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RENEGOTIABLE RA-TE RIDER
TBIS RENEGOTIABLE RATL RIDER is made this 19TH day of
, 19~„l,, and is incorporated into and s a~l be
e~to amend and supplement a n~ortqaqe (herein "security
instrwaent") dated o~ even date herewith, qiven by the
undersigned the=ein "Borrower") to securs Borrower's Note to
` Heritage Federal Savinqs and Loan Association (herein "Lender")
and coverinq the property described in said mortgaqe and
located at ~LOT~j,~ r BLK 37, PLAC10 AVENUE, PORT ST. LUCtE, FLORIOA 33452
(property ad e s~.
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 MORTGAGE. Borrower and Lender
acknowledge that the security instrument shall be deemed a
Reneqotiable ~tate Mortqaqe ("RRM" ). The term of the RR*i
loan is 3 years, and the ten+.~ of the mortqaqe securing
said loan is ~p years. Bo=rower and Lender aqree that
the initial loan term may be up to six (6) months longer
than later terms.
B. NOTE AOTOMATICALLY RE~IEWABLE. Borrower and Lender
aqree that the Promissory Note (":~ote")_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
nwnthly payment due under the Note.
C. MODIFICATIONS AT RENEWAL. Lender aqrees that the
only provision of said note which may be modified at renewal
is the contract interest rate sec fcrth therein, together
with any chanqe in the amount of the monthly installiaents of
principal and interest necessary to amortize a loan with the same
principal and at the same interest rate over the r~cnaining term
of this mortqage. Borrower and Lender aqree that the interest
r3te offered at renewal shall be based upon a monthly i..zdex
rate computed by the Federal Some 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 RIGHT OF REFOSAL. Borrower and Lender
acknowledge that Borrower has the right to decline Lender's
offer of renewal, in which case t_he remaininq balance of the
unpaid principal and interest secured by the mortgage becomes
due and payable upon the Qaturity day of the Initial Loan
Term, or any Renewal Loan Terra, as the case raay be.
E. NOTICE. At least ninety (90) days before the en~
of the Initial Loan Term and any Renewal~Loan Terms, exceot
for the final Renewal Loan Term, the Lender must send to the
Barrower a renewal.notice which states, amonq ot'~er things,
the renewal interest rate and new monthly installr~ent for
the next Renewal Loan Term.
F. PREPAYMEN'~. The unpaid principal balance secured
b,y the security instrument aay be prepaid in full ar in oart
without penalty at any time.
,
G. REMEDIES. If Borrower ~reaches Borrower's covenants
and agreements hereuader, then Lender may invoke any remedies
provided under the secusity instrument, includinq, but not
limited to, those provided under Unifor.n Covenant 7.
L~~ -~ 9 a~~x 3~7 P~~E ~.740
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