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HomeMy WebLinkAbout0542~ VARIABLE RATE RIDER Loan Numb¢r. 12946-030 The Note which is secured by this Mortgage contains the following provisio~s which are incorporated in this Mortgage by reference: "VARIABLE RATE PROVISIONS-The interesi rate on this Note shatl be adjusted upward and downward from time to tlme in accordance with increases and decreases in the latest 'Average Cost of Funds to FSL1C lnsared Savings and Loan Associations, all distritts' index published by the Federai Home Loan Bank Board, Wa.chington, D.C. (such cost being hereinafter referred to as the'Index~ or such other index as may be prescribed by the Federal Home Loan Bank Board. Subjed to the foQowing provisions, such adjustments shaU be effected in such manner that the interest rate mai~tains the same margin above or below the Initial lnterest Rate as the last published Index is above or betow the last published lndex on the date of this Note: "(a) Interest rate adjustments (and loan payment changes resulting from them, if any) shall not be made more than once in each Annual Period and the first adjustment shall not occur until after the first Annual Period. As used in this Note, 'Annual Period' means each of th¢ successive 12-month p¢riods commencing with the due date of the first reyular monthly installment payabl¢ under this Note. "(b) No sooner than during the 3rd calendar month; nor later than during the 2nd calendar month prior to the start of each Annual P¢riod, the Holder shall review to what extent, if any, the interest rate shall be adj4sted in the succeeding Annual Period to reflect changes in the Index. Each review shall be based on the latest [ndex published prior ta the date of the review. "(c) The date when notification of any adjustment will be made to ihe Borrower(s) shall be a date no soc~ner than 90 days, but no later than 30 days, prior to the first loan installment payment due date of each Annua! Period. "(d) The annual monthly payment date when any adjustment in the interest rate shail become effective shaU be the first loan installment payment due date of each Annua) Period after the first Annual Period. "(e) Th¢ minimum adjustment (up ~r down) in the interest rate in any Annua! Period shail be one-tenth ot one (U. iU) perc¢nt. "(fl The maximum adjustment (up or down) in the interest rate in any Annual Period shall be one-hatf of one (0.5) percent a year, with a maximum net increase of 2.5 percent over the term of this Note. Downward adjustmenb in the interest rate shall be mandatory, but inaeases in the int¢rest rate are at th¢ Holder's option. Changes in the Index rate whkh are not taken in any Annual Period (either at the Holder s optian in the case of increases or because the change is less than one-tenth of one (0.10) percent or gr¢ater than one-half of on¢ (0.5) percent) may be accumulated by the Holder in the case of increases, and must be accumulated in the case of decreases, and taken, respectively, at a later time or next adjusiment date, (but never mor¢ than one-half of one (0.5) percent per Annual Period) or used to affset other changes. "(G) Upon notification of an increas¢ in the interest rate, the Borrower(s) sha11 have the fo0owing opbons: (i) Not respond to the notice, in which case the amount of each monthly installment payabte under this Note shall be adjusted upward to refiect the higher interest rate; (ii) Request that the term of this Note be extended up to a maximum of one-third of the original term of this Note (but not to such an extent that the monthly loan payments wou!d be reduced); or (iii) Within 90 days of such notification, pr¢pay the indebtedness evidenced by this Note, in whole or in part, without a prepayment charge if the new rate is above the lnitial Interest Rate. "(h) Interest rate decreases shall be applied first ta reduce the term of this Ncte to the degree, if any, the term was previously extend¢d (but not below the original term ot this Note) and shall be applied thereah¢r to reduce the amount of each monthly installment payable under this Note; however, the ioan term shall not be reduced to such an extent that monthly payments woutd be increased" ' IN WIlNESS WHEREOF, bc,rrower has executed this Variabie Rate Rider this ~~ ~ ,19 ~~ day of k ,/~~~^' Y"~ - ~ - - - -~%~.~-~~`~~ - - - -- PAiJL M. PITPS,~ JR. , A S MAN - ----------------------- S ~.13;~t; 198( M~~ 23 r;; i2~ C7 F,~c; er.+, -, ~, _ S: L!'~ti ~Ct'S.`~'.~i. .i'tiiGf R f'G~ ~ ~ .'.S -7 ~ C~E?f. ~~,~~~,.~ r.~,. . , .. cc. ,.~ . . ~ C,~..i~~ ~ .'~x ~351 r~~~~~ 5~1