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RENEGOTIABLE RATE RIDER
THIS RENEGOTIABLE RATE RIDER is mac~e this 16TN day of
DECEMBER , 1980, and is incorporated into and s~ a~l be
$eemed to amend and suppleiaent a mortqaqe (herein "security
instru~aaent") dated of even date herewith, qiven by the
~'indersiqned (herein "8orrower") to secure Borrower's Note to
Heritaqe Federal Savinqs and Loan Association (herein "Lender")
and coverinq the property described in said mortqaqe and
located at LOT 10, MISTLETOE ST,, PORT ST. LUCIE, FLORIDA 33452
(property addressj.
RENEGOTIABLE RATE COVENANTS. In addition to the covenants
and aqreements made in the security instrument, Borrower and
Lender further covenant and aqree as fo_llows:
A. TERMS OF NOTE AND MORTGAGE. Borrower and Lender
acknowledqe that the security instrument shall be deeraed a
Reneqotiable Rate Mortqage ("RRM"). The term of the RRH
loan is 3 years, and the ter~n of the mortgaqe securing
said loan is 30 years. Borrower and Lender agree that
the initial loan term may be up to six (6) months lonqer
than later tenas .
8. NOTE AUTOMATICALLY RENEWABLE. Borrower and Lender~
aqree that the Promissory Note ("Note") secured by the
mortgage instrument is automatically renewable for a period
equal to the term of the mortgage instrument (up to 30
years). The interest rate may increase or decrease at each
renewal of the short-term ( 3 years) loan, which may
result in an increase or decrease in the amount of the
monthly payment due under the Note.
C. MODIFICATIONS ~T RENEWAL. Lender aqrees that the
only provision of said note which may be modified at renewal
is the contract interest rate set forth therein, toqether
with any chanqe in the amount of the monthly installments of
principal and interest necessary to amortize a loan with the same
principal and at the same interest rate over the remaining term
of this mortqage. Borrower and Lender aqree that the interest
r3te offered at renewal shall be based upon a monthly index
rate computed by the Federal 8ome Loan Hank Board, as set
forth in the Note. Interest rate decreases and increases
are mandatory and are not discretionary or optional with the
Lender.
D. BORROWER'S RIGHT OF REFUSAL. Horrower and Lender
acknowledge that Borrower has the right to decline Lender's
offer of renewal, in which case t,.he remaining balance of the
unpaid principal and interest secured by the mortgaqe becomes
due and payable upon the aaturity day of the Initial Loan
Term, or any Renewal Loan Tena, as the case raay be.
E. NOTICE. At least ninety (90) days before the end
of the Initial Loan Term and any Renewal Loan Terms, exceot
for the final Renewal I.oan Term, the Lender must send to the
Borrower a renewal notice which states; among o~'~er things,
the renewal interest rate and new monthly installraent for
the next Renewal Loan Term.
F. PREPAYMENT. The unpaid principal balance secured
by the security inst-wnent may be prepaid in full or in oart
without penalty at any time.
G. REMEDIES. If Borrower breaches Borrower's covenants
and agreements hereunder, then Lender may invoke any remedies
provided unde= the security instrument, including, but not
liuaited to, those provided under Uniform Covenant 7.
~ LCS-69
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$~~ 345 ~~E 317
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