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HomeMy WebLinkAbout0562__l._ LVQII I~UII~IVrI VARIABLE RATE RIDER The Note which is secured by this Mortgage contains the following provisions which are incorporated in this Mortgage by reference: "VARIABLE RATE PROVISIONS-The interest rate on this Note shall be adjusted upward and downward from time to time in accordance with increases and deaeases in the latest `Average Cost of Funds to FSLIC lnsured Savings and Loan Associations, atl districis' index published by the Federal Home Loan Bank Board, Washington, 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. Subject to the following provisions, such adjustments shall be eHected in such manner that the interest rate maintains the same margin above or below the Initial Interest Rate as the last published Index is above or below the last published Index on the date of this Note: "~a) Interest Tate adjustments (and loan payment changes resulting from them, if any) shaU not be made more than once in each Annua) Period and the first adjustment shall not occur until aher the fint Annual Period. As used in this Note, `Annuai Period' mea~s each ot the successive 12-month periods commencing w7th the due date of the f'vst regular monthly installment payable 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 Period, the Holder shall review to what extent, if any, the interest rate shall be adjusted in the succeeding Annua) Period to reflect changes in the Index. Each review shall be based on the latest Index published prior to the date of the review. "(c) The date when notification of any adjustment will be made to the Borrower(s) shall be a date no sooner than 90 days, but no later than 30 days, prior to the first loan instaliment payment due date of each Annual Period. "(d) The annual monthly payment date when any adjustment in the interest rate shall become effective shall be the first loan instaliment payment due date of each Annual Period after the first Annual Period. "(e) The minimum adjustment (up or down) in the interest rate in any Annual Period shall be one-tentl- of one jU.IU1 p~cent. "(fl The maximum adjustment (up or down) in the interest rate in any Annual Period shaU be o~e-half of one (0.5) percent a year, with a maximum net increase of 2.5 percent over the term of this Note. Downward adjustments in the inter¢st rate shall be ~nandatory, but increases in the interest rate are at the Holder's option. Changes in the Index rate which are not takPn in any Annual Period (either at the Holder's option in the case of inaeases or because the change is less than one-tenth of one (0.10) percent or gr¢ater than one-half of one (0.5) percent) may be accumulated by the Holder in the case of increases. and must be accumulated in the case of d¢creases, and taken, respectively, at a later time or next adjustment date, (but never more than one-half of one (0.5) percent per Annuai Period) or used to offset other changes. ~ "(G) Upon notification of an increase in the inierest rate, the Borrower(s) shall have the following options: (i) Not respond to the notice, in which case the amount of each monthly instaliment payable under this Note shall be adjust¢d upward to refled the higher interest rate; (ii) Request that the term of this Note be extended up to a maximum of one-th'vd of the original term of this Note (but not to such an extent that the monthly loan payments would be reduced); or (ui) Within 90 days of such notification, prepay the indebiedness evidenced by this Note, in whole or in part, without a pr¢payment charge if the ne4v rate is above the Initial lnterest Rate. "(h) Interest rate deaeases shal) be applied first to reduce the term of this Note to the degree, if any, the term was previously extended (but not below the original term of this Note) and shall be appiied thereafter to reduce the amount of each monthly installment payable under this Note; however, the ~oan term shall not be reduced to such an extent that monthly payments would be increased" X 1N WITNESS WHEREOF, borrower has executed this Variable Rate Rider this ` S; x~ een t- h day of i~larch 19 81 r -` ~ ' „ .~ ; ~ . '~ .. ~ ~ .. , r ' ~ ,a; ~ ~ , `-~~- ~~~--t-~-- ~c i --------- ,-t'.;, i - - • / - . , ~- . --Y---?~--- ~ ~- / =/` `-, -- ------------------- ------------------_'_- ~~~~3~3b~ 1981 f~S„ c 2~ F~: ;2. ~~ =~~~r t~; ,:,_~,;• • SL LL!'IE CC;t;' ~.i~. ;. r(iG: F F': ~ i E~:.~ C~fi~n (:;: r • ~,_. _ ~ :; . ;/ ~ a;~x351 E~~,~~ ~fi1