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RENEGOTIABLE RATE RIDER
TBIS RENEGOTIABLE RATE R2DER is made this 6TN day of
JANUARY , 19 8~ and is incorporated into and sh~l be
~eemed to amend and supplement a mortqaqe (herein "security
instrument") dated of even date herewith, qiven by the
undersigned (herein "Borrower") to secure eorrower's Nota to
Heritage Federal Savinqs and Loan Association (herein "Lender")
and coverinq the property described in said mortgaqe and
located at DAVIS STREET* FT. PIERCF, FLORInA 33450
(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 follows:
A. TERMS OF NOTE AND '_KORTGAGE. Borrower and Lender
acknowledqe that the security instrument shall be deemed a
Reneqotiable Rate Mortqage ("RRN:"). The term of the RRM
loan is 3 ~years, and t1~.e tenn of the mortgaqe securinq
said loan is 30 years. Borrower and Lender agree that
the initial loan term may be up to six (6) months longer
than later terms.
B. NOTE AUTOMATICALLY RENEWABL~. Borrower and Lender
aqree that the Promissory Note ("~TOte") 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. MODZFICATIONS AT RENEWAL. Lender agrees tY~~at 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 mortgage. Borrower and Lender agree that the interest
r3te,offered at renewal shall.be based upon a monthly i.ndex
rate comouted by the Federal 8ome Loan Bank Board, as set
forth in the Yote. Interest rate decreases and increases
are mandatory and are not disc=etionary or optional with the
Lender.
D. BORROWER'S RIGHT OF REFUSAL. Borrower and Lender
acknowledqe 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 mortqaqe.becomes
due and payable upon the maturity day of the Initial Loan
Term, or any Renewal Loan Terra, as the case ~ay 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 Term, the Lender ~aust send to the
Borrower a renewal notice which states, among ot'~er things,
the renewal interest rate and new ,nonthly install~ent for
the next Renewal Loan Term.
F. PREPAYMENT. The unpaid principal balance secured
by the security instrument ~ay be prepaid in full or in oart
without penalty at any time.
G. RE2sEDIES. If Borrower breaches Borrower's covenants
and aqreements hereunder, then Lender may invoke any remedies
provided under the security instrument, includinq, but not
Iimited ta, those provided under Uniform Covenant 7.
LCS -6 9
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a~ x 346 Pa~E 82~