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167. 024227
RENEGOTIABLE RATE RIDER
TSIS RENEGOTIABLE RATE R=DER is caads this 3RD day of
MARCH , 1981, and is incorporated into and s a 1 be
eem to amend~and suppl~aent a mortqaqe (herein "security
instrumant") datad ot even date hereWitlz, qiven by t~e
undersiqned (herein "Borrower") to secure Borrower's Yote to
Heritaqe Federal Savings and Loan As9ociation (haraia "Lender")
and coverinq tha property described tn said mortqaqe and
Iocated at LOT 12 BLK 155 PORT ST U
(property a ess . ~
RENEGOTIASLE RATE COVENAi~1'TS. In addition to the covenants
and agreements made ia the security instrument, Bonower and
Lender further covena.nt and aqree a~ follows:
A. TERMS OF NOTE AND KORTGAGE. Borrower and Lender
ackaawledge that the security instrument shall be deemed a
Reneqotiable ztate Mortgaqe ("R.RM" ). The tezm of the RR.K
loa.a is --~- years, and t~e term of the mortqaqe securi.~g
said loaa is 3~ years. Borrower and Lender aqres that
the initial loaa term may be up to six (6) months lonqer
than later terms _
B. NOTE AOTOMATICALLY R~EWABLE. 3orrower and Lender
aqree that the Prvmissory Note (",Tote") secured by the
mortqaqe instruaaent is automatically renewable for a per_od
equal ta the ternt of the mortqaqe instrt~ent (up to 3Q
years) . T'~e interest rate may~ increase or decrease at each
renewal of the short-term ( ;~ears) loan, which may
restrlt in aa increase or decrease in the amount of }..he
montlily payment dua uader the Note.
C. MODIFICATIONS aT QE.YEWAL.. Lender aqrees that the
only provision of said note which may be aodified at renewal
is the ccntract iaterest rate set forth therein, toqether
with any chanqe-i.n the amount of the monthly insta+lnents o~
pri.ncipal and interest necessary to amortize a loaa with t'~e same
grincipal and at the same interest rate over the .remai::inq ter~a
of this mortgaqe. Bozrawe= and Lender aqrae that the interest
r3te oifered at renewal shall be based uFon a monthly index
rate coaanuted by the Federal Home Loan Bank Board, as set
forth in the vote. Interest rate decreases an~ increases
are mandatory and are not discretionazy or op onal with the
Lender.
D. HORROWER'S RIGH'3" OF ~EFIISAL. Horrower and Lender
acknowledqe that Borrowe= has the riqht to decli.ne Lender's
offer of renewal, in which case t~e remaininq bala.nce of the
unpai~ principal and interest secured by the mor±qaqe becomes
due and payable upon the ~aturity day of *_ize Zni aal *.oan
Te=m, or any Renewal Loan Te=m, as the case nay be.
~.. NOTICE. At least ninety (90) days before the end
of the Znitial Loaa Term and any ~eaewai Lcan ?'erms, excent
fo= the final Renewal Loaa Ter.a, the Lender must send to the
Borrower a zenewal aotice ~~-hicS states , amonq ot:~er things,
the rene~al interest rate and new monthly instalL3ent for
the next Reaewal Loan Term.
F. PREPAYMENT. The •aapaid oriaci~al balance secuzed
by the security instrument aay be prepaid in full or in oa:t
•aithout penalty at any time.
G. R,EMEDIES. If Bor~ower breaches Horrower's covenaats
and agreemeats hereunder, taen Lender may invoke any remedies
provided unde= t.~e security :.nst~~-umP~t, includinq, but not
limited to, those prcvided under Jnifor.n Covenant 7.
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