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Home My WebLink About0958 4. FULL PAYMENT AMOUNT (A) AMOUNT OF MONTHIY PAYMENTS My monthly payments will be in the initiai amount of U.S. S -56 3.4~3 . If the interest rate changes, as pra vided in Section 2 oi this Note, the amount of my monthly payments may change. Increases in the interest rate wifl result in higher payments afte~ a Payment Change Date, (unless my prepayments or prior decresses +n interest ~ate since the last Payment Change Date offset the increases in my interest rate). Decreases in the interest rate (depending on prior interest rate changes) may result in lower payments after a Payment Change Oate, subjeCl to the limitations set out in Section 4~6) of this Note. ln setting the arrtount of the monthly payment due after each Payment Change Date, as provided in Section 4(B) of this Note, the Note Holder will assume that the Note interest rate will not change again pnor to the Final Payment Date. (B) SETTING THE NEW PAYMENT AMOUNT - Beginning on Julv 1,~ 1985 , and on each an~iversary (the "Payment Change Date"), Lender will determine lhe monthly payment amount ihat will be sutficient to repay the principal balance in full on the Final pay- ment date. at the new interest rate, in substantially equal payments, assuming that there is no further change in the interest rate. The result of this calculation will be the "Preliminary New Payment." Except as provided in Section 4(C) below, my new monthly payment will not be changed by more than 7~e~ percent trom the monthly payment I was making immediately prior to the Payment Change Date, and the Note Holder will adjust the Preliminary New Payment so that my new monthly payment will not be more or less than that lim~t. The adjusted figure witl be my new monthly payment. The first monthly payment due after the Payment Change Date wi11 be the new amount. ~ (C) REOUIREO FULL PAYMENT AMOUNT On ihe fifth (Sth) Payment Change Date, and on the Payment Change Oate every fifth f5th) yearthereafter, the7'~ percent limit witl not apply and my new monthly payment will be the Preliminary New Payment until after the next Payment Change Date. (D) NEGATIVE AMORTIZATION My monthly payment could be less than the interest due (or that month. (This can occur when the interest rate changes be- tween Payment Change Dates. or when my new monthly payment is Iess than the P~eliminary New Payment because of the 7'k percent limit on payment changes in Section 4(B) above.) If so, the Note Holder will su6tract my monthly payment from the amount of the interest due, and will add the difierence to the Principal Balance of my loan each month, until my new monthly payments after a Payment Change Date are sufticient to pay all~of the interest due each month. The difterence added to my Principal Bal- ance each month will become a part of the principal so that interest will be charged on the difference each month at the rate de- te~mined under Section 2 of this Note. If, during a time when my monthly payments are less than the interest due each month, I~ tail to make one or more of my monthly payments when it is due, and the time for a subsequent monthly payment arrives, the Note Holder will calculate the difterence to be added to ihe principal bata~ce from the prior monthly payment just as if it had been made for each such late payment. The Note Holder will add this difference to the Principal8alance every month as of the date the prior monthly payment was due and will calculate the interest to which the subsequent monthly payments will b~ applied on this basis. Late charges will be imposed, and the monthly payments shall ~em8in due and payable, but will not bear interest. (If my monthly payments were larger than the interest due each month, the principal part of my unpaid monthly paymenfs would likewise still bear interest.) This process will continue each month until "Acceleration" when the Note Holder requires me to pay immediately the full amount of principal and all the interest that 1 owe under Section 8(B) below. Aker Acceleration, interest will oontinue to accrue on the principal balance, including the differenc~s added to principal prior to Acceleration, but the interest accruing after Acceleration will not bear interest. Interest after Acceleration will be at the interest ~ate hereunder as thet rate may be changed from time to time. If I reinstatethe mortgage after Acceleration, the Note Holder will recalculate the amounts due under the process in effect prior to Acceleration. - - ~ ~ 5. NOTICE OF CHANGES ~ The Note Holder will mail me a notice by first ctass mail at least thirty (30) and no more than one hundred and twenty (120) ~ days betore each Payment Change Date if the payment is to change. The notice will advise me of: (i) the new interest rate on my ~ loan; (ii) the amount of my new monthly payment; and (iii) any addi:ional matters which the Note Holder is required to disclose_" ~ B. CHARGES; tIENS Uniform Covenant 4 of the Mortgage is amended to read as follows: i 4. Chsrges; Liens. Borrower shall pay all taxes, assessments, and other charges, fines and impositions attributable to the . ~ Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided ~ under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. ~ Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make ~ payment directly. Borrower shalt promptty furnish to lender receipts evidencing such payments. Borrower shall promptly dis- ~ charge any lien which has priority over this Moctgage; provided, that Borrower shall not be required to discharge any such lien so ~ long as Borrower: (a) shall agree in writing to th~ payment of the obligation secured by such lien in a manner acceptable to ~ Lender; (b) shall in good fait~h contest such lien by, or defend eniorcement of such lien in, legal proceedings which in the opinion ~ of Lender operate to p~event the enforcement of the lien or forteiture of the Property or any pan thereof, or (c) shall secure irom the ~ holder oi such lien an agreement in a form satisiactory to Lende~ subordinating such lien to this Mortgage. If Lender c~etermines ~ that all or any part of the Property is subject to a lien which may attain a priority over this Mortgage, Lender shall send Borrower ~ notice identifying such lien. Borrower shall satisty such lien or take one or more of the actions set forth above within ten days ot the ~ giving of notice. ~ _ K ~ C. NOTICE ~ Uniform Covenant 14 of the Mortgage is amended to read as follows~ ~ 14. Notke. Except tor any ~otice required under applicable law to be given in another manner, (a) any notice to Borrower pro- vided for in this Mortgage shall be given by delivering it or by mailing it by first class mail addressed to Borrower at the Property ; Address or at such other address as Borrower may designate by notice to lender as prvvEsied herein, and (b) any notice to Lender F shall be given by tirst class mail to Lender's address stated herein or to such other address as Lender may designate by notice to ~ Borrower as provided herein. Any notice provided for in this Mortgage shall be deemed to have been given to Borrowe~ or Lender ~ when given in the manner designated herein. (t$ Q~ D. UNIFORM SECURITY INSTRUMENT; GOVERNING LAW; SEVERABILITY ~O~K PAGE VV~ ~ Uniform Covenant 15 of the Security Instrument is amended to read as follows: ~ 15. UnNorm Securlty lnstrument; Goveming Law; Seversblllty. This form ot Securiry Instrument combines uniform covenants ~ for national use and nonuniform covenants with limited variations by jurisdiction to constitute a unitorm securiry instrument covering real property. This Security Inst~ument shall be governed by tederal law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note which conilicts with applicable . law, such conflict shall not affect other provisions oi this Securit.y Instrument or the Note which can be given effect without the conflicting provision, and to this end the provisions oi this Security Instrument and the Note declared to be severable. OF F150/3s /0i.1 1 Yr F~~d AML NoM PMn ri PaW Z ol ~ ~ Y ...e~`-~., - ~:„E~.~ T...-.-~::~`~13`_, _ .~i:' ~ . . _ . . _ _ _ _