McIver Mortgage ForeclosureBANK VI
vs.
April Costello et. al.
ELECTRONICALLY FILED
2022 Sep 20 PM 3:31
CLERK OF THE SALINE COl,JNTY DISTRICT COURT
CASE NUMBER: SA-2022-CV-000180
Pll COMPLIANT
SUMMONS
To the above-named Defendant/Respondent:
City of Salina, Community Development Services
c/o City Clerk, JoVonna A. Rutherford, City-Cqunty Bldg., 300 West Ash St.
Salina, KS 67401
You are hereby notified that an action has been commenced against you in this court. You are required to file your
answer or motion under K.S.A. 60-212, and amendments thereto, to the petition with the court and to serve a copy upon:
Karl R Swartz
300 N. Mead
Suite 200
Wichita, KS 67202
within 21 days after service of summons on you .
Clerk of the District Court
Electronically signed on 0912012022 04:35:50 PM
Documents to be served with the Summons:
PLE: Petition Petition
•
ELECTRONICALLY FILED
2022 Sep 20 PM 3:31
CLERK OF THE SALINE COUNTY DISTRICT COURT
CASE NUMBER: SA-2022-CV-000180
MORRJS, LAING, EV ANS, BROCK
& KENNEDY, CHARTERED
Old Town Square
300 N. Mead, Suite 200
Wichita, KS 67202
(316) 262-2671
Pll COMPLIANT
IN THE TWENTY-EIGHTH JUDICIAL DISTRICT
DISTRICT COURT, SALINE COUNTY, KANSAS
CIVIL DEPARTMENT
BANK VI, a Division of The Plains State Bank, a )
Kansas banking corporation, )
Plaintiff,
vs.
APRIL L. COSTELLO, individually and as Co-
Executor of the Estate of Leonard C. Mciver;
GINGER FRANK, individually and as Co-
Executor of the Estate of Leonard C. Mclver;
MIDLAND FUNDING, LLC; THE STATE OF
KANSAS, Acting by and through the Department
of Revenue; THE BOARD OF COUNTY
COMMISSIONERS, SALINE COUNTY,
KANSAS; and THE CITY OF SALINA,
KANSAS, Acting by and through Community
Development Services,
Defendants.
Pursuant to Chapter 60 ofK.S.A.
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PETITION
Title to Real Estate Involved
COMES NOW BANK VI, a division of The Plains State Bank ("BANK VI"), Plaintiff
herein, and for its cause of action against the Defendants named above, states and alleges the
following:
• I
1. BANK VI is a Kansas banking corporation doing business at 1900 South Ohio Street,
Salina, Kansas 67402.
2. Defendant April L. Costello ("Costello") is an individual and resident of Sedgwick
County, Kansas, residing at 555 S. Woodlawn Blvd., Wichita, Kansas 67218
3. Defendant Ginger Frank ("Frank") is an individual and resident of Sedgwick County,
Kansas, residing at 555 S. Woodlawn Blvd. Wichita, Kansas 67218.
4. Defendant Midland Funding, LLC is a Kansas limited liability company, and may be
served with process by serving its Resident Agent, Corporation Service Company, 2900 SW
Wanamaker Drive, Suite 204, Topeka, Kansas 66614.
5. Defendant State of Kansas, acting by and through the Department of Revenue
("KDOR"), may be served with process by serving the Kansas Attorney General, Derek Schmidt,
at 2"ct Floor, Memorial Hall, 120 SW l01h Avenue, Topeka, Kansas 66612.
6. Defendant The Board of County Commissioners, Saline County, Kansas ("Saline
County"), may be served with process by serving the County Clerk, Jamie R. Doss, at the
City/County Building, 300 West Ash Street, Suite 215, PO Box 5040, Salina, Kansas 67402-5040.
7. Defendant The City of Salina, Kansas, acting by and through Community
Development Services ("the City"), may be served with process by serving the City Clerk, Jo Vonna
A. Rutherford, at the City/County Building, 300 West Ash Street, Salina, Kansas 67401.
8. The Court has jurisdiction over the subject matter of this action and the parties hereto,
and venue is proper in this Court.
2
9. On or about July 22, 2015, Leonard C. Mciver ("Mciver") executed and delivered to
BANK VI his Adjustable Rate Note in the original principal amount of $50,000, with interest
thereon at the initial rate of3. 750 percent per annum, payable on the terms set forth therein. A true
and correct photocopy of the Adjustable Rate Note ("the Note") is attached hereto as Exhibit A, and
its terms are incorporated herein by reference.
10. The Note is secured by Mortgage dated July 22, 2015, from Mciver, as mortgagor,
granting Mortgage Electronic Registration Systems, Inc. ("MERS"), solely as nominee for BANK
VI, a first mortgage lien on the following described real property located in Saline County, Kansas:
Lot Fourteen (14), Block Eight (8), Jarvis Addition to the City of Salina, Saline
County, Kansas, commonly known as 817 Harold Avenue, Salina, Kansas 67401
(hereinafter referred to as "the Subject Property"). The Mortgage was recorded in the office of the
Register of Deeds of Saline County, Kansas, on July 28, 2015, in Book 1300 at Page 267, and the
mortgage registration tax was duly paid. A true and correct photocopy of the Mortgage ("the
Mortgage") is attached hereto as Exhibit B and its terms are incorporated herein by reference.
11. Mciver died on February 23, 2021. The Subject Property is owned of record by
Costello and Frank, as tenants in common, pursuant to Transfer on Death Deed dated August 11 ,
2020, recorded in Book 1377 at Page 1239 in the office of the Register of Deeds of Saline County,
Kansas.
12. Costello and Frank were properly appointed Co-Executors of the Estate of Leonard
C. Mciver, Deceased, by virtue of Letters Testamentary entered May 23, 2022 in Case No. 2021-PR-
001024 in the District Court of Sedgwick County, Kansas, captioned In the Matter of the Estate of
3
Leonard C. Mclver, Deceased, and each is named a Defendant herein both individually and in her
capacity as Co-Executor.
13. The Mortgage constitutes a valid first lien on the Subject Property.
14. Costello and Frank are in default under the terms of the Note, having failed to make
the payments due May 1, 2021 and subsequent months. BANK VI has accelerated the indebtedness
under the Note, and there is now due and owing thereon the principal amount of $35,921.49, plus
accrued interest in the amount of $2,898 .12 as of September 20, 2022, plus interest in the amount
of$5.81933 per day from and after September 20, 2022 until paid or entry of judgment herein, plus
late charges in the amount of $270.56, plus title costs in the amount of $250, plus the costs of this
action, plus other costs incurred by BANK VI in connection with this action, including without
limitation service of process costs and reasonable attorney fees and expenses, including attorney fees
and expenses in the amount of $1,444.50 through September 19, 2022, and attorney fees and
expenses incurred thereafter, plus any costs incurred by BANK VI for payment of taxes and
insurance premiums on the Subject Property.
15. BANK VI is entitled to judgment in rem against Costello and Frank and the Subject
Property in the amounts set forth in the preceding paragraph.
16. BANK VI is entitled to foreclosure of the Mortgage, to have the Subject Property sold
at foreclosure sale, without appraisement, as provided by law, and to have the proceeds of such sale
applied to payment of its judgment herein.
17. In the event of foreclosure sale of the Subject Property, the proceeds from such sale
should be paid as follows:
4
FIRST:
SECOND:
THIRD:
To payment of any ad valorem property taxes assessed against the Subject
Property and due and owing at the time of such sale;
To payment of BANK Vi's judgment granted herein; and
The balance, if any, to the Clerk of the District Court pending further order
of this Court.
18. Less than one-third (1/3) of the original indebtedness under the Note has been paid,
and in the event of foreclosure sale herein, Costello and Frank should be granted a redemption period
of three (3) months from the date of sale.
19. Midland claims or might claim an interest in the Subject Property by virtue of
judgment entered in Case No. 2015 CV 000224 on May 18, 2016, in this Court in the original
amount of $2,876.95, plus court costs. Any such claim of Midland is junior and inferior to the
Mortgage. Midland should be required to answer herein, setting forth any interest claimed in and
to the Subject Property, and if Midland fails to answer, the Court should declare that it has no
interest in the Subject Property.
20. KDOR claims or might claim interests in the Subject Property by virtue of a Tax
Warrants filed against Mciver filed as Case No. 2019-ST-36 in this Court. Any such claim of
KDOR is junior and inferior to the Mortgage. KDOR should be required to answer herein, setting
forth any interest claimed in and to the Subject Property, and if KDOR fails to answer, the Court
should declare that it has no interest in the Subject Property by virtue of such Tax Warrants or
otherwise
5
21. Saline County claims or might claim an interest in the Subject Property by virtue of
delinquent ad valorem real property taxes assessed against it. Saline County should be required to
answer herein, setting forth any interest claimed in the Subject Property.
22. The City claims or might claim an interest in the Subject Property by virtue of the
following:
(a) Notice of Pending Assessment for nuisance abatement dated August 5, 2021 in the
amount of $235 and recorded with the Saline County Register of Deeds office on
August 5, 2021 in Book 1398 at Page 871;
(b) Notice of Pending Assessment for nuisance abatement dated August 12, 2021 in the
amount of $172 and recorded with the Saline County Register of Deeds office on
August 13, 2021 in Book 1398 at Page 1804;
( c) Notice of Pending Assessment for nuisance abatement dated Octa her 13, 2021 in the
amount of$161.50 and recorded with the Saline County Register of Deeds office on
October 14, 2021 in Book 1402 at Page 221;
(d) Notice of Pending Assessment for nuisance abatement dated April 19, 2022 in the
amount of $172 and recorded with the Saline County Register of Deeds office on
April 19, 2022 in Book 1410 at Page 1815;
(e) Notice of Pending Assessment for nuisance abatement dated June 28, 2022 in the
amount of$277. 75 and recorded with the Saline County Register of Deeds office on
July 5, 2022 in Book 1414 at Page 853.
6
The City should be required to answer herein, setting forth any interest claimed in the Subject
Property, and any such interest is junior and inferior to the Mortgage.
23. Costello and Frank, as Co-Executors of the Estate of Leonard C. Mciver, claim or
might claim an interest in the Subject Property on behalf of such estate. The Co-Executors should
be required to answer herein, setting forth any interest claimed in and to the Subject Property by the
Estate of Leonard C. Mciver. Should the Co-Executors fail to answer, the Estate of Leonard C.
Mciver should be declared to have no interest in and to the Subject Property.
WHEREFORE, BANK VI prays that it be granted judgment in rem against Costello, Frank,
and the Subject Property in the amounts set forth in paragraph 14 above, plus interest thereon at the
statutory judgment rate from entry of judgment until paid; that the Mortgage be foreclosed, and that
the Subject Property be sold at foreclosure sale, without appraisement, as provided by law; that in
the event of such foreclosure sale, the proceeds be applied as set forth in paragraph 17 above; that
in the event of such foreclosure sale, Costello and Frank be granted a redemption period of three (3)
months from the date of sale; that in the event of such foreclosure sale, all Defendants be barred from
claiming any further interest in and to the Subject Property, except redemption rights granted by the
Court; that in the event ·this judgment is not paid within fourteen (14) days after entry of this
judgment, upon praecipe the Clerk of this Court shall issue an order of sale directing the Sheriff of
Saline County to sell the Subject Property, without appraisement, at foreclosure sale as provided by
law; and that in the event of foreclosure sale and Costello and Frank's failure to redeem or vacate
the Subject Property by the deadline for redemption, upon request the Court shall issue a Writ of
Assistance directing the Sheriff of Saline County to remove Costello, Frank, or others claiming an
7
interest through them, from the Subject Property and deliver possession thereof to the purchaser at
sale; and for such other and further relief as the Court deems just and equitable.
Respectfully submitted,
Isl Karl R. Swartz
Karl R. Swartz, #12532
MORRIS, LAING, EV ANS, BROCK
& KENNEDY, CHARTERED
300 North Mead, Suite 200
Wichita, KS 67202
(316) 262-2671
kswartz@morrislaing.com
Attorneys for BANK VI, a Division of
The Plains State Bank
NOTICE
TO APRIL L. COSTELLO AND GINGER FRANK
Unless you notify counsel for Bank VI within 30 days after the receipt of this
communication that the validity of the debt described in this Petition or any portion
thereof is disputed, we will assume that the debt is valid. If you do notify us of a
dispute, we will obtain verification of the debt and mail it to you. Also, upon your
written request within 30 days, we will provide you with the name and address of
the original creditor if different from the current creditor. You must answer this
Petition as instructed in the Summons.
THIS IS AN ATTEMPT TO COLLECT A DEBT. ANY INFORMATION
OBTAINED WILL BE USED FOR THAT PURPOSE.
Notwithstanding the foregoing statement, BANK VI seeks only an in rem judgment
against all Defendants in this action, and does not seek collection of the indebtedness
described herein from such Defendants.
8
LOAN#: .
MIN: 1004907-0000003189-8
ADJUSTABLE RATE NOTE
(1 Year Trenury Index -Rate Caps)
THIS NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN MY INTEREST RATE AND MY
MONTHLY PAYMENT. THIS NOTE UMrTSTHEAMOUNTMYINTERESTRATE CAN CHANGE AT ANYONE
TIME AND THE MAXIMUM RATE I MUST PAY.
July 22, 2015
[Datt]
1. BORROWER'S PROMISE TO PAY
Sallna,
[City)
817 Harold Ave, Salln1, KS 87401
[Property Addreaa)
Kansa•
[State)
In retum for a loan that I have received, I promise to pay U.S. $50,000.00 (this amount is called
"Princlpar), plus Interest. to the order of the Lender. The Lender is Bank VI, 1 Corpor11tlon.
I will make all payments under this Note in the form of cash, check or money order.
I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who
is entiUed to receive payments under this Note Is celled the "Note Holder."
2. INTEREST
Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a
yearly rate of' 5.750 °.4. The interest rate I will pay will change in accordance with Section 4 of !his Note.
The Interest rate required by this Section 2 and Section 4 of this Note is the rate I will pay both before and after any
defaull described in Section 7(B) of this Note.
3. PAYMENTS
(A) Tim• and Place of Payments
I will pay principal and Interest by making a payment every month.
I will make my monthly payment on the 11t day of each month beginning on S.ptambtr 1, 2015.
I will make these payments every month until I have paid all of the principal and Interest and any other charges described
below that I may owe under this Note. Each monthly payment will be applied as of Its scheduled due date and will be
applied to Interest before Principal. If, on August 1, 2030, I still owe amounts under this Note, I will
pay those amounts in full on that date, which Is called the "Maturity Date."
I will make my monthly payments at 1900 South Ohio
Salln1, KS 67401
or at a different place If required by the Note Holder.
(B) Amount of My lnltlal Monthly Ptyments
Each of my Initial monthly payments will be in the amount of U.S. $415.21. This amount may change.
(C) Monthly Payment Ch1n11aa
Changes in my monthly payment will reflect changea In the unpaid principal of my loan and In the lntereat rate that
I must pay. The Note Holder will determine my new Interest rate and the changed amount of my monthly payment In
accordance with Section 4 of this Note.
4. INTEREST RATE AND MONTHLY PAYMENT CHANGES
(A) Chang• Dmtea
The Interest rate I will pay may change on the 1st day of Augu•t. 2020 and on that day every
12th month thereafter. Each date on which my Interest rate could change ls called a 'Change Date."
(B) The Index
Beginning with the first Change Date, my interest rate will be based on an Index. The "Index' is the weekly average
yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal
Reserve Board. The moat recent Index figure available as of the date 45 days before each Change Date is called the
"Current Index:
If the Index is no longer available, the Note Holder will choose a new index which is baaed upon comparable
information. The Note Holder will give me notice of this choice.
(C) Calculation of Changes
Before each Change Date, the Note Holder will calculate my new Interest rate by adding THREE AND THREE·
FOURTHS percentage point(•) ( 3.750 % ) to the Current Index. The Note Holder
will then round the result of this addition to the nearest ONE-EIGHTH OF ONE percentage polnt(s)
( 0.125% ). Subject to the limits stated in Section 4(0) below, this rounded amount will be my new Interest rate
until the next Change Date.
The Note Holder will then determine the amount of the monthly payment that would be 1Ufficient to repay tht unpaid
principal that I am expected to awe et the Change Date in full on the Maturity Date at my new interest rate in aubstantially
equal payments. The result of this calculation will be the new amount of my monthly payment.
(D) Limit. on Interest Rmte Ch1nges
The interest rate I am required to pay at the firat Change Date will not be greater than 7.750 % or less than
5.750 'Yo. Thereafter. my interest rete will never be increased Of decreased on any single Change Date by more
than lWO percentage polnt(s) ( 2.000 % ) from the rate of interest t have
been paying for the preceding 12 months. My interest rate will never be greater than 11.750 %.
lnltl1ls: L h
llULTISTATE ADJUSTABLE RATE NOTE -ARll S-1 -Single Femlly -Fannlo ll1olFl9ddl1 llac UNIFORll INSTRUMENT Form 350~ 1/01
llULTISTATE ADJUSTABLI! RATE NOTE -ARll H -SSlgle Family -F1nnl1 -19ddlo Mac UNIFORM INSTRUMl!NT Form 35021/01
Ellie MH, Inc. Page 1 of 3 F3501 NOT 0507
F3501NOT EXHIBIT
I II-
LOAN#:
(EJ Ett.ctlve Dlt• of Ch1n1111
My new Interest rate will become effectlve on each Change Date. I will pay the amount of my new monthly payment
beginning on the fil'1t monthly payment date after the Change Dale until the amount of my monthly payment changes again.
(F) Nolle• of Ch1ng11
The Nole Holder will deliver or mail to me a notice of any changes In my Interest rate and the amount of my monthly
payment before the effective date of any change. Tha nollce will Include Information required by law to be given to me
and also Iha title and telephone number of a person who will answer any question I may have regarding the notice.
5. BORROWER'S RIGHT TO PREPAY
I hava the right to make payments of Principal at any time l>Gfora !hay are due. A payment of Principal only Is known
as a "Prepayment.• When I make a Prepayment, I will tell the Nole Holder In writing that I am doing so. I may not designate
a payment as a Prepayment If I have not made all the monthly payments due under the Note.
I may make a full Prepayment or partial Prepayments without paying a Prepayment charge. The Note Holder will
use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holder may apply
my Prepayment to the accrued and unpaid Interest on the Prepayment amount, before applying my Prepayment to
reduce the Principal amount of the Note. If I make a partial Prepayment, there will be no changes in the due dates of
my monthly payment unless the Note Holder agrees In writing to those changes. l\Ay partial Prepayment may reduce
the amount of my monthly payments after the first Change Date following my partial Prepayment. However, any
reduction due to my partial Prepayment may be offset by an interest rate Increase.
II. LOAN CHARGES
If a law, which appliea to this loan and which sets maximum loan charges, is finally interpreted so that the Interest
or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (aJ any
such loan charge shall be·raduced by the amount necessary to reduce the charge to the permitted limit; and (b) any
sums already collected from me which exceeded permitted limits will be refunded to me. The Note Holder may choose
to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund
reduces Principal, the reduction will be treated as a partial Prepayment.
7. BORROWER'S FAILURE TO PAY AS REQUIRED
(A) Ute Ch1rg11 for Overdue Payments
If the Note Holder has not received the full amount of any monthly payment by the end of 15 calendar days
after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be 5.000 •t.
of my overdue payment of principal and Interest. I will pay this late charge promptly but only once on each late payment.
(BJ Def1utt
If I do not pay the full amount of each monthly payment on the date It Is due, I will bG in default.
(CJ Notice of Default
If I am in default, the Note Hokier may send me a written notice telling me that If I do not pay the overdue amount
by a certain date, the Note Holder may require me to pay immediately the full amount of Principal which has not been
paid and all the interest that I owe on that amount. That date must bG at least 30 days after the date on which the notice
is mailed to me or delivered by other means.
(0) No Waiver By Note Holder
Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described
above, the Note Holder will still have the right to do so If I am In default at a later tlme.
(EJ Payment of Note Holder's Coats and Expen1n
If the Note Holder has required me to pay Immediately in full as described above, the Note Holder will have the right
to bG paid back by me for all of its costs end expenses In enforcing this Note to the extent not prohibited by applicable
law. Those expenses include, for example, reasonable attomeya' feea.
8. GIVING OF NOTICES
Unless applicable law requires a different method, any notice that must be given to me under this Note will be given
by delivering it or by mailing It by first class mail to ma at the Property Address above or at a different address If I give
the Note Holder e notice of my different address.
Any notice that must be given to the Note Holder under this Note will be given by delivering it or by malling It by first
class mail to the Note Hokier at the address stated In Section 3(A) above or at a different address If I am given a notice
of that different address.
9. OBLIGATIONS OF PERSONS UNDER THIS NOTE
If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises
made in this Note, Including the promise to pay the full amount owed. Any person who Is a guarantor, surety or endorser
or this Note Is also obligated to do these things. Any person who takes over these obligations, Including the obligations
or a guarantor, surety or endorer or this Note, is also obligated to keep all of the promises made in this Note. The Note
Holder may enforce Its rights under this Note against each person Individually or against all of us together. This means
that any one or us may be required to pay all of the amounts owed under this Note.
10. WAIVERS
I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor.
"Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor"
means the right to require the Note Holder to give notice to other persons that amounts due have not been paid.
11. UNIFORM SECURED NOTE
This Note Is a uniform Instrument with limited variations in some jurisdictions. In addition to the protections given
lo the Nola Holder under this Note, a Mortgage, Deed of Trust, or Security Deed (the "Security Instrument"), dated the
same date as this Note. protects the Note Holder from possible losses which might result if I do not keep the promises
which I make in this Nole. That Security Instrument describes how and under what conditions I may be required to make
immediate payment in ful of all amounts I owe under this Note. Some of those conditions are described n fol~:
tnltl•I•: ~L--.CJ.._~-MULTISTATEADJuaTAeu: RATE NOTE -ARM 5-1 -Single Family-Fannie MH/FNddle Mac UNIFORM INSTRUMENT Fonn 35011!01
MULTISTATE AOJUITABLI! RATE NOTE -ARM 5-2 -Single Family-Fannie Mae/FNC!dle Mac UNPORM INSTRUMENT Fonn 3502 1!01
Elle Mao, Inc. Page 2 of 3 F3501~~~1~sgi
K-~ ~
LOAN#:
If all or any part of the Property or any Interest In the Property is sold or transferred (or If Borrower Is not a
natural peraon and a beneficial Interest in Borrower ia aold or transferred) without Lender's prior written consent,
Lender may require Immediate payment In full of all sums secured by this Security Instrument. However, this
option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not
exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate
the Intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably
determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of
any covenant or agreement in this Security Instrument is acceptable to Lender.
To the extent permitted by Applicable Law, Lender may charge a reasonable fee aa a condition to Lender's
consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that
is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made In the
Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security
Instrument unless Lender releases Borrower in writing.
If Lender exerciae1 the option to require immediate payment In full, Lender shall give Borrower notice of
acceleration. The notice shall provide a period of not less than 30 daya from the date the notice is given in
accordance with Section 15 within which Borrower must pay all aum1 secured by thia Security Instrument. If
Borrower fails to pay theaa sums prior to the expiration of this period, Lender may Invoke any remedies permitted
by this Security Instrument without further notice or demand on Borrower.
WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED .
..-:!--f......,.,.,. ",,,...... -~~~t,.....C._· _?:iz_.__c...._.J ..... ',_y-V\__, _________ (S.al) l~Y(
Lander: Bank VI
NMLS ID: 411329
Loan Originator: Wllll1m M. Grimmer
NMLS ID: 74495
PAY TO THE ORDER OF:
WITHOUT RECOURSE
Bank VI, 1 Corpol'lltlon
BY:_~-------~---
Tom Wilbur, Its: Prnldant/CEO
[Sign Ortglnal Only]
lnltlala: /..., C ~
MULTISTATE ADJUSTABLE RATE NOTE -ARM 5-1-Single Family-Fannie MMIF..-Mae UNIFORM INSTRUMENT Fann 3901 IOI
MULTllTATE ADJUITABLI! RATE NOTl!-ARM 5·2-Single Family-Fannie MHIFredd .. Mac UNIFORM INSTRUMENT Form 35021/01
Elite Mae, Inc. Page 3 of 3 F3501NOT 0507
F3501NOT
When recorded, retum to:
Bank VI
Fln•I Document D•p•rtment
1900 South Ohio
S•lln•, KS 87401
The Mid-Kansas litle Co., Inc.
217 North Santa Fe Avenue
Salina, Kansas 67401
785-823-3759
LOAN#:·
..-·-. REBECCfl SEEMAN /.• !--·~·~GISTER OF DEEDS SflLINE COUNTY KflNSflS ~·-·:·;~~1:·1 Book: 1300 Page : 267-280 ~. "• -).) Roaipt •: 103988 . R1c:ord'1119 F 11: HlB.00 • ;-;•i'• ~ Hort gago •: 1109 •1 Hort ;ago Rog T n H00.00 ~ Pag11 ReC11rd1d: 1"4• t, · Mortgage Mlount : •50,000.DD V •' ~.rl-.;
Date Recorded: 712812015 3:18~"1 PM
----------'11..-ceAboYe Thia Unt For Recordln; Dita)----------
MORTGAGE
I MIN 10°"907-G000003189-8
MERS PHONE#: 1.aaa-e79-e377
DEFINITIONS
Words used in multiple sections of this document are defined below and other words are defined In
Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document
are also provided In Sectlon 16.
(A) "Security Instrument" means this document, which is dated July 22, 2015
together wtth all Ridera to this document.
(B) "Bonro-r" is LEONARD C MCIVER, A SINGLE MAN.
Borrower is the mortgagor under this Security l1111trument.
(C) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is
acting solely as a nominee for Lander and Lender's successors and assigns. MERS 11 the mortg•gH
under thl1 Security ln1trumenl MERS is organized and existing under the laws of Delaware, and has
an address and telephone number of P.O. Box 2026, Flint, Ml 48501 -2026, tel. (888) 679-MERS.
(D) "Lender" Is Bank VI.
Lender is • Corporation,
under the laws of KanH•.
Lender's address is 1900 South Ohio, Salina, KS 87401 .
KANSAl--Slngle Famlty-Fannlt MMIFreddlt Mac UNl,OftM INSTRUMENT Fonn 3017 1/01
Elie Mae, lne. Page 1 of 11
organized and existing
J.. .c "" lnltlals: ___ _
KSEDEED 0315
KSEDEED EXHIBIT
A
Book: 1300 Page: 268
LOAN#:
(E) "Note" means the promissory note signed by Borrower and dated July 22, 2015.
The Note states that Borrower owes lender FIFTY THOUSAND AND N0/100• • • • • • • • • • • • • • • •
• • * • • * • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • * * Dollars (U.S. $50,000.00 )
plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt
In full not later than August 1, 2030.
(F) "Property" means the property thlll is described below under the heeding "Transfer of Rights in the
Property."
(G) "loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late
charges due under the Note, and all sums due under this Security Instrument, plus Interest.
(H) "Rldera" mean1 all RldeB to this Security lnatrument that era executed by Borrower. The following
Riders are to be executed by Borrower [check box a1 applicable]: ~ Adjustable Rate Rider D Condominium Rider
D Balloon Rider D Planned Unit Development Rider
D 1-4 Family Rider D Biweekly Payment Rider
D VA. Rider
D Second Home Rider
D Other(s) [specify]
(I) "Appllcabla Law" means ell controlling applicable federal, stete and local statutea. regulations,
ordinances and administrative rules and orders (that have the effect of law) aa well aa ell applicable final,
non-appeatable judicial opinions.
(J) "Community Aaaoclatlon Dues, Faas, ind AlaeHments" means all dues, fees, assessments
and other charges that are imposed on Borrower or the Property by a condominium association,
homeowners association or similar organization.
(K) "Electron le Funds Tran1fw" means anytranlferoffund1, other than a transaction originated by check,
draft, or similar paper inatrument, which la Initiated through an electronic terminal, telephonic inatrument,
computer, or magnetic tape ao 81 to order, instruct, or authorize a financial Institution to debit or credit an
account. Such term includes, but la not limited to, polnt-of-aala transfers, automated teller machine
transactions, transfers initiated by telephone. wire transfers, and automated clearinghouse transf~.
(L) "Eacrow Items" means those items that are described In Section 3.
(M) "Mlac:ellaneou• Proceeds" mean• any compenaatlon, settlement, award of damages, or proceeds
paid by any third party (other than inaurance proceeds paid under the coverages deacrlbed in Section
5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part
of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as
to, the value and/or condition of the Property.
(N) NMortgag• Insurance" means Insurance protecting Lender against the nonpayment of, or default
on, the loan.
(0) "Periodic P1ymanf' means the regularly 1cheduled amount due for IQ principal and Interest under
the Note. plus (Ii) any amounts under Section 3 of thla Security lnatrumenl.
(P) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 at seq.) and its
implementing regulation, Regulation X (12 C.F.R. Part 1024), 81 they might be amended from time to
time, or any additional or successor legislation or regulation that govem1 the same aubjact matter. As
used In thi1 Security lnatrument, "RESPA" refers to all requirements and restrictions that are Imposed
in regard to a "federally related mortgage loan· even if the loan doe• not qualify as a 'federally related
mortgage loan• under RESPA.
(Q) "Succ:easor In Interest of Borro-r'' means any party that has taken title to the Property, whether
or not that party has asaumed Borrower's obligations under the Note and/or this Security Instrument.
TRANSFER OF RIGHTS IN THE PROPERTY
This Security Instrument 1ecura1 to Lender: (I) the repayment of the Loan, and au renewals, extensions
and modiflcalions of the Note; and (II) the performance of Borrower's covenants and agreements under
this Security Instrument and the Note. For this purpo1a, Borrower mortgages and warrant• to MERS
(solely as nominee for Lander and Lender's successors and aasigns) and to the successors and aaalgns
of MERS the following described property located in the County
[Type of Recording Ju~ldlctlon) of ·SALINE jN.me of Re<:O<dlng Ji.ildlctlonl:
Lot Fourteen (14), Block Eight (8), Jaivl1 Addition to the City of Salina, Salin• County, Kansas
KANIAS-Slngle Famly-Fonnle MM/froddle Mlle UNll'ORM INSTRUMENT Form 3017 1/01
Ellie M1111, Inc. Page 2 of 11
lnltlal1: j ( fv\
KSEOEEO 0315
KSEOEEO
Book: 1300 Page: 269
LOAN# .
which currently h111 the address of 817 H•rold Ave, S•lln•,
[Sl!eel] [City]
Kansas 67401 ("Property Addren"):
[ZlpCodel
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 understand• and agraea that MERS hold• only legal
title to the intereats granted by Borrower in Ihle Security lnatrumant, but. if nece"8/y to comply with law
or custom, MERS (as nominee for Lender and Lender'• succe11ors and a11ign1) has the right: to
exercise any or all of tho .. interests, including, but not limited to, the right to foreclose and eell the
Property; and to take any action requlrwd of Lender including, but not limited to, releasing and canceling
this Security Instrument.
BORROWER COVENANTS that Borrower is lawfully selsed of the eatata hereby conveyed and has
Iha right to mortgage, grant and convey the Property and that the Property Is unencumbered, except
for encumbrances of record. Borrower warrants and will defend generally the title to the Property against
aU claims and demands, subject to any encumbrances of record.
THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform
covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real
property.
UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Principal, Interest, Eacrow ltama, Prepayment Chargea, and Late Chargaa.
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
llama 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 lnatrument received by Lender a1 payment under the
Note or this Security lnstrumant is raturnad to Lender unpaid, Lendar may require that any or all
subsequent payments due under the Note and this Security Instrument be made in one or more of the
following forms, u selected by Lender: (a) cash; {b) money order: (c) certifiad check, bank check.
treasurer's check or c11hier'1 check, provided any such check is drawn upon an institution wh0te
deposits are insured by a federal agency, instrumentality, or entity; or (d) Electronic Funds Transfer.
Payment• are deemed received by Lender when received at the location designated in the Note or
at such other location as may be designated by Lendar in accordance with the notice provisions In
Section 15. Lender may return any payment or partial payment If the payment or partial payments ere
insufficient to bring Iha Loan current. Lender may accept any payment or partial payment Insufficient
to bring the Loan current, without waiver of any rights hereunder or prejudice to its rights to refuse such
payment or partial payments In tha future, but Lender Is not obligated to apply such payments at the
time such paymants are accepted. If each Periodic Payment is applied as of its scheduled due date,
then Lender need not pay interest on unapplled funds. Lender may hold such unapplled funds untll
Borrower makes paymant to bring the Loan currenl If Borrower does not do so within a reuonabla
period of time, Lender shall either apply such funds or retum 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 ln1trument or performing
the covenants and agreements secured by this Security Instrument.
2. Appllcatlon of Payment. or Proceeds. Except aa otherwisa described in this Section 2, all
payments accepted and applied by Lender shall be applied in the following order of priority: (a) Interest
due under the Note; {b) principal due under the Note; (c) amounts due under Section 3. Such payments
shall be applied to each Periodic Payment In the order in which It became due. Any remaining amounts
shall be applied firwt to late charges, second to any other amounts due under this Security Instrument,
and then to reduce the prlncipal balance of the Note.
If Lender receives a payment from Borrower for a delinquant Periodic Payment which includes a
sufficient amount to pay any late charge due, the payment may be applied to the de~nquent 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 lo the extent tha~ each payment can be
paid in full. To tha extent that any exceas exists after the payment is applied to the ful payment of one or
more Periodic Payments, such axcen may be applied to any late charges due. Voluntary prepayments shall
be applied first to any prepayment charges and than 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 data, or change the amount, of the Periodic
Payments.
KANSAS-Single Femlly-F1nnl1 M•ll'niddle Mac UNIFORM INSTRUMENT Form 30171/01
Elli• Mff, Inc. Page 3 of 11
Initials: l C M
KSEDEED 0315
KSEDEED
Book: 1300 Page: 270
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3. Fund• for Escrow It.ma. 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 "Fund•") to provide for payment of amounts dua
for: (a) taxes and assessments and other items which can attain priority over this Security Instrument
811 a lien or encumbrance on the Property; (b) leasehold payments or ground rents on the Property, if
any; (c) premiums for any and ell ln1urance required by Lender under Section 5; and (d) Mortgage
Insurance premiums, if any, or any sums payable by Borrower to Lender in liau of the payment of
Mortgage Insurance premiums in accordance with the provisions of Section 1 a. These Items are called
"Escrow Items.· At origination or at any time during the term of the Loan, Lender may require that
Community A11ociatlon Dues, Fn1, and Asseuments, if any, be escrowed by Borrower, and such
dues, fees and a11esament1 shall be an Eacrow hem. Borrower shall promptly fumiah to Lender all
notices of amounts to be paid under this Section. Borrower shell pay Lender the Funds for Escrow Item•
unless Lender waives Borrower'• obligation to pay the Funds for any or all Escrow Items. Lender may
waive Borrower's obligation to pay to Lander 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 fuml1h to Lander receipts evidencing such payment within such lime
period es Lender may require. Borrower's obligation to make such payments and to provide receipts
shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument,
as the phrase 'covenant end agreemanr is used in Section 9. If Borrower is obligated to pay Escrow
Items directly, pursuantto a waiver. and Borrower fails to pay the amount due for an EICIOIN hem, Lander
may exercise Its rights under Section 9 and pay such amount and Borrower shall then be obligated
under Section 9 to repay to Lender any 1uch amount. Lender may revoke the waiver as to any or all
E1crow Items at any time by a notice given in accordance with Section 15 and, upon such revocation,
Borrower shall pay to Lender an Funds, and in such amounts, that are then required under this Section 3.
Lender may, at any lime, collact and hold Funds In an amount (a) sufficient to permit Lender to apply
the Funds at the time specified under RESPA, and (b) not to excnd the maximum amount a lender can
require under RESPA. Lender shall estimate the amount of Funds due on the basis of current data and
reasonable estimatH of expenditures of future Escrow Items or otherwise in accordance with
Applicable Law.
The Funds shall be held in an Institution whose depoaits era insured by a federal agency,
instrumentality, or entity (Including Lender, if Lender is an institution whose depoaitl are so insured) or
in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than
the time speciftecl under RESPA. Lender shall not charge Borrower for holding and applying the Funds,
annually analyzing the escrow account, or verifying the Escrow Items, unless Lander pays Borrower
interest on the Funds and Applicable Law permits Lender to make such a charge. Unlela 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 Iha Funds. Lender shall give to Borrower, without charge,
an annual accountlng of Iha Funds as required by RESPA.
If there is a surplus of Funds held in escrow, aa defined under RESPA, Lender shall account to
Borrower for the exceu funds In accordance with RES PA. If there is a shortage of Funds held in escrow,
as defined under RESPA. Lender shall notify Borrower aa required by RESPA, and Borrower shall pay
to Lender the amount necessary to make up the shortage in accordance with RE SPA, but in no more
than 12 monthly payments. If there Is a deficiency of Funds held in escrow. 811 defined under RES PA.
Lender shall notify Borrower 811 required by RESPA, and Borrower shall pay to Lender the amount
necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly
payments.
Upon payment in full of aN 1um1 secured by this Security Instrument, Lender shall promptly refund
to Borrower any Funds held by Lender.
C. Ch9111H; Liana. Borrower shall pay all taxea, asae111ment1, charges, fines, and Impositions
attributable to the Property which can attain priority over this Security Instrument, leasehold payment•
or ground rents on the Property, if any, and Community Association Dues, Fna, and Assessments, If
any. To the extent that these items are Escrow Items, Borrower shall pay them in the manner provided
in Section 3.
Borrower shall promptly discharge llTIY lien which has priority over this Security Instrument unless
Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner
acceptable to Lender. but only so long as Borrower is performing such agreement; (b) contes1s the
lien in good faith by, or defends against e11fou:e111ent ~ 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 proceeding• are concluded; or (c) secures from the holder of the lien an
agreement aatisfactory to Lender subordinating the lien to this Security Instrument. If Lender
determines that any part of the Property i1 subject to a lien which can attain priority over this Security
Instrument, Lender may give Borrower e notice identifying the lien. Within 10 days of the date on which
that notice Is given, Borrower 1hall satisfy the lien or take one or more of the actions set forth above
in this Section 4.
KAHIA~ngle Famlly-F•nnle MHIF.-111 lhc UNIFORM INSTRUMENT Farm 3017 1/01
Elle MH, Inc. Page 4 of 11
Initials: L. C.. fvJ
KSEDEEO 0315
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Lander may require Borrower to pay a one-Uma charge for a real estate tax verification and/or
reporting service used by Lander In connection with this Loan.
5. Property lnau111nca. Borrower shall kHP the improvement• now existing or hereafter erected
on the Property in1ured ageinat 1011 by lira, hazards included within the term 'extended coverage,• and
any other hazard• including, but not limited to, earthquakes and floods, for which Lender requires
insurance. This Insurance shall be maintained In the amounts (Including deductible levels) and !or
the periods that Lender requires. What Lender raquirH pursuant to the preceding sentance1 can
change during the term of Iha Loan. The insurance carrier providing the insurance shall be choaen by
Borrower subject to Lander's right to di11pprova Borrower's choice, which right shall not be exercised
unreaaonably. Lander may require Borrower to pay, in connection with this Loan, either: (a) a one-time
charge for flood zone determination, certl1icatlon and tracking services; or (b) a one-time charge for
flood zone determination and certification service. and 1ub1equant charges each time remapping•
or similar changes occur which reasonably might affect such determination or certification. Borrower
shall also be responsible for the payment of any fees imposed by the Federal Emergency Management
Agency in connection with the review of any flood zone determination resulting from an objection by
Borrower.
If Borrower falls to maintain any of Iha covaragea described above, Lander may obtain Insurance
coverage, at Lender's option and Borrower's elq)ensa. Lender Is under no obligation to purchase any
particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might
not protect Borrower, Borrower' a equity in the Property, or the contents of the Property, again at any risk,
hazard or liability end might provide greater or leNer coverage than waa previously in e!Tect. Borrower
acknowledges that the cost of the insurance coverage so obtained might significantly aicceed the coat
of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section
5 shall become additional debt of Borrower secured by thla Security Instrument. These amounts shall
bear lnterast at the Note rate from the date of disbursement and shaft be payable, with such intanlst,
upon notice from Lender to Borrower requesting payment.
All insurance policies required by Lander and renewals of such policies shall be subject to Lander's
right to disapprove such policies, shall Include a standard mortgage dausa, 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 Lander requires, Borrower shall promptly give to Lender all receipts of paid
premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwlae
required by Lander. 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 Iha event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lander
may make proof of loaa ii not made promptly by Borrower. Unlna Lender and Borrower otherwise agree
in writing, any insurance proceeds, whether or not the underlying insurance waa required by Lander,
shall be applied to restoration or repair ol the Property, if the restoralion or repair i11 economically feasible
and Lender's security Is not lessened. During such repair and restoration period, Lender shall have the
right to hold such insurance proceeds until Lender has had an opportunity to inspect such Property to
ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be
undertaken promptly. Lender may disburae proceeds for the repairs and restoration in a elngle payment
or in a series of progre11 payments as the work i11 completed. Unla11 an agreement is made In writing
or Applicable Law requires intareet to be paid on euch insurance proceeds, Lender ehall not be required
to pay Borrower any interest or eamlngs on such proceeds. Fees for public adjusters, or other third
parties, retained by Borrower shall not be paid out of the insurance proceeds and ahall be the sole
obligation ol Borrower. If the restoration or repair Is not economically feasible or Lender's security would
be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument.
whether or not then due, with the exce111, if any, paid to Borrower. Such insurance proceeds shall be
applied In the order provided fol' in Section 2.
If BorrO"Ner abandons Iha 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 settie the claim. The
30-<lay period will begin when Iha notice i11 given. In either avant, or if Lender acquires the Property
under Section 22 or otherwise, Borrower hereby usign1 to Lender (a) Borrower's rights to any
insurance proceeds in an amount not to eicceed the amounts unpaid under the Note or this Security
Instrument, and (b) any other of Borrower's rights (other than the right to any refund of uneamed
premiums paid by Borrower) under all insurance policies covering the Property, insofar as such rights
are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair
or restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether
or not then due.
6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal
residence within 60 days after the execution of this Security Instrument and shall continue to occupy
the Property as Borrower's principal residence for at least one year after the date ol occupancy, unless
Lender otherwise agrees In writing, which consent shall not be unreasonably withheld, or unle11
extenuating circumstances exist which are beyond Borrower's control.
KANSAS-Single Family-Finnie MM/Freddie Mac UNIFORM INSTRUMENT Form JD17 1101 lnltlal1: L C Iv\
EU1a Maa. Inc. Page 5 of 11 KSEDEED 0315
KSEDEEO
Book: 1300 Page: 272
LOAN#:
7. Preservation, Malnten1nc1 and Protection of the Property; lnapec:tlon1. Borrower shall not
dHlroy, damage or impair the Property, allow the Property to deteriorate or commit weste on the
Property. Whether or not Borrower ia residing in the Property, Borrower shall maintain the Property
in order to prevent the Property from deteriorating or ·decl9uing in value due to its condition. Unleaa it is
determined pursuant to Section 5 that repair or restoration is not economically feasible, Borrower shall
promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or
condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower
shall be responsible for repairing or restoring the Property only if Lender has released proceeds for such
purposes. Lender may disburse proceeds for the repairs and restoration in a single payment or in a
aeries of progress payments aa the work is completed. If the insurance or condemnation proceeds are
not sufficient to repair or restore the Property, Borrower is not relieved of Borrower'& obligation for the
completion of such repair or raatoretion.
Lender or its agent may make reasonable entries upon and inspections of the Property. If it hes
reasonable cauae, Lender may inspect the interior of the improvements on the Property. Lender ahaU
give Borrower notice at the time of or prior to such an interior inspection specifying such rea1onable
cause.
8. Borrower's Loan Appllcatlon. Borrower shall be In defauH if, during the Loan application
proce11, Borrower or any persona or entitles acting at the direction of Borrower or with Borrower's
knowledge or conaent gave materially falae, misleading, or Inaccurate Information or statements to
Lender (or failed to provide Lender with material Information) in connection with the Loan. Material
representations include, but are not limited to, representations concerning Borrower's occupancy of the
Property ea Borrower's principal residence.
9. Prottctlon of L1nder'a lntareat In th1 Property and Rights Under thl1 Securtty Instrument.
If {a) Borrower fails to perform the covenant& and agreements contained in this Security Instrument,
(b) there is a legal proceeding that might significantly affect Lender's int111est in the Property and/or
rights und8f this Security Instrument {such as a proceeding in bankruptcy, probate, for condemnation
or forfeiture, for enforcement of a lien which may attain priority over this Security Instrument or to
enforce lll'Nll or regulations), or (c) Borrower haa 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 a11eaaing 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 reaoneble attomeya' ,_ to protect its interest in the Property and/or rights
under this Security Instrument. including Ila secured position In a bankruptcy proceeding.
Securing the Property includes, but Is not limited to, entering the Property to make repairs, chenge
locks, replace or board up doors and windows, drain water from pipet. eliminate building or other code
11iolatlona or dangerous conditions, and nave ublitiel turned on or off. Although Lender may take action
under this Section 9, Lender does not have to do so and is not under any duty or obllgatlon to do so.
It is agreed that Lender incurs no liability for not taking any or all actions authorized under this
Section 9.
Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower
secured by this Security Instrument. Thase amounts shall bear interest at the Note rate from the date
of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower
requesting payment.
If this Security Instrument la on a leasehold, Borrower shall comply with all the provisions of the
lease. Borrower shall not aurrand8f the leasehold estate and interests herein conveyed or terminate or
cancel the ground lease. Borrower shall not. without the express written consent of Lender, alter or
amend the ground lease. If Borrower acquires fee title to the Property. the leasehold and the fee title
shall not merge unleas Lender agrees to the merger in writing.
10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the
Loan, Borrower shall pay the premiums required to maintain the Mortgage Insurance In effect. If, for any
reason. the Mortgage Insurance coverage required by Lender ceases to be ava~able 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 Iha premiums
required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at
a coat substantially equivalent to the cost to Borrower of the Mortgage Insurance previously In effect,
from an aMamate mortgage Insurer selected by Lender. If substantially equivalent Mortgage Insurance
coverage is not available, Borrower shall continua 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 lheae payments as a non-refundable loss reaerve in lieu of Mortgage Insurance.
Such 1011 reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in
full, and Lender shall not be required to pay Borrower any interest or eamings on such loss reserve.
Lender can no longer require loss reserve payments If Mortgage Insurance coverage (In the amount and
for the period that Lender requires) provided by an insurer selected by Lender again becomes available.
is obtained, and Lender raqulres separately designated payments toward the premiums for Mortgage
KANSAS-Single Famiy-Fennle llu/Frecldle Mee UNIFORM INITRUll!NT Fonn 3017 1/01
Ellle Mae. Inc Page 6 of 11
lnltlals: 1 C Jv1,
KSEDEED 031S
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Book: 1300 Page: 273
LOAN#:
Insurance. If Lander required Mortgage Insurance es a condition of making the Loan and Borrower was
required to make separately daaignatad payments toward the premiums for Mortgage Insurance,
Borrower shall pay tha pramluma required to maintain Mortgage Insurance In effect, orto provide a non-
refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with
any written agreement between Borrower and Lander providing for such terminaUon or until termination
is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest
at the rate provided In the Note.
Mortgage ln1urance reimburses Lender (or any entity that purchases the Nole) for certain losses
it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to tha Mortgage
Insurance.
Mortgage insurers evaluate their total risk on all such lneurance in force from time lo time, and
may enter into agreements with other parties that 1hare or modify their risk, or reduce lo1111. These
agreements are on terms and conditions ttiat are satisfactory lo the mortgage insurer and the other party
(or partlaa) to lh111a agreements. These agraamant1 may require the mortgage insurer to make
payments using any source of funds that Iha mortgage insurer may hava available (which may include
funds obtained from Mortgage ln1uranca premiums).
As a result of lhesa ageei 11e11ta, Lender, any purchaaer of the Note, ancXher inlllrer, any l'llillsl.-ar,
any olhar entity. or any affiliale of any <:A the loregolig, may raceiva (dirlldly or indirecily) amounts that
derive from (or might be characterized H) a portion of Borrower's payments for Mortgage
Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such
agreement provides that an affiliate of Lender takes a •hara of the insurer's risk in exchange for a
share of the premiums paid to Iha insurer, Iha arrangement is often termed "captive rein1uranca. •
Further:
(a) Any 1uch agniamanta will not affect tha amounts that Borrower hH agr1ad to pay for
Mortgage Insurance, or any other t.rm1 of th• Loan. Such agraamanta wlll not lncrHH th1
amount Borrower wtll owe for Mortgage Insurance, and they wlll not antltla Borrower to any
refund.
(b) Any such agraamanta wlll not affect tha rlghta Borrower hH • If any • with respect to tha
Mortgage Insurance under tha Homeowners Protection Act of 1998 or any other law. Thna rights
may Include tha right to receive certain dlsclosurH, to raqua1t and obtain cancellation of the
Mortgage Insurance, to have tha Mortgage Insurance terminated automatlcally, and/or to racalva
a refund of any Mortgage lnsur11nca premium• that-re unnmad at the time of such cancellatlon
or termination.
11. Assignment of Mlscallanaous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby
111igned to and shall be paid to Lender.
If the Property is damaged, such Miscellaneous Proceed• shall be applied to restoration or repair
of the Property, if the restoration or repair ia economically feasible and Lender's security is not
lessened. During such repair and restoration period, Lander shall have the right to hold auch
Miscellaneous Proceeds until Lander has had an opportunity to Inspect &uch Property to ensure Iha
work hH bean completed lo Lander's aatisfaction, provided that such inspection shall be undertaken
promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of
progress payments as the work Is completed. Un leas an agreement Is made In writing or Applicable
Law requires Interest to be paid on such Mi1cellaneous Proceeds, Lander shall not be required to pay
Borrower any inlarest or earnings on such Mi1cellanaou1 Proceed•. If Iha restoration or repair is not
economically feHible or Lander's security would be le11aned, the Miscellaneous Proceeds shall ba
applied to Iha sums secured by this Security Instrument, whether or not than due, with the excess, if
any, paid to Borrower. Such Mlacallaneous Proceeds shall be applied in the order provided for In
Section 2.
In Iha event of a total taking, destruction, or loss in value of Iha Property, the Miscellaneous Proceeds
shall be applied to the sums secured by this Security Instrument, whether or not than due, with the
excess. if any, paid to Borrower.
In the avant of a partlal lllklng, destruction, or loll In value of the Property In which Iha fair market
value of the Property Immediately before the partial taking, destruction, or loss in value is equal to or
greater than the amount oftha 1um1 secured by this Security Instrument Immediately before the partial
taking, destruction, or 1011 in value, unla11 Borrower and Lander otherwise agree in writing, Iha sums
secured by this Security Instrument shall be reduced by the amount of the Miscellaneous Proceeds
multiplied by the following fraction: (a) the total amount of the sums secured immediately before the
partial taking, destruction, or loss in value divided by (b) the fair market value of Iha Property
immediately before the partial taking, destruction, or loss in valua. Any balance shall be paid to
Borrower.
In the event of a partial laking, destruction, or 10111 In value of the Property in which the fair market
value of the Property invnedlately before the partial taking, destruction, or loss In value is lass than the
amount of the sums secured immediately before the partial taking, dHlruction, or loaa in value, unlaaa
Borrower and Lander otherwise agrff in writing, the Miscellaneous Proceeds shall be applied to the
sums secured by this Security Instrument whether or not Iha sums are then due.
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If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing
Party (as defined in the next sentence) offers to make an award to settle• 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 1ums
secured by this Security Instrument, whether or not than due. "Opposing Party" means the third party
that owes Borrower Miscellaneous Proceeds or the party against whom Borrower ha& 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
interaat In the Property or rights under !Ilia Security Instrument. Borrower can cure such a default and,
if acceleration has occurred, reinstate as provided In Section 19, by causing the action or proceeding
to be dlamiased with a ruling that, In Lender's judgment. precludes forfeiture of the Property or other
material impairment of Lender's interest In the Property or rights under this Security Instrument. The
proceeds of any award or claim for damag11 that era attributable to the impairment of Lender's interest
in the Property are hereby a11lgned and shill be paid to Lander.
Ali 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 Rell&ffd; Forbe1ranc:e By Lander Not 1 Waiver. Extension of the time for
payment or modification of amortization of the sums secured by thia Security Instrument granted by
Lander to Borrower or any Successor In Interest of Borrower shall not operate to release the liability
of Borrower or any Succauors in Interest of Borrower. Lender shall not be required to commence
proceedings against any Successor in Interest of Borrower or to refuse to extend time for payment or
otharwiae modify amortization of the aums aecured by this Security Instrument by reason of
any demand made by the original Borrower or any Succauors in lntaraat of Borrower. Any
forbearance by Lender In exercising any right or remedy including, without limitation, Lander's
acceptance of payments from third persona, antlti111 or Succeuors in Interest of Borrower or in
amounts le11 than the amount than due, shill not be a waiver of or preclude the exarciae of any right
or remedy.
13. Jolnt1ndS.varel Llablllty; C:O..lgnara; Succ:naora andAuigna Bound. Borrower covenant•
and agrees that Borrower's obligations and liability shall be joint and aevaral. However, any Borrower
who co-signs this Security Instrument but doea not execute the Note (a ·co-signer'): (•) 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 nol personaNy obligated to pay Iha sums secured by
this Security Instrument; and (c) agr88' that Lander and any other Borrower can agree to extend,
modify, forbHr or make any accommodations with regard to the terms of th is Security Instrument or
the Note without the co-signer's conaent.
Subject to the provisions of Section 18, any Succesaor in Interest of Borrower who a111umes
Borrower's obllgatlon1 under this Security Instrument in writing, and is approved by Lander, shall obtain
all of Borrower's rights and benefits under this Security Instrument. Borrower shall not be released from
Borrower's obligatlon• and liability under this Security Instrument unless Lander agrees to such releeae
in writing. The covenant• and agreement• of this Security Instrument shaH bind (except aa provided In
Section 20) and benefit the successors and a11ign1 of Lander.
14. Loan Charges. Lander may charge Borrower fees for aervices performed in connection with
Borrower's defaun, for the purpoae of protecting Lander'• Interest in the Property and rights under this
Security Instrument, including, but not limited to, attorneys' fan, property inapaction 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 ahall not be construed as a prohibition on the charging of such fee.
Lender may not charge feel that are axpra11ly prohibited by this Security Instrument or by Applicable
Law.
If the Loan la aubjaci to• I-which sets maximum loan charges, and that 1-is finally interpreted
so that Iha Interest or other loan charges collected or to be collected In connection with the Loan exceed
Iha permitted limits, then:(•) any auch loan charge shall be reduced by Iha amount n11C111sary to reduce
the charge to the permitted limit; and (b) any aums already coRacted fnorn Borrower which exceeded
permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the
principal owed under the Note or by making a direct payment to Borrower. If a refund reducee principal,
Iha reduction will be treated as a partial prepayment without any prepayment charge (whether or not
a prepayment charge is provided for under the Nola). Borrower's acceptance of any such refund made
by direct payment to Borrower will constitute a waiver of any right of aciion Borrower might have arising
out of such overcharge.
15. Notlc:aa. All notices given by Borrower or Lander in connection with this Security Instrument
must be in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed
to have been given to Borrower when mailed by first cla11 mall or when actually delivered to Borrower's
notice addreas if tent by other means. Notice to any one Borrower shall constitute notic:a to all Borrowers
unleH Applicable Law axpreHly require• otherwise. The notice addraas shall be the Property Address
unless Borrower has designated a 1ubstituta notice addreSB by notice to Lender. Borrower shall
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promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting
Borrower'• change of address, then Borrower shall only report a change of addreaa through that
specified procedure. There may be only one deeignated 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 clan mail
to Lender's address stated herein unless Lander has designated another address by notice to Borrower.
Any notice in connectiOn with thie Security lnatrument shall not be deemed to have been given to Lender
until actually received by Lender. If any notice required by this Security Instrument la also required under
Applicable Law, the Applicable Law requirement will aaUafy the corresponding requirement under this
Security Instrument.
18. Governing Lllw; Severablllty; RulH of Conatruetlon. This Security Instrument ahall be
governed by federal law and the law of the )urladlction In which the Property la located. All rights and
obligations contained in this Security instrument are subject to any requirements and limitations of
Applicable Law. Applicable Law might explicltly or implicitly allow the parties to agrve by contract or it
might be silent, but such ailence shall not be construed as a prohibition against agreement by contrect.
In the event that any provision or clause of this Security Instrument or the Note conftlcta with Applicable
Law, such conftict shall not affect other provisions of thi1 Security Instrument or the Note which can be
given effect without the conflicting provision.
As used in this Security Instrument: (a) words of the masculine gender shell mean and include
corresponding neuter words Of words of the feminine gender, (b) words In the singular shall mean and
Include the plural and vica versa; and (c) the word ·may· gives sole discretion without any obligation
to take any action.
17. Bom>Wt1r'1 Copy. Borrower shall be given one copy of the Note and of this Security Instrument.
18. Transfer of the Property or a Benellcl1l lnte'"t In Borrower. As used in this Section 18,
"Interest In the Property" means any legal or beneficial interest in the Property, including, but not lim~ed
to, those beneficial Interests transferred in a bond for deed, contract for deed, installment aales contract
or escrow agreement, the intent of which is the transfer of title by Borrower at a Mure date to a purchaser.
If all or any part of the Property Of any Interest In the Property ii sold or transferred (or if Borrower
i1 not a natural person and a benllflcial interest in Borrower i1 lold or transferred) without Lender's prior
written consent, Lender may require immediate payment in full of all 1ums secured by this Security
Instrument. However, this option shall not be exerciaed by Lender if such exercise is prohibited by
Applicable Law.
If Lender exercisee thia option, Lender shall give Borrower notice of acceleration. The notice shall
provide a period of not Jen then 30 day1 from the date the notice i1 given in accordance with Section
15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fail• to pay
theae sums prior to the expiration of this period, Lender may Invoke any remedin permitted by this
Security Instrument without further notice or demand on Borrower.
19. Borrower's Right to R1ln1tlte After Acc1l1r.Uon. If Borrower meets certain condition•.
Borrower 1hall have the right to hava enforcement of this Security Instrument discontinued at any time
prior to the earliest of: (a) five days before sale of the Property pursuant to Section 22 of this Security
Instrument; (b) such other period as Applicable Law might specify for the termination of Borrower's
right to reinstate; or (c) entry of a judgment enforcing this Security Instrument. Thoae conditions are
that Borrower: (a) pays Lender ell sums which then would be due under thi1 Security ln1trument and
the Note as if no acceleration had occurred; (b) cures any default of any other covenants or
agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not
limited to, reasonable 11ttornay1' fees, property inspection and valuation fees, and other fees Incurred
for the purpose of protecting Lender'• interest In the Property and rights under this Security Instrument;
and (d) takes such action as Lender may reasonably require to a11ure that Lender's Interest in the
Property and rights under this Security Instrument, and Borrower's obligation to pay the 1um1 secured
by this Security Instrument. shall continue unchanged. Lender may require that Borrower pay such
reinstatement sums and expenaea in one or more of the following fOfml, 118 selected by Lender: (a)
cath; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided
any such check is drawn upon an Institution who111 deposits are insured by a faderel agency,
instrumentality or entity; or (d) Electronic Funds Transfer. Upon reinstatement by Borrower. this
Security Instrument and obligations secured hereby 1hall remain fully effective as if no acceleration
had occurred. However, this right to reinstate shall not apply in the ca1e of acceleration under
Section 18.
20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest
In the Note (together with thi1 Security Instrument) can be sold one or more times without priOf notice
to Booower. A sale might result in a change in the entity (known as the 'Loan Servicer') that conects
Periodic Payments due under the Note and this Security Instrument and perform• other mortgage loan
servicing obligations under the Note, thi1 Security Instrument, and Applicable Law. There also might
be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there Is a change of
the Loan Servicer, Borrower will be given written notice of the change which will state the name and
address of the new Loan Servicer. the address to which payments should be made and any other
Information RESPA requires in connection with a notice of transfer of servicing. If the Note is sold and
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thereafter the Loan is serviced by a Loan Servicer other than the purchaser of the Nola, the mortgage
loan servicing obligations to Borrower will remain with the Loan Servicer or be transferred to a
successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by
the Note purchaser.
Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an
individual litigant or the member of a cla11) that arises from the other party's actions pursuant to this
Security Instrument or that aleges that the other party has breached any provision of, or any duty owed
by reason of, this Security Instrument, until such Borrower or Lender has notified the other party (with
such notice given In compliance with the requirements of Section 15) of such alleged breach and
afforded the other party hereto a reasonable period after the giving of 1uch notice to take corrective
action. If Applicable Law provides a time period which must elapse before certain action can be taken.
that time period will be deemed to be ra11onable for purposes of this paragraph. The notice of
acceleration and opportunity to cure given to Borrower pursuant to Section 22 and the notice of
acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and
opportunity to take corrective action provisions of this Section 20.
21. Hazardous Substances. As used In this Section 21: (8) 'Hazardous Substances' are those
substances defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law
and the following substances: gasoline. keroaene, other flammable or toxic petroleum products, toxic
pHticldes and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and
radioactive materials; (b) "Environmental Law" means fad1111l lawa and laws of the jurtldiction where
the Property is located that relate to health, safety or environmental protection; (c) "Environmental
Cleanup" Includes any responae action, remedial action, or removal action, as defined in Environmental
Law; and (d) an 'Environmental Condition' means a condition that can cause, contribute to, or
otherwise trigger an Environmental Cleanup.
Borrower shall not ceuae or permit the preaence, use, disposal, storage, or release of any
Hazardous Substance•, or threaten to release any Hazardoua Subatances, on or in the Property.
Borrower shall not do, nor allow anyone else to do, anything affecting the Property (a) that is In violation
of any Environmental Law, (b) which creates an Environmental Condition, or (c) which, due to the
presence. use. or releaH of e Hazardous Substance, creates a condition that llclvarsely lllfacts the value
of the Property. The preceding two 1antence1 shall not apply to the presence, use, or storage on the
Property of sma" quantities of Hazardous Substances that are generally recognized to be appropriete
to normal residential uHS and to maintenance of the Property (including, but not limited to, hazardous
substances in consumer products).
Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit
or other action by any governmental or regulatory agency or private party involving the Property and
any Hazardous Substance or Environmental Law of which Borrower ha• actual knowledge, (b) any
Environmental Condition, including but not limited to, any apilllng, leaking, discharge, release or threat
of release of any Hazardous Substance, and (c:) any condition caused by the presence, use or release
of a Hazardous Substance which adversely affects the value of the Property. If Borrower leama, or is
notified by any governmental or regul1tory authority, or any private party, that any removal or other
remediation of any Hazardous Substance affecting the Property is necessary, Borrower shaU promptly
take all necessary remedial actions in accordance with Environmental Law. Nothing herein shall create
any obligation on Lander for an Environmental Cleanup.
NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows:
22. Accalarallon; Ramadlas. Lander ahall give notice to Borrower prior to accelarallon
following Borrowar'a breach of any covenant or agreement In thla Security lnatrumant (but not
prior to acceleration under Section 18 unlau Appllcabla Law provides otharwlaa). The notice
ahall apaclfy: (a) the default; (b) the action required to cure the default; (c) a data, not leas than
30 daya from the date the notice la given to Borrow9r, by which the default must be cured; and
(d) that fallure to cure the default on or before the data 1paclflad In the notice may l'BIUlt In
acceleration of the 1u1111 aecurad by thla Security lnatrumant, forec:loaure by judlclal proceadlng
and aala of the Property. The notice ahall further Inform Borr-of the right to ralnatat. att.r
acceleration and the right to HHrt In Iha forecloaure procaadlng the non .. xlatance of a default
or any other defanaa of Borrower to accetaratlon and forecloaura. If the default la not cured on
or before the date apaclfled In Iha notice, Lender at Its option may require Immediate payment In
full of all auma aecurad by th ta Security Instrument without furthar demand and may foraclou this
Security Instrument by judlclal proceeding. Lander ehall be antltlad to collect all expanaaa
Incurred In pursuing the ramedlaa provided In thla Section 22, Including, but not llmlted to, coata
of title evidence.
Lender shall be entitled to collect all reaaonabla axpanns Incurred In purwulng the remedlH
provided In thla Section 22, lncludlng, but not limited to, reasonabla attorneys' faea, to the extent
allowed by Applicable Law.
23. Ralaaae. Upon payment of all sums secured by this Security Instrument, Lender shall release
this Security Instrument. Lender may charge Borrower a fee for releasing this Security Instrument, but
KAHSAl-Slnglt Famly--F1nnl1 MN/Freddie Moc UNIFORM INSTRUMENT Fonn 3017 1/01 lnltlala: 1 · C M
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only if the fee Is paid to a third party for services rendered and the charging of Iha fee Is permitted under
Applicable Law.
24. Waiver of R1d1mptlon. Borrower waives 1111 rights of redemption to the extant allowed by
law.
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenents contained in this
Secu~strument and in any Rider executed by Borrower and recorded with ~.
l~NA~ J {!_ . b c, J iN.ci 7 -
:i.... 0 ( ..s ::l.; Z. {SHI)
DATE
State of KANSAS
County of: SALINE
Thia instrument w11 acknowledged before ma on J"uly pZ,6 ;JalS
(data) by LEONARD C MCIVER (name(a) of per1on(1)). I
(Seal, If eny)
Lender: Bank VI
NMLS ID: 411329
Loan Orlgln1tor: Wiiiiam M. Gramm.r
NMLS ID: 744585
14 /·ht. VJ J A· d,....,..--: Wnk:e~ WILLIAM M. GRAMMER
Title ind Rink: __ ....... V_f' ______ _
My Commlaalon Expires: L/-1'{-,J;Jol(.e
KANIAS.-Slngle Famly~annle -mdle Mac UNIFOffM INSTRUMENT Form 3017 1/01 lnltlala: 'i.. C..~
l<SEDEED 03 5
l<SEOEED
Enie Mao, Inc. Page 11 of 11
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LOAN#:
MIN: 100•907-<1000003189-8
ADJUSTABLE RATE RIDER
(1 Year Treasury Index-Rate Caps)
THIS ADJUSTABLE RATE RIDER is made this 22nd day of July, 2015
and is incorporated into and shall be deemed to amend and supplement the Mortgage,
Deed of Trust, or Security Deed (the ·security Instrument") of the same date given
by the undersigned (the "Borrower') to secure Borrower's Adjustable Rate Note (the
"Note") to B•nk VI, 1 Corpor.UOn
(the "Lender') of the same date and covering the property described in the Security
Instrument and located at: 817 Hmrokl Avt,Salln•,KS,87401.
THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE
INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE
AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANYONE
TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY.
ADDITIONAL COVENANTS. In addition to the covenants and agreements made in
the Security Instrument, Borrower and Lender further covenant and agree as follows:
A. INTEREST RATE AND MONTHLY PAYMENT CHANGES
The Note provides for an initial interest rate of 5.750 %. The Note provides for
changes in the interest rate and the monthly payments as follows:
4. INTEREST RATE AND MONTHLY PAYMENT CHANGES
(A) Change Dates
The interest rate I will pay may change on the 111 day of August, 2020
and on that day every 12th month thereafter. Each date on which my interest rate could
change is called a "Change Date."
(B)Thelndex
Beginning with the first Change Date, my Interest rate will be based on an Index. The
"Index· is the weekly average yield on United States Treasury securities adjusted to a
constant maturity of one year, as made available by the Federal Reserve Board. The
most recent Index figure available as of the date 45 days before each Change Date is
called the "Current Index.•
If the Index is no longer available, the Note Holder will choose a new index which is
based upon comparable Information. The Note Holder will give me notice of this choice.
(C)Calculatlon of Changes
Before each Change Date, the Note Holder will calculate my new Interest rate by
adding THREE AND THREE-FOURTHS percentage point(s) ( 3.750 % ) to the
Current Index. The Note Holder will then round the result of this addition to the nearest
ONE-EIGHTH OF ONE percentage point(s) ( 0.125 % ). Subject to
the limits stated in Section 4(D) below, this rounded amount will be my new interest
rate until the next Change Date.
The Note Holder will then determine the amount of the monthly payment that would
be sufficient to repay the unpaid principal that I am expected to owe at the Change Date
MULTllTATE ADJUSTABLE RATE IVDER ·ARM J.1 ·Single Family· F•nnle MHIFl'lddle Mu UNIFORM INllTltUll!NT
P'orm 31011/01
MULTlllTATE ADJUSTABLE RATE IVDER ·ARM J.2 ·Single Family· F•nnle MHIFl'lddle Ille UNIFORM IN!1RUUNT.~
Form 31111/01 lnltl•la: ..... ~>--'-· ~£...~--+
Elle MH, Inc. Page 1 of 3 F3108RDU 050
F3108RLU
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LOAN#:
in full on the maturity date at my new interest rate in substantially equal payments. The
result of this calculation will be the new amount of my monthly payment.
(0) Limits on Interest Rate Changes
The interest rate I am required to pay at the first Change Date will not be greater than
7 .750 % or less than 5.750 %. Thereafter, my interest rate will never be increased
or decreased on any single Change Date by more than
TWO percentage point(s) ( 2.000 % ) from the rate
of interest I have been paying for the preceding 12 months. My interest rate wlll never
be greater than 11.750 %.
(E) Effective Date of Change•
My new interest rate will become effective on each Change Date. I will pay the
amount of my new monthly payment beginning on the first monthly payment date after
the Change Date until the amount of my monthly payment changes again.
(F) Notice of Changes
The Note Holder will deliver or mail to me a notice of any changes in my interest
rate and the amount of my monthly payment before the effective date of any change.
The notice will include information required by law to be given to me and also the title
and telephone number of a person who will answer any question I may have regarding
the notice.
B. TRANSFER OF THE PROPERTY ORA BENEFICIAL INTEREST IN BORROWER
Section 18 of the Security Instrument is amended to read as follows:
Tran1fer of the Property or a Beneftclal lntereat In Borrower. As used In
this Section 18, "Interest in the Property" means any legal or beneficial interest
in the Property, including, but not limited to, those beneficial interests transferred
in a bond for deed, contract for deed, installment sales contract or escrow
agreement, the intent of which is the transfer of title by Borrower at a future date
to a purchaser.
If all or any part of the Property or any Interest in the Property is sold or
transferred (or if Borrower is not a natural person and a beneficial interest in
Borrower is sold or transferred) without Lender's prior written consent, Lender
may require immediate payment In full of all sums secured by this Security
Instrument. However, th is option shall not be exercised by Lender if such
exercise is prohibited by Applicable Law. Lender also shall not exercise this
option if: (a) Borrower causes to be submitted to Lender information required by
Lender to evaluate the intended transferee as if a new loan were bein9 made to
the transferee; and (b) Lender reasonably determines that Lender's security will
not be impaired by the loan assumption and that the risk of a breach of any
covenant or agreement in this Security Instrument is acceptable to Lender.
To the extent permitted by Applicable Law, Lender may charge a reasonable
fee as a condition to Lender's consent to the loan assumption. Lender may also
require the transferee to sign an assumption agreement that is acceptable to
Lender and that obligates the transferee to keep all the promises and agreements
made in the Note and in this Security Instrument. Borrower will continue to be
obligated under the Note and this Security Instrument unless Lender releases
Borrower in .writing.
If Lender exercises the option to require immediate payment in full, Lender
shall give Borrower notice of acceleration. The notice shall provide a period of not
less than 30 days from the date the notice is given in accordance with Section
15 within which Borrower must pay all sums secured by this Security Instrument.
If Borrower fails to pay these sums prior to the expiration of this period , Lender
may invoke any remedies permitted by this Security Instrument without further
notice or demand on Borrower.
MULTISTATE ADJUSTABLE RATE RIDER· ARM 5-t •Single F1mlly ·Finnie Meelfr..tdle Mee UNIFORM INST1'UMEHT
Fonn 3tOI 1/01
MULTISTATEADJUSTAllLE RATE RIDER· ARM 5-2 • &ngle F1mlly ·Finnie MHll'r..tdle •c UNIFORM IN UM T
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BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants
contained in this Adjustable Rate Rider.
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DATE
MUL llSTATI! ADJUITAILI! llATE lllDER • AllM 11-1 • Sh>vle Family· l'annlt Maa/FrMdle Mac UNll'ORM INITllUlll!NT
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llULTIITATI! ADJUST.All.I! 11.ATI! RIDl!R ·ARM 11-2 ·Single Fll'l'lily • l'annlt llHll'rMdla Mac UNlfOllll l'~~ENT
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