Loading...
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. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) 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 LOAN#: 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 KSEDEEO Book: 1300 Page: 271 LOAN#: 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 KSEDEED 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. KANSAS-Single Famlly-F•nnle MMIFreddle Mac UNIFORM INSTRUMENT Fonn S0171/01 lnHlals: ti ( {'I\ Ellie Mae, Inc. Page 7 of 11 K EDEEO 0315 KSEOEEO Boo~: 1300 Page: 274 LOAN#: 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 KANSAs-slnglo Family-F1nnle MM/Freddie Ille UNIFORll INBTRUllENT Fonn 3017 1!01 lnltlala: ti c_ /'/\ Elle MH, Inc. Paga 8 of 11 K OEEO 0315 KSEDEEO Book: 1300 Page: 275 LOAN#: 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 KANSAS-Single Fomlly-Fannle lllH/Freddle lilac UNIFORlll IHSTRUlllENT Form 30171/01 Ellie Mae, Inc. Page 9 of 11 lnttlata: L C M. KSEDEED 0315 KSEDEED Book: 1300 Page: 276 LOAN#: 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 Ellie M ... Inc. Page 10 of 11 KSEOEED 0315 KSEDEEO Book: 1300 Page: 277 LOAN#: 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 Book: 1300 Page: 278 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 Book: 1~0 Page: 279 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 Form 3ttt t/01 Initials: ......... _-=-il...Lt-- Ellie Moe, Inc. Page 2 of 3 F3108RDU 0 7 F3103RLU Boo~: 1300 Page: 280 LOAN#: BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. "2 ois ? ~ -<_ :l._ · (SHI) DATE MUL llSTATI! ADJUITAILI! llATE lllDER • AllM 11-1 • Sh>vle Family· l'annlt Maa/FrMdle Mac UNll'ORM INITllUlll!NT Fonn 310I 1I01 llULTIITATI! ADJUST.All.I! 11.ATI! RIDl!R ·ARM 11-2 ·Single Fll'l'lily • l'annlt llHll'rMdla Mac UNlfOllll l'~~ENT l'onn 3111 tl01 lnltl1ls: ~ Elli• Mae, Inc. Page 3 of 3 F31oSROO 7 F3108RlU