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147 023951
RENEGOTIABLE RATE~RIDER
THIS RENEGOTIABLE RATE RIDER is made this 14TH day of
~ANUARY , 1981, and is incorporated into and s a 1 be
$eemed to amend and supplement a mortqaqe (herein "security
instrument") dated of even date herewith, qiven by the
uadersiqned (herein "Borrower") to secure Borrower's Note to
Heritaqe Federal Savinqs and Loan Association (herein "Lender")
and coverinq the property described in said mortgaqe and
located at ~. PORT ST. LUCIE* FL 33452
(property ad ress .
RENEGOTIAHLE RATE COV~'NANTS. 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 MORTGAGE. Borrower and Lender
acknowledqe that the security instrument shall be deemed a
Renegotiable ?tate Mortqage ("RRM" ). The term of the RR'i
loan is 3 years, and tl~.e terra 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 longer
than later tenas .
B. NOTE AIITOMATICALLY RENEWABLE. Borrower and Lender
agree that the Promissory Note (":Iote") secured by.the
mortqage 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 ( 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 tY:at 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 o~ -
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
r3te offered at renewal shall be based upon a c~nthly index
rate comnuted by the Fede=al 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
offer of renewal, in which case t-ie reiaaining balance of the
unpaid principal and interest secured by the.mortgage becomes
due and payable upon~the aaturity day of the Initial Loan
Term, or any Renewal Loan Tera, as the case r~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 raust send to the
Borrower a renewal notice which states, amonq ot'~er things,
the renewal interest rate and new monthly installiaent for
the next Renewal Loan Term.
F. PREPAYMENT. The unpaid principal balance secured_
by the security instrument aay be prepaid in full or in part
without penalty at any time.
G. REt~1EDIES. If Borrower breaches Borrower's covenants
and agreements hereunder, then Lender may invoke any remedies
provided under the security instrument, including, but not
limited to, those provided under Uniform Covenant 7.
LCS -6 9
8~~~ 34~ Y~Gt ~4
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