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HomeMy WebLinkAbout0931 . ' only choose to have my payment adjusted in accordance with Section S(A) or make the Full Payment ~aount. The Yote Holder will notify me as provided in Section 6 below, thirty (30) to forty-five (45) days prior to each of the anniversaries of the date my first monthly payment is due and will inform me tha[ I have the options set forth in this Section 5, subject; however, to the limitations imposed by Section 6(I). I must notify the Note Holder of my election prior to the titne that the first moathly payment is due after the respective anniversary date. If I do aot choose from the options I have under this Section ~ S(B) prior to my first two anniversary dates, I will make the payments provided for in 5(A). If I do aot choose either the payment adjustment provided for in 5(A) or the Full Payment Amount prior to the third and each subsequent anniversary date until the twenty-ninth anniv~rsary date~ I will make payments of the Full Payment Amount. 6. CHANGES IN MY UNPAID PRINCIPAL BALANCE (A) Additions to My Unpaid Principal Balance Each of my monthly payments could be less than the amount of the interest portion of a monthly payment which then would be sufficient to repay my unpaid principal balance in full oa the maturity date at my current rate of interest in substantially equal payments. If so, each month that the amount of my monthly payment is less than the interest I portion, the Note Holder will subtract the amount of my monthly payment from the interest portion and will add the difference to my unpaid principal balance. The Note HQlder will also add interest on the interest added to principal will be the rate required by Section 2 above. (B) Reductions in My Unpaid Principal Balance My monthly payment could be greater ~han the amount of a monthly , payment which then would be sufficient to repay my unpaid principal balance in full on the maturity date at my current raLe of interest in substaatially equal payments. If so, the Note Holder aill subtract the difference from the unpaid balance of my loan each month until the next Interest. Change Date as if I had made a partial prepaymeat under Section 8 [of the Note]. (C) Limit on My Unpaid Principal Balance; required Full Payment Amount My unpaid principal balance can aever exceed a maximum amount equal to one hundred twenty-five percent (125~) of the principal amount I originally borrowed. If my paying the amount of my moathly payment calculated under Section 5 above after any Interest Change Date would cause my unpaid principal balance to exceed that maximum amount at any time, I will iustead pay the Full Payment ~nount as my monthly payment until the next Payment Change Date. 7. ~10TICE OF CiiANGES The Note Holder will mail or deliver to me a notice of any changes - in the Fuli Payment Amount and my monthly payment before the effective date of any change. The notice will include information required by law to be given me and also the title and telephone number of a person . who will answer any question I may have regarding the notice. ; B. INCREASES IN UNPAID PRINCIPAL BALANCE TO BE SECURED. Borrower and Lender recognize that because of the operation and : effect of the provisions of Sections 2, S and 6 of the Note as set forth in Section A of this Rider (the "Interest Capitalization Provisions"), the unpaid principaZ balance of the loan evidenced by the Note may exceed the original indebtedness of $53,900. referred to on page one of the Security Instrument. Borrower and Lender agree that this Security Instrument is given not only to secure the payment of the original indebtedness evidenced by the Note and the other matters reerred to on page one of the Security Instrument, but also to secure any increases in such principal balance arising by the effect of the (FL) FLEX RIDER Page 3 of 6 g~~K402 PaGE 9~1 - _ . ~ , ~ , ; _ ~ - z. _ . r. ~..~:-~~.,-~~,~r~h-~._..~.'~~~'