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VARIABLE RATE RIDER
Loan'~ umoer.
13345-630
The Note whic:h is secwed by this Mortgage contains the following pcovisions which are incorpcrated in this Mortgage
by reference:
"VARIABLE RATE PROVISIONS-The interest rate on this Note shall be adjusted upward and downward !rom time to time
in accordance with increases and deaeases in the latest 'Av¢rage Cost of Funds to FSL1C lnsured Savings and Loan
Associatio~s, all distrkts' index published by the Federa! Home Loan Bank Board. Washington. D.C. (such cost being
her¢inafter referred to as the'Index') or such other index as may be preseribed~by the Federal Home Loan Bank Board. Subject
to the following provisions, such adjustments shall be eHected in such manner that the tnterest rat¢ maintains the same margin
above or bebw the Initial Interest Rate as the last published Index is above or below the last published Index on the date of this
Note: .
"(,aa lnterest rate adjustments (and loan payment changes resulting from them, if any) shall not b¢ made more than once in
each Annual Period and the first adjustment shall not occur until after the f"vst Annual Period. As used in this Note, `Annuai
P¢riod' means each of th¢ successive 12-month periods commencing with tne due date of the first regutar monthly tnstallment
payable under this Note.
"{b) No sooner than during the 3rd calendar month, nor later ihan during the 2nd calendar month prior to the start of each
Annual Feriod the Holder shall review to what extent, if any, the interest rate shall be adjusted in the succeeding Annual
Period to reflect changes in the Index. Each review shall be based on the latest Index published prior to the date ot the review.
"(c) The date whgn notification of any adjustment will be made to the Borrower(s) shall be a date no sooner than 90 days, but
no tater than 30 days, prior to the first loan installment payment due date of each Annual Period.
"(d- The annual monthly payment date when any adjustment in the interest rate shail become effective shaU be the first loan
~nstallment payment due date of each Annual Period after the first Annual Period.
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"{e) The minimum adjustment (up or down) in the interest rate ~n any Annuai reriod si~nu i~ unr-i~uiu o~ ~r~~c r...w E•~••.~~•~
"(fl The maximum adjustment (up or down) in the interest rate in any Annual Period shap be one-half of one (Q.5) percent a
year, with a maximum net inaease of 2.5 percent over the term of this Note. Downward adjustrnents in the interest rate shall be
mandatory, but inaeases in the int¢r¢st rate are at the Holdei s option. Changes in the Index rate whkh are not tak¢n in any
Annual Period (either at the Holder s option in the case of inaeases or because the chang¢ is less than one-tenth of on¢ (0.10)
percent or ~eater than one-half of one (0.5) percent) may be accumulated by the Holder En the case of increases, and must be
accumulated in the case ot decreases, and taken, respectively, at a later time or next adjustment date, (but never more than
one-haff of one (0.5) percent per Annual Period) or used to offs¢t other changes.
"(G) Upon notification of an inaease in the interest rate, the Borrower(s) shaU have the following options: {i) Not respond to
th¢ notice, in which case the amount of each monthly installment payabie under this Note shall be adjusted upward to r¢flect
the higher interest rate; (u) Request that the term of this Note be ext¢nded up to a maximum of one-third of the original term of
this Note (but not to such an extent that the monthiy loan payments would be reduced): or (iri) Within 90 days of such
no~fication, prepay the indebtedness evidenced by this Note, in whole or in part, without a prepayment charge if the new rate is
above the !r-itia) Interest Rate.
"(h) lnterest rate decreases shall be applied first to reduce the term of this Note to the degree, if any, the term was previously
extended (but not bebw the original term of this Note) and shall be applied thereafter to reduce the amount of each monthly
installment payabie under this Note; however, the loan term shall not be reduced to such an extent that monthiy payments
would be inaeased"
IN W1TI~ESS WHEREOF, borrower has executed this Variable Rate Rider this t h i rte enth
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NS RFAL~,'SC ~~NC.~
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JO~HIGGINS;, ~C~fAIRI+~1N OF ~ BOAI~
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