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HomeMy WebLinkAbout0943 5.3 .Following the Initial Loan Period, Borrower shall have the option to extend the maturity date of the Indebtedness for as many three-year option periods (the "option A~eriods") as a~ay be neaeseary to extend tho term of .the Indebtedness to 00 the maturity date of the Original Note and ortgaget prov • , however, that the final Option period may be lass than three yeses so as not to exceed the maturity date of the Original Note and Mortgage. - S.4 The interest rate and monthly payments set forth herein shall be subject to adjustment, initially, at the ex pira- tion of the Initial Loan Period aqd at the expiration of each successive~Option Period, if any, exercised hereunder. 5.5 To adjust the interest rate set forth in paragraph 5.1, Lender shall ass the latest monthly average contract rate of existing housing its effect upon the date the Lender shall notify the Assuming Borrower o! the Expiration of the Initial Loan Period or Option Period (the "Notice of Expiration"), as - ~calculated by the Federal Home Loan Bank Board and published in . the Federal Romp Loan Bank Board Journnl, Table S.5.1, under the designation o! "Oontract Interest Rate (Percent)" "Purchase of Previously Occupied Homes" (the "Index"~. The Index on the first _ s day of the Initial Loan Period is t 2.23 The interest rate shall be subject to ad ustment based upon th e percentage di!lerence between the - index on the first da.y of the _ Initial Loan Period and the Index _on- the date tie Lender shall a give Assumipg Borrower Notice of Expiration of the Initial Lnan { Period or any Option Period. Interest rate adjustments shall take effect oa the first-day of each Option Period and continue until the end o! said .Option Period. Increases in the interest rate at the times set forth herein shall be discretionary with the Lender t however, decreases in the Index shall require a mandatory decrease in the interest rate hereunder. Any decreases . ~n the interest rate. shall be applied to the reduction of the monthly payments. 5.6 Increases or decreases in the interest rate here- under shall-not exceed one-half of one percent (.5~) for each year of each successive Option Period and the total increase or decrease in the intorsst rate during the loan period set forth .herein, including the Initial Loan Period and all. option Periods, shall not axes p percent (51). 5.7 Landes shall, not less than ninety (90 ~ days be- j fore the expirRtion~of the Initial Loan Period and any option Period hereunder, provide Assuming Borrower with Notice of Expiration of seals, at r~hich time Assuming Borrower shall provide Lender with written confirmation of the action Assuming Borrower intends to take. The Assuming eorrower•s~election not to satisfy the outstanding indebtedness in full at the expiration of the Initial Loan Feri'oc1 or any Option Period shall automatically ex- ~ tend the matur~,ty date of the Indebtedness for an additional ~ Option Period. ~ 5.8 Assuming Borrower may prepay the principal amount outstanding in whole or in-part at any time. The Lender may require-that any partial prepayments be made on the date monthly , payments are due and be in the aigpunt- of that part of one or more ; , monthly payments ~~hich would be ~ applicable to principal . Any -partial prepayment shall not postpone the due d8te o_ f any subse- quent monthly payments or change the amount of such payments, ur.- less the Lender shall otherwise agree in writing. If, during the - period of time preceding ninety (90) days prior to expiration of ~ the Initial'Loan' Period the undersigned shall make prepayments of principal with lands borrowed from a lender other than the Lender herein, the. Borrower shall pay to Lender two (21) percent of the € ataount prepaid. - 2 of~ 4 - , _ L.