HomeMy WebLinkAbout0947 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. Periods") as
may be necessary to .extend the term of the Indebtedness to '
1 • the a?aturity date of the Original Note and
Mortgagee prow e , however, that the final Option Period may be
less than. three. years so as not to .exceed the maturity date of
the Original Note and Mortgage.
5.4 The interest rate and -monthly payments set forth
herein shall be subject to adjustment, initially, at the ex pi~s-
tion of the Initial Loan Period and at the expiration of each
successive Option Period, if any, exeerbised hereunder.
5.5 'ib adjust the interest rate sat forth in paragraph
5.1, Landes shall we the latest monthly average contract rate of
existing housing in effect upon the date the Lender shall notify
the Assuming Borrower of the Expiration of the Initial Loan
Period or Option Period -(the "Notice of Expiration"), as
calculated by the Federal Home Loan Bank Board and pu blished in
• _ the Federal gees Loan Bank Board Journal, Table S.5.1, under the
designation of "Contract Interest Rate (Percent)" "purchase of
Previously Occupied__Homes" (the "Index"). The Index on the first
day of the Initial Loan Period is The
interest sate shall be subject to ad ustment.based upon the
percentage difference between the Index on the first day of the
Initial Loan -Period and the Index on the date tie Lender shall
give Assumipg Borrower Notice of Expiration of the Initial Loan
Period or any Option Period. Interest rate adjustments shall
take effect on the first day of each Option Period and continue
until the end of said. Option Period. Increases in the interest
rate at the times sat forth herein shall be discretionary with
the Lendare howeYes, decreases. in the Index shall require a
mandatory decrease in the interest rate hereunder. Any decreases
do the interest rata 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 iatereet rate during the loan period set forth
herein, including the Initial Loan Period and all. Option Periods,
~ shall not exce ;~~Y4 percent (5t).
'
S.~ Lendet shall, not less than ninety (40) days be-
fore the expirBtion~ of the .initialLoan Period and any option 4
Period hassunger~ provide Assuming Borrower-with Notice of
Expiration- of ~sa3aie, at rJhich time Assuming Borrower shall provide
Lender with wriEten confirmation of the action Assuming Borrower
~ intends to take. The Assuming Borrower's election not to~satisfy
the outstanding Indebtedness in full at the expf'ration of the
Initial Loan Period 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 anyount of that part of one or more
monthly payments wfiieh would be `applicable to principal. Any
.partial prepayaaent shall not postpone the due date of any subse-
t quent monthly payments. or change the amount of such payments, un-
less-the Lender shall otherwise agree in writing. If, during the
period of time preceding ninety (90) days prior to expiration of
the Initial•Loaa Period the undersigned shall make prepayments of 1
~ principal with lands borsowed from a lender other than the Lender
herein, the Borrower shall pay to Lender two (21) percent of the
~ amount prepaid.
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