II 5708359 SNYDER Retum To: WACHOVIA MORTGAGE CORPORATION 1100 CORPORATE CENTER DRIVE - NC4723 RALEIGH, NC 27607-5068 Page: 1 nf 25 ornezz as e2;asn 5 manu coumv co 343 _9 QS DEED OF TRUST (O MIN 100013700057083592 DEFINITIONS Words used in multiple sections of this document are defmed below and other word are detined 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. "Security Instrument" means this document, which is dated January 7 gow together with all Riders to thi document. (B) "Borrower" is A . Borrower I the trustor under this Security Instrument. I (C) is wacuovm comsonmon is conpommon comrutno-sangne ssmany-num. mamma. me umrorm msrnunmwr wm; rum ms zum (mos 1100) mam nge mr is J5 5708359 SNYDER Page: 2 of 25 5 @5"85 .. llolz ccuurv cc 126.00 0.00 organized and existing under the laws of NORTH CAROLINA . i? 1100 connonarz csnren carve RALEIGH, NC 27607-5066 . (D) "Trustee" is the Public Trustee of County, Colorado. (E) i Mortgage Electronic Regi tration Systems, Inc. MERS is a separate corporation that is acting solely as a nominee for Lender and Lender's successors and assigns. MERS is the beneficiary rmder this Security Instrum t. MERS is organized and existing under the laws of Delaware, and has an address and telephone of P.O. Box 2026, Flint, MI 48501-2026, tel. (888) 679-MERS. (F) "Note" means the promissory note signed by Borrower and dated Jmugyy 7 2005 . The Note states that Borrower owes Lender Tan and n0I100 Dollars (U.S. 10,000,000.00 plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than . nuary 1 2035 . (G) "Property" means the property that is described below under the heading of Rights in the Property." (H) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (I) "RIders" all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: Adjustable Rate Rider Condominium Rider Second Home Rider Balloon Rider Planned Unit Development Rider 1-4 Family Rider VA Rider Biweekly Payment Rider [specify] QUARTERLY INTEREST OIILY PAYMENT AIIERIRIERT (J) Law" means all controlling applicable federal, state and local tatutes, regulations, ordinan and administrative rules and orders (that have the effect of law) as well as all applicable fmal, non-appealable judicial opinions. i (K) "Corrununity Association Dues, Fees, and means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a association, homeowners association or sinrilar organization. (L) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, autonrated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (M) "Escrow Items" means those items that are described in Section 3. (N) "Mlscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; conveyance in lieu of condemnation; or (iv) rnisrepresentations of, or omissions as to, the value arrd/or condition of the Property. (0) "Mortgage lnsurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (P) "Periodic Payment" means the regularly scheduled amount due for principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security 241439 (rev06 rr/00) [14392] Page 2 er 16 Form 30061f0l 5708359 SNYDER (Q) means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its implementing regulation, Regulation (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, refers to all requirements and restrictions that are imposed in regard to a 'federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (R) "Successor in Interest of Borrower" means any patty that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY 'l`he beneficiary of this Security Instrument is MERS olely as nominee for Lender and Lender' successors and assigns) and the uccessors and assigns of MERS. This Security Instrument secures to Lender: the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security and the Note. For this purpose, Borrower, in consideration of the debt and the trust herein created, irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in the COUNTY ?f PITKIN I [Type or Reumring Jurisdiction] [Name or Recording Jurtuticnou] Page: 3 of 25 I v1I1?/2005 02 BSI 5 "5?85 Pmtru coumv co 125. 0.00 Parcel ID Number: which currently has the address of 1330 BUTTEFIMILK ROAD [Street] ASPEN [City]. Colorado 81611 mp Code] ("Property Addres TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." Borrower understands and agre that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument. JS 241439 (mos 1lI00) [14393] Page 3 of 16 Form3006 5708359 SNYDER Page: 4 of 25 01/1012005 2:3Sl onvrs COUNTY co 126.00 0.00 BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has therighttograntandconvey the Property and that the Property is unencumbered, except for of record. Borrower warrants and will defend generally the title to the Property against all claims and subject to any encumbrances of record and liens for taxes for the current year not yet due and pay le. - 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 UNIFORM COVENANTS. Borrower and Lender covenant and agree follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Chargu. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and thi Security be made in one or more of the following forms, as selected by Lender: cash; money order; certified check, bank check, treasurer's check or cashier's check, provided any uch check is drawn upon an institution wh deposits are insured by a federal ag cy, instrumentality, or tity; or Electronic Furnls Transfer. Payments are deemed received by Lender when received at the location designated in the Note or at such other location as tt 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 insufticient to bring the Loan current. Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice to its right to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments at the time such payments are accepted. lf each Periodic Payment is applied as of its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants and agreem ts secured by this Security Instrument. 2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted and applied by Lender shall be applied in the following order of priority: interest due under the Note; principal due under the Note; amormts 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 tirst to late charg second to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note. If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charge due. Voluntary prepayrnents shall be applied first to any prepayment charges and then as described in the Note. Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not extend or postpone the due date, or change the amormt, of the Periodic Payments. 3. Fimds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note, until the Note i paid in full, a sum (the "Funds') to provide for payment of amounts due for: taxes and assessments and other items which can attain priority over this Security as a lien or encumbrance on the Property; leasehold payments or ground rents on the Property, if any; premiums for any and all insurance required by Lender rmder Section 5; and Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage Insurance premirmrs in accordance with the provisions of Section 10. 'I'hese items are called "Escrow 241439 (rev06 ll!00) [14394] Page 4 or 16 Form 3006 1101 JS 505885 Page: 5 of 25 .. onvrs counrv co 126.00 0. Iterns." At origination or at any time during the term ofthe Loan, Lender may require that Community Association Dues, and Assessments, if any, be escrowed by Borrower, and such dues, fees and asscs shall be an Escrow Item. Borrower shall furnish to Lender all notices of amount to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unles Lender waives Borrower's obligation to pay the for any or all Escrow Items. Lender may waive Borrower's obligation to pay to Lender for any or all Escrow Items at any time. Any such waiver may only be in 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 iirmish 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 thi Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow lterns 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 arnotmt 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 giv in accordance with Section IS and, upon such revocation, Borrower shall pay to Lender all Funds, and in sucharnounts, thatarethenrequiredunderthis Section3. Lender may, at any time, collect and hold Funds in an amount sufficient to permit Lender to apply the at the time specified under RESPA, and not to exceed the maximum amotmt a lender can require under RESPA. Lender shall estimate the amount of Fund due on the basis of current data and reasonable estimates of expenditures of iirture 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, instnunentality, or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shaft 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, amrually analyzing the escrow accormt, or verifying the Escrow Items, urtles Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower any interest or eamings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on the Hinds. Lender shall give to Borrower, without charge, an annual accotmting of the Funds as required by RESPA. If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall accotmt to Borrower for the excess funds in accordance with RESPA, lf there is a shortage of Funds held in escrow, as deiined under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage in accordance with RESPA, but in no more than 12 payments. If there is a deficiency of Funds held in escrow, as defmed under RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with RESPA, but in no more than 12 payments. Upon payment in full of all sums secured by this Security Instrument, Lender shall refund to Borrower any held by Lender. 4. Charges; Liens. Borrower shall pay all taxe 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 As essments, if any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided in Section 3. Borrower shall discharge any lien which has priority over this Security unless 241439 (rev06 11100) [14395] Page ofl6 For?m3006 JS 5708359 SNYDER Page: 6 nf 25 ?1l1v/2005 02 38I 5 navrs coumrv co 126.00 .00 Borrower: 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; contests the lien in good faith by, or defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are pending, but only until such procwdings are concluded; or secures from the holder of the lien an agreement satisfactory to lender subordinating theli tothi Security Instrument. subjecttoalien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within l0 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. Lender may require Borrower to pay a one-time charge for a real estate tax verification andlor reporting service used by Lender in connection with this Loan. 5. Property Insurance. Borrower shall keep the irnprovernents now existing or hereafter erected on the Property insured against lo by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and flood for which Lender requires insurance. 'I`his insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentence can change during the term of the Loan. 'l`he 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 one?tirne charge for flood zone determination, certification and tracking services, or a one-time charge for flood zone determination and certification ervirxcs and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone detemiination resulting from an objection by Borrower. If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amormt of coverage. Therefore, such coverage shall cover Lender, but might or might not protmt Borrower, Borrower's equity in the Property, or the contents of the Property, again any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledg 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 thi Security Instrument. 'I`hese amounts shall bear interest at the Note rate from the date of disburs 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 give to Lender all receipts of paid prerniurns and renewal notices. lf Borrower obtains any fomt of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee. In the ev of lo Borrower shall give prompt notice to the in urance carrier and Lender. Lender may make proof of loss if not made 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 ecurity is not lessened. During such repair and restoration period, Lender shall have the right to hold such insurartee proceeds until Lender has had an opportunity to inspect such Property to enstue the JS 241439 (rev06 ll/00) [14396] Page 6 61*16 Form 3006 1}*01 5708359 SNYDEFI 505885 Page: 7 ef 25 ccumv co 126_ $1/1 ;2 work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work i completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on uch insurance proceeds, Lender shall not be required to pay Borrower any interest or eamings on such proceeds. Fees for public adju ters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insuranm proceeds shall be applied to the urns secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such insurance proceed shall be applied in the order provided for in Section 2. If Borrower abandons the Property, Lender may tile, negotiate and settle any available insurance claim andrelatedmatters. carrier has offered to settle a claim, then Lender may negotiate and settle the claim. The 30~day period will begin when the notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender Borrower's rights to any insurance proceeds in an amount not to exceed the amounts tmpaid under the Note or this Security Instrument, and any other of Borrower's rights (other than the right to any refund of uneamed prerniurns paid by Borrower) under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid tmder the Note or this Swurity Instrument, whether or not due. 6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 day after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year aiter the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating exi which are beyond Borrower's control. 7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing in value due to its condition. Unless it is detemrined pursuant to Section 5 that repair or restoration i not economically feasible, Borrower shall repair the Property if damaged to avoid further deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such purpo es. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress paym ts as the work is completed. If the insurance or condenmation 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 ag may make reasonable entries upon and inspections of the Property. If it has reasonable cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or prior to such an interior inspection specifying such reasonable cause. 8. Borrower?'s Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in connection with the Loan. Material representations include, but are not limited to, representations conceming Borrower' occupancy of the Property as Borrower's principal residence. JS 241439 (rev06 Ill'00) [14397] Page 1 or 16 Fam 3006 1.*01 5708359 SNYDER Pago: 8 of 25 01/1 /2 05 02:36: oavrs couurv co 126.00 0.00 9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If Borrower fails to perform the covenants and agreements contained in thi Security Instrument, there is a legal proceeding that might affect Lender' interest in the Property and/or rights under this Security Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over thi Security Instrument or to enforce laws or regulations), or Borrower has abandoned the Property, 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: paying any sums secured by a lien which has priority over this Security appearing in court; and paying reasonable attorney fees to protect its interest in the Property and/or rights under this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to, 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 tumed on oroff. AlthoughLendermaytake actionunderthis Section9, Lenderdoesnothavetodosoand is not under any duty or obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9. Any amotmts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security Instrument. These amotmts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage required by Lender ceas to be available from the mortgage insurer that previously provided such insurance and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an altemate mortgage insurer selected by Lender. If substantially equivalent Mortgage Insuranw coverage is not available, Borrower shall continue to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will accept, use and retain these payments as a non-retimdable loss reserve in lieu of Mortgage Insurance. Such loss re erve 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 amotmt and for the period that Lender requires) provided by an insurer selected by Lender again becomes available, i obtained, and Lender requires separately eignated payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until the Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination i required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. JS 241439 (mos ll/00) [14398] Page 8 or 16 Form 3006 1I01 5708359 SNYDER Pago: 9 of 25 #1/10/2005 SILVIR DRVIS coumv co 126.00 .00 Mortgage Insurance reimburses Lender (or entity that purchases the Note) for certain lo ses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all uch insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. 'I"hese agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any souroe of that the mortgage insurer may have available (which may include obtainrxi from Mortgage Insurance premiums). As a result ofthese agreements, Lender, purchaser ofthe Note, another insurer, reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or ruight be characterized as a portion of Borrower' payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer' risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the irrsurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance. Further: Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agr- will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Bonower to any refund. Mortgage under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, andlor to receive a refund of any Mortgage Insurance premiums that were rmearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration period, Lender shall have the right to hold such Miscellaneou Proceeds until Lender has had an opportunity to inspect such Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken Lender may pay for the repairs and restoration in a single disbursement or in a series of progress paym ts as the work is completed. Unl an agreement is made in writing or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2. In the event of a total taking, destruction, or lo in value of the Property, the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument, whether or not due, with the excess, if any, paid to Borrower. ln the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or los in value is equal to or greater than the amount of the stuns secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the stuns secured by this Security Instrument shall be reduced by the amorurt of the Miscellaneous Proceeds multiplied by the following fraction: the total amoum of the sums secured immediately before the partial taking, destruction, or loss in value divided by the fair market value of the Property immediately before the partial taking, destruction, or los in value. Any balance shall be paid to Borrower. 241439 (rev06 [14399] Page 9 or I6 Form $106 1101 JS 5708359 SNYDER Page: 10 of 25 >>r/to/2005 02:sa: 5 coumv co rz5_ao _gg In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums If the Property i abandoned by Borrower, or if, afier 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 i authorized to collect and apply the Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds. Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. Borrower can cure uch a default and, if` acceleration has occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender' interest in the Property or rights under this Security Instrument. 'I`he proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender. All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order provided for in Section 2. 12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender shall not be required to commence proceedings against any Succ sor in Interest of Borrower or to refuse to ext time for payment or otherwise modify amortization of the secured by this Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's acceptance of payments from third persons, entiti or Successors in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy. 13. Joint and Several Liability; Co-signers; and Assigns Bonmd. Borrower covenants and agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security but does mt execute the Note (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 thi Security is not personally obligated to pay the sums secured by this Security Instrument; and 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 or the Note without the co- signer's con t. Sirbject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from Borrower' obligations and liability under this Security Instrument unles Lender agrees to such release in writing. 'I"he covenants and ts of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and as igns of Lender. 241439 (mos 11/00) [143910] Page 10 or 16 Form s006`i%1 5708359 SNYDER Page: 11 of 25 01/10/2005 5 @5885 couutv co rz5_ jg 14. Loan Charges. Lender may charge Borrower fe for services performed in connection with Borrower' default, for the purpose of protecting Lender' interest in the Property and rights rmder this Security Instrument, including, but not limited to, attomeys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express authority in thi Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by Applicable Law. andthatlawisfinally interpretedso that the interest or other loan charges collected or to be colluzted in connection with the Loan exceed the permitted limits, then: any such loan charge shall be reduced by the amount nuessary to reduce the charge to the permitted limit; and any sums already collected from Borrower which exceeded permitted limits will be refrmded 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 refimd reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower' acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge. 15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument mu be in Any notice to Borrower in connection with this Security Instnunent shall be deemed to have been given to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender. Borrower shall notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change of address through that specified procedure. 'I'here may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in connection with this Security shall not be deemed to have been giv to Lender until actually received by Lender. If any notice required by this Security Instrument is also required rmder Applicable Law, the Applicable Law requirement will sati fy the corresponding requirement under this Security Instrument. 16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the ev that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of thi Security Instrument or the Note which can be given effect without the conflicting provision. As used in thi Security Instrument: words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; words in the singular shall mean and include the plural and vice versa; and the word "may" gives sole discretion without any obligation to take any action. 17. Borrower': Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, instrument sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. 241439 (mos llI00) [143911] Page ll or 16 Famaoosil/?1 5708359 SNYDER 5~5885 Page: 12 of 25 coumv cc egoozisw If all or any part of the Property or any Interest in the Property i sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower i sold or transferred) without Lender's prior writtenconsent, Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. lf Lender exercises this option, Lender shall give Borrower notice of acceleration. 'Ihe notice shall provide a period of not than 30 day from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: five day before sale of the Property pursuant to any power of sale contained in this Security Instrument; such other period as Applicable Law might specify for the termination of Borrower's right to reinstate; or entry of a judgment enforcing this Security 'I`hose conditions are that Borrower: pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; cures any default of any other covenants or agreernerrts; pays all expen incurred in forcing this Security Instrument, including, but not limited to, reasonable attomeys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument; and takes such action as Lender may reasonably require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obligation to pay the sums secured by this Security shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: cash; money order; certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or Electronic Funds Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under Section 18. 20. Sale of Note; Change of Loan Servicer; Notice of Grievance. 'I'he Note or a partial interest in the Note (together with this Security Instrument) can be sold one or nrore times without prior notice to Borrower. A sale might result in a change in the entity (known as the "Loan Servicer") that collects Periodic Payment due under the Note and this Security and perfomrs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable Law. There al might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there i 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 infomration RESPA requires in connection with a notice of transfer of servicing. lf the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a successor Loan Servicer and are not assumed by the Note purchaser unles otherwi provided by the Note purchaser. Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this Security until such Borrower or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective action. lf Applicable JS 241439 (mos 111*00) [143912] me I2 or 16 Form 3006 1I01 5708359 SNYDER 5?5885 Page: 13 er 25 v1/lv/2005 =2:a6F county co ., Law provides a time period which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this paragraph. 'I`he notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and opportunity to take corrective action provisions of thi Section 20. 21. Hamrdous Substances. As used in this Section 21: "Hazardous Substances" are tho substances defmed as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, radioactive materials; "Enviromnental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection; "Environmental Cleamrp" includes any response action, remedial action, or removal action, as defined in Environmental Law; and an "Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Enviromnental Law, which creates an Environmental Condition, or which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to the presence, use, or torage on the Property of small quantities of Hazardous Substance that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not limited to, hazardous substances in consumer products). Borrower shall give Lender written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge, any Enviromnental Condition, including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and 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 Sub tance affecting the Property is necessary, Borrower shall take all necessary remedial actions in accordance with Environmental law. Nothing herein shall create any obligation on Lender for an Environmental Cleanup. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (hut not prior to acceleration under Section 18 unl Applicable Law provides otherwise). The notice shall specify: the default; the action required to cure the default; a date, not less than 30 days from the date the notice is given to Borrower, by which the default must he cured; and that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Secmity Instrument and sale of the Property. 'l`he notice shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosm?e proceeding the non- exist J. of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrum without further demand and may invoke the power of sale and any other remedies permitted by Applicable Law. shall be entitled to collect all expenses incurred in pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' and costs of title evidence. 241439 (rev06 11I00) [143913] Page 13 ofl6 Farm 5708359 SNYDER If Lender invokes the power of sale, Lender shall give written notice to Trustee of the occurr ce ofan ev of default and of Lender' election to cause the Property to be sold. Lender shall mail a copy of the notice to Borrower as provided in Section 15. shall record a copy of the notice in the county in which the Property is located. Trustee shall publish a notice of sale for the time and in the manner provided by Applicable Law and shall mail copi of the notice of sale in the manner prescribed by Applicable Law to Borrower and to the other persons prescribed by Applicable Law. After the time required by Applicable Law, Trustee, without demand on Bomower, shall sell the Property at public auction to the highest bidder for cash at the time and place and under the terms designated in the notice of sale in one or more parcels and in any order Trustee determines. Trustee may postpone sale of any parcel of the P1?operty by public announcem at the time and place of argv previously scheduled sale. Lender or its designee may purchase the Property at any sale. 'lrustee shall deliver to the purchaser Trustee's certificate describing the Property and the time deed. 'l'herecitalsintheTrustee's deed shall beprimafacie evidence of the truth of the statements made therein. Trustee shall apply the proceeds of the sale in the following order: to all expenses of the sale, including, but not limited to, reasonable Trustee's and attomeys' fees; to all sums secured by this Security Instrument; and any excess to the person or persons legally entitled to it. 23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall request that Trustee release this Security Instrument and shall produce for 'l`1ustee, duly canceled, all notes evidencing debts secured by this Security Instrument. Trustee shall release thi Security without further inquiry or liability. Borrower shall pay any recordation cost and the statutory Trustee's fees. 24. Waiver of Homestead. Borrower waives all right of homestead exemption in the Property. 505885 Page: 14 of 25 onvrs couuw cc JS 241439 (mos llI00) [143914] Page 14 of 16 Form 3006 ll'01 I - 5708359 SNYDER 5?5885 Pago: 15 of 25 onvzs PrT|>1/10/2005 coumv co ;z5_oo g_gg STATE OF . VIRGINIA County ss: . 'I'he foregoing instrument was acknowledged before me this Tm day of by Witness my hand and ofticial seal. My Commission Expires: Q-t commission EXDITES July 31lc'. I. #1 . . Om {muy |Zdd?o>>O i JS 241439 (rev06 11/00) [143916] P|ge160f16 Fm-m30061!01 EXHIBIT AMENDED LOT 2, ACCORDING TO THE SECOND AMENDED PLAT (LOT 2) OF THE JOYCE K. MURRAY SUBDIVISION RECORDED MAY 24, 2004 IN PLAT BOOK 69 AT PAGE 17 AS RECEPTION ND. 497937. Page: 17 of 25 01I10l20?5 5 "58?5 SILVIR DRVIS PITKIN COUNTY C0 IZS. O. 505885 Page: 18 nf 25 crzrezzcas ez:ssr 5708359 onvrs counrv cc page mo, ADJUSTABLE RATE RIDER (LIBOR Six-Month Ind (As Published In Ure Wall Street Journal)-Rate Caps) THIS ADJUSTABLE RATE RIDER is made this BL day of and is incorporated SecurityDeed(the"Security Instrument") ofthe same date given by the tmdersigned ("Borrower") to secure Borrower's Adjustable Rate Note (the i? ?f the same date and 1330 BUTTERMILK ROAD ASPEN, CO 81611 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND PAYMENT. THE NOTE LIMITS RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: INTEREST RATE AND CHANGES as follows: 4. INTEREST AND PAYMENT CHANGES (A) Change Dates ,2gg5andonthatdayevery mh month thereafter. Each date on which my interest rate could change is called a "Change Date." (B) The Index Begiruringwiththe Change Date, my interestrate willbebased onanlndex The "Index" is the average of interbank ofered rates for six month U.S. dollar-denonrinated deposits in the London market as published in The Wall Street Journal. The most recent Index tigure available as of the first busine day ofthe month immediately precedingthemonthinwlrichthe ChangcDateoccurs Ifthe Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. 'l`lre Note Holder will give me notim of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding Ona percentage points 1.000 to the (hnrent Index. 'I`he Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point Subject to the limits stated in Section below, this rounded amoimt will be my new interest rate until the next Change Date. substantially equal payments. 'l`he result of this calculation will be the new amormt of my payment. (D) Limits on Interest Rate Changes My interest rate will never be greater than 12.000 JS (MIIB) I of I 5708359 SNYDER (E) Effective Dateof Changes I My new interest rate will become eH'ective on each Change Date. I will pay the amoimt of my new payment beginning on the first payment date atier the Change Date until the amount of my payment min (F) Notice of Changer ofanychangesinmyinterest rateandtheamount cfmy payment before the etfective date of any change. The notice will include information required by law to be regardingthe notice. BY SIGNNG BELOW, Borrower accepts and to the wvenants con in this Adjustable Rate Rider. . . . (Seal) NYD SOLE MEMBER FOR .gmm . (Seal) --B?rrower . . . (Seal) -Borrower (Seal) -. -B?rrower 505885 Page: 19 raf 25 01110/zoos azaasr navis couuw co 126.ae o.ao i' JS MKII (Dill!) Pill I 505885 20 of 25 lt e. onvrs coumv cc 120.00 SECOND norm moan THIS SECOND HOME RIDER is made this 7th day of January gQ?_ and is incorporated Instrument') ofthe same date given by the undersigned (the 'Bonower' whether there are one or more persons Nm I0 (UW "Lender') of the same date arld covering the Property described in the Security Instrument (the 'Property'), which is located at: tP?w=?tr Md - 1 In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree that Sections 6 and 8 of the Security Instrument are deleted and are replaced by the following: 6. Occupancy. Borrower shall occuPY>> and shall only use, the Property as Borrower's second home. Borrower shall keep the Property available for Borrower's exclusive use and enjoyment at all times, and shall not subject the Property to any timesharing or other shared ownership arrangement or to any rental pool or agreement that requires Borrower either to rent the Property or give a management firm or any other person any control over the occupancy or use of the Property. 8. Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or any persons or entities acting`at the direction of Borrower or with Borrower's knowledge or consent gave materially false, misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material inforrnatio in connection with the Loan. Material representations include, but are not limited representatio concerning Borrower's occupancy of the Property as Borrower's second home. BY SIGNING BELOW, Borrower accepts agre to rterms and provisions contained in this Second Home Rider. . (sam.) I NY ER SOLE MEMBER FOR DMS PRO- {Hugs (SEAL) -Borrower (SEAL) --Bonower (SEAL) --Borrower (SEAL) MULTISTATE SECOND HOME RIDER - Single Family - Famae Mae! Freddie Mae UNIFORM Form 3890 243ll6 (lleaelr rev04) (0lI01) [3116] Page 1 ofl JS 505885 57?8359 oumzems ez as: onvrs coumv co 126.00 0.00 Amendment to Note and Security Instrument Adjustable Rate Quarterly Interest Only Payments This Amendment contains provlslons for payments of interest only at a variable rate. This Note limits the maximum inter rate due under the Note. This Note terminates the interest only payments at the end of 120 months. THIS TO NOTE AND SECURITY INSTRUIVIENT i made this Day of January, 2005, and i incorporated into and shall be deemed to amend and upplement both the Adju table Rate Note of even date herewith in the principal amount of Ten Million Dollars ($10,000,000) (the "Note") given by DMS Properties, LLC and Daniel M. and Tanya Lea Ivie Snyder (collectively, the "Borrower") to Wachovia Mortgage Corporation (the "Lender"); and (ii) the Deed of Tru and Security Instrument (the "Security Instrument") executed by DMS Properties, LLC granting the Lender a first priority security interest in and to the property more fully described in the Security Instrument and located at 1330 West Buttermilk Road Aspen, Colorado 81611 (the "Property") to be recorded in the land records of Pitkin County, Colorado. This Amendment hall be affixed to the Note . - and the Security Instrument and shall become an integral part of both documents. . Notwithstanding any provisions in the Note or the Security Instrument to the contrary, the Borrower and Lender hereby agree that the Note and Security In trument are hereby amended as follows: A. Amendments to the Note: 1. Section 3 of the Note hereby amended and follows: Section 3. PAYMENTS a. For the first One Hundred and Twenty Months of the Loan Term (the "Interest Only Period"), the Borrowers hall pay interest only on the outstanding principal sum on a quarterly basis. The amount of these quarterly payments shall be equal to the sum of three payments combined. b. Beginning on April 1, 2005, the Borrower shall make quarterly payments on the first day of January, April, July and October of each year. Each quarterly payment shall be applied of its cheduled due date and if the payment includes both interest and principal, the sum mnexzoes mass 57?8359 coumv 13549 will be applied first to interest and then to any principal sum outstanding. If, on the Maturity Date of this Note, which is January 1, 2035, the Borrower still owes amounts under the Note, the Borrower agrees to pay those amounts in full on that date. c. The Borrower will make its payments to Wachovia Mortgage Corporation at 1100 Corporate Center Drive Raleigh, North Carolina 27607-5066 or at a different place if requested by the Note Holder. d. The Borrower's initial quarterly payment shall be due on April 1, 2005 and hall be in the amount of 78,869.91. The amount of' ubsequent quarterly payments will change. Changes in the Borrower's payment will reflect chang in its interest rate as et forth in Section 4 ofthe Note and this Amendment and the amount of that remain outstanding at the end ofthe Interest Only Period. The Note Holder will determine any new inter rate and the changed amount of Borrower's payment in accordance with Section 4 of this Note, a amended. All payments shall be made in - U.S. Dollars. 2. Section 4 of the Note is hereby amended follows: 4. Interest Rate and Payment Chang . a. Change Date . The interest rate the Borrower will pay may change on the first day of July, 2005 and on that day every sixth month thereafter. Each date on which the Borrower's interest rate could change is called a "Change Date." b. The Index. Beginning on the Change Date, the Borrower's interest rate will be based on an "Index". The "Index" is the average of interbank offered rate for six-month U.S. dollar-denominated deposits in the London Market (the as publi hed in The Wall Street Journal. The mo recent Index figure available as of the first business day of the month immediately preceding the month in which the Change Date occurs is called the "Current Index". If thi Index is no longer available, the Note Holder hall choose a new Index that is based upon comparable information. The Note Holder Loan 5708359 will give the Borrower notlce of any change in the Index used to calculate the interest rate due under the Note. c. Calculation of Changes. Before each Change Date, the Note Holder will calculate the Borrower's new interest rate by adding one percentage point to the Current Index. The Note Holder will then round the re ult of this um to the nearest one-eighth of a one- percentage point Subject to the limits stated in Section 4(d) below, this rounded amount will be the 3 Borrower's new interest rate until the next Change Date. d. Limits on Interest Rate. The Borrower's interest rate will uy 3 never be greater than Twelve Percent e. Effective Date of Change:. The Borrower's new interest rate will become effective on each Change Date. The Borrower will pay the amount of the new quarterly payments beginning with the first quarterly payment due 8 after the Change Date until the amount of the Borrower's new quarterly payment changes again. i fl Termination of Interest Only Payments. During the first - One Hundred and Twenty Months (120) of the - Borrower's loan term, the Borrower's quarterly payment will equal the interest due and owing, at the new interest ig rate, on the principal amount actually outstanding and unpaid on the first day of the preceding month. . Beginning on January 1, 2015, the Borrower's interest only payments shall automatically terminate and thereafter the quarterly payments shall consist of principal and interest, at the new interest rate, in an amount sufficient to repay in full on the Maturity Date the unpaid principal that the Borrower is expected to owe at the Change Date. The A ult of this calculation shall be the amount of the Borrower' quarterly payment and the Borrower shall be notified of the change in its quarterly payment amount as et forth in Section 4(h) below. g. Default. Upon the occurrence of an event of default, including, but not limited to, the Borrower's failure to make a quarterly payment as and when due, the Note Holder, at its option, may require the Borrower to immediately begin making payments of principal and interest prior to the end of the Interest Only Period in an amount ufficient to pay the outstanding balance due and 505885 ou1e12?>>?~ emacs 5*?8359 A =5 SILVIR DRVIS PITKIN COUNTY C0 126.00 0.00 owing by the Borrower in full on the Maturlty Date and to begin making those payments on a basis. If the Note Holder elect this option, Note Holder will deliver or mail to the Borrower or its resident agent a written notice of the new payment amount at least 25 (twenty five) days prior to the due date of the new payment. h. Notice of Changes. The Note Holder hall deliver or mail to the Borrower or its re ident agent a notice of any change in the Borrower's interest rate and the amount of the Borrower's quarterly payment before the effective date of any change (the "Notice"). The notice will include information required by applicable law to be given to the Borrower and also the title and telephone number of a person who will answer any question I may have regarding the Notice. By signing below, the Borrower accepts and agree to the ter and condition contained in this Amendment to Note and Security Agreement. In Witn Whercof and intending to be legally bound, Witness - . DM is roperti LC(seal) iel . r, as ber/Mana A . I . (sealvie Snyder COMMONWEALTH OF VIRGINIA, COUNTY OF to wit: I 505885 SILVIR DRVIS PITKIN COUNTY C0 126 .00 .00 I HEREBY CERTIFY that on this I day of 2 2005, before me, the subscriber, a Notary Public in and for the Commonwealth of virginia. ly appeared Daniel M. Snyder, of DMS Properties, LLC, a Colorado LLC and did aclmowledge that he executed the Amendment to Note and Sec1u?ity Instnunent as the Member Manager of DMS Properties, LLC for the purposes therein contained, and further aclmowledged the foregoing Amendment to Note and Security Instrument to be the act of DMS Properties, LLC. AS WITNESS my hand and Notarial Seal. bH? My Commission Expires:My on Expires July 31Commission Expires: AS . {vuwylpitml CO TH OF VIRGINIA, COUNTY OF to wit: IHEREBY CERTIFY thatonthis day of ji 2004, before me, the subscriber, a Notary Public in and for the Commonwealth of Virginia and the Coimty of personally appeared Daniel M. Snyder who acknowledged to me that he executed the Amendment to Note and Security Instrument on his own behalffor the purposes contained in it. Sift --. AS WITNESS my hand and Notarial Seal. I if we mm Expire, Ju 3 may blig I . . My Commission ExpiresCOMMONWEALTH OF VIRGINIA, COUNTY OF lggy-f\ to wit: I HEREBY CERTIFY that on this in day of mq 2005, before me, the subscriber, a Notary Public in and for the Commonwealth of Virgin a and the County of County, personally appeared Tanya Lea Ivie Snyder who acknowledged to me that she executed the Second Amendment to Contract of Sale on her own behalf for the purposes contained hand and Notarial SealCommission Expires: commlabn Expires July 31. I. . 0 . .., cy. sans; A