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HomeMy WebLinkAbout0647RENEGOTIABLE RATE MORTGAGE RIDER ~ NOTICE: THE SECURITY INSTRUHENT SECURES A RRM NOTE WHICH CONTAINS A PROVISION ALLOWING FOR CHANGES IN THE INTEREST RATE. INCREASES IN THE INTEREST RATE MAY RESULT IN HICHER PAYMENTS. DECREASES IN THE INTEREST RATE WILL RESULT IN LOWER PAIMENTS. This Renegotiable Rate Mortgage ("RRM") is made this ~ day of pecentber , 19 80 , and is incorporated into and shall be deemed to amend and supplement ttre-MsTtgage, 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 I~DIAN RIVER FEDERAL SAVINGS AND LOAN ASSOCIATIOH (the "Lender") of the same date (the ":Vote") and covering the property described in the Securi[y Instrument and located at2400 S. OCean Drive, Fort Pierce, r-L. Property Address RRK Hodifications. In addition to the covenants and agreements made in the Securit_y Instrumen[, Borrover and Lender further covenant and agree as follows: A. INTEREST RATE A\D MOhTHLY PAYMENT CHANGES The ~Iote provides for an "Initial In[erest 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 Interes[ Rate, Purchase of Previously Occupied Homes, Nation:l ~verage for all Major Types of Lenders" made available by the Federal Hoae Loan Bank Board (the "Index"). The rate of in- terest cannot be changed to more than five percentage points higher or loter than the Initial Interest Rate. _ If the rate of interest changes, the amount of the Bor- rower's ~onthlv paynents may change as provided in the Note. In- crea~es in the interest rate may result in higher payments. De- creases in the interest rate will result in lourer payments. The anount of the monthly payments ~,rill always be suffi- cient to repaS the loan in full in substantially equal payments by the final payment date. B. LOAt~ CHARGES It could be that a law which applies to the loan secured by the Security Instrument an~ which sets maximum loan charges would be interpre[ed so [hat the interest or other loan charges collected or to be collec[ed in connection vith the loan ~:ould exceed the per- mitted Iimits. If this is the case, then: (A) any such loan charge shall be"reduced b~ the amount necessary to reduce the charge to the pernitted limit; and (B} any sums already collected from Borrover which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal ou-ed under the hote or by making a direct payment to Borrover. C. PF.OTECTION OF LIEti SUPERIORITY Any clain,der~and or charge that is nade against property in connection with an obligation that has not been fulfilled is - knoWn as a"lien". Bor~rover vi11 promptly pay or satisfy all liens against the Propert} that may be superior to all or part of~the lien of this Securitv Instrunent. Ho~rever, this Security Instru- ment does not require ~Borrover to satisfy a superior lien if (A) BorroWer agrees, in writing, to ~ay the obligation which gives rise to the superior lien and the Lender approves the way in ~rhich the Borrower agrees to pay that obligation; or (B) BorroWer, in good faith, argues or defends against the superior lien in a lavsuit so that, during the lavsuit, the superior lien may not be enforced and no part of the Property nust be given up; or (C) Borrover secures from the person who holds the superior lien a~,rritten agree- ment, apgroved by Lender, tnat the lien is inferior to the lien of this Security Instrunent. 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 ~`~ 347 ~~~E 644 o~1~1K • i ' ' ~::` ~ ~~ ~ , m~ p ~~,~ -~~,c:~ ., -_ ~=:~ __ _.~~:.