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147-023778
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RENEGOTZABLE RATE RIDER
THIS RENEGOTIASLE RATE BIDER is made this 22ND day of
~ECEMBER , 19 84 and is incorporated into and s a 1 be
~eemed to amend and supplement a mortqaqe (herein "aecurity
iristrwaent") dated of even date herewith, qiven by the
undersiqned (herein "Borrower") to secure 8orrower's Note to
8eritaqe Federal Savinqs and Loan Association (herein "Lender")
and coverinq the property described in said mortgaqe and
located at LCT 2, SCUTH t'CEAR URIVE, FT. PIERCf, FLt`R1DA 3345(!
(property ac~dress) .
RENEGOTIABLE RATE COVENANTS. In addition to the covenants
and agreements made in the security instrument. Borrower and
Lender further covenant and agree as follows:
A. TERMS OF NOTE AND MORTGAGE. Borrower and Lender
acknowledqe that the security instrument shall be deemed a
Reneqotiable Rate Mortqage ("RRM"). The term of the RR*~
loan is 3 years, and the term of the mortqaqe securinq
said loan is 30 years. Borrower and Lender aqree that
the initial loan term may be up to six (6) months lonqer
than later terms.
B. 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 i.ncrease 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 AT RENEWAL. Lender aqrees that the
only provision of said note which may be modified at renewal
is the contract interest rate set forth therein, together
with any change in the amount of the monthly installments of
principal and interest necessary to amortize a loan with the same
principal and at the satae interest rate over the remaining term
of this mortqaqe. Borrower and Lender aqree that the interest
r3te offered at renewal shall be based upon a monthly index
rate comcuted by the Federal Home Loan Bank 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 RIGH'* OF REFUSAL. Borrower and Lender
acknowledge that Borrower has the right to decline Lender's
offe= of renewal, in which case the remaininq balance of the
unpaid principal and interest secured by the mortgaqe becomes
due and payable upon the raaturity day of the Initial Loan
Term, or any Renewal Loan Term, as the case ~aay be.
E. NOTICE. At least ninety {90) days before the en~
of the Initial Loan Term and any Renewal Loan ?'erms, except
for the final Renewal Loan Term, the Lender must send to the
Borrower a renewal notice which states, amonq other things,
the renewal interest rate and new month+y installment for
the next Renewal Loan Term.
F. PREPAYMEN'F. The unpaid principal balance secured
by the security instrument ~-ay be prepaid in fuli or in part
without penalty at any time.
G. REMEDIES. If Borrower breaches Borrower`s covenants
and agreeinents hereunder, then Lender may invoke any remedies
provided under the security instrument, including, but not _
Iunited to, those provided under Uniform Covenant 7.
LCS -6 9
s~x 345 P~~t 2~15
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