HomeMy WebLinkAbout0984 AllJUSTABI,~; R~7'~: RII)~;R '
(Interest Ratc i_imits)
THIS AUJUSTABLE RATE RIDER is made this .::~~'~f~ day of ...October ~g_.84,~
and is incor;~orated into and sFall be deemcd to amcnd and supplemcnt the M~rtgaRc. Deed of Trust. or Qeect to S~cure
Debt (the "Security lnstrument") ot the same date given by the undersigned (the "Borrower") to cecurt Borrower's
Adjustable Ratc Note to . . .~?~T ,tJNION SAVINGS ,AND, I~OAN, ~SSOG~~TIQN,, a F~Q~ida ,~q~por~~iop, , , , _ ,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (the "L.ender") of the same date (the "hote") and co~ cring the
proprrty.desccibed in the Security lnstument and lc+cated at:
..............17.3~.5,~•..Flox'~ta.Dr~.v.e,.PDZt .St.. Lucie.. ~lorida ..33~52...
(Property AddressJ
The Note contains provisions altowing for cho:iges in the interest rate every yeor
. subject fo the limits stated in the Note. If ~he in4erest rate increases, the
Borrower's monthly payments will be higher. If the ini~rest rafe decreoses, the .
Borrower's monthly payments will be lower. '
ADDITIO\AL CO~'E1AtiTS: In addition to the covenants and agreements made in th: Securit~• Instrument~
Borrov?•er and Lender further covenant and agree as follows:
A. I;~TEREST RATE A'~D 11iO;~THLY PAYhiE:~~T CHA\GES
The T~ote pro~•ides tor an initial interest rate of ....~Io. Section 4 of the Note pro~•ides for chanees in ihe interest
rate and the monthly payments, as follows:
"4. I:~TEREST RATE A;~D :~101THLY PAiMEtiT CHANGES
(A) Change Dates
The interest rat~ f w-il] pa}• rnay change on the first day of 19. and on that day
e~~ery 12th month thereafter. Each date on :+•hich m~• inierest rate could change is called a"Change Date."
(B) The Index
~ Beginnirig w•ith the tirst Change Date. m~ interest rate K~iU bc based on an Index. The "lndex" is the Hee{;ly a~~erage
yield on United S+.ate~ Treasury securities adjusted to a constant maiurity ot 1}~ear, as maue available by the Federal
Reser~•e Board. The most recent Index figure a~~ailable as of the date 45 da~~s before each Change Date is called the ,
"Curren! Index."
lf the Index is no longer available. the Note Holder Will choose a new index w~hich is based upon comparable '
informat:on. The Note Holder w~ill give me notice of this choice.
~ (C) Calculation of Changes
j Betore each Chanee Date, the Note Holder v?•il! caiculate my neW i~terest rate by adding percertaee points '
to the Current Index. The Note Holder K~ill :hen round the result of this additiQn to the nearest one-eighth
of one percentage point (0.125°ro). Subject to the limits stated in Section 4(D) below, this rounded amount W-i11 be my new
interest rate until the next Change Date.
~ The Note Holder will i'ien determine the amount of the monthly payr~ent that K•ould be sufficient to repay the
~ unpaid principal balance of my Ican l am expected to ow•e on the Change Date in full on the matvril}• date at m~• new
interest rate in substantiaU} equal pa}-ments. The result of this calculation will he the new• amount ot my monthly pa~-ment.
~ (D) Limit on Interest Rate Changes -
x* The rate of interest I am required to pa}• shall ne~er be incrrased on any single Change Date by morc than ? one
percentage ~oint (l .0%) ~ tw~o percentage points (2.0%) ~Check onl~• one boxJ trom the rate of interest 1 havcbeen pa}~ng
ior ihe preceding twelve months. My interest rate also shall never be greater.than **.....010.
(E) Effectire Date of Changes
My new• int-rest rate w•ill become effective on each Change Date. 1 K~ill pay the amount of my new- monihl}• pa~•ment
~ beginning on the yirst monthly payment date atter the Change Date until the amount of my monthly pa~•ment changes
~ again.
(F) Noticc of Changes
The Note Holder will mail or deliver to me a notice of any changes in the amount of my monthly paymcnt hefore the
cffeciive date of any change. The notice vvill include informatien required by law to be given rrie and also the title and
tclcphnne number of a persc?n wh~ wiU answer any q~estion 1 may have regarding th~ notice."
r B. C}iARGES; LIE~IS
r Uniform Covcnant 4 of the Sccurity Instrumcnt is amendr_d to rcad as follow~s:
~
4. Charges; liens. Borrower shal) ~ay all taxes~ asscssmcnts, and other charges. fines and impositions attributablc to the
~ Propcrty which may attain a priority ovcr this Sccurity Insm~mrnt. and Icaschold paymcnts or ground rents, if any, in the
n~anner provided under paragraph 2 htrcot or, it not paid in such man~er, by Borrower making payment. whcn due. ~
~ directly to the payee thereot. Borrower sha11 promptly furnish to I,ender all notica of amounts due undr. this paragraph.
and ir~ the evrnt Borrower shall make payment directly. Bor;ow•er shall p?omptly f~~rnish to Lrnder receipts evidencing
such payments. Borrower shall promptly discharge any lien v?~hich has priority over this Security Instrument; pro~~ided
that Borror?er shall not bc requircd to discharge any such licn so long as Borrower: (a) shall agrce in Kriting to the
paymtnt of the obligation secured by such lien in a manner aereplab:e to Lender: (b) shall in good faith contest such lien
by. or defend against enforcement of such lien in. legal proteedingsw~hich in the opir,ion of Lenderoperatetoprevent the
~ cnforcemcnt ot the licn or forfeit?:rc ot the Property or any part lhcreof; or (c) shall sccure from the holdcr of such licn an
~ agrerment in a form satist'actory to I_endes subordinating such licn to this Security lnstrument.
!f Lender d~termines that a{I or any part of the Property is subject to a lien w•hich may attain a priority ovsr this Security
lnstrument, Lcndcr shall scnd Borrov?~er notice idcntifying such lien. B~rrow•er shall sat~~~h lien o~~{~e~ne or mQrc of
the actions se~ forth abo~•e within ten daps of ~he giring ot n~tice. 3~~* ~Rr~~
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