Claim by Deutsche Bank Nat'l Trust~/ v ~X/
Y
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; CITY OF DUBUQUE, IOWA
EQUITY NO.
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ORIGINAL NOTICE ~ r~ --
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Defendant(s).
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., 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 maybe 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
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.
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PETITION (FOR MORTGAGE
FORECLOSURE AND RECEIVER)
v. )
SHANE P. KLAAS; CITY OF DUBUQUE, IOWA ~ ~~
states:
Defendant(s). ~ - ~~ +~
_ ~ ~ -~;
COMES NOW the Plaintiff and for cause of action against the Defendants the Fla,ntif
,- ~:~ -'
NOTICE
THE PLAINTIFF HAS ELECTED FORECLOSURE WITHOUT REDEMPTION.
THIS MEANS THAT THE SALE OF THE MORTGAGED PROPERTY WILL OCCUR
PROMPTLY AFTER ENTRY OF JUDGMENT UNLESS YOU FILE WITH THE COURT A
WRITTEN DEMAND TO DELAY THE SALE. IF YOU FILE A WRITTEN DEMAND, THE
SALE WILL BE DELAYED UNTIL TWELVE MONTHS (OR SIX MONTHS IF THE
PETITION INCLUDES A WAIVER OF DEFICIENCY JUDGMENT) FROM ENTRY OF
JUDGMENT IF THE MORTGAGED PROPERTY IS YOUR RESIDENCE AND IS A ONE-
FAMILY OR TWO-FAMILY DWELLING OR UNTIL TWO MONTHS FROM ENTRY OF
JUDGMENT IF THE MORTGAGED PROPERTY IS NOT YOUR RESIDENCE OR IS YOUR
RESIDENCE BUT NOT AONE-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. 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 of Iowa.
2. That on or about the 6th day of May, 2045, 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 $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 March 5, 2007, is
$122,260.28, 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.
WHEREFORE, Plaintiff prays:
FIRST: That a Receiver be appointed by the Court to take immediate possession of the
mortgaged premises hereinbefore described, with power and authority and the duty to keep,
repair, maintain and insure the premises, buildings and other improvements thereon; to lease the
same and collect the rents, issues and profits arising which may be had therefrom, and to retain
and dispose of said rents and profits as said Mortgage provides and as the Court may hereafter
determine and direct.
SECOND: (a) That the Plaintiff have judgment in rem, against the mortgaged premises
in the sum , of $122,260.28 with interest at 7.75 percent from March 5, 2007, 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.
THIIZD: 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 declared to be prior and paramount to
the lien and interest of the Defendants upon and in the said property.
FOURTH: That Plaintiff's Mortgage aforesaid, Exhibit "B", be foreclosed, and that a
special execution issue for the sale for the mortgaged premises, or so much thereof as may be
necessary to satisfy the said judgment with interest and costs.
FIFTH: That in the event the property aforesaid does not sell for sufficient to satisfy the
judgment herein, the net proceeds from the rents, issues and profits which may be had therefrom,
from and after this date, be applied upon said judgment until the same is fully satisfied.
SIXTH: That after the Sheriff's sale of the above described premises pursuant to a
special execution issued herein, a Writ of Possession issue herein under seal of this Court directed
to the Sheriff of 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 fmd it to
be entitled to in equity.
BELIN LAMSON McCORMICK
ZUMBACH FLYNN
A Professional Corporation
BY ~ ,~`l.
J S V. SARCONE, JR.
The Financial Center
666 Walnut Street Suite 2000
Des Moines, IA 50309-3989
Telephone: 515-243-7100
PK 0004845
D:~IVewcentury~Klaas~Petsetstandard#2.Doc
ADJUSTABLE RATE NOTE
(LIBOR Six Month Index (as Published in The 1Yall Street Journal) - Rate Caps)
3 YEAR RATE LOCK
THIS NOTE CONTAINS PROVISIONS THAT WILL CHANGE THE~TEREST RATE AND THE
1
The interest rate i 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 rote could change is called an "Interest Rate Change Date." The new
~ rate of inierest will become effective on each Interest Rate Change Date in accordance with Section 4 of this Notc.
3. PAYi!'[F.~YTS ~ ~~~t~~
(A) Time and Place of Payments
i Beginning on the lust day of July 1,1005 and on the first day of every month thereafter until the first day of June,
2008, 1 will pay only interest on the unpaid principal balance of the Notts. Thereafter, I wi8 pay principal and
interest by making payments every month until the Maturity Date, as provided below. I will make these payments
every month anti! I have paid all of the principal and interest and any other chazges described below that 1 may owe
under this Note.
~ My monthly payments will be applied to interest before principal. if on June I, 2035, I still owe amounts
under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date."
4
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NCMC
327 Six Month LIBOR Note page 1 of 5 f 001808627
RE~12 (1 t 1801)
1
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MONTHI.Y PAYMENT. PO /~
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D9ay 6, 2005 Dubuque ~ ~ ~j~ Iowa
(Date) (City) \ O (State)
475 Valerie Street, Dubuque, lA 52001 \ ~ ~GF
9y
(Property Address) OHO
99
1. BORROWER'S PROMISE TO PAY ~(~
In rttttrn for a Loan that S Gave received, i promise to pay U.S. S 118,340.00 (this am n ' led
"principal"), plus interest, to the order of the Lender. The Lcndcr rs New Century vlortgage st n
a California Corporation. 1 understand that the Lender may transfer this Note. The Lendex or anyo who takes
this Note by transfer and who is entitled to receive payments under this Note is called the Note Holder."
- t _
2. INTEREST
Interest will be charged on unpaid principal until the full amount of principal has been paid. 1 wit) pay
interest. at a yearly rate of ?.?SO %. The interest rate I will pay may change. The interest talc required by tMs
Section 2 and Section 4 is the talc 1 will pay both before and after any default described in Section 7(B) of this
Note.
I will make my monthly payments at J8400 Von Karman, Suite 1000 Irvine, C:'192612 ,
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. S 76+1.28. This amount may change. f
(C) Monthly Payment Changes
Changes in my monthly payment will reflect changes in the unpaid principal of my loan and in the interest
rate that 1 must pay. The Note Holder will determine my new interest rate and the changed amount of my munthly
payment in accordance with Section 4 of this Note.
(D) Withholding
]f 1 am a rwn-resident alien, 1 understand that all payments due hereunder shall be paid without reduction
for any taxes, deductions'or withholding of any nature. If such tax, deduction or withholding 1s required by any law
to be made fiom any payment to the Notc Holder, 1 shall continue to pay this Note in accordance with the terms
hereof, such that the Note Holder will receive such amtwnt as it would have received had ntt such tax, deduction or
withholding been required.
i
4. INTEREST RATE A,~1D MONTHLY PAYMENT C1IANGES '
(A) Change Dates
The interest rate I will pay may change on the first day of June, 2008 and on the same day of every bth '
month thereafter. Each date on which my interest rate could change is called an "Interest Rate Change Date."
(B) The Index
Beginning with the first Interest Ratc Change Date, my interest rate will be based on an Index plus a `:
' mazgin. The "]ndex" is the average of interbank offered rates for six-month dollar deposits in the London market
("LIBOR"), as published in The Wal! Street Journal ";vloney Rates" Table. T'he most recent Index figure available
as of the First business day of the month immediately preceding the month in which the Cbangc Date occurs is
called the "Cuaent Index."
If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable
information. The Note Holder will give me notice of this choice.
i
(C) Calculation of Changes
I At ouch ]merest Rate Change Date, the Note Holder will calculate my new interest raft: 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 ~erccntage point (0.125%). Subject to the limit stated in Section 4(D) below, this
rounded amount will be my new mttxest rate until the next Interest Rate Change Date.
(i) Interest-Only Period. The "Interest-only Period" is the period from the date of this Note
through June 1, 2008. For the Interest-only Period, the Note Holder will calculate the amount of
' the monthly payment to be one-twelfth {!/12th} of one (I) ycat'3 interest 7.750 °I°. The result of "
this calculation will be the amount of my munthly payment until the next ]ntcrest Rate Change
Date.
~catc
i 3m s, la°a~ taeoR N°u
RE-412 (111903) Pass 2 °rs toolaoeezr
i
(ii) Amortization Period. The "Amorizatiott Period" is the period after the Interest-only Period
and continuing until the Mamrity Date. During the Amortization Period, after calculating my new
interest rate as provided in Section 4(Cj 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 Date, assuming, for purposes of each calculation, that
the interest rate remained unchanged during that period. The result of this calculation will be the
new amount of my monthly payment.
(D) Limil on interest Rate Changes
The interest rate I am required to pay at the first Change Date will not be greater than 9.250 % or Icss thm~
7.750 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than
one and one half percentage points (1.5%) from the rate of interest I have bc:cn paying for the preceding month. My
interest rate will never be greater than 14.750 % nor Icss than 7.750%.
(E) Effective Date of Changes
My new interest rata: will become effective on each Interest Rate Change Date. i will pay the amount of
my new monthly payment beginning on the first month{y payment date after the Interest Rate Change Date until the
amountrof my monthly payment changes again.
(F) Notice of Changes
The Notc Holder will deliver or mail to me a notice of any changes in my inrcrest rate and the amount of
my monthly payment at least 25 days before the effective date of any change. The notice will include infortrraiion
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 regazding the notice.
5. BORROWER'S RIGHT TO PREPAY
I have the tight to make payments of principal at any time before they are due. A payment of principal
only is known as a "prepayment." Wbcn I make a prepayment,l will tell the Note Holder in writing that I am doing
50.
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 1 owe under this Note and to pay the
inttvest then accruing at the Note rate as of the date my prepayments are applied. if [ make a partial prepayment,
there will be no changes in the due dates of my monthly payments unless the Note Holder agrees in writing to those
changes. My partial prepayment may reduce the amount of my monthly payments after the first Change Datc
following my partial prepayment. However, any reduction due to my partial prepayment may be offscl by an
intcrestrate increase.
6. LOAN CHARGES
If a law, which applies to this loan and which sets maximum loan charges, is finally interproted 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;
i and (ii) any sums already collected tram me which exceeded. permitted limits will be refunded to me. The Note
Holder may choose to make this refund by reducing the prinetpal 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.
NGrIC
3l27 Six Montfi L[BOR Lott
RE-412 p t 1803) Page 3 of S Ioa1908627
o ~
7. BORROWER'S FAILURE TO PAY AS REQUIRED
(A) Late Charges for Overdue Payments
If the Note Holder has not received the fuU amount of any monthly payment by the end of I S calendar
days afler the date it is due, l will pay a fate charge to the Note Holder. The amount of the charge wilt be 5.000
or 55.00, whichever is greater of my overdue monthly payment. [will pay this late charge promptly but only once
on each late payment.
(B) Default
If I do not pay the full amount of each monthly payment on the date it is due, I wiH be in default.
(C) Notice of Default
if 1 am in default, the Note Holder may send me a written notice tel{ing me that if I do not pay the overdue
amount by a certain date, the Note Holder may require me to pay immediately the full amount of principal which
has not been paid and all the interest that 1 owe on that amount That date must be at (cast 30 days after the date on
which the notice is delivered or mailed to me.
(D) No Waiver by Note Holder
Even if, at a time when I am in default, the Notc Holder does not require me to pay immediately in Full as
described above, the Note Holder will still have the right to do so if ] am in default at a later time.
(E) Payment of Note Holder's Costs and Expenses
~ If the Note Holder has required me to pay immediately in full as described about, the Note Holder will
have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not
prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees.
8. CIVINGOFNOTICES
Unless applicable law requires a different method, any notice that must be given to me under this Note will
be given by delivering it or by mailing it by first class mail to me at the Property Addrtss above or at a different
address if i give the Notc Holder a rtotice of my different address.
Unless the Note Holder requires a different method, any notice that must be given to the Note Holder
under this Note will be given by mailing it by fast class mail to the Noie Holder at the address stated in Section
3(A) above or at a different addt'css if f am given a notice of that diffcvt:nt address.
9. OBLIGAT70NS OF PERSONS UNDER THIS NOTE
I 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 fitll amount owed. Any person who is a guarantor,
surety or endorser of this Note is also obligated to do these things. AnY person who takes over these obligations,
including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises
made in this Note. The Note Holder may enforce its rights under this Note against each person individually or
against all of us together. This means tfiat any one of us may be required to pay all of the amount owed undta this
Note.
70. WAIVERS
~ I and any other person who has obligations under this Note waive the rights of presentment and notice of
dishonor, and further waive all relief under any valuation and appraisement taws. Presentment" means the right to
NCMC
327 Six Month LIBOR Notc
' R&412 Q 11803) Page 4 or 5 100)808627
require the Note Hoiden to demand payment of amounts due. "Notice of dishonor" means the right to require the
Note Holder to give notice to other perwns that amounts due have not been paid.
11. GOVERNWG LAW -SECURED NOTE
This Note is govcrsted by fedesal law and the law of the juristiictiolt in which the property encumbered by
the Security 1nsWment (as defined below) is located. )n addition w the protections given to the Notc Hotdcr 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 l do rat keep the promises which I make in the
Note. That Security )nstrument dcscnbcs how and under what conditions I may be requved to make immediate
payment in full of all amounts 1 owe under this Note. Some of those conditions arc described as follows:
Transfer of the Property or a Beueficial Interest in Borrower. If all or any part of the Property yr any
interest in it is sold or trnnsfcrred (or if a beneficial interest in Borrower is sold or hansferred and Borrower is not a
natural person) without Ltxldet's prior written consent, Lender may, at its option, require immediate payment in full
of all sums secured by this Secunty instrument. However, this option shall not be exen:ised by Lender 1f exercise is
prohibited by federal law as of the date of this Security Instrument.
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 by this Security Instrument if Borrower fans to pay these sums prior to the expiration of
this period, Lender may invoke any remedies permitted by this Security )nswment tivtthout further notice or
demand on Borrower.
CAUTION . - _
IT IS IMPORTANT THAT YOU THOROUGHLY READ THIS NOTE BEFORE YUU SIGN IT.
WITNESS THE HAND(S) AND SL•AL(S) OF THE UNDERSIGNED
i
/`~
Y!y
SHANE P KLAAS -Borrower
- Borrower
- Borrower -Borrower
(Sign Original Only)
- Borrower -Borrower
- Borrower - Borrower
NCMC
327 Six Mouth L160R Hots
RE-012 (1l 1803) Page 5 of 5 1091808627
i
s •
TRUE AMD EXACT
CQPY OF Rt6t
~~
i
lS.ace Above Tbtr Lix For Recording Data)
- Prepared By: ~ 3 ~/ ~ D f ,~
New Century Mortgage Corporation',
18400 Von Itar~8a, Suite 1000
Zrv'ine, Cl- 92612
800-967-7623
Return To:
New Century Mortgage Corporation _
18400 Von 1Carrnan, Suite 1000 -
Zrvine, 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 defined below and o[hcr words are defined in
Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are
also provided in Section 16.
(A) "Security lnstrainent^ mean.4 this document, which is dated May 6, 2005 ,
together with all Riders to this document. _ /
(B) "Borrower" is SHANE P ICI.AAS (,~ J l yl [~] e Tpi/~'A
Borrower is the mortgagor [order this Security Instrumcnt.
IOWASingk Family-Fannio MaelFaddle Mac UNIFORM INSTRUMENT
®-6{IA)lo~os~or
~ t a is Miua~
VMPMalpapa SoMbne (B~)521-729t
2002808627
Foam 30t6 1/ Ot
(C)"Lender"is New Century Mortgage Corporation
Lerrdei is a Corporation
organized and existing under the laws of California
Lender's address is 18400 Von Raman, Suite 1000, Irvine, CA 92612
Lender is the mortgagee under this Security lnstrumrnt.
(D) "Nde" means the promissory note signed by Borrower and dated tray 6 , 2005 _
The Note states that Borrower owes Lender ONE HvNDRED EIGETEEN THODSAND THREE HONORED
FORTY ATID 00!100 Dollars
(U.S. S 118, 340.00 )plus interest. Borrower has promised to pay tbis debt in regular Periodic
Payments and to pay the debt in full ~t later than June 1, 2035 ,
(E) "Property" means the property that is described below under the heading "Transfer of Rights in the
Property."
(F) "Loan" [Weans the debt evidenced by the Notc, plus interest, any prepayment charges and late charges
due under the Note, nerd all sums due under this Security Irutrument, plus interest.
(G) -""Riders" means all Riders to tbis Severity Irtsttument that are executed by Borrower. The following
Riders are to be executed by Borrower {check box as applicable]:
® Adjustable Rate Rider ~ Condominium Rider ~ Second Home Rider
Balloon Rider ~ Planned Unit Development Rider ~ 1-4 Family Rider
VA Rider Biweekty Payment Rider Q Other(s) [specify)
(~ "Applicable Law" means all controlling applicable federal, state and local statutes, regulations,
ordinances and administrative rules and orders ([bat have the effect of law) as well as all applicable final,
non-appealable judicial opinions.
m "Commnnity Assodation Dues, Fees, and Assessments" means all dues, fees, assessments and other
chazges that are imposed on Borrower or the Property by a condominium association, homeowners
association or similaz organization.
(J) "F7eetronic Funds Transfer" means any transfer of funds, other than a transaction originated by
check, draft, or similar paper instrument, which is initiated through an elecVonic terminal, telephonic
instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit
or credit an accotmt. 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.
(1;7 "Escrow Items"means those items that are described in Section 3.
{I,) "Miscellaneous Proceeds" [Weans any compensation, settlement, award of damages, or proceeds paid
by any third party (other than insurance proceeds paid under the coverages described in Section ~ for: (~
damage to, or destruction of, the Propcrry; (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" iruans insurance protecting Lender against the nonpayment of, or default on,
the Loan.
(N) "Periodic Payment" means the regularly schedu]ed amount due for (i) principal and interest under'the
Note, plus (ii) any amounts under Section 3 of this Security Instrument.
t!m ~M) twosrai
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vye z or u
1001808627
4orm 3016 1/01
(O) '1tESPA" meant the Real Estate Settlement Procedures Act (t2 U_S.C_ Section 2601 et seq.) and its
implementing regulation, Regulation X (24 C.F.R. Pact 350tJ), as they mighE 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 [o all requirements and restrictions that are imposed in regazd 11
to a "federally related mortgage loan' even if the Loan does not qualify as a "federally related mortgage M
loan" under RESPA.
(P) "Suotessor in Interest of Borrower" means any party that has taken title to the Property, whether or
not that party has assumed Borzower's obligations undo the Note and/or this Security Instrument.
TRANSFER OF RIGITTS IN THE PROPERTY
This Security Instrument stxures to Lender: (i) lbe repayment of the Loan, and aH renewals, extrntioat and t
modification of the Note; and (ii) the performance of Borrower's covenants and agreements under this
Security Instrument aad the Note. For this purpose, Borrower irrevocably mortgages, grants and
conveys to Lender, with power of sale, Ux following described property located in the
County of dubuque ,
._. (Type of Retotdiog Jurisdiction) - [Name of Reco~diog rurisdktion]
See Legal Description Attached Hereto and Made a Bart Hereof ~
I
Parcel ID Number: 1013358006 which currently has the address of
975 Valeria Street lst~)
Dubuque [City], IOWA 52001 [Zip Code]
'T'OGETHER WITH a0 the improvements now or hereafter erected on the property, and all
easements, appurtenattces, and futures now or hereafter a part of the property. All replacements and
additions shalt also be covered by this Security Inttrurnent. AB of the foregoing is referred to in this
Security Instcttment as the "Property."
BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and ltas
the right to grant and rnnvey the Property and that the Property is unencumbered, except for encumbrances
of record. Borrower warrants and will defend generally the title to the Property against all claims and
demands, subject to any encumbrances of record.
i THIS SECURITY INSTRUM1Tl'f combines uniform covenants for national use and non-uniform '
covenants with limited variations by jurisdiction to constitute a uniform security instrttment covering real
property.
1001808627
tnieaax ._
•6(IA) ~oa5}ot P.y"3 ~ 76 Foan 3016 1/01
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 tbe principal of, and interest on, the debt evidenced by the Note and any
prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items
pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S.
currency. However, if any check or other instrument received by lender as payment under the Note or this
Security Instrument is returned to Lender u~raid, Lender may require that any or afl subsequent payments
due under the Note and this Security Instrument be made in one or more of the following forms, as
selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or
cashitt's check, provided any such check is drawn upon an institution whose deposits aze insured by a
federal agency, instrurnentaliry, or entity; or (d} Electronic Funds Transfer.
Payments are deemed received by Lender whrn received at the location designated in the Note or at
such other logtion as may be designated by Lender in accordance with the notice provisions in Section 15.
- , Lender may return any payment or partial payment if the payment or partial payments are insufficient to
bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan
current, wiUrout waiver of any rights hereunder or prejudice to its rights to refuse such payment or partial
payments in the future, but Lender is not obligated to apply such payments at the time such payments arc
accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender need not pay
interat on unapplicd funds. Lender may hold such unapplied fiords until Borrower makes payment to bring
the Loan current. If Borrower does not do so within a reaso~ble period of time, Lender shall either apply
such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outsta~irig
principal balance under the Note immediately prior to foreclosure. No offset or_ claim which Borrower
might have now or in the future against Lender shall relieve Borrower from making payments due under
the Note and this Security Instrument or performing the covenants and agret:mcrits secured by this Security
Instrument.
Z Application of Payments or Proceeds. Except as otherwise described in this Section 2, all
payments accepted and applied by Lender shall be applied in the following order of priority: (a) interest
due under the Note; (b) principal due under the Note; (c) amourNS due under Station 3. Such payments
shall be applied to each Perodic Payment in the ordtt 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 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 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 than, 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 doe date, or change tbe amount, of the Periodic Payments.
3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due
under the Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due
for. (a) taxes and assessments and other items which can attain priority over this Security Instrument as a
lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if any; (c)
premiums for any and alt insurance required by Leader 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 1Q. These items aze called "Escrow
Itemm." At origination or at any tune during the term of the Loan, Lender may require that Community
~{IA) toeosyoi
MN1b~c.
1001808627
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 Letrder all notices of amounts to
be paid under this Section_ Borrower shall pay lender the Funds for Escrow Items unless Lender waives
Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's
obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver -may only be
in writing. In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts
due for any Escrow Items for which payment of Funds has been waived by Lender and, if Lender requires,
shall furnish to Lender receipts evidencing such payment within sucl- time period as Lender may require.
Botrowei s obligation to make such payments and to provide receipts shall for all purposes be deemed to
be a covenant and agreement contained in this Security Instrument, as the phrase "covenant and agreement"
is used in Section 9. if Borrower is obligated to pay Escrow Items directly, pursuant to a waiver, and
Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9
and pay such amount a~ 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 tithe by a notice given in
accordance with Section IS and, upon such revocation, Borrower shall pay to Lender all Funds, and in
such amounts, tl-at are then required under this Section 3.
_Lertder may, at any time, collect and hold Furtds in an amount (a) suffeciertt to permit Lender to apply
the Funds at the time specified ender ItFSPA; and (b) not to exceed the maximum amount a tender can
require under 1tFSPA. Lender shall estimate the amount of Furls due on the basis of current data and
reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with Applicable
Law.
The Funds shall be held in an institution whose deposits are insured by a federal agency,
instrvmentatity, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in
arty Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no Later than the time
specified under 12ESPA. Lender shall not charge Borrower for holding and applying the Funds, annually
analyzing the escrow account, or verifying the Escrow Items, ttnless Lender pays Borrower interest on the
Funds artd Applicable law permits Lender m make such a charge. Unless an agreement is made in writing
or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower
any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest
shall be paid on the Funds. Lender shall give to Borrower, without chazgc, an annual accounting of the
Funds as required by 12ESPA.
If there is a surplus of Funds held in escrow, as defuted under ItESPA, Lerner shall account to
Borrower for the excess funds in accordance with 1tFSPA. If there is a shortage of Funds held in escrow,
as defined under RESPA, Lender shall notify Borrower as required by RFSPA, and Borrower shall pay to
Lender the amount necessary to make up the shortage in accordance with 1tFSPA, but in no more than 12.
monthly payments. If there is a deficiency of Funds held in txcrow, as defined under RFSPA, Lender shall
notify Borrower as required by 12ESPA, and Borrower shall pay to Lender the amount necessary to make
up the deficiency in accordance with ItFSPA, but in no more than 12 monthly payments.
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund
to Borrower any Funds held by Lender.
4. Charges; Liens. Borrower shad pay all taxes, assessments, charges, fines, and impositions
attributable to the Property which can attain.priority over this Security Instrument, leasehold payments or
ground rents on the Property, if any, and Community Association Dues, Fees, and Assessments, if any. To
the extent that these items aze Escrow Items, Borrower shall pay Utem in the manner provided in Section 3.
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless
Boaower. (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable
to Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith
~ 1001808627
~~b:
-b(IAIpaDS).Dt PaysSa 15 Fortn301b 1101
by, or defends against enforcement of tbe lien in, legal proceedings which in Lender's opinion operate [o
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 to Lender subordinating
the lien to' this Security Instrument. if Lender determines that any part of the Property is subject to a lien
which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the
lien. Within 10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or
more of the actions set forth above in this Section 4.
Lender may enquire Borrower to pay a orre-time charge for a real estate tax verification and/or
reporting service used by Lender in connection with this Loan.
5. Prroperty Insurance. Borrower shall keep the improvements now existing or hereafter erected on
the Property inst-ted against loss by fire, hazards included within the term "extended coverage," and any
other hazards including, but rwt limited to, earthquakes and floods, for which Lender requires insurance.
This insurance shall be maintained in the amounts (including deductible levels) and for the periods that
- Lender requires. What Ler-der requires pursuant to the preceding sentences can change during the term of
the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's
right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may
require Borrower to pay, in connection with. this Loan, either: (a) a one-time charge for flood zone
determination, ceriification and tracking services; ar (b) a one-time charge for flood zone determination
and certification srnit:es and subsequent charges each time remappings or similar changes occur which
reasonably might affect such determination or certification. Borrower shall also be responsible for the
payment of any fees imposed by the Federal Emerge~y Management Agency_ in connection with the
review of any flood zone determination resulting from an objection by Borrower. -
If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance
coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purehase any
particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might
not protect Borrower, Borrower's equity in the Property, or the conttnts 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 rnst of the insurance coverage so obtained might significantly exceed the cost of
insurance that Borrower could have obtairud. Any amounts disbursed by Lender under this Section 5 shat)
become additional debt of Borrower secured by this Security htstrument. These amounts shall bear interest
at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from
Lender to Borrower requesting payment.
All insurance policies required by Lender and renewals of such policies shall be subject to Lender's
~ right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as
mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal
certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and
renewal notices. If Borrower obtains nay form of iruvrance coverage, not otherwise required by Lender,
for damage to, or destruction of, the Property, such policy shall include a stardard mortgage clause and
shall name Lender as mortgagee and/or as an additional loss payee.
In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender
• may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree
in writing, any insurance proceeds, whether or not the underlying insurance was required by Lender, shall
be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and
Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to
hold such insurance proceeds until Lender has had an opportunity to inspect such Property to ensure tbe
work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken
promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series
of progress payments as the work is completed. Unless an agreement is made in writing or Applicable Law
I ® -0(tA) ro~os)o~
wears
1001808627
tiru.~ ,
Form 30t6 t101
requires interest to be paid on such irrsutartce proceeds, Lender sha[I not be required to pay Borrower any '
interest or earnings on such proceeds. Fees for public adjusters, or other third parties, retained by
Borrower shat} not be paid out of the insurance proceeds and shay) be the sole obligation of Borrower. If
the restoration or repair is not economically feasible or Lender's security would be lessened, the insrtratrce
proceeds shall be applied to the sums secrtred by this Security Instrument, whether or not then due, with
the excess, if any, paid to Borrower. Such insuratrce proceeds shat) be applied in the order provided for in
Section 2.
if Borrower abandons the Property, Lender may file, negotiate and settle any available insurance
claim and related matters. If Borrower does not respond within 30 days to a notice from Lender that the
insurance carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30-day
period will begin when the notice is given- In either event, or if Lender acquires the Property order
Section 22 or otherwise, Borrower hereby assigru to Lender (a) Borrower's rights to any insurance
proceeds in an amount not to exceed the amoums unpaid under the Note or this Security Instrument, and
(b) any other of Borrower's rigLts (other than the right to any refund of uneartred premiums paid by
Borrower) undo all insuta~e policies covering the Property, irssofar as such rights are applicable to the
coverage of the Property. Lender may use We imvrarrce proceeds either to repair or restore the Property or
to pa}r amounts unpaid under the Note or this Security Instrument, whether or not then due. i
6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal
residence within 60 days after the execution of this Security Instrument and shall contimre to occupy the
Property as Borrower's principal residence for atltast one yeaz after the date of occupancy, unless Lender
otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extrnuating
circumstances exist which are beyond Borrower's control. _ - ,
7. PrYServation, Maintwance and Protection of the Property; Inspections. Borrower shall not
destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the
Property. Whether or rrot Borrower is residing in the Property, Borrower shall maintain the Property in ~
order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is
determined pursuant to Section 5 that repair or restoration is rroi economically feasible, Borrower shall
promptly repair the Property if damaged to avoid further deterioration or damage. If incnranrP 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 iwrance 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 tray make reasonable rntries upon and inspections of the Property. If it has
reasonable pose, Lender may ir-spect the interior of the improvenKnts on the Property. Lender shall give j
Borrower Mice at the tip of or prior to such an interior inspection specifying such reasonable pose.
S. Borrower's Loan Application. Borrower shall be in default if, daring the Loan appliption
process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's
knowledge or consent gave materially faLce, 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 aze not limited to, representations concerning Borrower's occuparcy of the
Property as Borrower's principai residence.
9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. ]f
(a) Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) thtre
is a legal proceeding that Wright significantly affect Lender's interest in the Property and/or rights under ,
this Security Instrument (such as a ptocading in bankruptcy, probate, for condemnation or forfeiture, for
enforcement of a lien which may attain priority over this Security Instrument or to enforce taws or
1001808627
MNbls~
~(tA) p+ost.or Pape? or rs ~TT\\ Form 3016 1/D1
regulatiotss), or (c) Borrower has abandoned the Property, then Lender may do and pay for whatever is
reasonable or appropriate to protect Lender's interest in the Property and rights under this Security
Instrument, including protecting and/or assessing the value of the Property, and securing and/or repairing
the Property. Lender's actions can include, but are not limited to: (a) paying any sums secured by a lien
which has priority over this Security Instrument; (b) appearing in court; and (c) paying reasonab]e
attorneys' fees to protect its interest in the Property and/or rights under this Security instrument, including
its secured position in a bankruptcy procceding. Securing the Property includes, but is not limited to,
entering the Property to make repairs, change locks, replace or board up doors and windows, drain water
from pipes, eliminate building or other code violatioru or dangerous conditions, artd have utilities tnrtfed
on or off. Although Lender tray take action under this Section 9, Lender does not have to do so and is not
under arty duty or obligation to do so. It is agreed that Leer incurs no liability for not taking any or all
actions authorized under this Section 9.'
Any atnoturts disbursed by Lender under this Station 9 shall becotrre additiorrel 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 sttch interest, upon notice from Lender to Borrower requesting
` , payment.
If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the
lease. If Borrower acquira fce title to the Property, the leasehold and the fee title shall rat merge unless
Lender agrees to the merger in writing.
10. Mortgage Insurance. if Lender required Mortgage Insuratce as a condition of making the Loan,
Borrower shall pay the prcmit[rrrs required to maintain the Mortgage lr-strrartce in effxt. 1f, for any mason,
the Mortgage Inwtratfce coverage required by Lender ceases to be available from the mortgage irtstrrer that.
previously provided such irtsurarrce and Borrower was required to make separately designated paymenu
toward the premitmts for Mortgage Insurance, Borrower shall pay the premi»rt>;c requited. to obtain
coverage substantially equivalent to the Mortgage Insurance previously in effect; at a cost substantially
i equivalent to the cast to Borrower of We Mortgage Itrstuance previously in effect, from an altet~te
mortgage insurer selected by bender. If substantially equivalrnt Mortgage Insurance rnvecage is rat
available, Borrower shall continue to pay to Lender the amount of the separately designated payments that
were dtu when the insurance coverage ceased to be in effect. Leader will accept, use and retain these
payments as a nonrefundable loss reserve in lieu of Mortgage It-ntrartce. Such loss reserve shall be
nonrefundable, notwithstanding the fact that the Loan is ultimately paid in full, artd Lender shall not be
required to pay Borrower any interest or earnings on such loss iCserve_ Lender can ra longer require loss
reserve payments if Mortgage I»sttrar-ce coverage (in the amount and for the period that Lender requires)
j provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires
separately designated payments toward dre premiums for Mortgage Insurance. ]f Lender required Mortgage
Insurance as a condititxr of trtaking the Loan and Borrower was required to make separately dcsig>mted
paymtmts .toward the premiuasAt for Mortgage Insurance, Borrower shall pay the premiuau required to
mairaain Mortgage Insurance in effect, or to provide anon-refundable loss reserve, until Lender's
requirement for Mortgage Insurance ends in accordarux with any written agreement between Borrower and
Lender providing for such termination or until termination is required by Applicable Law. Nothing in this
" Section l0 affects Borrower's obligation to pay interest at the rate provided in the Note.
Mortgage Itfsmaace reimburses Leader (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 insures evaluate their total risk on all such inturartce in force from time to time, and may
enter into agteerrrcats 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 inwrer and the other party (or parties) to
~ these agreements. These agreements may require the mortgage insurer to make payments using an~ source
of funds that the mortgage insurer tray 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 reinsuter,
any other entity, or arty affiliate of any of the foregoing, may receive (directly or indirectly) amotmts that
derive from (or might be characterized as) a portion of Borrower's paytrrerus for Mortgage Insurance, in
exchange for sharing or modifying the mortgage insutrr's risk, or reducing losses. If such agreement
~ ~ 1001808627
~~ ~ t,
i ~-B(tA)twospot v~.awrs fronn3016 trot
provides that an affdiate 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 ofirn termed "captive reinsurance." Further:
(a) Any such agreements will not affect the amounts that Borrower bas agreed to pay for
Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount
Borrower will owe for Mortgage lnsurance, and they will not entitle Borrower to any refund.
(b} Any such agreements will not affect the rights $orrower has - if any -with respect to the
Mortgage Insurance under the Ilomeowoers 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 aatoma6cally, and/or to receive a
refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or
terroioation.
11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
assigned to and shall be paid to Lender.
If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of
the Property, if the restoration or repau is economically feasible and Larder's security is not lessrned.
- During such repair and restoration period, Lender shall have the right to bold such Miscellaneous Proceeds
until Lender has had an opportunity to inspect such Property to ensure the work bas been completed to
Lender's satisfaction, provided that such inspection shall be undertaken promptly. I..rnder may pay for the
repairs sad ratoration in a single disbursemrnt or in a series of progress payments as the work is
completed. Udess an agreen~nt is made in writing or Applicable Law requires interest to be paid on such
Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such
Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would
be lessened, the Miscellaneous Proceeds shalt be applied to the sums secured by this Security Instrumrnt,
whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be
applied is the ordu 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 Inctruareat, whether or not thrn due, with
the excess, if any, Paid to Borrower.
In the went of a partial taking, destruction, or loss its value of the Property in which the fair market
value of the Property immediately before the partial taking, destruction, or loss in value is equal to or
greater than ttte amount of the sums secured by this Security Instrument immediately before the partial
taking, destruction, or loss in value, unless Borrower and [.cutler otherwise agree in writing, the sums
secured by Wis Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds
multiplied by the following fraction: (a) the coca! amount of the sums secured immediately 6etore the
partial taking, destruction, or loss in value divided by (b) the fair market value of the Property
immediately before the partial taking, destruction, or loss in value. Any balattcc shall be paid to Borrower.
Ia the evrnt.of a partial taking, destruction, or loss in value of the Property in which the fair market
value of the Property immediately before the partial taking, destruction, or loss in value is less than the
amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless
Borrower and Linder otherwise agree in writing, the Mistxlla»eous Proceeds shall be applied to the stems
. secured by this Security Instrument whether or rrot the sums are that due_
If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the
Opposing Parry (as defined in the nett 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, whetter or not thendue. "Opposing Party" means the third party
tl-at 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 say action or proceeding, whether civil or criminal, is begun that, in
Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's
interest in the Property or rights under this Security Instrument. Borrower can cure such a default andf if
acceleration has occurred, rrinstate as provided in Section 19, by causing the action or proceeding to be
dismissed witL a ruling that, in Lrnder's judgment, precludes forfeiture of the Property or other material
~ impairment of Lender's interest in the Property or rights under this Security It>sstntotent. The proceeds of
r 1001808627
uat,~
tlw) ro+os}oe Vq~e s err t5 ~ Fonn 30th trot
• ~ i
any award or claim for damages that are attributable to the impairment of Lender's interest in the Property
are hereby assigned and shall be paid to Lender.
All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be
applied in [he order provided for in Section 2.
12. Borrower Not Released; Forbearance $y Lender Not a Wsiver. Exteruion of the time for
payment or modification of amortization of the sums secured by this Security Instrtunent granted by Lender
to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower
or arty Successors in Interest of Borrower. Lender shall rat be required ro conunertce proceedings against
any Successor in Interest of Borrower or to refuse to extend time for paymrnt or otherwise modify
amortization of the sums secured by this Security ]nstrumem 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 persoru, entities or
Successors in Interest of Borrower or in amounts less than the amount tben due, shall not be a waiver of or
pralude the exercise of any right or remedy.
13. Joint and Several Liability; Co-signers; Successora and Assigns Sound. Borrower covenants
and agrees that Borrower's obligations and liability shall be joint and several. However, arty Borrower who
co-signs this Security Instrument but does rat execute the Note (a 'tm-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 soots secured by this Security
Instrument and (c) agrees that Lender and any other Borrower can agree tD extend, modify, forbear or
make any accommodations with regard to the terms of this Security Instrument or the Note without the
co-signer's constat.
Subject to Ute provisions of Section 18, any Successor in Interest of Borrower who asstttnes
Borrower's obligations under this Security Lrstruntrnt in writing, and is approved by Lender, shall obtain
all of Borrower's rights and benefits under this Secnriry Ir-strtrment. Borrower shall not be released from
Borrower's obligations and liability under this Security Instrument unless Lerrder 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 assigt>s of Lender.
IQ. Loan Charges. Lender tray charge Borrower fees for services performed is connection with
Borrower's default, for the gurpose of protecting Lender's interest in the Property and rights under this
Security Ltstnunent, including, but not limited to, attorneys' fees, property inspection and valuation fees.
In regard to any other fees, the absence of express authority in this Security Instrument to charge a specific
fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge
fees that are expressly prohibited by this Security [nsttumrnt or by Applicable Law.
If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so
that the interest or other loan charges collected or to be collected in connection with the Loan exceed the
permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the
charge io the permitted limit and {b) any sums already collected from Borrower which exceeded permitted
limits will be refundtd to Borrower. Lender may choose to make this refnnd 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 prepayrocrtt without any prepayment charge (whether or not a
prepayment charge is provided for under the Note}. Borrower's acceptance of arty such refund made by
direct payment to Borrower wil! rnnstitute a waiver of any right of action Borrower might Lave arising out
of such overcharge.
15. Notices. All notices given by Borrower or Lender in connection wiW this Security Instrument
must be in writing. Any notice to Boaower in connection with this Security Instrument shall be deemed to
have been given to Borrower when atailed by first class atail or when actually delivered to Borrower's
notice address if sent by other means. Notice to arty one Borrower shall constitute notice to alt Borrowers
unless Applipble Law expressly requires otherwise. The notice address shall be the Property Address
unless Borrower Las 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 procedirre.
There may be only one designated ratice address under this Security Iattrtratrnt at any one time. Any
notice to Lender shall be given by delivering it or by mailing it by first class snail to Lender's address
stated herein unless Lender has designated another address by notice to Borrower. Any notice in
1001008627
brrblC y
-Bt1A)ro~os~ot ~siom,s FormJnt6 trot
connection with this Security Instrument shall not be deemed to have bern given to Lender anti} actually
received by Lrndex_ If any notice required by this Security Instrumrnt is also required under Applicable
Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security
Instrument_
16. Governing Law; Severabitity; Rules of Construction. This Security Instrument shall be
governed by federal law and the law of the jurisdiction in which the Property is located. Ail rights and
obligations contained in this Security ]nstrument are subject to any requirements and limitadont 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 consnred as a prohibition against agreement by contrau. In
the cvrnt that any provision or clause of this Security Instruma-t or the Note conflicts with Applicable
Law, such confliu shall trot affect other provisions of this Security Instrtnrrerrt or the Note which can be
given effect without the conflicting provision. '
As usod in this Security Instrument: (a) words of the masculine gender shall mean and include
corresponding treater words or words of the feminine gender; (b) words the singular shall mean and
include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to
take any action.
17_ Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Irtstrtunent.
18_ Transfer of the Property or a BmefIdal Interest [n Borrower. As used in this Section 18,
"Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited
to, those beneficial interests transferred in a bond for deed, contract. for deed, installment sales contract or
escrow agreement, the intent of which is the; transfer of title by Borrower at a fnturc 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 trot a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior ~
written cotrsrnt, Lender may require itnmediate payment in full of aU strrrrs secured by this Security
Instrtment. However, this option shall not be exercised by Lender if such exercise is prohibited by
Applicable Law.
If Le:ndex exercises this option, Lender shall give Borrower notice of aeceleration. 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 strrrrs secured by this Security Insttumrnt. If Borrower fails to pay
these sums prior to the expiration of this period, Lender may invoke any remexiies permitted by this
Security Instrument without further notice or dernartd on Borrower.
l9. Borrower's Right to Reinstate After Acceleration: if Borrower meets certain conditions,
Borrower shall have the right to have enforcement of this Security Instnur>ent discontitrued 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 ]nsttttmenr (b) such other pexierd as Applicable Law rrugbt specify for the termination of '
Borrower's right to reir-state; or (c) entry of a judgment enforcing Wis Security Instrument. Those
conditions are that Borrower. (a) pays Ltarder all sums which Wrn would be due under this Security
Instrument and the Note as if rto acceleration had occurred; ro) cures arty default of any other covenants or
agreements; (c} pays all expenses irtctttred in earforcing Wis Security Instrument, including, but not limited
to, reasonable attorneys' fees, property inspection and valuation fexs, and other fees incurred for the
Purpose of protecting Lender's interest in the Property and rights under this Security ]nstnunrnt; and (d)
takes such action as Lender may reasonably regtTire to assure that Lender's interest in the Property acrd
rights under Wis Sexetriry Iactrument, and Borrower's obligation to pay the sums secured by this Security
Instrtrrrrent, shall continue unchanged. Leader may require that Borrower pay such reinstatement sums and
expenses in one or more of the following form, as selected by Lender: (a) crash; (b) money order (c)
certified check, bank check, treasurer's chexlc or cashier's check, provided any such check is drawn upon
an institution whose deposits are insured by a federal agency, insttut»rntaliry or entity; or (d) Electronic
Funs Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby
shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not
apply in the case of acceleration tinder Section !8.
20. Sale of Note; Change of Loan Servitxr; Notlte of Grievance The Note or a partial interesGia
the Note (togeWer wiW Wis Security Instrument) can be sold one or more tirr~s without prior notice to
1001808627
mman:~
~i(Iq) {Obs}ot P"g" tt of t5 Form 30th t! 01
Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects
Periodic Payments due under tbe Note and this Security Instrument and performs other mortgage loan
servicing obligations under the Note, this Security Instrument, and Applicable Law. There also might be
one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan
5ervicer, Borrower will be given written notice of the change which will state the name and address of the
new Loan Servicer; the address to which payments should be made and any other information RESPA
requires in connection with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is
serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations
to Borrower will remain with Ute Loan Servicer or be transfemd to a successor Loan Servicer and are not
assumed by the Note purchaser unless otherwise provided by the Note purchaser.
Neither Borrower nor Lender may commence, join, or"be joined to any judicial action (as either an
individual litigant or the number of a class) that arises from the other party's actions pursuant to this
Security Inutument or that alleges that the other party has breached any Provision of, or any duty owed by
reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with such
notice givrn in compliance with the requirements of Section 15) of sucte alleged breach and afforded the
other party hereto a reasonable period after the giving of such notice to take corrective action. If
Applicable Law provides a time period which must- elapse before certain action can be taken, that time
period will be dee~cl to be reasonable for purposes of this paragraph. The notice of acceleration and
opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to
Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective
action provisioru of this Section 20. _
21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those
substances defined as tonic or hazardous substances, pollutants, or wastes by Environmental Law and the
following substances: gasoline, kerosene, other flammable or tonic petroleum products, tonic pesticides
and herbicides; volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials;
(b) "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that
relate to health, safety or environnuntal protection; (c) "Envirorunrntal Cleanup" includes any response
action, remedial action, or removal action, as defaced 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 ttueatrn to release any Hazardous Substances, on or in the Property. Borrower shat) not do,
nor allow anyone else to do, anything affecting the Property (a) that is in violation of any Environmrntal
Law, (b) which creates an Environnxntal CorrdiQon, or (c) which, due to the presence, use, or release of a
Hazardous Substance, creates a condition that adversely affects the value of Ure Property. The preceding
two senterues shall not apply to the presurce, 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 (inchuting, but not limited to, hazardous substances in connrmer products).
Borrower shall promptly give Lender writtea notice of (a) any investigation, claim, demand, lawsuit
or other action by any govermnental or regulatory agency or private party involving the Property and any
Hazardous Substance or Enviromrental Law of which Borrower has actual knowledge, (b) any
Environmrntal Condition, including but not limited to, any spilling, leaking, discharge, release or threat of
release of any Hazardous Substanee, and (c) any rnndition 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 remediatron
of any Hazardous Substance affecting the Property u necessary, Borrower shall promptly take all necessary
remedial action; in accordance with Environmental Law. Nothing herein shall create any obligation on
lender for an Environmental Cleanup.
r, 1, iooiaoae2.1
~~ ~~
~-6(1/1) pasFo, v~.,zw,s Fom, Sots trot
• i
NON-UNIFORM COVENANTS. Borrower and Lender furthtr 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 SeMion 18 unless Applicable Law provides otherwise). The notice shall specify: (a)
the default; (b) the action requlrcd to cure the default; (c) a date, not less than 30 days from the date
the notice is given to Borrower, by which the default must be cured; and (d) that failure to arre the
default on or before the date specified in the notice may result in acceleration of the snms secured by
this Security Instrnntent, foreclosure by jndicial proceeding and safe of the Property. The notice shalt
further inform Borrower of the right to reinstate after acceleration and the right to assert in the
foreclosure proceeding the non-existence of a defanlt or any other defense o[ Borrower to acceleration
and foredosure. If the defanlt is 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 Lrstromeat
witbont further demand and may foreclose this Security Iustrument by judicial proceeding. Lender
- shall be entitled to culled all expenses iucnrred in pursuing the remedies provided in this Section 22,
including, but ant limited to, reasenabie attorneys' fees and costs of title evidence.
23. Release. Upon payment of all surrec secured by this Security Instrument, Lender shall release this
Sectnity Instrument. Lender tray charge Borrower a fee for releasing this Security Instrument, but only if
We fee is paid to a third party for services rendered and the charging of the fee is permitted wrier
Applicable Law.
24. Waivers. Borrower relinquishes all right of dower and waives all right of homestead and
distributive share is anti to the Property. Borrower waives any right of exest~tion 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 NDICIAL SALE; AND THAT BY SIGNIIVG THIS MORTGAGE, I
' VOLUNTARILY GIVE UP MY RIGHT TO THIS PROTECTION FOR TIIIS MORTGAGED
PROPERTX WIT$ RESPECT TO CLAIMS BASED UPON THIS MORTGAGE.
1~Yt )~ /
~ Bortower S13ANE P ItZA1~S Date Borrows Dam
Borrows ~ Dam Borrows Dam
Borrows Dam Borrows Dam
Borrows Date Borrowtt Qate
1001808627
-6(t!~)~tN05}01 Vms t3 of t5 FORr13016 t/Ot
26. Redemption Period. If the Property is less than 10 acra in size and Lends waives in any
foredasure proceeding any right to a deficiency judgment against Borrower, the period of redemption from
judicial sale shall be reduced to 6 months. if the court finds that the Property has been abandoned by
Borower and Lendcr 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 ttris Section 26 shall be
construed to conform to the provisions of Sections 628.26 and 628.27 of the Code of Iowa.
IMPORTANT. READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE
READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITDVG ARE ENFORCEABLE. NO
OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT
MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT
ONLY BY ANOTHER WRI7TEN AGREEMENT.
BY SIGNING BQ.OW, Borrower accepts and agrees to the terms and covenants contained in this
Security Instrument and in any Rider executed by Borrower and recorded with it.
witnesses:
sue)
SHANE P RLA71.S -Bmrowu
(~)
-Borrower
(~1) (Seal)
-borrower -BOROwef
(~1) (Seal)
-Borrower .Borrower
(~) (Seal}
-Borrowu -Borrower
1001808627
t'~-6{U1lto+oslo+ v„e„w,s Fom+3016 rror
'~
STATE OF IOWA, County ss: ~.~.bU4u,r
~ ~~ ~fL day of ~~a~ ~ 7 ov 5 ,before me, a Notaary Public
in the State of Iowa, personally appeared
to me personally known to be ffie person(s) named in a~ who executed the foregoing instrwnent, and
acknowledged that helshe/they executed the same as his/her/their voluntary act and deed.
My Commission Expires:
~~ ~~~~
Notary Public iu and said Coanry and State
TAMA~y THOblp$
lows Notarial Seat _
Cornmlasion mrmber 71712T
MY Commission F~pires
osiaeroe
1001808627
u~wt:;
-6lIA) to~ost.ot v,~tsm is Form 3016 i/Of
m
•
ADJUSTABLE RATE RIDER
(LIBOR Sia-Month Index (As Published in The Wall Street Journal}-Rate Caps)
3 YEAR RATE LOCK
THIS ADJUSTABLE RATE RIDER is mach this6tb day of May, 2005
and is inwrporated into and shall be deemed to amend and supplement the Mortgage, Dced of Trust, or
Security Deed (the "Security Instrument") of the same date given by the undersigned ("Borrowers to sectae
Borrower's Adjustable Rate Note (the "Note") to
New Century Mortgage Corporation
("Lender"} of the same date and covering the property descnbed in the Security Instrument and located at:
475 Valerie Street, Dubuque;lA 52001
(Property Address)
THE NOTE CONTAINS PROVISIONS ALLOWING POR CHANGES IN THE INTEREST
-•RATE AND TIIE MONTHLY PAYMIaNT. THE NOTE LIMITS THE MAXIMUM RATE
BORROWER MUST PAY.
ADDITIONAL COVENANTS. In addition to the coversants ar-d agreements made in the Security
Instrument, Borrower and Lender further covenant and agree as follows: _
A. INTEREST RATE ANb MONTHLY PAYMENT CHANGES
The Note provides for an initial interest rate of 7.750 a/e. The Note provides for
changes in the interest rate and monthly payments as follows:
4. INTEREST RATE AND MONTHLX PAYMENT CHMIGE5
' (A) Change Dates
The interest rate I 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 Rate Change Date."
(B) The Index
Beginning with the first Interest hate Change Date, my interest rate will be based on an Index plus a
margin. The "Index" is the average of interbank offered rates for six month dollar deposits in the London
market ("LIBOR', as published in 77re R'al1 Street Joprnal "Money Rates" Table. The most recent Index
figure available as of the first business day of the nwntb 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 which is based upon
comparable information. The Note Holder will give me notice of this choice.
NCMC
Jl17 Six Month LIBOR Adjustabk Rate Rider
' RF.-4II (1178D3) Page l of3 1001808627 ,
(L') Calculation of Changes
At each Interest Rare 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. The Note Holder will then round
this figure to the nearest one-eighth of one percentage point (1).125°.6). Subject to the limit stand in Section
4(D) below, this rounded amount will be my new interest rate until the next Interest Rate Change Date.
(i) interest-0nly Period. The "interest-only Period" is the period Gom the date of this Note
through June 1, 2008. For the Interest-only Period, the Note Holder will calculate the amount of
the monthly payment to be one-twelfth (1/12th) of one (I) year's imcrest at 7.750% per annum.
Tbc result of this calculation will be the amount of my monthly payment until tht Interest Race
Change Date.
(i~ Amortization Period. The "Amortization Period" is the period after the Intuest-only Period
and continuing until die Maturity Date. Ihuing the Amortization Period, after cakulatirtg my crew
interest rate as provided in Section 4(C) above, the Note Holder will then calculate the amount of
the monthly payment that would be su11'icien/ to fully repay the remaining unpaid principal in
-~ equal monthly payments by the Maturity Date, assuming, for purposes of each calculatioq that
the interest rate remained unchanged during that period. The result of this calculation will be the
new amount of my monthly payment.
(D} Limit on interest hate Changes
The interes- rate I am required to pay at the first Change Date will not be greater than 9250% or
less than 7.750'/°. Thereafter, my Intuest rate will never be increased or decreased on any single Change
Date by more than one acrd one halfpueentage points (].5%) Gom the rate of interest J have been paying for
the preceding month. My interest rate will nevcr be grgtu than 14.750% or less than 7.750%.
(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 new monthly payment begiruling on the lrrst monthly payment date after the Intuest Rate Change Date
until the amount of my monthly payment changes again.
(F) Notice of Changes
The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount
of my monthly payment 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 numbu of a person who will
answu any questions I may have regarding the notice.
11. GOVERNINGLAW -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 defined below) is located. ]n addition to the protections green to the Note
Holdu undo the Note, a Mortgage, Deed of Trtlst or Security Decd (the "Security Inswment"~ dated the
same date as the Note protects the Note Holdu from posslbk losses which might result if I do not keeethe
promises which I make in the Note. That Security InsWmcnt describes how and rmder what conditions I
may be required to make immediate payment in full of all amounts I owe under the Note. Some of those
conditions are described as follows:
Ncmc
3/27 Su Month LIBOR Adjust~le Ram Ride p~° 2 °f 3 1001808627
RE-411 (111803)
~ s
Transfer of the Property or a Bene5cial Interest in $orrower. If all or any part of the Property of any
interest in it is sold or ttaasfenred (or if a beneficial interest in Borrower is sold or transferred and Borrower
is not a natural person) without Lenders prior written consent, Leader may, at its option, require immediate
payment in full of all sums secured by this Security Inshvmeltt. However, this option shall not be exercised
by Lends if exercise is prohibited by federal law as of the date of this Security Itsstrument.
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 aN sums secured by this Security Instrument. If Borrower fails to pay these sums prior to
the expiration of this period, Lender may invoke any remedies pennittcd by this Security Instrument without
further notice or demand oo Borrower.
BY SIGTRNG BELOW, Borrower accepts and agrees to the terms and covenants contained in this
Adjustable Rate Rider.
' ~.
~" /
J`- i ./VN~---...~-
SHA;t`IE P KLAAS ~ -eovo..~r
-iteao.~
I
' ->r~..tr
_ea.o,.Q
(Sign Original Only)
-Bovo..a
- -Iraavae,
-Bonowv
-ea,~<
IVCMC
327 Six Month ISBOA Adjustable Rate Rider
RE~II (117803) Page3 of3 1001808627
~ ~
Lega3. Description
Lot 2 of VaZeria Langworthy Homestead in the City of Dubuque,
Iowa, according to the recorded plat thereof. Situated in
Dubuque County, Iowa.