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Claim by Deutsche Bank National Trust Co.
IN THE IOWA DISTRICT COURT FOR DUBUQUE COUNTY DEUTSCHE BANK NATIONAL TRUST COMPANY, AS INDENTURE TRUSTEE FOR NEW CENTURY HOME EQUITY LOAN TRUST 2005-3 Plaintiff EQUITY NO. ©l 3 l((_,, QC ~ ~ ~ 76 ORIGINAL NOTICE v. SHANE P. KLAAS; SPOUSE OF SHANE P. KLAAS; CITY OF DUBUQUE, IOWA; UNKNOWN OCCUPANTS OF 475 VALERIA STREET, DUBUQUE, IOWA Defendants. 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 Plaintiffs attorney is James V. Sarcone, Jr., Belin Law Firm, The Financial Center, 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 Dubuque County, at the County Courthouse in Dubuque, 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 563-589-4433. (If you are hearing impaired, call Relay Iowa TTY at 1-800-735-2943.) ~~~ CLERK OF THE ABOVE COURT IMPORTANT: YOU ARE ADVISED TO SEEK LEGAL ADVICE AT ONCE TO PROTECT YOUR INTERESTS K assistance of au~dliary aids or services is required to participate in court due to a disability such as hearing impaired, call the Americans With Disabilities coordinator at (319) 833-3332. li you are in need ai dual party telephone relay sernces, call Relay Iowa TTY at 1-800-735-294. IN THE IOWA DISTRICT COURT FOR DUBUQUE COUNTY DEUTSCHE BANK NATIONAL TRUST COMPANY, AS INDENTURE TRUSTEE FOR NEW CENTURY HOME EQUITY LOAN TRUST 2005-3 Plaintiff v. SHANE P. KLAAS; SPOUSE OF SHANE P. KLAAS; CITY OF DUBUQUE, IOWA; UNKNOWN OCCUPANTS OF 475 VALERIA STREET, DUBUQUE, IOWA Defendants. EQUITY NO. PETITION (FOR MORTGAGE FORECLOSURE AND RECEIVER) _, `: -, ., ~C_. <. ~~-_'~ ~.~- , ' A „I ,.., c"' c a ",^5 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 AONE-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 serving in capacity as Trustee; Defendants Shane P. Klass, Spouse of Shane P. Klass and Unknown Occupants of 475 Valeria Street, Dubuque, Iowa are r natural persons last known to reside in Dubuque County, Iowa; Defendant City of Dubuque, Iowa is a political subdivision of the State of Iowa 2. That on or about the 6th day of May, 2005, the Defendants, Shane P. Klaas made, executed and delivered to New Century Mortgage Corporation one certain Promissory Note in writing bearing the date aforesaid in the principal sum of $118,340.00 bearing interest at the rate of 7.75 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 Defendant, Shane P. Klaas made, executed and delivered to New Century Mortgage Corporation one certain Mortgage in writing, transferring and conveying unto New Century Mortgage Corporation the following real estate situated in Dubuque County, Iowa, to-wit: Lot 2 of Valeria Langworthy Homestead in the City of Dubuque, Iowa, according to the recorded plat thereof. Situated in Dubuque 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 May 31, 2005, the said Mortgage was duly recorded in Inst. #2005-8345, of the records of the office of the Recorder of Dubuque County, Iowa. 5. That said Mortgage, Exhibit "B" aforesaid, among other things expressly provides for the appointment of a Receiver upon the filing of Petition for Foreclosure or at any time thereafter. Sa. The aforesaid Mortgage has been assigned to the Plaintiff herein. 6. That the said Defendant, Shane P. Klaas, has defaulted in the monthly payment of interest and principal and has neglected and failed to pay the installments as provided in the written instrument aforesaid and is 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 September 18, 2008, is $130,117.96, 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 Lamson McCormick Zumbach Flynn, A Professional Corporation, 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 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 Plaintiff's Mortgage, Exhibit "B" and the amounts hereinbefore set out. 11. That Plaintiff waives its rights to a deficiency judgment in this matter. 12. That a Notice of Right to Cure Default was mailed to the Defendant Shane P. Klaas, more than 30 days prior to the filing of this foreclosure action/Petition and the defaults set out therein have not been cured. 13. City of Dubuque, Iowa is included as a Defendant herein because of a mortgage in the sum of $21,660.00 given through its Housing & Community Development Department to Shane P. Klaas and recorded May, 17 2005 in Inst. #2005-7590 of the Dubuque County, Iowa records. The mortgage provides it is inferior to the lien of the mortgage being foreclosed herein. 14. Spouse of Shane P. Klaas is included as a Defendant herein because she is the spouse of the record titleholder of the above property and may be a party in possession of said property. 15. Unknown Occupants are included as Defendants herein because they are parties in possession of the property being foreclosed herein. WHEREFORE, Plaintiff prays: r 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 $130,117.96 with interest at 7.75 percent from September 18, 2008, and have such additional sum of 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 6, 2005, 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 declazed 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 Sheriffs 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 Dubuque 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 LAMSON McCORMICK ZUMBACH FLYNN A Professional Corporation BY -~ JAM V. SARCONE, JR. The Financial Center 666 Walnut Street Suite 2000 Des Moines, IA 50309-3989 Telephone: 515-243-7100 AT0006913 D:\Newcentury\Klaas\Petset 9-08.Doc r ADJUSTABLE RATE NOTE (LIBOR Six Month Index (as Published in The 13'atl Slreef Jourua!) - Rate Caps) 3 YEAR RATE LOCK THIS NOTE CONTAINS PROVISIONS THAT WILL CHANGE THEDNTEREST RATE AND THE MONTHLY PAYMENT. 'YY ~ 09~0'~1~~iP ~ ~ ~'iy O,~'9 May 6, 2005 Dubuque \~ 9~ yl~ (Date) ty) ~ '~ Iowa (C' \ F~ (State} ~q ' 475 Valerie Street, Dubuque, IA 5200] G~ 9ti - (Property Address) 0,9 1. BORROWER'S PROMISE TO PAY '9~ _. In return for a loan that I have received, I promise. to pay U.S. S 118,340.00 (this am n Icd • "principal"),plus interest, to the order of the Lender_ The Lender is New Century Mortgage at n a California Corporation. )understand that the Lender may transfer this Note. The Lender or anyo a who takes this Notc by transftt and wbo is entitled to receive payments undtt this Note is called tBe Note Holder " I 2. INTEREST Interest will be charged on unpaid principal until the full amount of principal has been paid. 1 wiq pay interest. at a yearly rate of 7.750 /o. The intttcst rate I will pay may change. The interest rate required by this Section 2 and Section 4 is the rate 1 will pay both before and after any default described in Section 7(B) of this Note. , r i The interest rate I will pay may change on the fire day of June, 2008, and on that day every 6th month thereafter. Each date on which my interest rate could change is called an "Interest Rate Change Date" The new ~ rate of interest will become effective on each Interest Rate Change Date in accordance with Section 4 ofthis Notc. 3. PAYI1~tENTS I ~~~~~~~ (A) Time and Place of Payments ~ Beginning on the first day of July 1, 2005 and on the first day of every month thereafter until the first day of June, 2008, 1 wilt pay only interest on the unpaid principal balance of the Note. Thereafter, I will pay principal and interest by making paymenlt every month until the Maturity Date, as provided below. I will make these payments every month until 1 Gave paid all of the principal and interest and any other charges described below that 1 may owe under this Note. ~ My monthly payments will be applied to interest before principaF_ If on Juoe 7, 2435, I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date." I I f NCMC 3117 Six Month LIBOR Now RED 12 (1 r 1803) Page 1 of 5 I Oa 18tiR627 f i i I will make my monthly payments at 18400 Von Kerman, Suite 1000 Irvine, CA 92612 or at a different place if required by the Note Holder. , (B) Amount of My Monthly Payments Each of my initial monthly payments will be in the amount of U.S. $ 764.28. This amount may change- (C) Monthly Payment Changes Changes in my monthly payment will reflect changes in the unpaid principal of my (orn and in the interest rate that 1 must pay. The Note Holder will determine my new interesfratc and the changed amount of my monthly payment. in accordance with Section 4 of this Note. (D) Withholding ' ` If 1 am anon-resident alien, I understand that all payments due hereunder shall be paid without reduction for any texts, deductions or withholding of any nature. If such tax, deduction or withholding is required by any taw to be m3dc from arty ppaayment to the Note Ho)der, I shall continue to pay this Note in accordance with the terms hereof, such that the Notc Holder will rcctivt such amount as it would have received had nu such tax, deduction or ; withholding been required . 4. 1, ITEREST RATE A,VD MONTHLY PAYMEYI' CHANCES ~ _ _ (A) Cbsnge Dates - The interest rate I wit{ pay may change on the tint day of June, 2008 and on the same day of every 6th month thereafter. Each date on which my interest rate could change is called an "Interest Ratc Change Date." (B) The Index E Beginning with the first Interest Rate Change Date, my interest rate will be based on an Index plus a ; mazgin. The "Index" is the average of interbank offered rates for six-month dollar deposiu in the London market ("LIBOR"), as published in The Wal! Street Journal ",vloney Rates" Table. The most recent Index figure avalable as of the first business day of the month immediately preceding the month in which the Change Date occurs is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that is baud upon comparable information. The Note Holder will give me notice of this choice. i (C) Calculation of Changes I At each ]ntcrest Rate Change Date, the Note Holder will calculate my new interest rate by adding Five And Eight Tenth(s) percentage points (5.800%) to the Current Index. 7hc Note Holder will-then round this figure to the nearest one-eighth of one percentage point (0.125%)- Subject to the limit stated in Section 4(D) below, this rounded amount will be my new mterest rate until the next Interest Rate Change Date. (i) Interest-Only Period. The "]nterest-only Period" is the period from the date of this Note through June 1, 2008. Fot the Interest-only Period, the Note Holder will calculate the amount of- ~ the monthly payment to be one-twelfth 1/12th of one 1 ( ) () ycar3 interest 7.750 %. The ~sult of ` this calculation will be the amount of my monthly payment until the next Interest Rate Change Date. _. ~ ~CMC t 3127 Six Month WDOR Note RE-412 {111803) Page 2 of 5 1901808627 I t ~ - ~ i (ii) Amortization Period. The "Amortization Period" is the period after the Interest-only Period and continuing until the Maturity Date. During the Amortization Period, after calculating my new interest rate as provided in Section 4(C} above, the Note Holder will Then calculate the amount of the monthly payment that would be sufficient to fatly repay the remaining unpaid principal in equal monthly payments by the Maturity Date, assuming, for purposes of each calcutatioq that the interest rate remained unchanged during that pcriod_ The result of this cakuiation will be the new amount of my monthly payment. (D) Limit on Interest Rale Changes The interest rate 1 am required to pay at the first Change Date will not be greater than 9.250 % or Icss than 7.750 %. Thereafter, my interest rate will never be intxeased or decreased on any single Change Date by more than one and one halfpercentage points (I.5%) from the rate of interest 1 have been paying for the preceding month. My interest rate will never be greater than 14J50 % nor Icss than 7.750%. (E) Effective Date of Changes My new interest rate will become effective on each Interest Rate Change Date. i wil) pay the amount of my new monthly payment beginning on the first monthly payment date after the tntcrest Rate Change Dale until the arnount-of my ntonthty payment changes again. _ (F) Notice of Changes The Notc Holder will deliver or mail to me a notice of any changes in my infcrest rate and the amount of my mondtly payment at least 25 days before the effcdive daft 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 questions 1 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." Wbcm I make a pccpaymcnt, 1 will tell the Note Holder in writing that I am doing SU_ I may make a fu[i 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 1 owe under this Note and to pay the inttxat then accruing at the Note rete as of the date my prepayments are applied. If I make a partial prepayment, there will be no changes in the due dates of my monthly paymcnit unless the Note Holder agrees in carting to those changes. My partial prepayment may redact 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 1R[Cre51 rdtC IDCItHSC. 6. LOAN CHARGES if a law, which applies to this loan and which sett 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: (i) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; 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. NCrIC 3Q7 Six MontE L[BOR Xote RRA t2 (1 S 1803) Page 3 of S t 08tE08627 7. BORROWER'S FAILURE TO PAY AS REQt1[RED (A) Late Charges for Overdue Payments If the Note Holder has not received the fulE amount of any monthly payment by the end of 15 calendar days after the date it is due, I wilt pay a Late charge to the Note Nolder_ The amount of the charge wilt be 5.000 or 55.00, whichever is greater of my overdue monthly payment. I will pay this late charge promptly but only once on each late payment. (B) Default If I do not pay the full atnotmt of each monthly payment on the date it is due, l will be in default. (C) Notice of Default if 1 am in default, the Note Holder. may send me a written notice telling me that if I do not pay the overdue amoum by a certain date, the Note Holder may require me to pay immediately the full amount of principal which has not been paid and al{ the interest that I owe on that amount. That date must be at Icut 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 defaulE, the Note Holder dots 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 defavk at a later time. (E) Payment of Note Holder's Costs and Expenses if the Note Holder has requ"ved me to pay immediately in full as descn~bed above, the Note Ho{der will have the right to be paid back by me for all of its costs and expenses in enforcing this Notc to the extettt not . prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 8. CNING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be givrn by delivering it or by mailing it by first class maii to me at the Property gddrcss above or at a different address if I give the Notc Holder a notice of my different address. Unless the Notc Holder requires a different method, any notice that must be given to the Note Floldcr under this Note will be given by mailing it by first class mail to the Notc Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that difft.•rcnt addrw_ 9. OBLIGATIONS OF PERSONS UNDER TH1S NOTE 1 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. And petson who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Notts, is also obligated to keep all of the promises made in this Note_ The Note Holder may enforce its rights under this Notc against each person individually or against all of us together. This meatts that any one of vs may be required to pay all of the amount owed undtJ this Note. ]0. WAVERS r I and any other person who has obligations under this Notc waive the rights of presentment and notice of dishonor, and further waive al) relief under any valuation and appraisemenl laws. Presrntmrnt" means the right to _. Nc,MC 3/21 Siz Month L3BOR Notc RIr412 (111807) Page4 of5 100)NU8629 t r require the Note Holder to demand payment of amounts due_ "Notice of dishonor' means the right to rcyuite the Note Holder to give notice to other persons that amounts due have not been paid. 11. GOVERNING LAW -SECURED NOTE This Note is governed by federal law and the law ufthe jurisdiction in which the property encumbered by the Security Instrument (as defined below) is located. In addition to the protections given to the Note Holder under this Note, a Mortgage, Decd 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 1 make in the Note. That Security Instrument descnbes how and under what conditions I may be required to make immediate payment m full of all amounts 1 owe under this Note. Some of those conditions are described as follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property w any ' interest in it is sold or trensfcrrcd (a ifa beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lcrrdet's prior written consent, Lender may, at its option, require immediate payment in ful! of all sums secured by this Sccuritl! Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security 1nsWmrnt. ' 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 delivered or mailed within which Borrower must pay all sums secured byYbis Security Instrument ]f Borower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies pcrrttitted by this Security Instrument without further notice or demand on Borrower. CAUTION . _ _ f IT IS IMPORTANT THAT YOU THOROUGHLY READ THIS NOTE BEFORE YUU SIGN IT. I ` WITNESS THE HAND(S) AND SL•AL(S) OF THE UNDERSIGNED i 1 .% / ~~ SHANE P KLAAS -Borrower -Borrower - Borrower -Borrower - Borrower -Borrower - BOfrVWeY - BnliOWt[ , (Sign Ongtrtal Only) NCMC- , 3R7 Siz Month LIBOR Note RF.412 (111803} Page S of 5 1 Oi.I8ue627 i s ~ r TRUE ADD EXACT CQ~F OF Rt6t ~~~ 1Space Abeve ?6ir [r>r For Rccordivg Data) Prepared By: ~ 3~/ g D) I New Century Mortgage Corporation - 18400 Von Rarmaa, Suite 1000 - Irvin~, CA 92612 - 800-967-7623 Return To: New Century Mortgage Corporation _ 18400 Von Barman, Suite 1000 _ i Irvine, CA 92612 Full Legal Description located on page 16 Leer Narne totaled on page 2. MORTGAGE DEFINITIONS Words used in multiple sections of this document aze 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 dotumrnt are also provided in Section 16. (A) "Security Instruinent^ nxans this dotunxnt, which is dated May 6, 2005 together with all Riders to this docutent. / ' (B) ^Borrower" is SHANE P IQ.AAS (,~ s l ~ 2{e ,nn/S6~ 1 /) iVt • lf~" 1 1~1~11 i . Borrower is the mortgagor under this Security Instrument_ 100180627 IOWA-Single Famiy-Fannie MaeJFieddio Mac UNIFORM iNSTRUbtENT Fotm 3Dt6 1! Ot -6(U-)to~os}oT va,~s t d t5 netlal~ ~9,i9/ ~. .YMP Morlgape Sdutbna ~e0)521-729t I r (C)"Lender"is New Century Mortgage Corporation Lender is a Corporation organized and existing under the laws of California Lender's address is 18400 Von Rarman, Suite 1000, Irvine, CA 92612 Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated May 6 , 2005 The Note states that Borrower owes Lender ONE HONORED EIGHTEEN THOUSAND T@tEE HUNDRED FORTY AND 00/100 Dollars (U.S. S 11B, 340.00 }plus interest. Borrower bas promised to pay this debt in regular Periodic Payrnerrts and to pay the debt in full not later than June 1, 2035 , (E) "Property" means the property [hat is described below under the heading "Transfer of Rights in the _ Property." . ~ "Loan" means the debt evidenced by the Note, phrs interest, any prepayment charges and }ate charges due under the Note, and all stuns due under this Security Irutrument, plus interest. (C)-"Riders" mearu all Riders to this Security L~strurncnt that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: ® Adjustable Rate Rider [] Condominium Rider ~ Second Nome Rider 0 Balloon Redtr Q Planned Unit Development Ride Q l-4 Family Rider ~] VA Rider ~ Biweekly Payment Rider ~ Otl-er(s) [specify) (I~ "Applinble 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 a!! appligble final, non-appealable judicial opinions. _ m "Community Associatioa Dues, Fees, and Assessments" means all dues, fees; assessments and other chazges that aze iurposed 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 termioa}, 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 limned to, point-of--sate transfers, automated teller ~ machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse tcarssfers. ('IC) '7;scrow Items"means those items that are described in Section 3. (L) "MiseelMoeous Proceeds" means any compensation, settlerrrent, award of damages, or proceeds paid by any third Party (other iban insurance proceeds paid under the coverages described in Section ~ for. () 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) "Etariodic Payment" means the regulazly scheduled amount due for (i) principal and interest underThe - Note, plus (ii) any amounts under Section 3 of this Security Instrrrmerrt. ~ ' 100180862? ~~ ®~~) w~OSrc, °"•: w ,s '' term 3016 trot • (O) '~tESPA" means the Real Estate Settlement Procedures An (12 U.S.C- Section 260] et seq.) and its implementing regulation, Regnlation 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 regazd to a "federally related mortgage loan' even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (P) "Snocessor 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 [he Loan, and atI renewals, extensions and modifications of the Note; ands (ii) the performance of Borrower's covenants and agrtements under this Security Instrument and the Note. For this purpose, Borrower irrevocably mortgages, grants and mnveys to Lcnder, with power of sale, the following described property {orated in the - County of dubuqua ._. fl'ype of Rttordio6 Jurisdiction] ~ {Name o[ Reoutdina Jurisdiction] _ See Legal Description Attached Hereto. and Made a Part Hereof 1 Parcel ID Number: 1013358006 which currently has the address of 475 Valerie Street Is~l ~t3' ) ICuyl. Iowa 52001 Izip Cody 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 shalt also be covered by this Security Instnunent. All of ibe foregoing is refernd to in this Security Instrument as the "Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has i the right to grant and rnnvey the Property and that the Property is unencumbered, except for etttamrbrances of rewrd. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. _ THI5 SECURITY INSTRUM1~11' combines uniform ~venants for rational use and non-unSl'orm ' covenants witb lirtilted variations by jurisdiuion to constitute a uniform security instrument covering real property. 1001808627 tmdab: -6(IA) laws}ot vim" a "r 75 ~ Fwm 3016 1101 ..®.. r • UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 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 ]terns pursuant to Section 3. Payments due under the-Note and this Security Instrument shall lx made in U_S_ currency_ However, if any check or other instnunent 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 Ihis Security Irtsttumenl 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 Fonds Transfer. Payments are deemed received by Lt:nder whrn 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 payrrKnt or partial payment if the payment or partial payments are inwfficirnt to bring the Loan current. Lender may accept any payment or partial payment inwfficient to bring the Loan current, without waiver of any rights hereunder or prejudice m its rights to refine such payment or partial payments in the future, but Lender is. not obligated to apply such paymrnts at the time such paymerNS are accepted. if each Periodic Payment is applied as of its scheduled due date, then Lender treed not pay ' interest on unapplied funds. Lender may hold such unapplied funds urNil Borrower makes payment to bring the Loan currtnt. if Borrower does not do so within a reasonable period of time, Ltxtder shalt either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance unrder the Note immediately prior to foreclosure. No offset or_c7aim 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 covcmnts and agreements secured by this Security Ir-stcument. 2. Application of Payments or Proceeds. Except as otbawise 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; (e) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order in which it became due. Any remaining arrrounts 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 Notc. 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 delinqurnt 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 aay excess exists aster the paymem 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 Procceds to principal due under the Note shall not extrnd or postpone the doe date, or change the amount, of the Periodic Payments. 3. Funds for Escrow Items. Borrower shag pay to Lender on the day Periodic Payments are due under the Note, unti3 the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due fot: (a) taxes and assessmrnts and other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; {b) leasehold payr-xats or ground rents on the Property, if any; (c) ~ preuiums for any and all insura~e 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 'E9Crow Items." At origination or at any time during the tem- of the Loan, Lender may require that Community ~ 1001808627 Mnb~r, t;(IA)twos}or vim.+a~s `~ Form 3016 1101 • 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 Iterr>_t. Lender may waive Borrowtt'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 alt purposes be deemed to be a covenant and agreement contained in this Stxrtrity lnctrttvrent, as the phrase "covenant and agreement" is used in Section 9. ]f Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Estxow Item, Le:ndtt may exerciu its rights under Section 9 and pay such arrrotrrrt and Borrower shall then be obligated under Section 9 to repay to Lender any such _ amount. Lendtt may revoke the waiver as to any or all Esttow 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. _Letrdtt may, at any time, collect acrd hold Ftmds in an amount (a) sufficient to permit Lender to aPP1Y the Funds at the time specified under RFSPA, a~ (b) not to exceed the maximum amount a lender tart reguire under RESPA. Lender shall estimate the amount of Funds due on the basis of cumnt data and reasonable estimates of expenditures of future Escrow ltetns or otherwise in accordance with Applicable Law. The Funds shall be held in an institution whose deposits are insured by a federal agency, irutrumentaliry, or entity (including Lender, if Lt:ndtt is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall apply the Ftutds to pay the Escrow Items no later than the time specified undo RFSPA. Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow IteKrrass, 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 [o 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. Lendtt shall give to Borrower, without charge, an annual accounting of the Funds as required by RESPA. It there is a surplus of Funds held in escrow, as defined under 1tESPA, 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, Lturder shall notify Borrower as required by ItESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RFSPA, but in no more than I2, monthly payments. If there is a deficiency of Funds held in escrow, as defined under 1tFSPA, 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 RFSPA, but in no mote than 12 monthly payments. Upon payment in full of all sums secured by this Security Instntment, Lender shall promptly refund to Borrower any Ftmds held by Lender. 4. Charges; Liens. Borrowtt shall pay all taxes, asse~cments, charges, fenes, and impositions attributable to the Property which pn attain. priority over this Security Instnmxnl, leasehold paytents or • ground rents on the Property, if any, and Community Association Duex, Fees, and Assessments, if any. To ' the extent that these items aze Escrow hems, Borrower shall pay them in the manner provided in Section 3. Borrowtt shall promptly discharge any lien which has priority ovtt this Security Instrument unless Borrower. (a) agrees in writing to the payment of the obligation servred by the lien in a manner acceptable: to Lender, but only so Tong as Borrower is performing such agreement; N) contests the lien in goobfaith ~ 1002808627 mn:,tt ~ -6(IA)paos}ot a~ssa is Fotm3D16 t/qf • 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 aze concluded; or (c) secures from the holder of the lien an agreement satisfactory [o Lendce subordinating the lien Fo this Security Instnmtent_ 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 givrn, Borrower shall satisfy the lien or take one or snore of the actions set forth about in this Section 4. Lender may enquire Borrower to pay none-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 foe, hazards irtcltrded within the term "extended coverage," and any other hazards including, but rtgt Limited to, earthquakes and floods, for which Lender requira insurarrtx_ This insurance shat) be maintained in the amounts (including deductible levels) and for the periods that - Lender requires. What Lendex reaquira pursuant to the preceding sentences can change dtui»g the term of the Loan. The insurance Carrier providing the insurance shall be chosen by Borrowtr 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, cextiftcation 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 erccrtr which reasonably might affect such determination or certifitation. Borrower shall also be responsible for the payment of arty fees imposed by the Fedearal Emergexrcy Managexrrrnt Agency_ in Connection with the review of any flood zone determination resulting from an objection by 13otrowear. - If Borrower fails to maintain any of tlu coverages deurilred above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lrnder is under no obligation to purchase arty 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 coirtrnts 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 miglu significantly exceed the cost of insurance that Borrower rnuld 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 disburseaztent 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 sta~ard mortgage clause, and shall mare Lender as . atortgagex and/or as an additio~l-loss payee. Leandex shall have the right to bold 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 rexluired by Lender, for damage to, or destruction of, the Property, such policy shalt include a standard mortgage clause and shall name Lendtar as mortgagee and/or as an additional loss payex. In the tavrnt of loss, Borrower shall give prompt notice to the irrsrrrance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender artd 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 exoaomically feasible and Lender's security is not lessened. During such repair and restoration period, Leander shall have the right to hold such insurance proceeds until Lender has trod an opportunity to inspect such property io ensure Ibe work has .been completed to Lender's satisfaction, provided that such inspection shall be undertaken promptly. lxnder may disburse proceeds for We repairs and restoration to 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 i l ~-6(IA) (o~osror m Tie B of 15 1001808627 wnak , Form 3056 rf01 requires irderat to be paid on such insurance proceeds, Lender shalt not be required to pay Borrower any interest or earnings on such proceeds. Fees for public adjusters, or other [bird parties, retained by Borrower steal{ 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 shalt be applied to the sums secured by this Security Instnumrnt, whether or not then due, with the excess, if any, paid to Borrower. Stich ir-strrance procads 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 insuraaoce carrier bas offered to settle a claim, then Lender may negotiate and settle the claim. T'he 30-day period will begin when the notice is given- In either event, or iC Lender acquires the property undo Section 23 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 tights (other than the right to any refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, irssofar as such rights are applicable to the coverage of tbe Property. Lender may use the 'uswarice proceeds either to repair or ratore the Property or to pay amounts unpaid under the Note or this Security Instnument, wtteWer or not [ben due. 6. Occupancy. Borrower shall occupy, establish, artd use the Property as Borrower's principal residence wiWin 50 days after the execution of this Security Itutrumenl and shall continue to occupy the Property as Borrower's principal raidence for at least one year after the date of occupancy, wiles Leader otherwise agrees in writing, which rnnseat shall riot be unreasonably withheld, or unless extenuating circttrrntances exist which aze beyond Borrower's control. 7. Preservattoq Maintenance and Protection of the Property; IaspeMfoas. Borrower shall not destroy, damage or itn~pair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall rrraintain the Property in ~ order to prevent the Property from deteriorating or decreasing in vahre due to its condition. Unless it is dettrminod pursuant to Section 5 [bat repair or restoration is rat economically feasible, Borrower shall promptly repau dre Property if damaiged to avoid fitrther 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 aze 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 rntries upon and inspections of rtes 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. Borro>er'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 lmowledge or cor>sent gave materially false, misleading, or inaccurate infomtation or staternents to Lender (or failed . to provide Lender with material information) in connection with the Loan. Material representations include, but aze not limited to, representations concerning Borrower's occupancy of Ute Property as Borrower's principal residence. 9. Protection of Lender's Interest in the Property and Rights Under Ibis Security Instrument. If (a) Borrower fails to perform rtes covenants and agreements wntairred in this Security Instrument, (b) there is a )cgal proceeding that might sig~cantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding en bankruptcy, probate, for condemnation or forfeiture, for enforccaxnt of a lien which may attain priority over this Security Instrumem or to enforce laws or i 1001808627 ~J~ ~~~ `~`~1 p4D5y0t ~°' °r 15 Form 3076 trot • regulatiotu), or (c) Borrower has abandoned the Property, then Lender may do and pay fox 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 wafer from pipes, eliminate building or other code violations or dangerous corrditio-ss, 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 ur~cr arty duty or obligation to do so, 1t is agreed that Lender incurs no liability for not taking any or all actions authorized tinder this Section 9.' Any amounts disbursed by Lender under ibis Section 9 shall become additiotral 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 inttxest, upon notice from Lender to Bortower requesting _ paymerd_ If .this Security InsWmrnt is on a leasehold, Borrower shall rnmply with all the provisions of the lease. If Borrower acquires fee lisle to the Property, the leasehold and the fee title shall rat merge unless Lender agrexs 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, the Mortgage I»5lrrance coverage required by Lerteler ceases to be available from the mortgage insurer that previously provided such inturartce and Borrower was rcquirtd to make separately designated payments toward the premiums for Mortgage Insurartcc, Borrower shall pay Ure premittrtts required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect; at a cost substantially t eqn valent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alter~te 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. Lerner will accept, use and retain these payments as a rton-refundable loss reserve in Ilea 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 itxerve. Lender rarr_no longer require loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) i 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 Ltsttrarxe as a condition of making the Loan and Borrower was required to make separately designated paymeats toward the premiums for Mortgage Ir-nuance, Borrower shall pay the premiums required to maintain Mortgage Insttrarrce in effect, or to provide anon-refundable loss reserve, until Le:nder's requirement for Mortgage Utswance 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 pnrehases the Note) for certain losses it may irucvr if Borrower does not rt~ay the Loan as agreed. Borrower is not a patty to lbe Mortgage Insurance. Mortgage irutrrcrs evaluate their total risk on all such insurance in forte from time to time, and may enter into agrcetncnts with other parties that shaze or modify their risk, or reduce losses. These agreements are on terms and conditions that aze satisfactory to the mortgage insurer and We other party (or parties) to f these agreements. These agreements may require the mortgage insurer to make payments using an)• source of funds that the mortgage insurer may have available (which may inchrde funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Nole, another insurer, any reinstutr, any other entity, or any affiliate of any of the foregoing, may rexeive (directly or indirectly) amounts-that derive from (or might be characterized as) a portion of Borrower's payments for Mortgage lnsutrance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing Fosses. If such agreement ~ ~ 1001808627 INtlalr , t, ` -6(IA) pwsl.or ~.e a fs Form 3016 1N1 ® - provides that an affiliate of Lender takes a shaze of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "pptive reinsurance." Further: (a) Any such agreements will not atTeM the amounts that Borrower bas agreed to pay for Mortgage Insurance, or any other terms of the Loao. Such agreements will not increase the amouut Borrower will owe for Mortgage lnsunnce, and they will not entitle Borrower to any refund. (b) Any sucb agreements will not affect the rights Borrower has - iC any -with respect to the Mortgage Insunoce 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 Insanoce premiums that were unearned at the time of such cancdlatioa or termination. 1l. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds azc hereby assigned to and shall be paid to Lendtt. 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 lessrned. _ During such repair and ettoration period, Leader shad have the right to hold such Miscellaneous Proceeds until Leander has had an opportunity to inspect sucb Property to et-sttre the work Das been completed to Lender's satisfaction, provided that such inspection shah be undertaken promptly. Lender may pay for the • repairs and ettoration in a single disbursentery 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 sucb Miscellaneous Procceds. It the restoration or rcpau is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall bt applied to the sums secured by this Security Instrument, whether or not thrn 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 vahte of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with ~ - ihe 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 Propexiy immediately before the partial taking, destroction, or loss in value is equal to or greater than the amount of the sums secwed by this Security Instrument immediately before the partial taking, destruction, or loss in vahre, unless Borrower and Lendtt otherwise agree in writing, the sums secued by this Secvriry Instrument shall be reduced by the amount of the lvliscellaneous 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 fait 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, destnuction, or loss in value, unless Borrower and Lender otherwise agree in writing, We Miseelaceous Proceeds shall be applied to the stunt . secured by this Seettriry Insirurnent whether or not the sums are then due. If the Propexty is abandoned by Borrower, or if, after notice by Lender to Borrower that the Apposing Parry (as defured in the next sentence) offers to make an award to sdtle a claim for damages, Borrower fails to rexpond to Lrndtt within 3Q days after the date ibe entice is given, Lender is authorized . to collect arrd 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 Lernicr's judgment, could result in forfeiture of the Property or other material impairment of Lender's interat in the Property or rights antler this Security Instrument. Borrower can cure such a default andfit 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 Lendtt's interest in the Property or rights under this Seeuriry Instrument. The proceeds of 2001808627 o-rwic -61~-1 to+osro r v,q" e d rs ~ Foam 3D16 tlD1 • ~ i any-award or claim for damages that are attributabk to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. Ail Miscellaneous Proceeds that are not applied to restoration or repair of the property shall be applied in the order provided for in Section 2. l2. Borrower Not Released; Forbearance By Lender Not a Waiver. Factension of the time for payment or modifgtion of amortization of the sums secured by ibis Security Instrument granted try 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 Bortowtr. Lender shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend tune for payment or otherwise modify amortization of the sums secured by this Security Inswmcnt 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, Leader's acceptance of paytrterrts from third persons, entities or Succtssors in Interest of Borrower or in amounts less than the amount then due, shat) not be a waiver of or preclude the exercise of any right or remedy. 23, Joint and Several Liability; Co-sifters; Successors and Assigns Bound. Borrower covenants .and agrees that Borrower's obligations aril liability shall be joint and several. However, any Borrower who co-signs this Security Instrument bu[ does not execute the Note (a 'co-sigar'7: (a) is co-signing this Security Instrument only to rrrortgage, grant and convey the Co-signer's interest in the Property under the terrus of this Security Instrument- (b) is not personally obligated to pay the sums secured by this Senrriry Instrument; and (c) agrees that Lender and any other Borrower cen agree to extend, modify, forbear or [Hake any acrnmmodations with regard to the terms of this Security Instrument or the Note without the co-sigrrcr's consrnt. Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Inswment in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Irutrnment. Borrower shall not be released from Borrower's obligations and liability under this Security tattclrnrent 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 assigrss of Lender. I4. Losn Charges. Lender may charge Borrower fen for services performed in connection with Borrower's default, for the purpose of protecting Lendei 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 IrWrurrrent to charge a specific fce to Borrower shall not be construed as a prohibition on the charging of sucl- fee. Lender may not charge fees that are expressly prohibited by this Security Instrurrrnr[ or by Applicable Law. If the Loan is subject to a law which sets maximum loan charges, and that Iaw 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, [ben: (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 redrrccs 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 wilt rnnstimte a waiver of any right of action Borrower might have arising out of such ovcrchazge. 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 rrrear-s. Notice to any one Bortower shall constitute notice to aL Borrowers ~ rmless Applicable Law expressly requires otherwise. T'he 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 orre designated notice address under this Security Ir>strumtnt at any orre time.'Any notice to Leader shat) be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated atwther address by notice to Borrower. Any notice in 1001808627 aar.rr . (!'~-.~St1A) twos}ot ~ ro or rs ~ Form 3016 1101 • connection with this Security Instrument shall not be deemed to have been given to Lender until actually received by Lrnder_ If any notice reguired by this Security Instrumrnt is also required under Applicable Law, [he Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. 16. Governing Law; Severabitity; Rnles of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. A11 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 contrau. 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 provisioru of this Security Instnmment 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 We plural and vice versa; and (c) tht 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 Bmefldal Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or berrcfi~iai interest in the Property, including, but trot limited to, those beneficial interests transfemd in a bond for-decd, contract. for deed, installment sales contract or esaow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. ]f all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is rat a natural person and a beneficial interest in Borrower is sold or transferred) without Leraler's prior written consent, Lender may rtquire immediate paymrnt in full of all sums secured. by this Security i irrstn-rnent. 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 Instrumrnt. If Borrower fails to pay these sums prior to [be ezpiralion of this period, Lrnder may invoke any remedies permitted by this Security Instrument without further ratite or demand on Borrower. i 19. Borrower's Rlght to Reinstate After Aaderation: If Borrower meets certain conditions, Borrower shall have the right to have rnforcetnent of this 5entrity 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 Securi Instrtunrnr, ty (b) such other period as Applicable Law might specify for the termination of ' ! Borrower's right to reinstate; or (c) rntry of a judgment enforcing this Security Instrument. Those conditions are that Borrower. (a) pays Lender all sums which thrn would be due under this Secwity Instrument and the Note as if no acceleration had oaurred; (b) cura arty default of any other covenants or agreements- (c) pays all expenses irtntrred in enforcing this Security Instrument, including. but not limited to, reasonable attorneys' fees, property inspection and vahtation fees, and other tees incurred for the purpose of protecting Ler~er's interest in the property and rights rmder this Security Instrument; and (d) tapes such action as Lends may reasonably require to assure that Lertdtr's interest in the Property and rights under this Security Itutrrtmertt, and Borrower's obligation to pay the sums secured by this Security Instt»trrertt, 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 agenry, instntmentality or entity- or (d) Electronic Furs Transfer. upon reinstatement by Borrower, this Security ]nstrument 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 I8. 20. Sale of Note; Change of Lean Servicer; NoBce of Grievance. The Note or a partial intertst.in the Note (together with this Security Instrument) can be sold one or more times without prior notice to 1001808627 Mimn~ l!m-6W-) t~sror vy.ri w t5 Form 3016 tr of m 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 Instromrnt, and Applicable Law. "there also might be one or more changes of the Loan Servicer tutrelated to a sale of the Note. If there is a change of the Loan Servicer, Borzower 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 anti 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 othetvrise provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (az either an individual Iitigant or the member of a class) that arises from the other party's actions pursuant to this Security Intrument or that alleges Shat the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, wrtii such Borrower or Lender has notified the other parry (with such notice givrn in compliance with the requirements of Section IS) 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 takrn, that time period will be deemed to be reasonable for purposes of this paragraph. The notice of acceleration anti opportunity to core given to Borrower purstant to Section 22 and the notice of acceleration givrn to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisiotu of this Section 20. 2I. Hazardous Substances. As used- in this Section 22: (a) "Hazardous Substances" are those substances defined as tonic or hazardous substances, pollutants, or wastes by Envirt}nnuntat Law and the following substances: gasoline, kerosene, other flaaunable or tonic petroleum products, tonic pesticides and heYbicides, volatile solvents, tnatexials epntaining asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" meant federal Laws and laws of the jurisdiction where the Property is logted that relate to health, safety or environmental protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, az deemed in Emirenmrntal Law; and (d) an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Eavironmer}tat Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous SLbstances, or threaten to release any Hazardous Substances, on or in tbe Property. Borrower shall not do, nor allow anyone ease 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 I 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 (inehding, but not limited lo, hazardous substances in coruumer ptoducu)_ Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by any goverzunentai or regulatory agency or private party involving the Property and any ... Hazardous Substance or Environmental Law of which -Borrower has actual knowledge, (b) nay Environmental Condition, inchrding but not limited to, any spilling, leaking, diseLarge, release or threat of release of arty Hazardous Substance, and (c) any condition caused by the presence, rue 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 rt:rrrediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actioru in accordance with Environmental Law. Nothing herein shall crpte any obligation on Lender for an Environmental Clearrtrp. /~ 100180862? mkak -6(IA) toaos}or rte. ~z or ~s Form 30f6 tMt ~ i 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 otberwise)_ 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 crated; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration et the snms sccnrtd by this Security Instrument, foreclosure by jndicial 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 nootxistence of a default or any other defense of Borrowei Eo acceleration and toredosnre_ If the default B not cured on or before the date specified in the notice, Lender at Its option may require immediate payment in fall of all sums secured by this Security Instrument vritbont further demand and may toredose this Security lostrumrnt by judidal proceeding. Lender shall be entitled to collect all expenses incurred ie pursuing the remedies provided in Ibis Section 22, including, brat not Bmittd te, reasonable attorneys' fees and costs of title evidence. 23. Release. Upon payment of all stuns secured by this 5ccuriry Instrument, Lender shall release this Seetniry Instrument. Lender may charge Bor%wer a fee for releasing this 3ccuriry Inctrumcnt, but only if the fee is paid to a third party for services rendered and the charging of the fen is permitted under Applicable Law. 24. Waiters. Borrower relingitishcs all right of dower and waives ail right of homestead and distributive share in a~ 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, f VOLUNTARILY GIVE UP MY RIGHT TO TIL15 PROTECTION FOR TLIIS MORTGAGED YROPERTX WITH RESPECT TO CLAII~LS BASED UPON THIS MORTGAGE. /, ~,{ l ~ Borrowu SHANE P rCLAAS Dste Borrower Date Horrowu ~ Date Borrower Date Borrower Dale Borrower Date ~~~ Date Borrower (~.jrc 1001808627 -6(IA)-p~os}ot P~ 13 or 15 Form 3et6 1/01 26. Redemption Period. If the Property is less than ]0 acres in size and Lender waives -sn any foreclosure procecding any right to a deficiency judgment against Borrower, the period of redemption from judicial sale shall be reduced to 6 monlhc. If the court fords 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. f 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 CHANCE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. BY SIGNING BELOW, Borrower accepts and agrees to the tams and covenants contained in this Security ]nstrument and in any Rider czecuted by Borrower and rtcorded with it. Witnesses: _ , SH71idE P t{LA7lS ~-Borrows (Seal) -Borrowcr I ~5~~ (Seal) -Borrower -Bormwu ~~) (Seal) . -BO[iDwu -BoROwc[ (Seal) (Seal) -Bor'OWU -Bormwcr r , 1001808627 -6(tA) ta,os}o, py,„~,s Form 3016 trot m. I ~ s STATE OF IOWA, County ss: ~Ip4 ~u ~ fL On this ~ day of ~-t~~ ~ 2 oU S , before me, a Notary public in the State of Iowa, personally appeared ~~~ ~ ~~c~~ S f ~ s ~ K~ ~~ ~.~~~ to me personmlly known to be the person(s) named in and who executed the foregoing instrument, and acknowledged that helsbe/they executed the sanx as his/her/their voluntary act and deed. My Commission Expires: _ - ~~~ ~C~~a~ . ._. Hoary 1'uLlic in and said Cnuory and Sato 7Alu~utY TFIpMpS lows Notarial Seal _ ~mm>ssion nrrnrl>er 7i7127 ~-Y Cotnrttission Expires osn4ros ioolaos6sT ~~~ -6(tA) pros}o~ ~ ~s or t s Form 3016 fro 1 m ADJUSTABLE RATE RIDER (LIBOR Six-Month Index (As Published in The Wall Street lournal}Rate Caps) 3 YEAR RATE LOCK THIS ADJUSTABLE RATE RIDER is made this 6th day o{May, 2005 and is incorporated into and shalt be deemed to amend and supplement the Mortgage, Dccd of Trost, or Security Deed (the "Security Instromrnt") of the same date given by the undersigned ("Borrower") to secure Borrowc~s Adjustable Rate Note (the "Note") to New Century Mortgage Corporation ("Lender") of the same date andcovering the property described in the Security Instrument and located at: 475 Valerie Street, Dubuque, TA 52001 (Pmpecry Address) THE NOTE CONTAINS PROVISIONS ALLOWING POR CHANGES IN THE WTEREST -RATE AND THE MONTHLY PAYMENT.-THE NOTE LIMITS THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Secnriry Instrument, Borrower and I.cnder further covena~ and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 7.750 "/,. The Note provides for changes in the interest rate and monthly payments as follows: 4. INTEREST RATE AND MONTHLX PAYMENT CHANGES (A) Change Dates The interest rate l will pay may change on the fast day of June, 2008 and on the same day of every 6th month thereafter. Each date on which my interest rate could change is called an "interest Ratc Change Date." (B} The lodex Beginning with the first Interest Rate Change Date, my interest rate will be based on an Index plus a margin_ The "Index" is the average of interbank offered rats for six month dollar deposits in the London mazkct ("LIBOR', as published in The Wall Street Journal "Money Rates" Table. The most recent Index figure available as of the first business day of the month immediately preceding the month in wbich the Change Date occurs is called the "Current Index.' 1f 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. NCMC lR7 Siz Month LJBOR Adjustabk Rate Rider RE-4 n (J rJ so3) Page J of 3 ] OO18Q862? (C) Ca)culatian of Changes At each Interest Rate Change Date, the Note Holder wi}I calculate my new interest rate by adding Five And Eight Tenth(s) percentage points (5.800 %) to the Current lndcz. The Note Holder will then round ibis 5gure to the ncazcst one-eighth ofonc percentage point (0,725°.6). Subject to the limit stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Intuest Rate Change Date. (i) Interest-0oly Period. The "Interest-only Period" is the period from the date of this Note through Jnne 1, 2008. For the Intcrest~nly Period, the Note Holder will calculate the amount of the monthly payment to beone-twelfth (1/12th) of one (I) year's interest at 7.750% per annum. The result of this calculation wilt be the amount of my rnoathty payment until the Interest Rate Change Date_ (ii) Amortization Period. The "Amortization Period" is the period after the Intuest-only Period and continuing until the Maturity Date. Ihu;ng the Amortization period aRer calculating my new interest rate as provided in Section 4(C) above, the Note Holder will then calculate the amount of the monthly payment that would be sufficient to fully repay the remaining unpaid principal in -- equal monthly payments by the Maturity,Datq assuming, for purposes of each calculation, that the interest rate remained tmchangcd during that period. The result of this calculation wilt be the new amount of my monthly payment. (D) Limit on Interest Rate Changes Tbc inicrest raft I am required to pay at the fast Change Date will not be greater than 9250% or less than '7.750%. Thereafter, my interest rate wilt never be increased or decreased on any single Change Date by more than one and one halfpereerttage points (1.5%) from the rate otinterrst I have been paying for the preceding month. My interest rate will nevv be greater than 14.750% or Less than 7.750°/a (E) Effective Date of Changes My new interest rate will become effective on each Interest Rate Change Date. I will pay the amount of my acw monthly payment begimting on the &rst monthly payment date after the Interest Rate Change Date until the amount of my inont6ly 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 at least 25 days 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 questions I may have rogazding the notice. II. GOVEIWING LAW -SECURED NOTE, The Note is governed by federal law and the law of the jurisdiction in which the property encumbered by the Security Instrument (as de5ncd below) is located. In addition to the protections given to the Note Holder under the Note, a Mortgage, Deed of Tntst or Security Deed (the "security Instrument"~ dated the same date as the Note protects the Note Holder from possibk losses which might result if 1 do not keeethe promistx which I make in the Note. -That Security Instrument descnbes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under the Note_ Some ofthose conditiotss are desrn'bcd as follows: NCMC 327 S& M°nth L-BOR AdjushDre Rate Rids Page 2 of 3 1001$08627 RE-4I1 (}11803) Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any 1 interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transierred and Borrower is not a natural person) without Lenders prior written consent, Lender may, at its option, require immediate payment in full of alt sums secured by this Security Instnrme~. However, this option shall not be exercised by Lends it exerciu is prohibited by federal law as of the daft of this Security Instrument. if Lender exercises this option, Lender shall we Borrower notice of acceleration. The notice shall provide a period of not leu than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Securiry 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. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. , //~ / i SHANE P IQe1AS ~ -eaoo..Q -Boaoer .B«,o..a _ _~~ a 1 -Bolroav (Sign Original Only) ' r NCMC 3rYT Six Monts LIBOR Adjustasle Rite Ride - RE~11 (111803) Page3 of3 1001808627 r Legal Description Lot 2 of Valeria Langworthy Homestead in the City of Dubuque, Iowa, according to the recorded plat thereof. situated in Dubuque County, Iowa. r ji ~ 1 `~f