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RENEGOTIABLE RAT'E RIDER
TBIS R..*NEGOTIABLE RATE R=DER is made this 13'TH day cf
FEBRUARY , 19 8~ and is incorporated into aad s~a~l be
daemed to aiaend nd supplemant a mortqaqe (hernia "security
instrument") dated ot svea date herewith, qiven by the
undersiqned lherein "Borrowsr") to secura Borrower's Vote to
8eritaqa Federal Saviags and Loan Associatioa (herein "Lender")
and covertag the property dsscribad tn said mortqaqe and
located at 344 PALM DRIVEr FT. ~tERCf.r FL 33450
(property ad~ress).
RENEGOTIABLE RATE COVENANTS. In addition to the covenants
and aqreemeats made iA the security i.nstrument, Horrower and
Lender gurtlier covenant and agres as follows:
A, TERMS OF NOTE AND ?KORTGAGE. Borrower and Lender
acknowledqe that the security instrvment shall be deemed a
Reneqotia.ble *tate Mortqaqe ("RRN:" ). The term of the RR.~i
loarr is 3 years, and tt.e tera of the mortqaqe securinq
said loan is 30 years. Borrower and Lender aqres that
the initial loan term may be up to six (6) months lonqer
than later ter,ns _
8. NOTE AUTOMATICALLY REPEWABLE. Borrower and Lender
aqree that the Promissory Note (":1ote") secured by.the
mortqaqe iastrument is automatically renewable for a period
equal to the term of the mortqaqe instrument (up to 30
years). The interest rate may i.ncrease or decrease at each
tenewal of the short-term ( 3 years) 2oan, which may
resul.t i.n an i.ncrease or- decreasa in the amount of ~e
mont'~ly payment due under the Note.
C. MODIFICATIONS AT ~ENEWAL.. Lender aqrees that the
only provision of said note which aray be modified at renewal
is the contract interest rate set fort~ ~herein, toqet~er
wi.th _ aay chanqe in the amount of the monthly i.nstallnents o~
principal and interest necessar~ to amortize a loaa with the same
principal aad at the.same interest rate over the remaininq ter.n
of this mortgage. Borrower and Leader agree that the interest
rste offered at renewal shall be based upoa a nion~hly index
rate compnted by the Federal Home Loan Baak Board, as set
forth in the vote. Interest rate decreases and increases
are mandatory and are not discretionazy or optional with the
Lender.
D. BORROWER'S RIGH'* OF ~EFIISAL. Borrower and Lender
acknawledqe that;Borrowe= has t'~e riqht to decline Lender's
offer of renewal, i.n which case the remaininq balance of t'~e
unpaid principal and interest secu=ed by the mcr±gage becomes
due and oayable upon the aaturity day of the Initial Loan
Term, or any Renewal Loan Term, as the case aay be.
E~ NOTICE. At least ninety (90) days before the end
of the Iaitial. Loan Term and any Renewal Loan Terms, excent
fo= the final Renewal Loan Ter.n, the Lender must send to the
Horrower a Tenewal notice which states, amonq ot.'~er thinqs,
t~e renewal interest rate and new monthly iastall~ent for
the next.Reaewal Loan Term.
F. PREPAYMENT. The ,unpaid principal balance secured
by the security instrument may be prepaid in full or in ~art
without penalty at any time.
G. REMEDZES. If 3orrcaer breaches Borrower's covenants
and agreements hereunder, then Lender may invoke any remedies
provided undes the security inst~~-vmpnt, includinq, but not ~
limited to, those provided under Uniform Covenant 7.
~ LCS -6 9
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