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HomeMy WebLinkAbout2843147 024036 RENEGOTIABLE RATE RIDER TSIS ~RENEGOTIABLE RATE RIDER ie made this 30TH day o~ JANUARY , 19 8~, and is incorporated into and sza 1 be deemec~ to amand and supplemeat a mortqaqe (hsrein "security inatrvn~ent") dated o! ~ven date herewith, qiven by the underaiqned (harsin "Borrower") to sscura Borrower'a Note to Seritaqe Federal Savinqs and Loan Association (herein "Lender") and coverinq the propert deacribed in said mortqage and located at LOT 4, MINOR~A AVENUE, PORT ~T. LUCIE, FLhRIDA 33452 (property adc~ress) . RENEGOTIABLE RATE COVENANTS. In addition to the covenants and aqreements made in the security instrwaent, 8orrower and Lender further covenant and aqree as follows: Reneqotiab~e Rate Mortqaqe ("RRM"). The term of the RRK B. NOTE ALITOMATICALLY RENEWABLE. Borrower and Lender aqree that the Promissory Note (":vote") secured by the mortqaqe instrument is automatically.renewable for a period equal to the term of the mortqaqe instrument (up to iS years). The interest rate may increase.or decrease at each renewal of the short-tena ( 3 yea=s) loan, which may result in an increase~or decrease in the amount of the monthly payment due under the Note. A. TERMS OF NOTE AND MORTGAGE. 8orrower and Lender acknowledqe that the security instrwnent shall be deemed a loan is years, and the tena of the mortqaqe securinq said loan~s _~_ year9. Borrower and Lender aqree that the initial loan term may be up to six (6) months lonqer than later terma. C. MODIFICATIONS AT RENEWAL. Lender agrees that the only provision of said note which may be modified at renewal is the contract intereat rate set forth therein, toqether with any chanqe in the amount of the monthly installments of principal and interest necessary to amortize a loan with the same principal and at the same interest rate over the remaining term of thfs mortgage. Borrower and Lender aqree that the interest r3te offered at renewal shall b~e based upqn a monthly index rate computed by the Federal Home Loan. Bank Board, as set ~ forfili in the Note. Interest rate decreases and ~ncreases are mandatory and are not discretionary or optional with the Lender. D. BORROWER'S RIGHT OF REFUSAL. Borrower and Lender acknowledqe that Borrower has the right to decline Lender's offer of renewal, in which case the remaininq balance of the~ unpaid principal and interest secured by the mortqaqe becomes due and payable upon the aaturity day of the Initial Loan Term, or any Renewal Loan Term, as the case may be. E. NOTICE. At least ninety (90) days before the end of the Initisl Loan Term and any Renewal Loan Terms, exceot for the final Renewal. Loan Term, the Lender must send to the Botrower a renewal notice which states, amonq other things, the renewal interest rate and new monthly installment for the next Renewal Loan Term. F. PREPAYMENT. The unpaid principal balance secured by the security instrument may be prepaid in full or in part without penalty at any time. G. REMEDIES. If Borrower breaches Borrower's covenants and aqreements hereunder, then Lender may invoke any remedies provided under the security instrumPnt, includinq, but not limited to, those provided under unifor.n Covenant 7. LCS -6 9 ~ ;:~.;_ -__ , . _ - .. ..; - ~~~-~-~~'.~,~~.~~~~.s-..:n.:~-, ::...= -=~ R~~K3~7 ~~U~2~ -- .~ ~~_. `-~~~