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CONV~R'TIBLE ARM RIDER ~
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THIS CONVERTIBLE ARM RIDER is made chis ....~Q~h...... day of ~~111e 19..~....... .
and is incorporated into~and shap be damed to amrnd and supplement the Mortgage, Dood of'IYust, or poed to Secure
Debt (the "Socurity Instrument") of the same date given by the unde~signed (the "8orrower") to secure Borrower's
AdJuatable Rate Note (the "Note'~ to HARBOR FEDERAL 3AVIN(i3 AND LOAN AS30CIATION (the "Lende~ of
the same date and cove~ir?~ the property desc~ibed in the Security Inatrument and located ar
Manor Avenue Port St. Lucie Florida 33452
(Property Address)
Ths Nots contains provisions aliowln~ for chan~es in the interest rate. It ths interest rate
i~creases, the BoROwer's monthty payments wlll be hi~her. lf the Interest rate decreases,
ths BoROwsr's monthly peyments will be lower. On the tirst Chan~e DaM, 8omower may .
convert ths adjustable rate losn into a fixed rate, fevel paYment, fully amatizi~g loa~.
ADDiTtONAL COVENAM'S. In addition to lhe covenant and agreements made in the Security Instrument. Borrowtr and
Lrnder further covenant and agree as follows:
A. lNTEREST ItATE AND MONTNLY PAYMENT CHANGES
The Note provides for an initial interest rate oF ........10_7.5Q Section 4 of the Note provides for ~hanges in
the interat rate and the monthly payments. as follows:
4. INTERFST RAT£ AND MONTHLY PAYM[i~VT C'i~ANGF:S .
(A) Change Dates
The interest rate 1 will pay may chan~e2 n che -1 St day of September 19.85......, and on ~
that day of the month every ...........................months thereafter. Each date on H~hich my interest rate could change is
called a "Change Date.,, ~ .
B) Tbe lndex ~
Beginning with the fint Change Date, my interest rate will be based on an "lndex." The Index is the weekly average
yietd on United States Treasury securities adjusted to a constant maturity of One,.,,,,,..,,, years. as made available
by.the Federal Reserve Board. The most recent Index figure available as of 45 days before each Change Date is called the
"Current Indcx." ~
If the ~index is no longer available, the Note Holder will choose a new index which is based upon comparabie
information: The Note Holder wiil give me notice of its choice.
(',akulation of Clwnges
i Before each Change Date, the Note Holder will calculate my new interest rate by adding ..~y,~p. g~
; ,,,,,,QQ~~~ percentage points ...2..00•.••••••••%) to the Current Index. The sum will~be my
` new intercst rate.
~ The Note Holder will then determine the amount nf the monthly payment that would be sufficient to repay in full
the principai I am expected to owe on the Change Date in substantially equal payments by the maturity date at my new
interest rate. The result of this calculation will be the new amount of my monthly payment.
(D) I1mhs Oa Intarat Rate C6an~
The rate of interest I am required to pay shall aever be increased or dccreased oa any single Change Date by mon
than............percenta~e points(............%) from the rate of intereat I have been paying for the ~axding...~ s~.......moaths.
~ My intereat rate also shall nevar increaae oc decreaae mon than. f i,v,e„p~~ntage points(...... 5...%) from t~e intenat
~ rate establiahed in paragraph A. of this instrument
P.sQeedve Date o[ C6snaa
My new interest rate will become effective on each Change Date.1 will pay the amount of my new monthly payment
~ beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes
~ again.
~ Nodce of Changa
' The Note Holder will mail or deliver to me a notice before each Change Date. The notice will advise me of:
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~ (i) the new interest rate on my loan as of the Change Date;
~ (ii) the amount of my monthly payment following the Change Date;
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~ (iii) any additional matters which the Note Holder is required to disclose; and [
~ (iv) the title and telephone number of a person who will answer any question 1 may have regarding the notice. ~
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CONVERTIBLE ARM LOAN -(TREASURY INOEX~-6/83)
~~~~436 P~~E 928
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