13 Initials: i( a a TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably mortgages, grants and conveys to Lender,with power of sale,the following described property located in the County of Johnson • [Type of Recording Jurisdiction) [Name of Recording Jurisdiction) 940 Longfellow Court of Lot 12,Longfellow Manor Condominiums,according to the Declaration recorded% July 3,2005 in Book 4047,Page 4,Records of the Recorder of Johnson County,Iowa o rn n t.D r" , rd which currently has the address of 940 Longfellow Court (Street) Iowa City ,Iowa 52240 ("Property Address"): [City[ Rip Code) 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 and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. IOWA-Single Family-Fannie MaefFreddle Mac UNIFORM INSTRUMENT Form 30161!01 Laser Fortns Inc.(800)406.3555 LFI#FNMA3016 5/05 Page 3 of 13 Initials: -— • • UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as selected by Lender (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity;or(d)Electronic Funds Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date,or change the amount,of the Periodic Payments. 3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and ail insurance required by Lender under Section 5; and(d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make such payments and to IOWA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 30161/01 -� Laser Forms Inc.(800)446-3555 - i LFI#FNMA3018 5105 Page 4 of 13 Initials: _ o ) ' m —v iv CO) t provide receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds,and in such amounts,that are then required under this Section 3. Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity(including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA,but in no more than 12 monthly payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items,Borrower shall pay them in the manner provided in Section 3. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Borrower is performing such agreement; (b)contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loam The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right e disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrow to pay, in connection with this Loan, either: (a)a one-time charge for flood zone determination, certificatigg and tracking services; or (b) a one-time charge for flood zone determination and certification services are) IOWA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT C Form 30161/01 Laser Forms Inc.(800)446-3555 ' ,/�} "O LFf sFNMA3016 Nos Page 5 of 13 Initials: L.v t J """CCC,, N 4J subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and(b)any other of Borrower's rights(other than the right to any refund of unearned premiums paid by Borrower)under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security Instrument,whether or not then due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal resid within 60 days after the execution of this Security Instrument and shall continue to occupy the Property Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherw# agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances ext which are beyond Borrower's control. n 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall n03 destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the PropertP Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent,° cr.) the Property from deteriorating or decreasing in value due to its condition. Unless it is determined pursuant tox o V IOWA-Single Family-Fannie MaelFreddte Mac UNIFORM INSTRUMENT N Form 3016 7.01 (8 �L_ O Laser Forms Inc.(800)446-3555 M LFI#FNMA3016 5105 Page 6 of 13 Initials: • • Section 5 that repair or restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the completion of such repair or restoration. 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 the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, 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 significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation 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 Lender may do and pay for whatever is reasonable or appropriate to protect Lender's interest in the Property and 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 priority 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 this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable,with such interest,upon notice from Lender to Borrower requesting payment. If this 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 the Loan, Borrower 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 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 the 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 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 non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Imp is ultimately paid in full, and Lender shall not be required to pay Borrower any interest or earnings on set loss reserve. Lender can no longer require loss reserve payments if Mortgage Insurance coverage (in amount and for the period that Lender requires) provided by an insurer selected by Lender again beco available, is obtained, and Lender requires separately designated payments toward the premiums for Mortg gi<d Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower cri required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower -15 sh N t—I IOWA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3016 1101 (1_,(1 d Laser Forms Inc.(800)446-3555 f/'•� n 1V LFI#FNM13016 5105 Page 7 of 13 Initials: t/(. Q {yD pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender'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 that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed.Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements 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 payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from(or might be characterized as)a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer,the arrangement is often termed"captive reinsurance."Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance,and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These tights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. Al! 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 the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such 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. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any,paid to Borrower. In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the partial taking, destruction, or loss in value divided by(b)the fair market value of the Property immediately before the partial taking, destruction, or log in value. Any balance shall be paid to Borrower. s In the event of a partial taking, destruction, or loss in value of the Property in which the fair market vale" of the Property immediately before the partial taking, destruction, or loss in value is less than the amount the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower an fika Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by thief) IOWA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT �p Form 30161/01 Laser Forms Inc.(800)446.3555 /! � t.FI NFNMA3018 5/05 Page 8 of 13 Initials: I/ •• W Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined in the next sentence)offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that 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 the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument but does not execute the Note(a "co-signer"): (a) is co-signing this Security Instrument only to mortgage, grant and convey the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend, modify. forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co-signer's consent. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind (except as provided in Section 20)and benefit the successors and assigns of Lender. 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law, If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that N the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted o limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the a permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be frt refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note n or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a N partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under IOWA-Single Family-Fannie MaelFreddle Mac UNIFORM INSTRUMENT = Form 30161!01 Laser FormsInc.( 0)446.3555 6...( Iti gFNMA LFI 30r8 5/05 Page 9 of 13 Initials: _ � a the Note). Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b)words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this 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, installment sales contract or escrow agreement,the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However,this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days before 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 Borrower's right to reinstate; or(c) entry of a judgment enforcing this Security Instrument. Those conditions are that BorroweL�:, (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expense incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' feee* property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's inter in the Property and rights under this Security Instrument; and(d)takes such action as Lender may reasonabll{. require to assure that Lender's interest in the Property and rights under this Security Instrument, and* Borrower's obligation to pay the sums secured by this Security Instrument, shall continue unchanged. Lender„ may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms,_ IOWA-Single Family-Fannie MaelFreddle Mac UNIFORM INSTRUMENT Foran 3018 c Loser Forms Inc.(8(8 00)446.3555 otc: � LFI AFNMA30t8 5105 Page 10 of 13 Initials: • v 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. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However,this right to reinstate shall not apply in the case of acceleration 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 Borrower. 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 Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, 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 Loan Servicer, Borrower will be given written notice of the change 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 Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless 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, until 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 substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable 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 environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause,contribute to,or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a)that is in violation of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property(including,but not Iimited to,hazardous substances in consumer products). Borrower shall promptly give Lender written notice of(a) any investigation, claim, demand, lawsuit a other action by any governmental or regulatory agency or private party involving the Property and a Hazardous Substance or Environmental Law of which Borrower has actual knowledge, (b)any Environmen Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of ant Hazardous Substance, and (c) any condition caused by the presence, use or release of a Hazardous SubstancV 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-C affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance Z with Environmental Law. Nothing herein shall create any obligation on Lender for an Environmental r::). Cleanup. 0 IOWA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 30161/01 Laser Forms Inc..(800)446-3555 1`r LFI pFNMA3016 5I05 Page 11 of 13 Initials: b� 4 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, foreclosure by judicial proceeding and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. 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 foreclose this Security Instrument by judicial proceeding. 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. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument. Lender may charge Borrower a fee for releasing this Security Instrument, but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24. Waivers. Borrower relinquishes all right of dower and waives all right of homestead and distributive share in and to the Property.Borrower waives any right of exemption as to the Property. 25. HOMESTEAD EXEMPTION WAIVER. I UNDERSTAND THAT HOMESTEAD PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AND EXEMPT FROM JUDICIAL SALE; AND THAT BY SIGNING THIS MORTGAGE, I VOLUNTARILY GIVE UP MY RIGHT TO THIS PROTECTION FOR THIS MORTGAGED PROPERTY WITH RESPECT TO CLAIMS BASED UPON THIS MORTGAGE. Car enise Coleman [Date] 'f44 r C--- -Zi Ju L 0CQ Jes I= Co =m.n [Date] 26. Redemption Period. If the Property is less than 10 acres in size and Lender waives in any foreclosure proceeding any right to a deficiency judgment against Borrower, the period of redemption from judicial sale shall be reduced to 6 months. If the court finds that the Property has been abandoned by Borrower and Lender waives any right to a deficiency judgment against Borrower, the period of redemption from judicial sale shall be reduced to 60 days. The provisions of this Section 26 shall be construed to conform to the provisions of Sections 628.26 and 628.27 of the Code of Iowa. IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. lteg OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAS BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY Bg ANOTHER WRITTEN AGREEMENT. CI IV 0 IOWA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT .p Form 30161/01 // It Laser Forms Inc.(800)446-3555 .r LFINFNMA3016 5185 Page 12 of 13 Initials: CC N CA CA • 41, BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: /..41 1,11 `"�' (1,4 vim (Seal) Carlenise Coleman -Borrower ALJ' (Seal) Jess Coleman -Borrower (Seal) -Borrower (Seal) -Borrower (Space Below Ms Line For Acknowledgment] STATE OF IOWA,COUNTY OF On this 21 st day of July,2006 , before me, a Notary Public in the State of Iowa, personally appeared Carlenise Coleman and Jessie Coleman,Wife and Husband to mc personally known to be the person(s) name(s) in and who executed the foregoing instrument and acknowledged that he/she/they executed the same as his/herhheir voluntary act and deed. My Commission expires on: Nota Puy c in and for said County and State O Co ►CP'dr !sc.:n.2440149 co —o IOWA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3016 1101 Laser Forms Inc.(800)4483555 151#FNMA3016 5105 Page 13 of 13 J When Recorded Return To: Liberty Bank FSB 13523 University Avenue Clive,IA 50325 CONDOMINIUM RIDER Loan No: 41501116 INH IAC THIS CONDOMINIUM RIDER is made this 21 st day of July,2006 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the"Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Note to Liberty Bank F.S.B.,a Corporation (the"Lender") of the same date and covering the Property described in the Security Instrument and located at: 940 Longfellow Court Iowa City,IA 52240 (Property Address] The Property includes a unit in, together with an undivided interest in the common elements of, a condominium project known as: Longfellow Manor Condominiums [Name of Condominium Project) (the "Condominium Project"). If the owners association or other entity which acts for the Condominium Project (the "Owners Association") holds title to property for the benefit or use of its members or shareholders, the Property also includes Borrower's interest in the Owners Association and the uses, proceeds and benefits of Borrower's interest. CONDOMINIUM COVENANTS. In addition to the covenants and agreements made in the Security Instrument,Borrower and Lender further covenant and agree as follows: MULTISTATE CONDOMINIUM RIDER-Single Family-FNMAIFHLMC UNIFORM INSTRUMENT f��'1 Form 31401/01CI L _ Laser Forms Inc.(600)4463555 �\l�(�"'" LFI#FNMA3140 1101 Page 1 of 3 Initials: (� 1V -v W • 4 A. Condominium Obligations. Borrower shall perform all of Borrower's obligations under the Condominium Project's Constituent Documents. The "Constituent Documents" are the: (i) Declaration or any other document which creates the Condominium Project; (ii) by-laws; (iii) code of regulations; and (iv) other equivalent documents. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or "blanket" policy on the Condominium Project which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for the periods, and against loss by fire, hazards included within the term "extended coverage", and any other hazards, including, but not limited to, earthquakes and floods, from which Lender requires insurance, then: (i) Lender waives the provision in Section 3 for the Periodic Payment to Lender of the yearly premium installments for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. What Lender requires as a condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, whether to the unit or to common elements, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender for application to the sums secured by the Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property, whether of the unit or of the common elements, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the Condominium Project, except for abandonment or termination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the Constituent Documents if the provision is for the express benefit of Lender; (iii) termination of professional management and assumption of self-management of the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. ra 6 F. Remedies. If Borrower does not pay condominium dues and assessments when due, then Le may pay them. Any amounts disbursed by Lender under this paragraph F shall become additional de Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall payable,with interest,upon notice from Lender to Borrower requesting payment. CO "O Z MULTISTATE CONDOMINIUM RIDER-Single Family-FNMAIFHLMC UNIFORM INSTRUMENT Form 3140 1/01410,(IL_ Laser Forms Inc.(800)44&3555 G V LFI#FNMA3I40 trot Page 2 of 3 Initials: 96 r 2 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Condominium Rider. t Gi't. %5( ea (Seal) (Seal) rlenlse Coleman -Borrower -sorrower 09 4 , (Seal) Seal Je.• e Coleman -Borrower -Borrower N 0 0 FR N m Z ITV O 41 MULTISTATE CONDOMINIUM RIDER-Single Family-FNMA/FHLMC UNIFORM INSTRUMENT Form 3140 1/01 Laser Forms Inc.(800)4464555 LFI#FNMA3140 1/01 Page 3 of 3 T s sma 0 frIWhen Recorded Return To: m Liberty Bank FSB —O 13523 University Avenue Clive,IA 50325 ADJUSTABLE RATE RIDER o fda (1 Year Treasury Index-Rate Caps) Loan No: 41501116 INH IAC THIS ADJUSTABLE RATE RIDER is made this 21 st day of July,2006 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the"Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note(the"Note")to Liberty Bank F.S.B.,a Corporation (the "Lender") of the same date and covering the property described in the Security Instalment and located at: 940 Longfellow Court Iowa City,IA 52240 (Property Address) THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument,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 7.200 %. The Note provides for changes in the interest rate and the monthly payments,as follows: MULTISTATE ADJUSTABLE RATE RIDER-ARM 5-2 -Single Family-FNMA/FHLMC Uniform Instrument Form 3111 1/01 Laser Forms Inc.(800)446-3558 C` LFI#FNMA3111 1/01 Page 1 of 3 Inillals: .�/ 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of August,2011 , and o that day every 12th month thereafter. Each date on which my interest rate could change is called 0 "Change Date." (B)The Index Beginning with the first Change Date, my interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date 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 information. The Note Holder will give me notice of this choice. (C)Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding Two and Seven Eighths percentage points ( 2.875 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D)below,this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the maturity date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D)Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 9.200 % or less than 5.200 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than two percentage points (2.0%) from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 13.200 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment 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 information required by law to be given to me 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 Section 18 of the Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. MULTISTATE ADJUSTABLE RATE RIDER-ARM 5-2 -Single Family-FNMA/FHLMC Uniform Instrument Form 3111 1/01 Laser Forms (800}4463555 �� LFI 11FPtMns111 11 1/01 Page 2 of 3 Initlals: C�`/—moi 111 I : r . NOTICE OF RIGHT TO CURE DEFAULT Date of mailing this notice: July 1,2010 Name of creditor: Liberty Bank FSB Address of creditor: 13523 University Avenue Clive, Iowa 50325 rn Phone number of creditor: 515-224-3724 co cp Creditor contact person:Ken Marotti Loan account number: 41501116 N CD Date of mortgage: July 21,2006OD Legal description of mortgaged property: 940 Longfellow.Court of Lot 12,Longfellow Manor Comdominiums,according to the Declaration recorded July 3,2005 in Book 4047,Page 4,Records of the Recorded of Johnston County,Iowa Locally known as: 940 Longfellow Court Iowa City,IA 52240 Name(s)of borrower(s): Carlenise Coleman Address of borrower(s); 940 Longfellow Ct. Iowa City, IA 52240-6266 You are now in default under the mortgage note described above.Your default is the failure to make required installment payments. You have the right to cure this default by making payment to us on or before August 1,2010 of the following amounts: Installment payment due:June 1,2010 $ 787.39 Installment payment due:July 1,2010 $ 787.39 Legal Fee $ 50.00 Late charge and interest $ 39.36 TOTAL YOU MUST PAY TO CURE DEFAULT $ 1,664.14 4 .Av E ; 1 i c If you cure this default you may continue with this obligation as though you did not default. If you do not cure this default by the date set forth above,we will accelerate the sum secured by the mortgage and we will be entitled to proceed with initiating a foreclosure action or procedure and sell the mortgaged property. If you default again in the next year,we may exercise our rights without sending you another notice like this one. Sincerely, m in Ken Marvtti Liberty Bank FSB N co Vice President ^' r ; Senior Collector 3 w o AFFIDAVIT STATE OF IOWA S COUNTY OF POLK The undersigned,being first duly sworn upon oath,deposes and states that he is the Senior Collector of the creditor named in the above notice and that on July 1,2010, He deposited an exact copy of the above notice in the United States mail,postage paid,in an envelope addressed to the borrow(s)set forth in the above notice and that such address is shown on the records of the creditor as the residence of the borrower(s). Ken Marotti Vice President Senior Collector Sr (scribe•,an, worn to before the undersigned notary public on July 1,2010. _ Erl ag;1t F Commission Number 747685 My comm res N Public ovi .lune 2;9,ao Commission Expires END OF CASE FILE CIVIL PROCESS WORKSHEET JOHNSON COUNTY SHERIFFS OFFICE• PO BOX 2540,511 S CAPITOL ST, IOWA CITY, IA 52244-2540•(319)356-6030 PLAINTIFF: BAC HOME LOANS Docket No 10-03197 State IOWA vs. Court No EQCV072117 County JOHNSON )EFENDANT: CONAWAY, KIMBERLY FERN Ref No Received 06/03/2010 Rec estor(s) Phone. HOPKINS,BENJAMIN W (515)222-9400 1350 NW 138 ST STE 100, CLIVE, IA 503258308 Name CITY OF IOWA CITY Zone Party Type DEFENDANT Phone (319)356-5030 Fax Address 410 E WASHINGTON ST IOWA CITY IA 52240- E-Mail Employer Comments Documents Document Serve by Date OE PSR Description/Special Instructions ORIGINAL NOTICE AND ❑ ❑ PETITION [Service Information Date ^`V ) 0 J /Time 1l© S Type Ccy govt Party �1 j VoTt (p ` Relationship c4 crr< C I Uc/ r `-A \ kk3� 'ri5 9 Race Sex DOB Location � N Miles \ Fee Officer —d_.\ (Attempts Log Date Time Server Notes Date Time Server Notes Notes: Printed:Thursday,June 03,2010 Johnson County Sheriffs Office Page 1 of 1 37004 IN THE IOWA DISTRICT COURT FOR JOHNSON COUNTY BAC HOME LOANS 13-2631719 : SERVICING, . L. P. FKA COUNTRYWIDE EQUITY NO. HOME LOANS SERVICING, E g,\I 07 a 1 \--1 L. P. ORIGINAL NOTICE Plaintiff, : vs . .• • KIMBERLY F. CONAWAY; m. 0 CITY OF IOWA CITY, IOWA; • SPOUSE OF KIMBERLY F. • � C .� CONAWAY, IF ANY; n . -- Defendants . : -,Defendants . : Z;c'= Ili r -o c:):::-..i, N TO THE ABOVE NAMED DEFENDANTS : =;;. N You are notified there is a petition now on file in the office of the clerk of the above court . A copy of this filing is attached hereto. The Plaintiff ' s attorneys are Petosa, Petosa & Boecker, L.L. P. , by Benjamin W. Hopkins , whose address is 1350 NW 138th Street, Suite 100, Clive, Iowa 50325-8308 . The Plaintiff ' s attorney' s phone number is (515) 222-9400, with a facsimile transmission number of (515) 222-9121 . You must serve a motion or answer, within 20 days after service of this original notice upon you and within a reasonable time thereafter file a motion or answer, in the Iowa District Court of Johnson County, at the county courthouse in Iowa City, Iowa. If you do not, judgment by default may be rendered against you for the relief demanded in the petition. If assistance of auxiliary aids or services is required to participate in court due to a disability such as hearing impairment, call the Americans with Disabilities Coordinator at (319) 398-3920'! '''If you are in need of dual party telephone relay services, call Relay Iowa TTY at 1-800-735-2942 . LODEMA BERKLEY:' 1/02,Y%-i-vieLC). . ...(2.1(LAJ-frac Cle of the Above Court f Johnson County Courthouse Iowa City, Iowa 52244-2510 YOU ARE ADVISED TO SEEK LEGAL ADVICE AT ONCE TO PROTECT YOUR INTERESTS. t.C. : ''. r C. h\ . (\5! c', . l 37004 IN THE IOWA DISTRICT COURT FOR JOHNSON COUNTY BAC HOME LOANS 13-2631719 . SERVICING, • L.P. FKA COUNTRYWIDE EQUITY NO. HOME LOANS SERVICING, PETITION L. P. L = Plaintiff, vs . • C3 KIMBERLY F. CONAWAY; ;3� CITY OF IOWA CITY, IOWA; • SPOUSE OF KIMBERLY F. l� cs CONAWAY, IF ANY; • y � Defendants . . NOTICE THE PLAINTIFF HAS ELECTED FORECLOSURE WITHOUT REDEMPTION. THIS MEANS THAT THE SALE OF THE MORTGAGED PROPERTY WILL OCCUR PROMPTLY AFTER ENTRY OF JUDGMENT UNLESS YOU FILE WITH THE COURT A WRITTEN DEMAND TO DELAY THE SALE. IF YOU FILE A WRITTEN DEMAND, THE SALE WILL BE DELAYED UNTIL SIX MONTHS FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS YOUR RESIDENCE AND IS A ONE-FAMILY OR TWO-FAMILY DWELLING OR UNTIL TWO MONTHS FROM ENTRY OF JUDGMENT IF THE MORTGAGED PROPERTY IS NOT YOUR RESIDENCE OR IS RESIDENCE BUT NOT A ONE-FAMILY OR TWO-FAMILY DWELLING. YOU WILL HAVE NO RIGHT OF REDEMPTION AFTER THE SALE. THE PURCHASER AT THE SALE WILL BE ENTITLED TO IMMEDIATE POSSESSION OF THE MORTGAGED PROPERTY. YOU MAY PURCHASE AT,THE SALE. o rl rn 1 Plaintiff, BAC Home Loans Servicing, L. P. fka Countrywide Home Loans Servicing, L. P. , for its cause of action states : 1 . That the Plaintiff is a corporation doing business in the United States of America. 2 . That on or about June 30, 2006, Kimberly F. Conaway made, executed and delivered a promissory note in writing for the sum of $80, 250 . 00 payable in installments, with interest at 6 . 125% per annum from such date (the "Note" ) . A copy of the Note is attached hereto and made a part hereof as Exhibit "A" . 3 . That on or about June 30, 2006 in order to secure the payment of the Note, Kimberly F. Conaway (the "Mortgagor (s) " ) made, executed and delivered to Iowa State Bank & Trust Company, a real estate mortgage (the "Mortgage" ) on the following described real estate (the "Mortgaged Property" ) : Lot 87, Whispering Meadows Subdivision, Part Two to Iowa City, Iowa, according to the plat thereof recorded in Book 34, Page 99, Plat Records of Johnson County, Iowa the Mortgage was filed for record July 13 , 2006, in Book 4053, Pages 11-20 in the Recorder' s Office of Johnson County, Iowa. A copy of the Mortgage is attached hereto and made a parte _ -71 hereof as Exhibit "B" . Said mortgage is a Purchase Motley y ra Mortgage. rn 4 . That the Mortgaged Property is and at all times relevant hereto was the homestead of the Mortgagor (s) . ^) 2 5 . That the Plaintiff is currently the holder of record of the Note and Mortgage. 6 . That the Plaintiff is the sole and absolute owner of the Mortgage; that the Note and Mortgage provide that if default be made at any time in payment of any installment of principal or interest, at the election of the Plaintiff, all indebtedness, without notice of such election, shall become immediately due and payable; that the Plaintiff by reason of the failure of the Mortgagor (s) to pay said installments, declares the Note in default, that there is now due and owing the Plaintiff the sum of $76, 727 . 60 with interest at 6 . 125% per annum from and including October 1 , 2009 plus late fees, attorney fees, abstract expense, protective advances and costs . 7 . That the Plaintiff has given the Mortgagor(s) all required notices, including notice of right to cure said default and notice of acceleration required pursuant t :Ioa Code Section 654 .4B (1) , and to date has received no re-sonse7(1-11 •- -� 6 r thereto. Q-f 8 . That the time to cure the default under Iowa law hg's now expired. 9 . That said Note and Mortgage provide that if suit be commenced thereon, Mortgagor (s) will pay reasonable attorneys ' fees. An attorneys ' fee affidavit is attached hereto and made a part hereof as Exhibit "C" . 3 10. That the Plaintiff now hereby in writing waives any right or claim to a deficiency judgment against the Mortgagor(s) . That the Mortgaged Property is the residence of the Mortgagor(s) and is a one-family or two-family dwelling. The Plaintiff hereby elects to foreclose without redemption and the sale of the Mortgaged Property shall occur promptly after entry of judgment, unless the Mortgagor (s) , pursuant to the Notice set forth above, files a written demand to delay the sale, in which event the sale shall be delayed until six months after entry of judgment . 11 . That the following parties are named as Defendant (s) because they claim some right, title or interest in the Mortgaged Property, including, without limitation a right a title or interest as described below but any such right ; title ...-- or interest is junior and inferior to the interest of :--:C rn 11 t Plaintiff : N ry • City of Iowa City, Iowa, $26, 750 . 00 Mortgage, dated June 30, 2006, filed July 13, 2006, Book 4053, Page 22 • Spouse of Kimberly F. Conaway, if any, for any interest in the subject property 12 . That the Mortgage provides that any time after the proper commencement of an action in foreclosure or during the period of redemption, the Court having jurisdiction of the case shall, at the request of the Plaintiff, appoint a receiver to take immediate possession of the Mortgaged Property and of the 4 rents and profits accruing therefrom, to rent the same as he may deem best for the interest of all parties concerned and shall be liable to account to the Mortgagor (s) only for the net profits after application of rents, issues and profits upon the cost of the expense of receivership and foreclosure and the indebtedness, charges and expenses hereby secured and herein mentioned. WHEREFORE THE PLAINTIFF PRAYS THE COURT: 1 . That the Plaintiff have judgment in rem against the Mortgaged Property for the amount of unpaid principal and interest on the Note, as provided in the Note and Mortgage and for late fees, attorney fees, abstract expense, protective advances and costs . 2 . That a receiver be appointed immediately to take qgre of, manage, lease and collect the rents from the Mort agid Property, and to apply the same in payment of costs anW - . , si expenses of said receivership, repairs and expenses of- saddN real estate, accrued and accruing taxes and special assessments, insurance premiums, and in partial payment of the judgment to be entered herein. 3 . That said judgment, together with interest, late fees, attorney fees, abstract expense, protective advances, costs and accruing costs be decreed a prior lien upon the Mortgaged Property from the date of the Mortgage, and that all rights, interests and equities of all Defendants to this suit be 5 declared junior to the right, title and interest of the Plaintiff . 4 . That in the event Plaintiff is required to make protective advances, including without limitation, advances for taxes or insurance on the Mortgaged Property, the Plaintiff be given an additional lien thereon for such amounts so advanced, which shall be included in the judgment to be entered herein. 5 . That the Mortgage be foreclosed and the Defendant (s) ' equity of redemption be barred and foreclosed save as guaranteed by law. That special execution issue for the sale the Mortgaged Property to satisfy said judgment, interest, late fees, attorney fees, abstract expense, protective advances and costs . 6 . That special execution issue to satisfy said judgment, interest and attorneys ' fees, and accruing costs herein, and the Mortgaged Property be sold according to law to satisfy the amount due under the Decree issued by this Court and the n, Defendants herein or anyone claiming by, through or Der hem;r be forever barred and foreclosed of any interest in tB < .�- -� —q d"fid Mortgaged Property, except such rights of redemption , 11= provided by law. 7 . That if the Mortgaged Property is sold and not redeemed, the Clerk of this Court shall issue to the Sheriff of said County, a writ of removal and possession, commanding him to put the grantee named in the Sheriff ' s deed for said 6 premises sold, or his grantee, in possession thereof, and to remove any Defendants, or persons claiming by, through or under any of them, or any person in possession thereof out of such possession. 8 . That the Plaintiff has elected foreclosure without redemption and the sale of the Mortgaged Property shall occur promptly after entry of judgment or in the alternative, if a written demand for delay is filed, the sale shall occur six months after entry of judgment. 9 . That the Plaintiff be granted such further relief as may be just and equitable . PETOSA, '' ' ►ISA & BOECKER, L.L. P. BY ii Be 'a�:�l'�l' Hopkins, AT0003573 0 �` � • . , reet, Suite 100 `i e, I wa 503 ip eilephone: (515) 222-9400 csimile : (515) 222-9121 ATTORNEYS FOR PLAINTIFF __,_ o c_.-)r- (E-- C)'°'°: I CD .e.;- N -� N 7 fiR Awa; > NOTE14/42, is taloenify _ san e of ti70 Phy Iowa SLateectflank& rust co. June 30,2006 Iowa City Iowa [Date] [City] [State] 2667 Indigo Court Iowa City,IA 52240 [Property Address) 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received,I promise to pay U.S.$80,250.00 (this amount is called'Principal"),plus interest,to the order of the Lender. The Lender is Iowa State Bank and Trust Company . I will make all payments under this Note in the form of cash,check or money order. I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the"Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of 6.125%. - The interest rate required by,this Section 2 is the rate I will pay both before and after any default described in Section 6(B)of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payment on the 1st day of each month beginning on August 1st 2006 . I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due dale and will be applied to interest before Principal. If,on July let , 2036 ,I still owe amounts under this Note,I will pay those amounts in full on that date,which is called the"Maturity Date." I will make my monthly payments at 325 South Clinton St PO Box 1700 Iowa City,IA 52244 or at a different place if required by the Note Holder. (B) Amount of Monthly Payments My monthly payment will be in the amount of U.S.$487.61 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a "Prepayment." When 1 make a Prepayment,I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment ifI have not made all the monthly payments due under the Note. I may make a full Prepayment or partial Prepayments without paying a Prepayment charge. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However,the Note Holder truly apply myPrepayment to the accrued and unpaid interest on the Prepayment amount,before applying myPrepayment to reduce the Principal amount of the Note.If I make a partial Prepayment,there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. ^3 5. LOAN CHARGES If a law,which applies to this loan and which sets maximum loan charges,is finally interpreted so that the interest or o`Ifier loan charges collected or to be collected in connection with this loan exceed the permitted limits,then: (a)any such 1 an charge=shall be reduced by the amount necessary to reduce the charge to the permitted limit;and(b)any sums already collected from me which- exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducinglhePrincipai I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated as;a partial Prepayment. 6. BORROWER'S FAILURE TO PAY AS REQUIRED C) (A) Late Charge for Overdue Payments -� If the Note Holder has not received the full amount of any monthly payment by the end of 15 calen4-days aI,er the ;i L date it is due,1 will pay a late charge to the Note Holder. The amount of the charge will be 5.000%of my ovehiltie payr fent of - principal and interest. I will pay this late charge promptly but only once on each late payment. _ (B) Default ; Ill do not pay the full amount of each monthly payment on the date It is due,I will be in default - (C) Notice of Default If I am in default,the Note Holder may send me a written notice telling me that WI do not pay the overdue amount by aieertain date,the Note Holder may require me to pay immediately the full amount of Principal which has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice Is mailed tome or delivered by other means. (D) No Waiver By Note Holder Even if,at a time when I am in default,the Note Holder does not require me to pay immediately in full as described above,the Note Holder will still have the right to do so ifI am in default at a later time. (E) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above,the Note Holder wIlI have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include,for example,reasonable attorneys'fees. 7. GIVING OR NOTICES Unless applicable law requires a different method,any notice that must be given tome under this Note will be given bydelivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of - my different address. Any notice that must be given to the Note Holder under this Note will be given by delivering it or by mailing it by first class mail to the Note Holder at the address stated in Section 3(A)above or at a different address if I am given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note,each person is fully and personally obligated to keep all of the promises made in this Note,including the promise to pay the full amount owed. Any person who is p guarantor,surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations,including the obligations of a guarantor,surety or endorser of this Note,is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note MULTISTATE FIXED RATE NOT E---Single Family—Fannie Mae/Freddie M. 1..'e,.. a4STRUMENr Form 3200 1/0I(page I oft page') 9847.CV(4/05) 4473898-008 Creative Thinking,Inc. EXHIBIT .0 ft GOTO(00113446) 'L • against each person individually or against all of us together.This means that anyone of us may be required to pay an of the amounts owed under this Note. 9. WAIVERS I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor. "Presentment"means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor"means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note,a Mortgage,Deed of Trust,or Security Deed(the"Security Instrument"),dated the same date as this Note, protects the Note Holder from possible losses which might result if I do not keep the promises which I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions are described as follows: If all or any part of the Property or any Interest in the Property is sold or transferred(or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred)without Lender's prior written consent,Lender may require immediate payment in full of all sums secured by this Security Instrument. However,this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option,Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument.If Borrower fails to paythese sums prior to the expiration of this period,Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. WITNESS THE HAND(S)AND SEAL(S)OF THE UNDERSIGNED. (Seal) BO1iO"of Kim y F.Conaway Borrower (Seal) Borrow« (Seal) Borrows (Seal) WITHOUT RECOURSE /Sign Original Only) PAY TO THE ORDER OF Countrywide Bank,N.A. Iowa State Bank and Trust Company Peg%i e,Vice-Pr dent L C)-4: I :21 c, rn N r+PrRiela4dQYoficfAB. atrnte'1 pre4<rffir/W./ IS 4 00 'sin'sueol ou/oN ep!MNtumD b N VMS ap t rn � rios)tM asooa i y1y� aitnroa1t10cp(M bbl Tun 1 nut(;OPiMMti oO qo rapio alp at,ted 30101110 aiFt el Led MULTISTATE FIXED RATE NOTE—Since Family—Fannie Mae/Freddie Mac UNIFORSt INSTRUMENT Form 3200 VW Nene,2.12 para) 9547.CV 14/05) 4473898-008 Creative Thinking,Inc. 0010(0010446) (Page 1 of 10) 0133 • I! 1®11111111111111 DCC ID• 020596610010 Typo: OEN Recorded: 07/19/2008 at 01:64:18 PM Fee Amt: $02.00 Pale 1 of 10 Johnson County Iowa Kim Painter County Recorder 4053 P011.20 [Space above reserved for Recorder of Deeds certification] Prepared By:Catherine M Franz Iowa Slate Bank and Trust Company 325 South Clinton St PO Box 1700 Iowa City,IA 52244(319)356-5960 When Recorded Return To:Iowa State Bank and Trust Company 325 South Clinton St PO Box 1700 lows City,IA 52244 I. Title of Document:MORTGAGE 2. Grantor(s):Kimberly F.Conaway,a single person 3. Grantee(s):Iowa State Bank and Trust Company 4. Statutory Mailing Address(s):325 South Clinton St PO Box 1700 Iowa City,IA 52244 5. Legal Description:Page 3 v t r .--1 r" rn f 6. Parcel Identification Number:1024357016 (`' r, 7. Document or Instrument# SU Pagr 1 of 9 9732.CV 47n5) ax7719t00g Creative Talnkio&.Inc. EXHIBIT D 0010100113 4 47) • Book 4053. Paae 11. File Number (Page`2 of 10) PURCHASE MONEY MORTGAGE MORTGAGE DEFINITIONS • Words used in multiple sections of this document are defined below and other words are defined in Sections 3,I I,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 June 30th , 2006 ,together with all Riders to this document (B) "Borrower"is Kimberly F.Conaway,a single person Borrower is the mortgagor under this Security Instrument. (C) "Lender"is Iowa State Rank and Trnct('nmpany .Lender is a Corporation organized and existing under the laws of the State of Iowa Lender's address is . r , . LI ,,• •a •• Lender is the mortgagee under this Security Instrument. (I)) "Note"means the promissory note signed by Borrower and dated .Tune 30th , 2006 . The Note states that Borrower owes Lender Eighty Thousand Two Hundred Fifty and 00/100 Dollars(U.S.380,250.00 )plus interest Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than July 1.2036 (E) "Property"means the property that is described below under the heading"Transfer of Rights in the Property." (F) "Loan"means the dcht 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. (G) '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]: ❑ Adjustable Rate Rider ❑ Condominium Rider 0 Second Home Rider ❑ Balloon Rider 0 Planned Unit Development Rider III Other(s)[specify]Tax Exempt ❑ 1-4 Family Rider ❑ Biweekly Payment Rider Financing Rider (H) "Applicable Law"means all controlling applicable federal,state and local statutes,regulations,ordinances and administrative rules and orders(that have the effect of law)as well as all applicable final,non•appealablejudicial opinions. (I)"Community Association Dues,Fees,and Assessments"means all dues,fees,assessments and other charges that are imposed on Borrower or the Property by a condominium association,homeowners association or similar organization. (J)"Electronic Funds Transfer"means any transfer of funds,other than a transaction originated by check,draft,or similar paper instrument,which is initiated through an electronic terminal,telephonic instrument,computer,or magnetic tape sum 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. (K) "Escrow Items"means those items that are described in Section 3. (L) "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 -- o Property;(ii)condemnation or other taking of all or any part of the Property;(iii)conveyance in lieu of condemnation;or CD (iv)misrepresentations of,or omissions as to,the value and/or condition of the Property. (M) "Mortgage Insurance"means insurance protecting Lender against the nonpayment of,or default on,the Loan. —t —'— (N) "Periodic Payment"means the regularly scheduled amount due for(i)principal and interest under the Note,plus(ii) C'3"< any amounts under Section 3 of this Security Instrument. ;("} (0)"RESPA"means the Real Estate Settlement Procedures Act(12 U.S.C.§2601 et seq.)and its implementing regulation, f— M Regulation X(24 C.F.R.Part 3500),as they might be amended from time to time,or any additional or successor legislation " m 0 a 1 or regulation that governs the same subject matter.As used in this Security Instrument,"RESPA"refers to all requirements 673. and restrictions that are imposed in regard to a"federally related mortgage loan"even if the Loan does not qualify as a —. TV "federally related mortgage loan"under RESPA. _ (P)"Successor in Interest of Borrower"means any party that has taken title to the Property,whether or not that party has dV assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender. (i)the repayment of the Loan,and all renewals,extensions and modifications of the Note;and(ii)the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose,Borrower irrevocably mortgages,grants and conveys to Lender,with power of sale,the following described property located in the County of Johnson [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] IOWA—Singly Family—Ernie MaelFreddle Mac UNIFORM INSTRUMENT' Fonn 3016 1101(MkSr 2 49 pu.srs) o7a1cv(7101) 4473899-009 Cr-cadre Thinking,Inc. GOTO(00173447) _____. Book 4053. Page 11. File Number lPago'3 of 10) • • Lot 87,Whispering Meadows Subdivision,Part Two to Iowa City,Iowa,according to the plat thereof recorded in Book 34,Page 99,Plat Records of Johnson County,Iowa. which currently has the address of 2667 Indigo Court [Street] Iowa City ,Iowa 52240 ("Property Address"): [City] [Zip Code] 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 and convey the Property and that the Property is unencumbered,except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands,subject to any encumbrances of recent. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1.Payment of Principal,Interest,Escrow Items,Prepayment Charges,and Late Charges.Borrower shall pay when due the principal of.and interest on,the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3.Payments due under the Note and this Security Instrument shall be made in U.S.currency.However.If any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid,Lender may require that any or all subsequent payments due under the Note and this Security Instrument be made m one or more of the following forms,as selected by Lender:(a)cash;(b)moneyorder,(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. ty Payments are deemed received by Lender when received at the location designated in the Note or at such other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any O payment or partial payment if the payment or partial payments are insufficient to bring the Loan current.Lender may accept Q any payment or partial payment insufficient to bring the Loan current,without waiver of any rights hereunder or prejudice to C') G its rights to refuse such payment or partial payments in the future,but Lender is not obligated to apply such payments at the time such payments are accepted.If each Periodic Payment is applied as of its scheduled due date,then Lender need not pay interest on unapplied funds.Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. Cj I If Borrower does not do so within a reasonable period of rime.Lender shall either apply such funds or return them to Borrower.If not applied earlier,such funds will be applied to die outstanding principal balance under the Note immediately --i C") q prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve ..<r -13 i Y Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreements secured by this Security Instrument —�`! 2.Application of Payments or Proceeds.Except as otherwise described in this Section 2,alt payments accepted N and applied by Lender shall be applied in the following order of priority: (a)interest due under the Note;(b)principal due under the Note;(c)amounts due under Section 3.Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges,second to anyother amounts due under N this Security Instrument,and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due,the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding,Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if.and to the extent that,each payment can be paid to full.To the extent that any excess exists after the payment is applied to the fullayment of one or more Periodic Payments,such excess may be applied to any late charges due.Voluntary prepayments shall pbe applied first to any prepayment charges and then as described in the Note. Any application of payments.insurance proceeds,or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date,or change the amount,of the Periodic Payments. 3.Funds for Escrow items.Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note is paid in full,a sum(the"Funds")to provide for payment of amounts due for:(a)taxes and assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property;(b)leasehold payments or ground rents on the Property,if any,(c)premiums for any and all insurance required by Lender under Section 5: and(d)Mortgage Insurance premiums,if any,or any sums payable by Borrower to Lender in lieu of the payment ofMortgage Insurance premiums in accordance with the provisions of Section 10.These items are called"Escrow Items."At origination or at any time dining the term of the Loan,Lender may require that Community 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 Item s IOWA—Single Fnndly—Fannie MaelFrtddle Mae UNIFORM INSTRUMENT Aim 3016 1/01(page 3 of 9 pages) 9742.01(7W) 4473896006 Creative Thinking,lar. COTO(00tf3447) Book 4053. Pace 11. File Number (Page.4 of 10) ' unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's • obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing.In the event of such waiver,Borrower shat pay directly,when and where payable,the amounts due for anyEsoow hems for which payment of Funds has been waived by Lender and,if Lender requires,shall furnish to Lender receipts evidencing such payment within such time period as Lender may require.Borrower's obligation to make such payments and to provide receipts shall for all purposes be deemed to be a covenant and a ment contained in this Security Instrument,as the phrase "covenant and agreement"is used in Section 9.If Borrower is obligated to payEscrow Items directly.pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item,Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any time bya notice given in accordance with Section 15 and,upon such revocation, Borrower shall pay to Lender all Funds,and in such amounts,that are then required under this Section 3. Lender may,at any time,collect and hold Funds in an amount(a)sufficient to permit Lender to amly the Funds at the time specified under RESPA,and(b)not to exceed the maximum amount a lender can require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of expenduscs offuture Escrow Items or otherwise in accordance with Applicable Law. The Funds shall be held in an Institution whose deposits are insured bya federal agency,Instrumentality,or entity (including Lender,if Lender is an institution whose deposits are so insured)or in any Federal Horne Loan Bank.Lendershall apply the Funds to pay the Escrow Items no later than the time specified under RESPA.Lender shall not charge Borrower for holding and applying the Funds,annually analyzing the escrow account,or verifying the Escrow Items,unless lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds,Lender shall not be required to payBorrower any interest or earnings on the Funds.Borrower and Lender can agree in writing,however,that interest shall be paid on the Funds. Lender shall give to Borrower,without charge,an annual accounting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow,as defined under RESPA,Lender shall account to Borrower for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow,as defined under RESPA,Lender shall notify Borrower as required by RESPA,and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA,but in no more than 12 monthly payments- If there is a deficiency of Funds held in escrow,as defined under RESPA,Lender shall notify Borrower as required by RESPA,and Borrower shall payto Leader the amount necessary to make up the deficiency in accordance with RESPA,but in no more than 12 monthly pa . Upon payment in full doll sums secured by this Security Instrument,Lender shall promptlyrthatoBortawerany Funds held by Lender. 4. Charges;Liens.Borrower shall pay all taxes,assessments.charges,fines,and impositions attributable to the Property which can attain priorityover this Security Instrument,leasehold payments or ground rents on the Property,if any, and Community Association Dues,Fees,and Assessments,if any.To the extent that these items arc Escrow Ite s,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 manna acceptable to Lender,but only so long as Borrower is performing such agreement;(b)contests the lien in good faith by,or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the hen while those proceedings are pending,but only until such proceedings are concluded;or(c)secures from the holder of the lien an agreementsatisfactory to Lender subordinating the lien to this Security Instrument.If Lender determines that any part of the Property is subject to a lien which can attain priority over this Security instrument,Lender may give Borrower a notice identifying the lien.Within 10 days of the date on which that notice is given,Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 5.Property Insurance.Borrower shall keep the improvements now existing or hereafter erected no the Property insured against loss by fire,hazards included within the term"extended coverage,"and any other hazards including,but not limited to,earthquakes and floods.for which Lender requires insurance.This insurance shall be maintained in the amounts (including deductible levels)and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lenders right to disapprove Borrower's choice,which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan,either. (a)a one-time charge for flood zone determination,certification and tracking services;or(b)a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection o by Borrower. If Borrower fails to maintain any of the coverages described above,Lender may obtain insurance coverage,at O Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of - C'1 C 71q coverage. Therefore,such coverage shall cover Lender,but might or might not protect Borrower,Borrower's equity in the s. 1 Property,or the contents of the Property,against any risk,hazard or liability and might provide greater or lesser coverage than was previously in effect.Borrower acknowledges that the cost of the insurance coverage so obtained might significant y n- I exceed the cost of insurance that Borrower could have obtained.Any amounts disbursed by Lender under this Seaton S shall , "" become additional debt of Borrower secured by this Security InstrumenL These amounts shall bear interest at the Note rate � from the date of disbursement and shall be payable,with such interest,upon notice from Lender to Borrower requesting tf"T7 payment. (" I a a 1 All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to C disapprove such policies,shall include a standard mortgage clause,and shall name Lender as mortgagee and/or as an N 0 additional loss payee.Lender shall have the right to hold the policies and renewal certificates.If Lender requires,Borrower -,5 -• 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 Cs..) standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the event of toss,Borrower shall give prompt notice to the insurance carrier and Lender.Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing,any insurance proceeds, whether or not the underlying insurance was required by Lender,shall be applied to restoration or repair of the Properly,if the restoration or repair is economically feasible and Lender's security is not lessened.During such repair and restoration period,Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been complete/to Lender's satisfaction,provided that such inspection shall be undertaken promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed.Unless an agreement is made in writingorApplicable Law requires interest to be paid on such insurance proceeds,Lender shall not be required to pay Borrower any interest or earnings on such proceeds.Fees for public adjusters,or other third parties,retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened,the insurance proceeds shall be applied to the sums secured by this Security Instrument,whether or not then due, with the excess,if any,paid to Borrower. Such insurance proceeds shall he applied in the order provided for in Section 2. IOWA-Single Family-Fannie Ma&Freddle Mac UNIFORM INSTRUMENT Form 3016 Ur(puge 4.19 rraxri) 9142CV i7D5i 4473693 aur Creative Makin6,lac. GOTOtWI 0447) _ _ . . •- Book 4053. Pane 11- File Number (Page•5 of 10) • If Borrower abandons the Property,Lender may file,negotiate and settle any available insurance claim and related matters.if Borrower docs not respond within 30 days to a notis.c 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 Lender event,or if acquires the Property under Section 22 or otherwise,Borrower hereby assigns to Lender(a)Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instrument, and(b)any other of Borrower's rights(other than the right to any refund of unearned premiums paid by Borrower)under all • insurance policies covering the Property,_insofar as such rights are applicable to the coverage of the Property.Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this Security instrument,whether or not then due. 6.Occupancy.Borrower shall occupy,establish,and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy,unless Lender otherwise agrees in writing.which amen shall not be unreasonably withheld,or unless extenuating circumstances exist which are beyond Borrowers 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 conwnit waste on the p Whether or not Borrower is residing in the Property,Borrower shall maintain the Property in order to prevent the Prrty from deteriorating or decreasing in value due its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically feasible,Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage.If insurance or condemnation proceeds arc paid in connection with damage to,or the taking of.the Property,Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Rieder may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds arc not sufficient to repair or restore the Properly,Borrower is rot 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 Ian 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, misleading,or inaccurate information or statements to Lender(or failed to provide(.ender 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 significantly affect Lender's interest in the Property and/or rights under this Securityln uument(such as a proceeding in bankruptcy,probate,for condemnation or forfeiture,for enforcement of a lien which may attain priority over this Secunty 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 in the Property and 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 suns 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 m the Property and/or rights under this Security Instrument,Including its secured position in a bankruptcy proceeding.Securing the Property includes,but is not limited to,entering the Property to make repairs,change locks,replace or board up doors and windows,drain water from pipes,eliminate building or other code violations or dangerous conditions,and have utilities turned on or off.Although Lender may take action under this Section 9,Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amounts disbursed by Lender under this Section 9 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 he payable, with such interest,upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold,Borrower shall comply with all the provisions of the lease.ifBorrower 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 the Loan,Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect.lf,for any reason,the 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 o a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect,from an alternate _ mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available,Borrower ' O shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ` "11 ceased to be in effect.Lender will accept,use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss reserve shall be non-refundable,notwithstanding the fact that the Loan is ultimately paid in full,and .. eel= Lender shall not be required to pay Borrower any interest or earnings on such loss reserve_Lender can no longer require loss 1 reserve payments if Mortgage Insurance coverage(in the amount and for the period that Lender requires)provided by an /�- Lender insurer selected by again becomes available,is obtained,and Lender requires separatebydrsignated payments toward —f C7 C the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and 1-- Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance,Borrower •In " shall pay the premiums required to maintain Mortgage insurance in effect,or to provide a norirefimdable loss reserve,until7;3 Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrowerard Lender CD e providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects N •..r Borrower's obligation to pay interest at the rate provided in the Note. r• •• Mortgage Insurance reimburses Lender(or any entity that purchases the Note)for certain losses it may incur if Borrower docs not repay the Loan as agreed Borrower is not a party to the Mortgage Insurance. N Mortgage insurers evaluate their total risk on all such Insurance in force from titre to time,and may enter into agreements with other parties that share or modify their risk,or reduce losses.These agreements are on terms and cmdlitiors 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 payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements,Lender,any purchaser of the Note,another insurer,any reinsurer.any other entity, or'any affiliate of any of the foregoing,may receive(directly or indirectly)amounts that derive from(or might be characterized as)a portion of Borrower's payments for Mortgage Insurance,in exchange for sharing or modifying the mortgage insurer's risk,or reducing losses. if such agreement provides that an affiliate of Lender takes a share of the insurer s risk in exchange for a share of the premiums paid to the insurer,the arrangement is often termed"captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance,or any other terms of the Loan. Such agreements win not increase the amount Borrower will owe for Mortgage Insurance,and they will not entitle Borrower to any refund. IOWA.-til ale Fundy Ea tide Mae/Freddie Mar UNIFOItat INSTRUMENT Farah 3016 1N1(pde 5.19 nun) 7742.CV MOS) 4473598-008 Creative Thinking,lac GOTO(OO1t344t) Book 4053. Pane 11. File Number (Pagel 6 of 10) . (b)Any such agreements will not affect the rights Borrower has-if any-with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law.These rights may include the right to receive certain disclosures,to request and obtain cancellation of the Mortgage lnsunutce,to have the Mortgage Insurance terminated automatically,and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11.Assignment of Mlscellaneuus Proceeds;Forfeiture.AU Miscellaneous Proceeds are hereby assignedb and shall he paid to Lender. lithe Property is damaged,such Miscellaneous Proceeds shall be applied to restoration or repair of theProperty,if the restoration or repair is economically feasible and Lender's security is not lessened.During such repair and restoration period,Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity b inspect such Property to ensure the work has been completed to Lender's satisfaction,provided that such inspection shall be undertaken promptly.y.Lender may pay for the repairs and restoration in a single disbursement or in a series of progress paym rets 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 shrill not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds.If the restoration or repair is not economically feasible or Lender's security would be lessened,the Miscellaneous Proceeds shall be applied to the turns secured by this Security Instrument,whether or not then due,with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. in the event of a total taking,destruction,or loss in value of the Property.the Miscellaneous Proceeds shall be applied to the sums secured by,this Security Instrument,whether or not then due,with the excess,if any,paid to Borrower. In the event of a partial taking,destruction,or loss in value of the Property in which the fair market value of the Property immediately before the partial taking,destruction,or loss in value is equal to or greater than the:uncurl of the soots secured by this Security instrument immediately before the partial taking,destruction,or loss in value,unless Borrower and Lender otherwise agree in writing,the sums secured by this Security instrument shall be reduced by the amount of the Miscellaneous Proceeds multiplied by the following fraction:(a)the total amount of the sums secured immediately bee the partial taking,destruction,or loss in value divided by(b)the fair market value of the Property immediately before the partial taking,destruction,or loss in value. Any balance shall be paid to Borrower. In the event of a partial taking,destruction.or loss in value of the Property in which the fair market value of the Property immediately before the partial taking,destruction,or loss in value is less than the amount of the sums secured immediately before the partial taking,destruction,or loss in value,unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums we then due. If the Property is abandoned by Borrower,or if.after notice by lender to Borrower that the Opposing Party(as defined in rhe next sentence)offers to make an award to settle a claim for damages.Borrower fails to resppoond to Lender within 30 days after the date the notice is given,Lender is authorized to collect and apply the Miscellaneous Protds either to restoration or repair of the Property or to the sums secured by this Security Instrument,whether or not then due. "Opposing Partys'means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding,whether civil or criminal,is begun that,in Lender's judgment,could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security instrument. Borrower can cure such a default and,if acceleration has occurred,reinstate asprovided in Section 19,by causing the action or proceeding to be dismissed with a ruling that,in Lender's judgment,precludtsforfdnre of the Property or other material impairment of Lender's interest in the Property or rights under this Secuntylnsmmaat.The proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that arc not applied to restoration or repair of the Property shall be applied iodic 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 the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse toextend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in interest of Borrower.Any forbearance byLender in exercising any right or remedy including,without limitation.Lender's acceptance of payments from third persons,entities or Successors in Interest of Borrower or in amounts less than the amount then due,shall not be a waiver of or preclude the exercise of any ^� 0 right or remedy. —" 13.Joint and Several Liability;Co-signers;Successors and Assigns Bound. Borrower mvenantsand agrees O that Borrower's obligations and liability shall be joint and several. However,any Borrower who co-signs this Security ,ems�� L Instrument but does not execute the Note(a"co-signer"):(a)is co-signing this Security Instrument only to mortgage,grant and convey the co-signer's interest in the Property under the terms of this Security Instrument;(b)is not personaltyobligated to pay the sums secured by this Security Instrument;and(c)agrees that Lender and any other Borrower can agree to extend, `mm••• modify,forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the co- I yar"'n' signers consent. Subject to the provisions of Section 18,any Successor in Interest of Borrower who assumes Borrower's obligations Pi -0 under this Security Instrument in writing,and is approved by Lender,shall obtain all of Borrower s rights and benefits oder .� this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security um �- Instrument unless Lender agrees to such release in writing.The covenants and agreements of this Securitylnstrent shall _ l bind(except as provided in Section 20)and benefit the successors and assigns of Lender. --` N .d 14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default,for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument,including, but not limited to,attorneys'fees,property inspection and valuation fees.In regard to any other fees,the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee.Lender may not charge fees that arc expressly prohibited by this Security Instrument or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges,and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits,then:(a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit:and(b)any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower.Lender maychonse 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 rex aprepayment charge is provided for under the Note).Borrower's acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing.Any notice to Borrower in connection with this Security Instrument shall be deemed tohave been given tBorrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means.Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. IOWA-Single Family--Fannie Man/Fudefoe Mac UNIFORM INSTRUMENT Foes 3016 LO1(rw;e 6 019 past:) 0T41CV 17O1 14731)t-008 Creative Thinking,Inc. GolO(0113417) Book 4053. Parse 11. File Number (Page 7'of 10) • Borrower shall promptly notify Lender of Borrower's change of address. If lender specifies a procedure for reporting Borrower's change of address,then Borrower shall only report a change of address through that specified procedure. There may be only one designated notice address under this Security Instrument at any one time.Any nonce to Lender shall be given by delivering it orby iling it by fast lass mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be deemed to have been given to Lender until actually received byLenckr. If any notice requited by this Security Instrument is also required under Applicable Law,the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law;Severability;Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained m 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 he construed as a prohibition against agreement by contract.In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law,such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument:(a)words of the masculine gender shall mean and include ung neuter words or words of the feminine gender;(b)words in the singular shall mean and include the plural and vice versa;and(c)the word"may"gives sole discretion without any obligation to take any action. 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18.Transfer of the Properly ora Beneficial Interest In Borrower.As used in this Section 18,"Interest in the Property'means any legal or beneficial interest in the Property,including,but not limited to,those beneficial interests transferred in a bond for deed,contract for deed,installment sales contract or escrow agreement,the intent of which is the transfer of title by Borrower ata future date to a purchaser. If all or any part of tete Property or any Interest in the Property is sold or transferred(or if Borrower is nota natural person and a beneficial interest in Borrower is sold or transferred)without Lender's prior written consent,Lender may require immediate payment in full of all sums secured by this Security Instrument. However,this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option,Lender shall give Borrower notice of atxeleration.The notice shall provide aperiod 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 suers prior to the expiration of this period,Lender may invoke any remedies permitted by this Security Instrument 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 Instrument discontinued at any time prior to the earliest of.(a)five days before 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 Borrower's right to reinstate;or(c)entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower:(a) pays Lender all suns which then would be due under this Security Instrument and the Note as if no acceleration had occurred;(b)cures anydefatrll of any other covenants or agreements;(c)pays all expenses incurred in enforcing this Security instrument,includng.but not limited to,reasonable attorneys'fees,property inspection and valuation fees,and other fees incurred 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 under this Security Instrument,and Borrower's obligation to pay the suns secured by this Security Instrument,shall continue unchanged.Lender may require that Borrower pay such reinstatement 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 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 shall remain fully effective as if no acceleration had occurred.However,this right to reinstate shall not apply in t c case of acceleration under Section 18. 20. Sale of Note;Change of Loan Servicer;Notice&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 Borrower.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 Instrument and performs other mortgage loan servicing obligations under the Note,this Security Instrument,and Applicable N 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 C the Loan Servicer.Borrower will be given written notice of the change which will state the name and address of the new G Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection with O a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the ('j C.-. "n purchaser of the Note,the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be a transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the Note >"--1 •�- .,�� purchaser. "r 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 Instrumerao or that alleges '—i C--) that the other party has breached any provision of,or any duty owed by reason of,this Security Instrument,until such Borrower or Lender has notified the other party(with such notice given in compliance with the requirements of Section 15) 1'Tt = 1 1 of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take —X' corrective action.If Applicable Law provides a time period which must elapse before certain action can be taken,that time O N ,_1 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. N 21.Hazardous Substances.As used in this Section 21:(a)"Hazardous Substances"are those substances defined as toxic or hazardous substances.pollutants,or wastes by Environmental Law and the following substances:gasoline, kerosene,other flammable 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 environmental protection;(c)"Environtrtental Cleanup"includes any response action,remedial action,or removal action,as defined in Environmental Law;and(d)an "Environmental Condition means a condition that can cause,contribute to,or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence,use,disposal,storage,or release of any Hazardous Substances,or threaten to release any Hazardous Substances,on or in the Property.Borrower shall not do,nor allow anyone else to do, anything affecting the Property(a)that is in violation of any Environmental Law,(b)which creates an Environmental Condition,or(c)which,due to the presence,use,or release of a Hazardous Substance,creates a condition that adversely affects the value of the Property.The preceding two sentences shall not apply to the presence,use,or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property(including,but not limited to,hazardous substances in consumer products). Borrower shall promptly give Lender written notice of(a)any investigation,claim,demand,lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge,(b)any Environmental Condition,including but not limited to, any spilling,leaking,discharge,release or threat of release of any Hazardous Substance,and(c)any condition caused by the IOWA-Single Family-Farmte Moe/Freddie Mire UIJIFO5M INSTRtIMENf F,,,m 3015 1111(parr 749 P.on) %42cv Mu) 4473e98-0a11 Creative Winking,tar. GO7O(00I t3ae7) ... Book 4053. Pane 11. File Number (Page 6 of 10) , presence,use or release of a Hazardous Substance which adversely affects the value dem Property.If Borrower learns,or is notified by any governmental or regulatory auttnrity,or any private party,that any removal or other repudiation of any Hazardous Substance affecting the Property is necessary.Borrower shall promptly take all necessary remedial actions in accordance with Environnnental Law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree is follows; 22. Acceleration; Remedies. Lander 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,foreclosure by judicial proceeding and sale of tiij Property.The notice shall further inform Borrower of the right to reinstate after acceleration and the right to crt in the foreclosure proceeding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. 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 foreclose this Security Instrument by judicial proceeding.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. 23. Release. Upon payment of all turns secured by this Security Instrument,Lender shall release this Security Instrument. Lender may charge Borrower a fee for releasing this Security Instrument,but only if the fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 24.Waivers.Borrower relinquishes all right of dower and waives all right of homestead and distributive share in and to the Property. Borrower waives any right of exemption as to the Property. 25.HOMESTEAD EXEMPTION WAIVER.IUNDERSTAND THAT HOMESTEAD PROPERTY ISIN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AND EXIIIMPT FROM JUDICIAL SALE;AND THAT BY SIGNING THIS MORTGAGE,I VOLUNTARILY GIVE UP MY RIGHT TO TILS PROTECTION FOR THIS MORTGAGED PROPERTY WITH RESPECT TO CLAIMS BASED UPON THIS MORTGAGE. June 3 ,2006 Kimberly F. wayMate) (Date) 26. Redemption Period.If the Property is less than 10 acres in size and Lender waives in any foreclosure ceeding any right to a deficiencyjudgment o inst Borrower,the period of redemption from judicial sale shall be to 6 months. If the court finds that the Property has been abandonedby Borrower and Lender waives any right to a deficiency judgment against Borrower,the period of redemption from judicial sale shall be reduced to 60 days. The provisions of this Section 26 shall be construed to conform to the provisions of Sections 628.26 and 62827 of the Code of Iowa. IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ rNj CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE.NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED.YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN CD^ C �'� AGREEMENT. 3 =mem BY SIGNING BELOW,Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. Witnesses: -<r �'''� (S --„7;7:: N(Seal) Borrower Kim rly F.Conaway N (Seal) Borrower (Seal) Borrower (Seal) Borrower IOWA-Single Family-F"aniS Mae/Freddie Ma UNIFORM INSTRUMENT Form 3016 1/01 (page l of 9 para) 974/CV(14)5) 4473598-008 Crestive ThltOdna,Inc. GOTO(001OM147) Book 4053. Paae 11. File Number (Page 9 of 10) ' [Space Below This Line For Acknowledgment) STATE OF Iowa ) )ss: . COUNTY OF Johnson ) On this 30th day of June 2006 ,before me,the undersigned,a Notary Public in and for said county and state,personally appeared:Kimberly F.Conway.a single person to me personally known to be the person(s)named in and who executed the foregoing instruulent,and acknowledged that she executed the same as her voluntary act and deed. My commission expires:01/30/2008 PEGGY J MERGE Notarial Sad-Iowa 1) P .3 Comrntaaion a 7713247,001 1 12 Notary pvl9�a"d an said County tare MyCommbalan Edna���f�` K i Peggy J.Dcerge [Space Below This Line Reserved For Lender and Recorder - N O_ G7 CD r =i = c..) ./„.— I 7. �r-- f O^� fV C.,J IOWA-Single Fanny--Pantie Mae Fraddie Mat UNIFORM INSTRUMENT Form 3016 141(page 9 of 9 pagan) 9742.CV(7103) 4473898-008 Creative Thlakkg,lan GOTO(001r3447) Be ac 4053. Pare 11. Tile Number (Payo 10 of 10) Prepared by and RETURN TO: Iowa State Bank PO Box 1700.Iowa City,IA 52244 telephone 319-356-5980 Title of Document Rider to Mortgage Grantor: Kimberly F.Conaway (borrower(s)) Grantee: Iowa State Bank and Trust Co (fender) RIDER TO MORTGAGE This Tax-Exempt Financing Rider to Mortgage,made the date noted below,is incorporated Into and shall be deemed to amend and supplement the Mortgage of the same date given by the undersigned(the'Mortgagor')to secure the Mortgagor's Note to Iowa Stale Bank&Trust Company (herein,the'Lender)and covering the property described in the Mortgage(the'Property')to which this Rider is attached, The provisions hereof shall prevail notwithstanding any contrary provisions in arty note or other Instrument which evidences the obligabons secured by the Mortgage. fV As long as the Mortgage is held by the Iowa Finance Authority or backs a mortgage-backed security held by the Iowa Finance Authority.Countrywide fiorne Loans,Inc.(the'Servicer)or such of Its successors or assigns as may by o instrument assume responsibility to assuring compliance by the Mortgagor with the provisions of this Rider.may declare C_ seri sums secured by the Mortgage to be immediately due and payable It. c (1)all or part of the property is sold or otherwise transferred(other than by devise,descent or operation of law) )'. -i :c ®'• by the Mortgagor to a purchaser or other transferee: per' a. who cannot reasonable be expected to occupy the property as a principal residence within a reasonable •� (j time after the sale or transfer,all as provided In Section 143(c)and(i)(2)of the Internal Revenue Code of 1986,as amended(the'Code);orr a i b. who has had a present ownership Interest in a principal residence during any part of the three-year period ending on the date of the sale or transfer.all as provided in Section 143(d)and(i)(2)of the CD N '�- Code(except that the language"100 percent'shall be substituted for"95 percent or more where the •• latter appears in Section 143(d)(1)),unless the property Is In a Targeted Area;or c. at an acquisition cost which is greater than 90 percent of the average area purchase price(greater than 110 percent for Targeted Area residences),all as provided in Section 143(e)and(i)(2)of the Code;or d. who has a gross family income in excess of applicable median family Income;all as provided in Section 143(f)and(i)(2)of the Code;or (2)the Mortgagor fails,or ceases,to occupy the Property without the prior written consent of the Mortgagee or its successors or assigns;or (3)the Mortgagor omits or misrepresents a fact that is material wllh respect to the provisions of Section 143 of the Code in the application for the Mortgage which secures the Note. References are to the Code In effect on the date of the execution of the Mortgage and are deemed to include the applicable Implementing regulations. By signing below,the Mortgagor(s)accepts and agrees to the terms of the Rider to Mortgage. Date: (.e/130/ / Co-Borrower Kimberly F Conaway Typed Name Typed Name This instrument was acknowledged before me on (o/„30/0 by Kimberly F Conarvaas Mortgagor(s). NOTA/Af RY and for said was • pEGGY,(DOE RGE Notarial Seal -Iowa Comrrlbslon#714612 -,�,�p My Commission Expires / -L� �Y� r - • Book 4053, Page 11, File Number AFFIDAVIT _ STATE OF IOWA ) SS COUNTY OF POLK ) I , Benjamin W. Hopkins, being first duly sworn on oath depose and state that I am one of the attorneys for the Plaintiff in this cause; that I am a regular practicing attorney engaged in this case; that there has been no agreement, express or implied, between myself and my client, or between myself and any other person except attorneys associated with me in this case, for any sharing or division of the attorney fees to be taxed herein. I further depose and state that true copies of the note and mortgage and any other documents declared upon in the foregoing Petition are now in my actual possession; that I have read the above and foregoing Petition, know the contents thereof, have personal knowledge of the facts therein stated, and that the statements and allegations therein are t as I verily believe . Af A B: j : 'T •• ins AT0003573 Subscribed and sworn to before me , 28th day of May , 2010 . fp - -n . . j to , , i A .*, L PATRICIA S.WOLF Notary Public in and for t e Commission Number 732803 State of Iowa My Cmissio/ l n Expires ow 2- J '" . om a_ O o n C U D Z-4 : --74 s'n -LL- r r Exhibit "C" - r. Y W END OF CASE FILE