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163-02387?
RENEGOTIABLE RATE RIDER
TBIS RENEGOTIABLE RATE RIDER is made this 23R~ day of
DEC~MBER , 1g 8q and is incorporated into and s a 1 be
~eemed to amend and supplement a mortqaqe (herein "security
instrument") dated df even d~te herewith, qiven by the
undersiqned (herein "Borrower") to secure eorrower's Vote to
Seritaqe Federal Savinqs and Loan Association (herein "Lender")
and coverinq the property described in said mortqaqe and
located at - i i1~Y IAt~~F. ~~'ttITE CITY~ ~l~RI~Q 33<<S2
(property a ress .
RENEGQTIABLE RATE COVENANTS. In addition to the covenants
and aqreements made in the security instrument, Borrower and
Lender further covenant and agree as follows:
A. TERMS OF NOTE AND MORTGAGE. Borrower and Lender
acknowledge that the security instrument shall be deemed a
Renegotiable ~tate Mortqaqe ("RRM"). The term of the RRY
loan is 3 years, and the ten!t of the mo=tgaqe securinq
said loan is ~~ years. Borrower and Lender aqree that
the initial loan term may be up to six (6) months longer
than Zater tenas .
8. NOTE AtJTOMATICALLY RryE'AABLE. Borrower and Lender
aqree that the Promissory Note ("Yote") secured by the
mortgage instrument is automatically renewable for a period
equal to the term of the mortqage 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 ari increase or decrease in the amount of the
monthly payment due under the Note.
C. MODIFICATIONS AT RENEWAL. Lender aqrees that the
only provision oE said note which may be r~odified at renewal
is the contract interest rate:set forth therein, together
with any change in the amount of the monthly installraents o~
principal and interest necessary to amartize a loan with the same
principal and at the same interest rate over the remaining term
of this mortqage. Borrower and Lender agree that the interest
r3te offered at renewal shall be based upon a monthly index
rate comAUted 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 riqht to decline Lender's
offer of renewal, in which case the reraaininq balance of the
unpaid principal and interest secured by the mortgage becomes
due and payable upon the ~aturity day of the Initial Loan
Term, or any Renewal Lc~an Terr.~, as the case raay be .
E. NOTICE. At least ninety (90) days before the end
of the Initial Loan Term and any Renewal Loan Terms, exceot
for the final Renewal Loan Term, the Lender must send to tl:e
Borrower a renewal notice which states, amonq ot~'~er things,
the renewal interest rate and new monthly 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 ~n oart
without 2enalty at any time.
G. RE2~IEDIES. If Borrower breaches Borrower's covenants
and agreements hereunder, then Lender may invoke any remedies
provided under the security instrument, includinq, but not
limited to, those provided under Uniform Covenant 7.
LCS -6 9 8~?~K 346 PAGE ~e ~~