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IN THE IOWA DISTRICT COURT FOR DUBUQUE COUNTY
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) ORIGINAL NOTICE
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EQUITY NO.
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DEUTSCHE BANK NATIONAL TRUST
COMPANY, AS INDENTURE TRUSTEE FOR
NEW CENTURY HOME EQUITY LOAN TRUST
2005-3
v.
SHANE P. KL~S; SPOUSE OF SHANE P.
KLAAS; CITY OF DUBUQUE, IOWA
Defendant(s).
I;
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 defendant(s) 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., Bodin 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 y6u. 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 TrY at i -800-735-2943.)
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CLERK OF THE ABOVE COURT
IMPORTANT: YOU ARE ADVISED TO SEEK LEGAL ADVICE AT ONCE TO
PROTECT YOUR INTERESTS
Plaintiff
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IN THE lOW A DISTRICT COURT FOR DUBUQUE COUNTY ~~ ~ --,-I
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~ PETITION (FOR MORTGIJt- '{J,
) FORECLOSURE AND RECEIVER)
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DEUTSCHE BANK NATIONAL TRUST
COMPANY, AS INDENTURE TRUSTEE FOR
NEW CENTURY HOME EQUITY LOAN TRUST
2005-3
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v.
SHANE P. KLAAS; SPOUSE OF SHANE P.
KLAAS; CITY OF DUBUQUE, IOWA
Defendant(s).
,
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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 AFfER 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 WANER 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 ~UT NOT A ONE-FAMILY OR TWO-FAMILY DWELLING. YOU WILL
.f
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.
13
':
1. That Plaintiff is a foreign corporation serving in capacity as Trustee; Defendants,
Shane P. Klaas and Spouse of Shane P. Klaas are natural persons last known to reside in Dubuque
County, Iowa; Defendant City of Dubuque, Iowa is a political subdivision of the State ofIowa.
2. That on or about the 6th day of May, 2005, the Defendant, 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 $1 18,340.00 bearing interest at the rate
of 7.75 percent-per annum after maturity, and Exhibit "A" hereto attached and by this reference
incorporated h~rein 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 thlsame transaction for the purpose of securing said Note with interest thereon and
other sums h~feinafter 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 Courity, Iowa, to-wit:
Lot 2 of Valeria Langworthy Homestead in the City of Dubuque,
; Iowa, according to the recorded plat thereof. Situated in
pDubuque 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 3 1,2005, the said Mortgage was duly recorded in lost. #2005-8345, of
the records of the office ofthe Recorder of Dubuque County, Iowa.
5. That said Mortgage, Exhibit "B" aforesaid, among other things expressly provides for
the appointment ofa Receiver upon the filing of Petition for Foreclosure or at any time thereafter.
5a. Th9 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 May 26, 2006, is $121,229.95,
including prindipal 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 ofthis Court.
9. Th~t the Plaintiff is willing and now offers, upon payment of the amount due it as
;;
heretofore set torth, 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 $180.00 for
continuing the abstract of title to the mortgaged premises, which is the reasonable charge for
same.
II. That the Defendants herein have or claim to have some lien upon or interest in the
mortgaged pre~ises, 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.
12. That Plaintiff waives its rights to a deficiency judgment in this matter.
13. 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.
J,
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 a party in possession of said property.
14.
15. 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.
WHEItEFOItE, 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, maintai!l 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 or"$121,229.95 with interest at 7.75 percent from May 26, 2006, 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. (Ii) 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 o~ 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
I
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 ~is 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 bf 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
S'.
BY ~J'~1
JAM" V. SARCONE, JR.
The Financial Center
666 Walnut Street Suite 2000
Des Moines, IA 50309-3989
Telephone: 515-243-7100
PK 0004845
D:\Newcentury\K1aas\Petsetstandard.Doc
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ADJUST ABLE RATE NOTE
(LIBOR Si.l Month Index (as Published in The Wall Street Journal) - Rate Caps)
3 YEAR RATE LOCK
THIS NOTE CONTAINS PROVISIONS THAT WILL CHANGE THE~TEREST RATE AND THE
MONTHLY PAYMENT. ""~
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May 6, 2005
(Dale)
Dubuque
(Coty)
415 Valeria Street, Dubuque, lA 52001
(Property Address)
I. BORROWER'S PROMlSE TO PAY
In return for a loan that I bave received, I promise to pay U.S. $ 118,340.00 (this am n
"principal"), plus interest, to the order of the Lender. The Lender is New CeDtury Morlga~e
. a California Corporation. I understand that the Lender may transfer this Note. The Lendl,'r or anyo e who takes
Ibis 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. 1 win pay
interest at a yearly rate of 7.750 %. The interest rate 1 will pay may change. The interest rate required by this
Section 2 and Section 4 is the rate I will pay both before and after any default described in Seclion 7(B) of this
Nole.
The interest rate ( will pay may change on the first day of June, 2008, and on that day every 6th month
thereafter. Each date on which my interest rate could change is called an nlntcrest Rate Change Date." The new
rale of interest will become effective on each Interest Rate Change Date in accordance with Section 4 of this Nole.
(A) Time and Place of Payments
Beginning on the first day of July J. 2005 and on the first day of every month thereafter until the first day of June,
2008, I will pay only interest on the unpaid principal balance of the Note. Thereafter, I will pay principal and
interest by making payments every month until the Maturity Date, as provided below. I will make these payments
every month until I have paid all orthe principal and interest and any other charges described below that I may owe
under this Note.
111111\111111
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3. PAYMENTS
My monthly payments will be applied to interest before principal. If on June 1, 2635, I still owe amounts
under this Note, I will pay those amounts 1n fun on that dale, which is called the "Maturity Dale.n
NCMC
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RE-4I1(11180J)
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1001808617
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I will make my monthly payments at 18400 Yon Karman, Suite 1000 Irvine. CA 92612
or al a different place if required by the Note Holder.
(B) Amount of My Monthly Payments
Each afmy initial monthly payments will be in the amount ofV.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 loan and in the interest
rate tbat I must pay. The Note Holder mil determine my new IIllercst rute and the changed amount of my monthly
payment in accordance with Section 4 of this Note.
(D) Withholding
If I am a non-resident alien, I understand thai all payments due hereunder shall be paid without reduction
for any taxes, deductions' Of withholding of any nature. If such tax, dedul;tion or withholding isrcquircd by any taw
to be made from any payment to the Note Holder, I shall continue to pay this Note in accordance with the terms
hereof, such that tbe Notc Holder will receive such amount as it would have received had no such tax, deduction or
withholding been required.
4. INTEREST RATE AND MONTI-lLY PAYMENT CllANGES
(A) Change Dates
The interest raLe I will pay may change on the first day of June, 2008 and 011 the same day of every 6th
month thereafter. Each dale on which my inlerest rate could change is called an "Interest ROlle Change Dale."
(8) The Index
Beginning with the first Interest Rate Change Date, my interest rate will be based on an Index plus a
margin. The "IndeX" is tbe average of interbank offered rates for six-month dollar deposits in the London market
("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 which the Chnnge Date occurs is
called the "Cunent Index."
If the Index is no longer aV3ilable, the Nole Holder will choose a ncw index that is based upon compltmble
information. The Note Holder will give me notice of this choice.
(C) Calculation of Changes
At each Interest Rate Change Date, tbe Note Holder will calculate my new interest rate by adding Five
And Eight Tenth(s) percentage points (5.800%) to the Current Index. The 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(0) below, this
rounded amount will be my new interest rate unlillhe nexllnterest Rate Change Date.
(i) Interest-Only Period. The "Interest-only Period" is the pcriod from the date of this, Note
through June J, 2008. For the Intcrest-only Period, Ihe Note Holder will calculate the amount of
the monthly payment to be one-twelfth (lfI2th) of one (J) year's interest 7.750 %. The result of "
this calculation wiII be the amount of my monthly payment until the next Interest Rate Change
Date.
i"CMC
3121 Six Month L1BOR Note
RE.412(lllllOl)
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10011l01l617
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(ii) Amortaation 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 cakulate the amount of
the monthly payment that would be sufficient to fully repay the remaining unpaid principal in
equal monthly payments by the Maturity Dale, assuming, for purposes of each calculalion, that
the interest rate remained unchanged during thai period. The result of Ihis calculation will be the
new amount of my monthly payment
(0) Limit on Interest Rate Changes
The interest ratc I am required to pay at the first Change Dale will not be greater than 9.250 % or less than
7.750 %. Thereafter, my interest rate will never be increased or decreased on any single Change Dale by more than
one and one half percentage points (1.5%) from the rate of in Ie rest I have been paying for the preceding month. My
interest filte will never be greater Iban 14.750 % IIOT less than 7.750%.
(E) Effective Date of Changes
My new interest rate will become effective on each Interest Rate Change Date. J will pay the amount of
my new monthly payment beginning on the first monthly paymrnt date after tbe Interest Rafe Change Date until the
amount--of my monthly payment changes again.
(F) Notice of Changes
The Note Holder will deliver OT mail to me a notice uf any changes in my inrerest rate and the amount of
my monthly payment at leasl 25 days before Ihe effective date of any change. The notice will include information
required by law to be given to me and also Ibe title and telephone number of a person who will answer any
questions I may have regarding the notice.
5. BORROWER'S RJGHTTO PREPAY
I have tbe right to make payments of principal at any time before they arc due. A payment of principal
only is known as a "prepayment." When I make a prepayment, ) will tell the Note Holder in writing that I am doing
'0.
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 and to pay the
interest then accruing at the Note Tate as of the date my prepayments arc applied. 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 lVriting 10 IhQse
cbanges. My partial prepayment may reduce the amount of my monthly payments after the first Change Date
following my partial prepayment However, any reduction duc to my partial prepayment may be offset by an
interest rate increase.
6. LOAN CHARGES
If a law, whieh applies to tbis loan and wbich 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 exeeed the permitted limits,
then: (i) any sucb 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 mc. The Note
Holder may choose to make this refum) by reducing the princip<ll I owe under this Note or by making a direct
payment to mc. If a refund reduces principal, the reduction will he treated as a partial prepayment
NCMC
31"27 Six Month L1BOR Note
RE-4I2(1I1803)
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7. BORROWER'S FAILURE TO PAY AS REQUIRED
(A) Late Chargt'S 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 dale it is due, I will pay a late charge to the Note Holder. The amount oflhe charge will be 5.000 %
or $5.00, whichever is greater of my overdue monthly payment. (will pay this late charge promptly but only once
on each late payment
(B) Default
IfI 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
IfI am in dcfauil, the Note Holder may send me a written notice telling me thai ifI do nol 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 daY5 after the uate on
which tire 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, tbe Note Holder will still have therighl to do so if I am in default at a taler time.
(E) Payment of Note Holder's Costs and Expenses
If the Note Holdcr 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 Notc to tbe extcnl not
prohibited by applicable law. Those expenses include, for examplc, reasonable attorneys' fees.
8. GIVING OF NOTICES
Unless applicable law requires a different method, any notice that must be given to me under Ihis 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 diffl"fent
address if I give the Note Holder a notice of my different address..
Unless the Notc Holder requires a different method, any notice that must be given 10 the Note Holder
under this Note will be given by mailing it by first class mail to the Note Holder at the address staled in Section
3(A) above or at a different address if f 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 tbe promise to pay the full amount owed. Any person who is a guaranlor,
surety or endorser oflhis Note is also obligated 10 do these things. An,! person who takes over tbese obligations,
including the obligations of a guarantor, surety or endorser of this Note, tS also obligated to keep all of the promises
made in lhis Note. The Note Holder may enforce its rights under this Note against each person individuillly or
against aU of us together. This means that anyone of us may be required to pay all of the amount owed undl.;( this
Note. -
1 O. WAIVERS
I and any other pcISon who has obligations under this Note waive the rights of presentment and notice of
dishoJlOr, and furtber waive all relief under any valuation and appraisement laws. ~Presentment" mcans the right 10
NC1'oJC
Jf21 Six Monlh L1BOR Note
RE-4I2{11180J)
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require the Note Holder to demand payment of amounts duc. "Notice of dishonor" means the right to require the
Note Holder to give oOLice 10 other pcThons thai amounts due have not been paid.
11. GOVERNINGLAW-SECUREDNOTE
This. Note is governed by federal law and the law of the jurisdiction in which the property encumbcn:u by
the Security Instrument (as defined below) is located. In addition to the protections given to the Note Holder under
tbis Note, a Mortgage, Deed of Trust or Security Deed (the "Security Instrument"), dated the same date as Ihis Note
protects the Nole ~older from possibl~ losses whicb might result irJ ~l:! nol keep the prom!ses which I ~akc in the
Note. That Secunty Instrument dcscnbes bow and under what condlhons 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:
Transfer of the Property or a Benefidallnterest 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 Lender's prior written consent, Lender may, at its option, require immediate payment in full
of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is
prohibited by federal law as of the date oftbis Security Instrument.
If Lender exercises tbis oplion, Lendcr shall give Borrower notice of acceleration. The notice shall
provide a period of not less than 30 days from the date 1he notice is delivered or mailed within which Borrower
must paf all sums secured by tbis Security Instrument. If Bonuwer fails to pay these sums prior to the expiration of
Ihis period, Lender may invoke any remedies pcnnitted by this Securily lnslrument without further notice or
demand on Borrower.
CAUTION
IT IS IMPORTANT THAT YOU THOROUGHLY READ THIS NOTE BEFORE YOU SIGN IT.
WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERS1GNED
'I '
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SHANE P KLAAS
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- Borrower
-Borrower
- Borrower
- Borrower
- Borrower
-Borrowl..'r
- Borrower
(Sign Original Only)
NCMC
3127 Sill. Monlh lIBORNote
RE-4 12 (11 180J)
J'ageSuf5
1001308617
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TRUE DO WCT
COPYOF~L
(Spice Above TbiJ LiDe FOT RecordiDg Dlta)
Prepared By o<3F/gDU
New Century Mortgage Corporation
18400 Von Karman, Suite 1000
Irv1ne, CA 92612
800-961-1623
Return To:
New Century Mortgage Corporation
18400 Von Karman, Suite 1000
Irvine, CA 92612
Full Legal Description located on page 16
Lender Name located on page 2.
MORTGAGE
DEFINITIONS
Words used in multiple sections of this document are deftned below and other words are defined in
Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage or words used in this document are
also provided in Section 16.
(A) "Stcurity Instrument" means this document, wbich is dated May 6, 2005
together with aU Riders to this document. ,,1
(8) ""'rrow,," is SIlANE P KLAAS} q S I i'1 (J' e. ~S~
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Borrower is the mortgagor under this Security Imlrument.
1001808627
IOWA-Single Famlly-Fannie MaelR'eddle Mac UNIfORM INSTRUMENT
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(C) "Lender" is New Century Mortgage Corporation
Lender is a Corporation
organized and existing under the Jaws of California
Lender's address is 18400 Yon Karman, Suite 1000, Irvine, CA 92612
Lender is lhe mortgagee under this Securi[)' Instrument.
(D) "Note" means the promissory note signed by Borrower and dated May 6, 2005
The Note states that Borrower owes Lender ONE HUNDRED EIGHTEEN THOUSAND THREE HUNDRED
FORTY AND 00/100 Dollars
(U.S. $118,340.00 ) plus interest. Borrower has promised to pay this debt in regular Periodic
Payments and to pay the debt in full not later than June 1, 2035
(E) "Property" means the property that is described below under the be3ding ~Transfer of Rights in the
Property."
(F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late cbarges
due W1der the Note. and all swns due under this Security Instrument, plus interest.
(G)..!.'-Riders" means aU Riders to this Security Instnlment that are ex~uled by Borrower. The following
Riders are to be executed by Borrower [check box as applicable):
[i] Adjustable Rate Rider
o Balloon roder
OVA Rider
o Condominium Rider- 0 Second Home Rider
D Planned Unit Development Rider 0 1-4 Family Rider
D Biweekly Payment Rider D Other(s) [specify]
(II) "Applicable Law" means all controlling applicable federal. state and local statutes. regulations.
ordinances and administrative roles and orders (that have the effect of law) as well as aU applicable final.
non-appealable judicial opinions.
(I) "Community AssodatloD Dues, Fees, and Assessments" means all dues. fees. assessments and other
charges that are imposed on Borrower or the Property by a condominium association. hOmeowners
associarion or similar organization.
(J) "Eledronic Funds Transfer" means any transfer of funds. other than a transaction originated by
check. draft. or similar paper instrumenl. which is initiated through an electronic terminal. telephonic
instrument. computer. or magnetic tape so as to order. instruct. or authorize a financial instirution to debit
or credit an accOWlt. Such term includes, but is not limited to. point-of-sale transfers. automated teller
machine transactions. transfers initiated by telephone. wire transfers. and automated clearinghouse
transfers.
(K) "Escrow Items" means those items that are described in Section 3.
(L) "Mi$cellaueous Proceeds" means any compensation. settlement. award of damages. or proceeds paid
by any third party (other than inrorance 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 pm 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 Insura.nce" means insurance protecting Lender against lhe nonpayment of. or default on,
the Loan. (
(N) "Ptriodic Payment" means the regularly scheduJed amount due for (i) principal and interesl under'lbe
Note. plus (ii) any amounts under Section 3 of this Security Jnstrumenf.
'Sl-6(IA) {OoW5pn
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Fonn3Dt6 1101
1001808627
Plo;le2 cf 15
.
.
(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 Securi(y Instrument, ~RESP A ~ refers 10 all requirements and reslrictions that are imposed in regard
to a "federally related mortgage Joan~ even if the Loan does not qualify as a "federally related mortgage
loan" WIder RESPA.
(P) "Successor iu Interest of Borrower" means any party that has taken title to the Property. whether or
not that party has asswned BOIIower's obligations under the Note and/or this Set:uriry Instrument.
TRANSFER OF RIGHTS IN THE PROPERTY
This Security Instrument scones to Lender: (i) the repayment of the Loan, and all renewals, extemions and
modifications of the Note; and (ii) the performance of Borrower's covenants and agreements UDder this
Security Instrwntnt and lIle Note. For this pUfpose, Borrower irrevocably mortgages, grants and
conveys to Lender, with power of sale, the following described property located in the
County of dubuque
[Type of Recording Jurisait:tiOIl] (Name of Recording JurisdictioDJ
See Leg~l Description Attached Hereto and Made a Part Bereof
Parcel ID Number: 1013358006
415 Valeria Street
Dubuque
("Property Address"):
wbich currently has the address of
(Strec'I]
[City), Iowa 52001 (Zip Code}
TOGETHER Willi all lhe improvements now or hereafter erected on the property, and all
easements, appurtenances, and fixtures now or hereafter a part of lbe 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 tmencumbered, except for encumbrances
of record. Borrower warrants and will defend generally tbe 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.
~..)c115
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1001808621
.-6IIA) (O-C45).OI
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FonJI 3016 1101
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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 Hems
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 aU subsequent payments
due under the Note and this Security Instrument be made in one or more of the following forms. as
selected by Lender: (3) cash; (b) money order; (c) certified check, bank check, ueasurer's check or
cashier's check, provided any such cbeck is drawn upon an institution wbose 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 !be 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 cunenl. Lender may accept any paymenl or partial payment insufficient to bring the Loan
current, without waiver of any rights hereunder or prejudice to its rights to refuse such paymenl 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 l!PpJied to the outstanding
principal balance under the Note inunediateJy prior to foreclosure. No offset or claim which Borrower
might have now or in the future against Lender shall relieve Borrower nom making payments due under
the Note and this Security Instrument or perfonning the covenants and agreements secured by this Security
Instrument.
2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, aU
payments accepted and applied by Lender shall be appJied 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 wbich 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 cbange 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 grotUld rents on the Property, if any; (c)
premiums for any and all i~urance -required by Lender under Section 5; and (d) Mortgage Insurance
premiwns, 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. n At origination OJ at any time during the term of the Loan. Lender may require that Community
P<v-"orlS
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In'''''ls:~
1001808627
.-6(IA)11l4ll5).01
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Fonn 3016 1101
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Association Dues, Fees, and Assessments, jf 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 hems at any time. Any such waiver may only be
in writing. In the event of such wai.ver, Borrower shall pay directly. when and where payable. lbe amounts
due for any Escrow Items for wbich payment of Funds bas 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 Jnstrument. 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 amowlt 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.
_J..ender may, at any time, collect and bold 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 RESP A. 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 insureil by a federal agency.
instrumentality, or entity (including Lender, if Lender is an institution wbose deposits are so insured) or in
any Federal Home Loan Banle 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 lhe 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 wriling
or Applicable Law requires interest to be paid on the Funds, Lender shall oot be required to pay Borrower
any interest OT earnings on the Funds. Borrower and Lender can agree in writing, however. that interest
shall be pai.d on the Funds. Lender sball give to Borrower, without charge. an annual accolJllting of the
Funds as required by RESP A.
If there is a surplus of FWlds held in escrow. as defined under RESPA. Lender sball account to
Borrower for the excess funds in accordance wilb RESPA. If there is a shonage 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 sbonage in accordance with RESPA, but in no more than 12
monthly payments. If there is a deficiency ofFWJds 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 RESP A. but in no more than J2 monthly payments.
Upon payment in full of all sums secured by this Securily 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 Instrumenl, 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 Hems. Borrower shall pay [hem in the manner provided in Section 3.
Borrower shall promptly discharge any lien which has priority over this Security Instnunent unless
Borrower: (a) agrees in writing to the payment of the obligation seemed 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
P;ge50115
C[';
Inltla~~
1001808627
cII!t-&(IA) (04115).01
Fonn 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 InslnUnent. If Lender determines that any part of the Property is subject to a lien
whicb can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the
lien. Within 10 days of lIle date on wbich 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 andfor
reporting service used by Lender in connection with this Loan.
s. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on
the Property insured against loss by fire, hazards included within the tenn "extended coverage, n and any
other hazards including, but not limiled 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 umeasonably. Lender may
require Borrower 10 pay, in connection with this Loan, either: (a) a one-time charge for flood zone
detennination, 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 detennination 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 (0 pun;:hase any
particular type 01 amount of coverage. Therefore, sucb 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 Of 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 Inslrument. These amounts shall bear interest
at the Note rale from the date of disbursement and sball be payable, with such interest, upon notice from
Lender to Borrower requesting payment.
All insurance policies required by Lender and renewals of such policies shaH be subject (0 Lender's
right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as
mortgagee and/or as an additional Joss payee. Lender shall have the rigbt to bold the policies and renewal
certificates. If Lender requires, Borrower shall promptly give 10 Lender all receipts of paid premiums and
renewal notices. If Borrower obtains any Conn of insurance coverage, not otherwise required by Lender,
for damage to, or destruction of, the Property, sucb policy shall include a standard mortgage clause and
shall name Lender as mortgagee and/or as an additional loss payee.
In the event of 105s, Borrower shall give prompt notice to the insurance carrier and Lender. Lender
may make proof of Joss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree
in writing, any insurance proceeds. wbelb.er 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 bas 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 8 single payment or in a series
of progres~ payments as the work is completed. Unless an agreement is made in writing or Applicable Law
F'Ilg88 of t5
.~~~
1001808627
.-6(IAI(O-4OS~Ot
..
FOIm 3016 1101
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.
requires interest 10 be paid on such insurance proceeds. Lender shall not be required to pay Borrower any
interest or earnings on such proceeds. Fees for public adjust~s, or ollier 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.
It Borrower abandons the Property. Lender may file. negotiate and senle any available insurance
claim and related matters_ If Borrower does not respond within 30 days to a notice from Lender that tbe
insurance carrier bas offered to settle a claim, then under may negotiate and settle the claim. The 30-day
period will begin when lhe notice is given. In either event, or if Lender acquires the Property under
Section 22 or otherwise, Borrower bereby assigns to Lender (a) Borrower's rights to any insurance
proceeds in an amounl not to exceed the amounts unpaid under the Note or this Security Instrument, and
(b) any other of Borrower's rights (olber than rhe right to any refund of unearned premiums paid by
Borrower) under all lnsUJ1lf1Ce policies covering the Property, insofar as sucb rights are applicable to the
coverage of the Property. Lender may use the insurance proceeds either to repair or restore Ibe Property or
to p3)' amounts unpaid under the Note or this Security InstJwnent, wbelher or not then due.
6. Occupanq. Borrower shall occupy, establish, and use the Property as Borrower's principal
residence within 60 days after the execution of this Security Instrument and sball 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 withhelsJ, or unless extenuating
circumstances exist which are beyond Borrower's control.
7. Preservation, Maintenance aDd Protection of tbe Property; Inspections. Borrower shall not
destroy, damage or impair the Property, allow the Property to deteriorate or conunit waste on the
Property. Whether or not Borrower is residing in the Property. Borrower shall maintain the Property in
order to prevent lbe Property from deterioraling or decreasing in value due 10 its condition. Unless it ls
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 repalring or restoring the Property only if Lender bas 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 a. the lime of or prior to such an interior inspection specifying such reasonable cause.
8. Borrower's Loan Application. Borrower shalJ be in default if, during the Loan application
process, Borrower or any persoDS or entities acting at me diret:lion 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 nol 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 urider
this Security Inscroment (such .as a proceeding in bankruptcy, probate, for condemnation or forfeiture. for
enforcement of a lien wbich may attain priority over this Security lnstrumem or 10 enfon:e laws or
P&rtIe7ot15
."k~
1001808627
<I!t-6{IA) (04OS).01
Form 3018 1101
.
.
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
Instnunenl. 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 10: (a) paying any sums secured by a lien
whicb has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonable
attorneys' fees to protect its interest in the Propert)' and/or rights under this Security Instrument, including
its secured position in a bankruptcy proceeding. Securing the Property indudes. 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 10 do 50. It is agreed that Lender incurs no liability for not taking any or all
actions authorized under this Section 9..
Any amounlS disbursed by Lender under this Section 9 shall become additional debt of Borrower
secured by this Security Instrnment. These amOWlts shall bear interest at the Note rate from the date of
disbursement and shall be payable, with sucb interest, upon notice from Lender to Borrower requesting
payment.
If this Security Instrument is on a leasebold. Borrower shall comply with all the provisions of the
lease. If Borrower acquires fee litle to the Property, the leasehold and the fee tille 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 premiwns 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 premiUJn<\ required to obtain
coverage substantially equivalent to the Mortgage Imurance previously in effect. at a cost substanlially
equivalenl to the cost to Borrower of the Mortgage Insurance previously in effece, from an alternate
mortgage insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not
available. Borrower shall COnlinue 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 paymenlS toward the premiums for Mortgage Insurance. If Lender required Mortgage
Insurance as a condition of making the Loan and Borrower was required to malce separately designated
payments toward the premiums for Mortgage Insurance. Borrower shall pay the premiums required to
maintain Mortgage Inswance in effect. or to provide a non-refundable loss reserve. untit 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 to 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 aU 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. 1hese agreements may require the mortgage insurer to make payments using any source
of funds thallhe 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 allY of the foregoing. may receive (directly or indirectly) amounts "thaI
derive from (or mighl 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
Pou_Bcf15
'"'~~~,
1001808627
fIIt-6(IA) ~()5).()t
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:
(8) Auy suclt agreements will not affect the amounts that Borrower bas agreed to pay for
Mortgage InSUI"2DU? or any otber terms of the LoaD. Such agreements will Dot increase the amount
Borrower will owe tor Mortgage Insurance, and they will Dot entitle Borrower to any refund.
(b) Any sucb agreements will not affect the rights Borrower has - if any - witb respect to the
Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. nese rights
may include the right to receive certain disclosures, to request and obtain canceJ'ation of the
Mortg3ge Insurance" to bave tbe Mortglllge Insurance terminated autumaDully, andfor to receive II
refund of any Mortgage IDsurance premiums that were unearned at tbe time of such cancellation or
termination.
11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
assi.gned 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 restoratioD period, Lender shall have the right to bold such Miscellaneous Proceeds
until Lender has bad an opportunity to inspect sucb Property to ensure the work bas been completed to
Lender's satisfaction, provided that sucb 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 sucb
Miscellaneous Proceeds. If the restoration or repair is nol economically feasible or Lender's security would
be lessened, the Miscellaneous Proceeds shall be applied to the sums recured by this Security Instrument,
whether or not then due, with the excess, if any, paid to Borrower. Sucb Miscellaneous Proceeds sball be
applied in the order provided for in Section 2,
In the event of a total taking, destrUction. or loss i.n value of the Property. the Miscellaneous
Proceeds shall be applied to the sums secured by this Security Instrwnent, whether or not then due, with
the excess, if any, paid to Borrower.
In the event of a partial taking, deslruction, or loss in value of the Property in whicb 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
laking. destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the sums
secured by this Security Instrumenl 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, deslrnction, or loss in value. Any balance shall be paid to Borrower.
In the evenl of a partial taking, destruction. or loss in value of the Property in wbicb the fair market
value of the Propeny immediately before the partial taking, destruction, or 1()SS in value is less than the
amount of the swns secured inunediately before the partial taking, destruction, or loss in value, unless
Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds sball 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 defmed 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 Misce1JaneousProceeds or the party against whom Borrower has a right of action in
regard to Miscellaneous Proceeds.
Borrower shall be in defaull if any action or proceeding, wbether 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. Bonower can cure such a default and,,' if
acceleration bas occurred, reinstate as provided in Section 19, by causing the action or proceeding to'be
dismissed with a roling that, in Lender's judgmenr:, precludes forfeiture of the Property or other material
impairment of Lender's interest in the Property or rights under this Security Instrument. Tbe proceeds of
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1001808627
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any award or claim fOT damages that are attributable to the impairment of Lender's interest in the Property
are hereby assigned and shall be paid to Lender.
AJI Misce1Janeous Proceeds that are not applied to restoration or repair of the Property shaU 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 Securicy Instrument granted by Lender
to Borrower or any Successor in Interest of Borrower shall not operate 10 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 lhe sums secured by lilis 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 aDd Several Liability; Co-signers; Successors and Assigns !round. 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 ) 8, any Successor in Interest of Borrower who asswnes
B<mower's obJigations under lhis Security Instmment in writin,g, and is approved by Lender. shall obtain
all of Borrower's rights and benefits under this Security 11IStrument. Borrower shall not be released from
Borrower's obligations and liability under !.his S<<:urity 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 wilh
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 Bonower shall not be comtroed as a prohibition on the charging of such fee. Lender may nOI charge
fees that are expressly probibited by this Security Instrument or by Applicable Law.
If the Loan is subject to a law which sets maximum loan charges. and that Jaw is finally interpreted so
that the interest or other loan charges collected or [0 be collected in connection with the Loan exceed the
permitted JUnits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the
charge to the pmniued limit; and (b) any sums already collected from Borrower whicb exceeded permitted
limits win 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 (wbe!.her or not a
prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by
direcl payment Co Borrower wiD constitute a waiver of any righi of aclion 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 ootice 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 shaU promptly
notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrow~'s
change of address, then Borrower shall only report a change of address through that specified procedure.
There may be only one designaced notice address under this Security Insln.lment at anyone time. Any
notice to Lender shall be given by delivering it or by mailing it by lust class mail Co Lender's address
stated herein unless Lender has designated another address by notice to Borrower. Any notice in
~. 1001808627
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~.s(IA)(OotQS~01 ~.'Oof15 Form30f6 flOf
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cOIUlection with this Security Instrument shall not be deemed to have been given to Lender until acroally
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 CODstruction. 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 lnstnunent aTe 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 nol be construed as a prohibition against agreement by taRtracL 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 shaH be given one copy of the Note and of this Security Instrument.
18. Transfer of tbe Property or a Beneficial Interest In Borrower. As used in this Section 18,
"Inter.e5t in the Property" means any legal or beneficial interest in the Property, including, bul not limited
to, those beneficial interests trall.'lferred in a bond for deed, contract for deed, instaUment sales contract or
escrow agreement, the intent of wbich 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 iIllIIlediate 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 nOl less than 30 days from the dale 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 expirntion of this period, Lender may invoke any remedies permitted by this
Security Insrrument without further notice or demand on Borrower.
19. Borrower's Right to Reinstate Alter Atc:elerstioD. If Borrower meets certain conditions,
Borrower shall have the right to have enforcement of Ibis 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 Instnunenl; (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 an sums which then would be due under this Security
Instrument and the Note as if no acceleration bad occurred; (b) cures any default of any other covenants or
agreements; (c) pays all expenses incurred in enforcing this Security Instmment. including, but not Iimiled
to. reasonable attorneys' fees, property inspection and valuation f~s, and other fees incurred for the
purpose of protecting Lender's interest in the Property and rights under this Security Instrumenl; and (d)
takes such aclion as Lender may reasonably require 10 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 thai Borrower pay sucb reinstatement sums and
expenses in one or more of the following foons, as selected by Lender: (a) cash; (b) money order; (c)
certified check, bank cbeck, t~urer'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 enlity; or (d) Electronic
Punds Transfer. Upon reinstatemenl by Borrower, this Security Instrument and obligations secured bereby
shall remain fully effective as if no acceleration had occurred. However, this rigbt to reinstate shall not
apply in the case of acceleration under Section 18.
20. Sale of Note; CbaDge of Loan Servicer; Notice of Grievance. The Note or a partial interest,in
the Nole (together with this Security Instrument) can be sold one or more times without prior notice to
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Borrower. A sale might result in a change in the entity (blown as the "Loan Servicer") that collects
Periodic Paymenfs due under the Note and this Security Instrument and perfonns other mongage loan
servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be
one or more changes of lhe Lean Servicer unrelated 10 a sale of the Nole. 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 RESP A
requires in cormection 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
10 Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are Dot
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 Instmment or that alleges that the other party has breached any provision of, or any dury owed by
reason of, this Security Instrument, until such Borrower or Lender bas 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 10 take corrective action. If
Appncable Law provides a time period which must elapse before certain action can be taken, that time
period win be deemed to be reasonable for purposes of this paragraph. The notice of accelern.tion and
opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to
Borrower pursuant to 5<<tloo 18 shall be deemed to satisfy the notice and opportunity to take corrective
action provisions of this S<<tion 20.
21. Hllzardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those
substances defined as toxic or hazardous substances, pollutallLs, 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 bealth, 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 10 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 ~Iease of a
Hazardous Substance, creates a condition that adversely affects the value of the Property. Tbe preceding
two sentences shall not apply to the presence, use, or slorage on the Property of small quantities of
Hazardous Substances that are generally recognized to be appropriate to normal residemial uses and to
maintenance of the Property (including, but not liIniled 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 goveJlUJlelltal or regulalOJ'y agency or private party involving the Property and any
Hazardous Substance or Environmental Law of which Borrower bas 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.
P"ll'12Df15
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Form 3016 1101
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NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows:
22. Ac"leration; Remedies. Lender sball give notice to Borrower prior to acceleratioD following
Borrower's breach of aoy covenant or agreement in this Security Instrument (but Dot prior to
acceleration under SectiOD 18 unless Applicable Law provides otbenvise). The notice shalJ specify: (a)
the default; (b) the action required to cure the def.ault; (e) a date, Dot less than 30 days from the date
the Dotice is given to Borrower, by wbicb the default must be cured; and Cd} that failure to cure the
default on or before tbe date specified in the notice may result in acceleration of the sums secured by
this Security Instrument, foreclosure by judicial proceediog and sale of the Property. The notice shall
further inform Borrower of the right to reinstate after acceleration and tbe rigbt to assert in the
foreclosure proceeding the DOn-eDstence of a default or any other defense of Borrower to acceleration
and foreclosure. H the default Is Dot cured 00 or before the date specified in the notice, Lender at Its
option may require immediate payment in faU of all sums secured by this Security Instrument
without further demand sod may foreclose tbis Security Instrument by judicial proceeding. Lender
shall be eQtided to collect aU expenses incurred in pursuing the remedies provided in tbis Section %2,
including, but not limited to, reuDnable attorneys' fees and costs of title evidence.
23. Release. Upon payment of all swns secured by this Secw-ity Instrument. Lender sball release this
SeclIrity Instrument. Lender may charge Borrower a fee for releasing this Security InslIUment. but only jf
the fee is paid to a third party for services rendered and the charging of the fee is pellIliUed under
Applicable Law.
24. Waivers. Borrower relinquisbes all right of dower and waives aU right of bomestead and
distributive share in and to the Property. Borrower waives any right of exemption_as to the Property.
25. HOMESTEAD EXEMPTION WAIVER. I UNDERSTAND TIlAT HOMESTEAD
PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AND
EXEMPT FROM JUDICIAL SALE; AND TIlAT BY SIGNING lIDS MORTGAGE, I
VOLUNTARILY GIYE UP MY RIGHT TO TillS PROTEcrION FOR lIDS MORTGAGED
PROPERTY WITII RESPECT TO CLAIMS BASED UPON TillS MORTGAGE.
I )! ~/
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/\\YL^-t"'''--T_ I :Ui--dY ~...;:?/".? (.>~
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BOllOl>/cr SHANE P JU.AA5 Date: Borrower Dale
Borrower
D.le
Borrower
Dale
Borrower
D,~
Borrower
Dale
Borrower
D,~
Borrower
q.~
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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 Ronewer, the period of redemption from
judicial sale sball be reduced to 6 months. If the court finds mal the Property has been abandoned by
Borrower and Lender waives any right to a deficiency judgment against . Borrower. me periexl of
redemption from judicial sale shall be reduced lo 60 days. The provisions of this Section 26 shall be
construed to conform to the provisions of Sections 628.26 and 628.27 of lhe Code of Iowa.
IMPORTANT, READ BEFORE SIGNING. TIlE TERMS OF TIllS AGREEMENT SHOULD BE
READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO
OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN TIllS WRITTEN CONTRACT
MAY BE LEGALLY ENFORCED. YOU MAY CHANGE TIlE TERMS OF TIllS AGREEMENT
ONLY BY ANOTHER WRITTEN AGREEMENT.
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this
Security lnstnunent and in any Rider executed by Borrower and recorded with it.
Witnesses;
A{lt~ ? I!?~Seal)
SHANE P KLAAS -Borrower
(Seal)
-Borrower
(Soal)
-80lTOwer
(Soal)
-Borrower
(Seal)
(Seal)
-BotrOwu
-Borrower
(Seal)
(Seal)
-Borrower
-Borrower
1001808621
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On this V, +Jc day of HQ'j
in the State of Iowa, personally appeared
S~p. {Cke..;}rk s'tI'l91.e... 'P.ut;-~
'1700<;
Countyss: ~Iou.~ll-L
, before me, a Notary Public
STATE OF IOWA,
to me personally known to be the person(s) named in and who txeculed the foregoing instrwnent, and
acknowledged that he/she/they executed the same as hislber/their voluntary act and deed.
My Commission Expires:
~~'~~j::?t!::?:al.)
~ TAMMVTHOMAS
Iowa Notarial Seal _
4" CommJssion number 717122
.. My Commission Expires
06124/08
./ 1001808627
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ADJUSTABLE RATE RIDER
(LIBOR Six-Month Index (As Published in The Wall Street Journal)-Rate Caps)
3 YEAR RATE LOCK
THIS ADJUSTABLE RATE RIDER is made: this 6th day of May, 2005
and is incorporated jnto and shan be deemed to amend and supplement the Mortgage, Deed of Trust, or
Security Deed (the "Security InstlUment") oCthe same date given by the undersigned ("Borrower"') to secure
Borrowers Adjustable Rate Note (tbe "Note") to
New Century Mortgage Corporation
{"Lender"} of the same date and covering the property described in lhe Security Instrument and located at:
475 Valeria Street, Dubuque,lA 52001
(Property Ad.m:ss)
THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST
-.RATEAND THE MONTIILY PAYMENT. THE NOTE UMlTS TIIEMAXIMUM RATE
BORROWER MUST PAY.
ADDITIONAL COVENANTS. In addition to tbe covenants and agreements made in the Security
Instrument, Borrower and Lender further covenant and agree as follows:
A. INTEREST RATE AND MONmLY PAYMENT CHANGES
The Note provides for an initial interest rate of
changes in tbe interest rate and monthly payments as follows:
7.759 %. The Note provides for
4. INTEREST RATE AND MONTHLY PAYMENT CHANGES
(A) Change Dates
The interest rate I will pay may change on the fITst day of June, 2008
and on the same day of every 6th month thereafter. Each date .on which my interest rate could change is
caJled an "Interest Rate Change Date."
(B) The Index
Beginning with the first interest Rate Change Date, my interest rote will he based on an Index plus a
margin. The "llldex" is the average olinterbank offered rates for six month dollar deposits in the London
market ("LmOR"), as published in The Wall Street Jounwl "Money Rates" Table. The most recent Index
figure available as of tbe first business day of the month immediately preceding the month in wbich the
Change Date occurs 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 infonnati.on. The Note Holder will give me notice of this cboice.
NCMC
Jf27 Six MODth LIllOR Adj\l$tllble b-te Rider
RE-411 (l1l803)
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(C) CaJt:u'ation of Ch3Dges
At each Interest Rate Change Date, lhe Note Holder will calculate my new interest rate by adding Five
And Elgbt Tentb(s) percentage points ( 5.800 % ) to the Cuneot Inde:c;. The Note Holder will tben round
tbis figure to the nearest one-eighth of one percentage point (D. I 25%). Subject to the limit slated in Section
4(D) below, this fOunded amount will be my new mterest rate until the next Inl.eTest Rate Change Date.
(i) loterest-Only Period. Tbe "Interest-only Period" is the period from the date of tbis Note
through JUDe I, 2008. For the Intcrest-only Period, the Note Ho1der will calculate the amount of
the monthly payment to be one-twelfth (l1l2tb) of one (1) year's interest at 7.750% per annum.
The result of this calculation will be the amount of my monthly payment until the Interest Rate
Change Date.
(ii) Amortization Period. The "Amortization Period" is the period after the Jnterest-only Period
and continuing until the Maturity DaCe. During the Amortization Period, after calculating my Dew
interest rate as provided in Section 4{C) above, the Note Holder will th~n calculate the amount of
tbe monthly payment that would be sufficient to fully repay the remaining unpaid principal in
equal monthly payments by tbe Maturity Dak; assuming. for purposes of each calculation, that
the interest rate remained unchanged during that period. The result of this calculation witt be the
new amount of my monthly payment.
(D) LimIt on Interest Rate Changes
The interest mte I am required to pay at the r&rSt Change Date will not be greater than 9.250% or
less than 7.750'Vlt. Thereafter, my interest mte will never be increased or decreased on any single Change
Dafe by more than ODe and one balf percentage points (J .5%) from the rate of infecest I have been paying for
the preceding month. My interest rate will never be greater than 14.750% or less than 7.750%.
(E) Effective Date of Changes
My new interest rate will become effective on eacb Interest Rate Change Date. I will pay the amount of
my new monthly payment beginning on the first monthly payment date after the Interest Rate Change Date
until the amount of my monthly payment changes again.
(F) Notice of Changes
The Note Holder will deliver or mall 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
infonnation 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 regarding the notice.
11. GOVERNING LAW - SECURED NOTE
The Note is governed by federal law and the law of the jurisdiction in which tbe property encumbered
by the Security Instrument (as defined below) ill located In addition to the protections given to tbe Note
Holder under the Note, a Mortgage, Deed of Trust or Security Deed (tbe "Security Instrument"), dated the
same date as the Note protects the Note Holder from possible losses which might result if J do not keCl;'..tbe
promises wbich I make in the Note. That Security Instrument describes how and under what conditions J
may be required to make immediate payment in full of all amounts ( owe under tbe Note. Some of those
conditions are described as follows:
NCMC
3(27 Six Monlh LIBOR AdjllStabJe Rate Ridtt
RE-4JJ (IJl803)
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