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RENEGO:`IABLE RATE RIDER
TSIS RENEGOTIAHLE RATE RIDER is made this 19TI~ay of
~ECEMBER , 19 8p and fa incorporated into and s~iafl be
deemed to amend and supplement a mortgaqe {herein "security
instrwnent") dated of even date herewith, qiven by the
undersigned (herein "8orrower") to secure eorrower's Note to
Heritaqe Federal Savinqs and Loan Association therein "Lender")
and covering the property described in said mortqaqe and
located at 617 S~E. k'NITr~ORE DR „ PORT ST, LUCIEr FL 33452
(property addresai.
RENEGOTIABLE RATE COVENANTS. In addition to the covenants
and aqree~ents made in the security instrument, Borrower and
Lender further covenant and aqree as follows:
A. TERMS OF NOTE AND MORTGAGE. Borrower and Lender
acknowledqe that the secu=ity instrument shall be deemed a
Reneqotiable Rate Mortgage ("RRM"). The term of the RR'i
loan is 3 years, and t,Y~.e terra of the mortgaqe securing
said loan is 30years. Borrower and Lender agree that
the initial loan tena may be up to six (6) months longer
than later terms.
B. NOTE AIITOMATICALLY RENEWABLE. Borrower and Lender
agree that the Promissory Note ("~1ote") secured by the
mortgaqe instrument is automatically renewable for a period
equal to the term of the mortqaqe instrument (up to 30
years). The interest rate may increase or decrease at each
renewal of the short-term ( ; years) loan, which may
result in an increase or decrease in the amount of the
monthly payment due under the Note.
C. MODIFICATIONS ~iT RENEWAL. Lender agrees that the
only provision of said note which may be modified at renewal
is the contract interest rate set forth therein, together
with any chanqe in the amount of the munthly installments of
principal and interest necessary to amortize a loan •~ith the same
principal and at the same interest rate over the remaining tena
of this mortqaqe. Borrower and Lender agree that the interest
z3te offered at renewal shall be based upon a monthly index
rate computed by the Federal HomE Loan Bank Board, as set
forth in the ~Iote. Interest rate decreases and i~creases
are mandatory and are not discretionary or optional with the
Lender.
D. BORROWER'S RIGH'" OF REFUSAL. Borrower and Lender
acknowledge that Bo~rower has the right to decline Lender's
offer of renewal, in which case the remaininq balance of the
unpaid principal and interest secured by the mortqage becomes
due and payable upon the aaturity day of the Initial Loan
Term, or any Renewal Loan Term, 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, except
for the final Renewal Loan Tez~-, the Lender must send to the
Borrower a renewal notice which states, amonq ot'~er things,
the renewal interest rate and new ;aonthly installraent for
the next Renewal Loan Term.
F. PREPAYMEN'~. The unpaid principal balance secured
by the security instrument aay be prepaid in full or in part
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, includinq, but not
limited to, those provided under Uniform Covenant 7.
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