HomeMy WebLinkAbout0948 PSL 3-3040
ADJUSTABLE RATE RIDE~t
(Interest Rate Limits)
TH1S ADJUSTABLE RATE RIDER is made this l.16~. day of ..J~ 19.85.,
and is incorporated into and shall be deemed to amend and supplement the Martgage, Deed of Trust, or Deed to Secure
Debt (the "Security Instrument") of the same date given by the undersigned (the "@orrower") to ~ecure Borrower's
AdjustableRateNoteto .~1ZaS.I'..~~~.~Ay~$.A~.I~Q~1I~.~~S~OCIATION
• • • • • - • • • ~ • • • • ~ • • - • . • • . . . . . . . . . . . . . . . . . . . . . . . . . (the "Lender") ~f the same date (~he "Note") and ro~-ering thc ~
property described in the Securit}• Instument and tocated at:
i
3 452 '
. . . ZS6. N~~1,. ~~P[''lR~. S'.~.. . . . . . . . . . . . . . . . . . . :
(Property AddressJ '
The Note co~tains provisions allowing for changes in the inierest rate every year
subject to the limits stcted in the Note. If fhe interest ~ate inc~eases, the
Borrower's monthly payments wiN be higher. If the interest rate decreoses, the .
Borrower's monthly ~oyments will be lowe~.
ADDITIONAL COVF.NANTS: In addition to the covenants and agreements made in the Serurity instrument.
Borro~ver and Lender further covenant and agree as fotloH~s:
A. INTFREST RATE AND MaNTHLY PAYMENT CHANGES
The Note provides for an initial interest rate of .11.25Q ,~o. Section 4 of the Note pro~~ides t'or rhanges in the in~erest
rate and the monthty payments, as follow~s:
"4. INTEREST RATE AND MONTHLY PAYMENT CHANGES
( A ) Change Dates
The interest rate I~+~iU pa}• ma~• change on the first day of 19. and on that day
e~~ery 12th month thereaFter_ Each date on w~hich my interest rate could change is catled a"Change Date."
(B) The lndex
$eginning with [he first Change Date, m}~ interest rate ~~~ill be based on an lndex. The "Index" is the w~eekly a~~erage
yield on United States Treasury securities adjusted to a constant maturity of 1 year, as made available by the Federal
Reserve Board. The most recent Index figure a~~ailable as of the date 45 days before each Change Date is calied the
"Current Indet."
If the Index is no longer a~~ailable, the Note Hotder w~ill choose a new index which is based upon comparable
information. The Note Holder w~il( give me notice oC this chaice.
(C) Calculation of Changes ,
Before each Change Date, the Note Holder w~ill calculate m~~ neH interest rate b~~ adding . 2..,7.50 percentage points
(.2.750. °lo) to the Current Index. The Note Holder w•iU then round the result of this addition to the nearest one-eighth
of one percentage point (0.125%). Subject to the limits ~tated in Section 4(D) below~, this rounded amount will be my new~ ~
interest rate until the next Change Date.
The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the
unpaid principal balance of my loan I am expected ro owe on the Change Date in full on the maturity date at my new
interest rate in subscantially equal payments. The result of this calculation will be the new amount of my monthly payment.
(D) I.imit on Interest Rate Changes
The rate of interest ! am required to pay shall never be increased on any single Change Date by more than ? one
percentage point (1 _0%}~X] two percentage points (2.O~lo) /Check onlr one boxJ from the rate of interest I have been paying
for the preceding tweh~e months. My interest rate also shalt ne~~er be greater thar~4~2.~~.Q...a;o.
(E) Effective Date of Changes
My new~ interest rate will become effecti~~e on each Change Date. 1 w•ill 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.
(F) Notice oi Chan~;es
The Note Holder will mail or deliver to me a no[ice of any changes in the amount of my monthly payment before the
effective date of an}~ change. The notice w ill include information required by la~c to be given me and also the title and
telephoue number of a person w~h~ w•ill answer any question 1 may have regarding the notice."
B. CHARGES; LIENS
Uniform Covenant 4 of the Security Instrument is amended to read as folloa•s:
4. Charges; Liens. Borrow~er shall pay all taxes, assessments, and other charges, fines and impositions attributable to the
Property which may auain a priority over this Security Instrument, 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 pa}•ee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph,
and in the event Borrower shall make pavment directly, Borrower shall promptly furnish to Lender reeeipts evidencing
such pa}~ments. Borrower shall promptly discharge any lien w•hich has priority over this Security Instr~ment; provided
that Borro~•er shall not be reyuired to discharge any such lien so long as Borrower. (a) shall agree in writing to the
payment of the obligation secured by such tien in a manner acceptable to Lender. (b) shall in good faith conEest such lien
b}•, or defend aeainst enforcement of such lien in, legal proceedingswhichin theopinion of Lenderoperateioprevent the
enforcement of the lien or forfeiture oi the Property or any part therenf; or (c) shal) secure from the holder of such lien an
agreement in a form satisfactory to Lender subordinating such lien to this Security Instrument.
If Lender determines that a!! or any part of the Property is subject to a lien which may attain a priority over this Security
Instrument, Lender shall send Borrower notice identifying such lien. Borrower shall satisfy such lien or take one or more of
the actions set forth abo~~e within ten day~s of the giving of notice. ~j~ n
00184000359 1500026569 gp;}f( 4~~ P•~E i74~
ADJUSTA$lE RATE i~IDER - Plot~s A-2 a~td A-3-1-4 fomily-9/83-FNMA Uniiorm Ins?n~rn~nt Fof•~ r:o. A 3;t -3
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