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HomeMy WebLinkAbout0988 . . ' only choose to luve ey psy~ent ad3usted in accordaace vith Section 5(A) or sake the Full Payneat Mouat. The Note Holder will notify. ~e as provided in Sectioa 6 belov, thirty (30) to forty-five (45) days prior to each of the anniversuries of the date first ~oathly psy~ent is ' due snd will infor~ ~e that I have the optiona set forth in this ' Section S, sub3ect; however, to the ~li~itdtions inposed bp Section 6(I). I ~aust aotify the Note Holder of ry election prior to the ti~e that the first ~onthly payeseat is due after the respective aanivers~ry . ~ date. If I do not choose fro~ the optioaa I hsve uadex this Section 5(B) prior to sy_first two anniversary dates, I Will nake the pay~ents " provided for-in S(A). If I do not chooae either the payreat id~ust~eat provided for in S(A) or the~F~ll Paq~eat Mount prior to the third snd ` each subsequeat anniversary date until the tWeaty-ninth anaivsrsary date, I vill ~ake paysents of the Full Payweat Mount. ~ - 6. CHANGBS IN~ MY 11~IPAID PRINCIPAL BALA2ICE . . (A) Additions to I7y Uapaid Principal Balance _ Each of ~y moathly paqaents could be less than the amount of the interest portioa of a monthly payaeat which thea Would'be sufficieat to repay ary unpaid principal balance in full on the oaturity date at uq current rate of interest ia substantially equal pay~ents. If so, eac6 ~onth that the a,ouat of oy aonthly paysent is less thaa the interest portion, the Note Holder rill subtract the.aaouat of sry ~onthly pay~ent fro0 the interest. portion and will add the difference to-~y uapaid _ priacipal balaace. The Note Aolder will also add interest oa the interest added to principal will be the rate required by Section 2 above. . (B) Reductions in Ny Unpaid Principal Balance !!y oonthly paywent could be greater than the soount of a soathly payment which then would be sufficient to repay oy unpaid principal balance in full on the maturity date at my current rate of interest in . substantially equal payments. If so, the Note Holder Will subtract the difference from the uapaid balance of my loan esch oont6 uatil the aext Interest Change Date as if I had ~iade a partial prepayoent under Section 8 [of the Note]. (C) Limit on Hy Unpaid Principal Balance; required Full Payeeat ~ Amouat ~ . tty unpaid principal balance can never exceed a maxisus.aaount i equal to oae huadred twentp-five percent (125x) of the priacipal aaouat I originally borrowed. If my paying the amount of ~y ~eont6ly pay~nt ~ ~ calculated under Section 5 above after any Interest Change Date would - ~ cause oy unpaid principal balance to exceed t6at oaxisuv aaount at aay tine, I will instead pay the Full Pay~ent Amount ' as ~ay santhly payAent until the next Paysent Change Date. 7. NOTICE OF CHANGES . The Note Holder will e~sil or deliver to ve a notice of any changes in the Full Payment Amount and ry monthly payoent before the effective date of any change. The notice will include inforaation required by law to be given ve and also the title and telephone number of a persoa who will answer any questioa I may have regarding the notice. ~ B. INCREASES IN UNPAID PRINCIPAL BALANCE TO BE SECl1RED. ~ Borrower and Leader recognize that because of the operatioa and ~ effect of the provisions of Sections 2, 5 and b of the Note as set ~ forth in .Section A of Lhis Rider (the "Interest Capitalization Provisions"), the unpaid principal balaace of the loan evideaced by the ~ . Note oay exceed the original indebtedaess of $ 50,000 referred to oa R page one of the Security Instruoent. BorroWer and Lender agree that this Security Instru~ent is givea not only to secure the pay~ent of the ~ original indebtedness evideaced by the Note aad the other eatters reerred to on page one of the Security Instruaent, but also to secure any increases ia such priacipal balance arising by the effect of the € ~ ` PFLg FLEX R6DER g~tJVV PA6E e7V~~ E S ' _ . . _ . . . '"___'_~_~_i~~' . ._..y~ '