HomeMy WebLinkAbout0168 RENEGOTIABLE R..A++TE MORTGAGE RIDER
NOTIGF: TH~ ~ECURI~~,tDNSTRUMENT SECURES A RRM NOTE WHICH
CONTAINS A PROVISION ALLOWING FOR CHANGES IN THE INTEREST
RATE. INCREASES IN THE INTEREST RATE MAY RESULT IN HIGHER
PAYMENTS. DECREASES IN THE INTEREST RATE WILL RESULT IN
LOWER PAYMENTS.
This Renegotiable Rate Mortgage ("RRM") is made this 31 day
of October 19 80 , and is incorporated into and shall be
deemed to amend and supplement the Mortgage, Deed of Trust, or Deed
to Secure Debt (the "Security Instrument") of the same date given by
the undersigned (the "Borrower") to secure Borrower's RRM Note to
INDIAN RIVER FEDERAL SAVINGS AND LOAN ASSOCIATION (the "Lender") of
the same date (the "Note") and covering the pproperty described in
the Security Instrument and located at 12Di_ So: j13~. Street
Property Address
RRM Modifidations. 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 CHARGES
The Note provides for an "Initial Inter'est`R~te" which may }
be increased or decreased on each Change Date, as'descr~ed in the
Note.' Changes in the interest rate are governed by Cha~rg}es in the
"Contract Interest Rate, Purchase of Previously Occupied Homes,
National Average for all Major Types of Lenders" made available by
the Federal Home Loan Bank~Board (the "Index"). The rate of in-
terest cannot be changed to more than five percentage points higher
or lower than the Initial Interest Rate.
If the rate of interest changes, the amount of the Bor-
rower's monthly payments may change as provided in the Note. In-
creases in the interest rate may result in higher payments. De-
creases in the interest rate will result in lower payments.
The amount of the monthly payments will always be suffi-
cient to repay the loan in full in substantially equal payments by .
the final payment date.
B. LOAN CHARGES -
It could be that a law which applies to the loan secured
by the Security Instrument and which sets maximum loan charges would 7
be interpreted so that the interest or other loan charges collected
or to be collected in connection with the loan would exceed the per-
witted limits. If this is the case, then: (A) any such loan
charge shall be reduced by the amount necessary to reduce the ~
charge to the permitted limit; and (B) any sums already collected
~ from Borrower which exceeded permitted limits will be refunded to ~
Eorr:,wer. Lender ,:..:y choose to make this refund by re~e!cing the
principal owed under the Note or by making a direct payment to
Borrower.
C. PROTECTION OF LIEN SUPERIORITY !
Any claim,demand or charge that is made against property
in connection with an obligation that has not been fulfilled is
known as a "lien". Borrower will promptly pay or satisfy all liens
against tine Property that may be superior to all or part of the
lien of this Security Instrument. However, this Security Instru-
went does not require Borrower to satisfy a superior lien if (A)
Borrower agrees, in writing, to pay the obligation which gives rise
to the superior lien and the Lender approves the way in which the
Borrower agrees to pay that obligation; or (B) Borrower, in good
faith, argues br defends against the superior lien in a lawsuit so
that, during the lawsuit, the superior lien may not be enforced
g and no part of the Property must be given up; or (C) Borrower
~ secures from the person who holds the superior lien a written agree-
went, approved by Lender, that the lien is inferior to the lien of
this Security Instrument.
If Lender concludes that all or a part of the sums secured
by this Security Agreement are subject to a lien that may be a
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