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160 023819
RENEGOTIABLE RATE RIDER
THIS RENEGOTIABLE RATE RZDER is made this 22N~ day of
DECEMBER , 19 80, and is incorporated into and s a 1 be
$eemec~ to amend and supplement a mortqaqe (herein "security
instrwaent") dated of even date herewith, qiven by the
undersiqned (herein "Borrower") to secure Borrower's Note to
Heritaqe Federal Savinqs and Loan Association (herein "Lender")
and coverinq the property described in said mortqage and
located at 1402 S.E. MANTN LANE, PORT ST. LUCIE, F~IORIDA.
(property address).
RENEGOTIABLE RATE COVENANTS. In addition to the covenants
and aqreements made in the security instrument, Borrower and
Lender further covenant and aqree~as foll~ws:
A. TERMS OF NOTE AND MORTGAGE. Borrower and Lender
acknowledqe that the security instrument shall be deemed a
Reneqotiable ~tate Mortgaqe ("RRN:" ). The term of the RRH
loan is 3 years, and the tern of the mortqaqe 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 terms.
8. NOTE AUTOMATICALLY RENEWABLE. Bdrrower and Lender
aqree 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 3~
years). The interest =ate 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 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 mortgage. Borrower and Lender aqree that the interest
z3te offered at renewal shall be based upon a monthly index
rate computed by the Federal Home Lo.an Bank Hoard, 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. Borrower and Lender
acknowledge that Borrower 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 mor±gage 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 Tena and any Renewal Loan Terms, except
for the final Renewal Loan Term, the Lender must send to the
Borrower a renewal notice which states, amonq ot'~er thinqs,
the renewal interest rate and new monthly installraent for
the next Renewal Loan Term.
F. PREPAYMENT. The unpaid principal balance secured
by the security instrwnent nay be prepaid in full or in oart
without penalty at any time.
G. REMEDIES. If Borrowe= breaches Borrower's covenants
and agreements hereunder, then Lender may invoke any remedies
provided unde= the security instrumpnt, includinq, but not
limited to, those provided under Uniform Covenant 7.
Bri~K345 PdGE~~~
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