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RENEGOTIABLE RATE MORTGAGE RIDER
NOTICE: THE SECURITY ZNSTRUMENT SECURES A RRM NOTE WHICH
CONTAINS A PROVISION ALLOWING FOR CHANGES IN THE INTEREST
RATE. INCREASES IN THE INTEREST RATE MAY RESULT IN HIGHER
PAYMENTS. DECREASES IN THE INTEREST RATE WILL RESULT IN
LOWER PAYMENTS.
This Renegotiable Rate Mortgage ("RRM") is made this 19th. day
of November , 19 80 , and is incorporated into and shall be
deemed to amend and supplement the Mortgage, Deed of Trust, or Deed
to Secure Debt (the "Security Instrument") of the same date given by
the undersigned (the "Borrower") to secure Borrower's RRM Note to
INDIAN RIVER FEDERAL SAVINGS AND LOAN ASSOCIATION (the "Lender") of
the same date (the "Note") and covering the property.described in
the Security Instrument and located at 2400 South Ocean Drive ,
. Property Address
RRM Modifications. In addition to the covenants and agreements
made in the Secu.rity Instrument, Borrower and Lender further covenant
and agree as follows:
A. INTEREST RATE AND MONTHLY PAYMENT CHANGES
The Note provides for an "Initial Interest Rate" which may
be increased or decreased on each Change Date, as described in the
Note. Changes in the interest rate are governed by changes in the
"Contract Interest Rate, Purchase of Previously Occupied Homes,
National Average for all Major Types of Lenders" made available by
the Federal Home Loan Bank Board (the "Index"). The rate of in-
terest cannot be changed to more than five percentage points higher
or lower than the Initial Interest~Rate. ~
If the rate of interest changes, the amount of the Bor-
rower's monthly payments may change as provided in the Note. In-
creases in the interest rate may result in higher payments. De-
creases in the interest rate will result in lower payments.
The amount of the monthly payments will always be suffi-
cient to repay the loan in full in substantially equal payments by
the f inal payment iiate. - ,
B. LOAN CHARGES
It could be that a law wh7ch applies to [he loan secured
by the Security Instrument and which sets maximum loan charges would
be interpreted so that the interest or other loan charges collected
or to be collected in connection with the loan would~exceed the per-
mitted limits. If this is the case, then: (A) any such loan
charge shall be reduced by the amount necessary to reduce the
charge to the permitted limit; and (B) any sums already collected
from Borrower which exceeded permitted limits will be refunded to -
Borrower. Lender may choose to make this refund by reducing the
principal owed under the Kote or by making a direct payment to
Borrower.
C. PROTECTION OF LIEN SUPERIORITY .
Any claim,demand or charge that is made against property
in connection with an obligation that has not been fulfilled is
known as a"lien". Borrower will promptly pay or satisfy all liens
against the Property that may be superior to all or part of the
lien of this Security Instrument. However, this Security Instru-
ment does not require Borrower to satisfy a superior lien if (A)
Borrower agrees, in writing, to pay the obligation which gives rise
to the supe.rior lien and the Lender approves the way in which the
Borrower agrees to pay that obligation; or (B) Borrower, in good
faith, argue$ or defends against.the superior lien in a lawsuit so
that, during the lawsuit, the superior lien may not be enforced
and no part of the Property must be given up; or (C) Borrower
secures from the person who holds the superior lien a written agree-
ment, approved by Lender, that the lien is inferior to the lien of
this Security Instrument.
If Lender concludes that all or a part of the sums secured
by this Security Agreement are subject to a lien that may be a
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