Loading...
HomeMy WebLinkAbout0917 ADDENDUM TO ADJUSTABLE RATE/GRADUATED PAYMENT NOTE ~ Fixed Rate Con~ersion Option I TF~- IS ADDENDUM TO ADJI:STABLE RATE NOTE OR GRADUATFD PAY!~1E'vT NUTE is made this i day o( ~y , 19 85 , and is incorporated into and shall be deemed to amend and :upplement _ the Adjustable Rate Note or Graduated Payment tiote made by the undersigned (the "Borrower") to First NationA! Banic And Trust CompAny of Stuart, Stuart, FloridA 33495-2316 (the "Lender") and dated the sar:~e date as this Addendum (the "Note"). ADDiT10NAL COVENANTS. In addition to !he covenants and agreements made in the tiote, Borro~er and Lender further co~~enant and agree as follows: A. FIXED INTER~ST RATE OPTION ; 1. Option to Conrert to fixed Rate I ha~~e a Conversion Option which 1 can exercise unless 1 am in default or this Section AI ur Section :A~ below Nill not permit me to do so. The "Comersiun Option" is m~ option to convert the interest rate I am reyuired to pay by the Note from an adjustable rate to a fixed rate. The conversion can only take place on the third, fourth or hfth Change D:~te. Each Ch~nge Date on which my ; interest rate can convert from an adjustable rate ta a fixed rate also is called a"Conversion Date" 1 can comert my interest rate only on one ot these three Conrersion Dates. i If I want to exercise the Conversion Option, 1 must hrst meet certai~ conditions. Those conditions are that: (a) I must give the Note Holder notice that I am doing so at least 15 days befure the next Com~ersion Date; (b) on !he Conversion Date, I am not in default under the Note or the Security Instrument; (cy by the Conversion Date, t must pay i the Note Holder a conversion fee equal to one percent ( IA`~~) of the unpaid principal I am expected to owe on that Conversion Date plus L.S. S'75.00 :(d ) b}• the Conversion Date, if an appraisal report is required by Section A3 below, the tiote Holder has received the report and I ha~•e paid the appraisal fee and any amount necessary to reduce unpaid principal; and (e) 1 must sign and gi~~e the tiote Holder any documems the Note Holder requires to eRect the conversion. 2. Calcalation of Fixed Rate My new, fixed interest rate will be equal to the Federal tiational Mortgage .Association's required net yield for 30- year, fixed rate mortgages covered by 30-dap mandatory deliverp commitments in efTect as of the date ~15 days before the Com~ersion Date, plus five-eighths of one percent (0.625`7 If this required net ~ield is not a~-ailable, the',Vote Holder will determine m}~ interest rate by using a comparable figure. 3. Reduction of Principsl Balance Betore Conrersion; Appraisal ~ If the unpaid principal I am expected to owe on the Conversion Date will be greater than the uriginal principal amount of my loan, the Note Holder may reyuire an appraisal report on th~ value of the propert} ~escribed in the Securit~ Instrument. The appraisal report must be prepared by a yualified appraiser chusen b}• the Vote Holder. I will pay the Note Holder a reasonable fee for this appraisal report. The unpaid principal I am expected to ow-e on the Conversion Date could be an amount greater than 95`: of the appraisal report's stated value of the property securing my loan. If so, I cannot exercise the Comersion Option unles~ 1 psy the :Vote Holder an amount sufi'icient to reduce my unpaid principal to an amount equal to 95°k of the stated ~alue of the property. 4. Determination of tiew Pa~ment Amount If I choose to exercise the Com~ersion Option, the tiote Holder will determine ihe amuunt of the monthl~ pa}ment that w•ould be sufi~icient to repay the unpaid principal I am expected to owe on the Com~ersion Date in full on the maturity date at my new fixed interest rate in substantiall} eyual pa}~ments. The res~lt of this calculation will be the new amount of my monthly pa~~ment. Beginning w~ith my first month't}~ payment after the Comersion Date, 1 H ill pa} the ne~ amount as my monthly payment until the mawrity date. ~ S. Transte~ of the Property or a Beneficial Interest in Borrower If my interest rate is converted to a fixed rate, some of the conditions under which I mav be required to make immediate payment in full of all amounts 1 owe under the tiote, u hich a~e described in the section o! the tiote captioned "Vniform Secured Note," shall cease to be in eti~ect. Instead, some of these conditions will be described as foilows: ; Transfer oi the Property or a Beneficial Interest in Borrower. If all or any part of the Propert~ or an}~ ~ interest in it is sold or transferred (or ii a beneficial interest in Borrow~er is sold or transferre~ and Borrower is ~ i ~ not a natural person) without Lender's prior written consent, Lender ma}•, at its option, require immediate i ~ payment in full of all sums secured by this Security Instrument. However, this option shal! not be exercised b~ i Lender if exercise is prohibited by fed~raf law as of the date of this Security Instrument. ~ If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide ~ ~ a period of not less than 30 days from the date the notice is delivered or mailed w~ithin which Borrower must pa~ ~ all sums secured by this Security Instrumen.. IF Borrower fails to pay these sums prior to the expiration of this ' , period, Lender may invoke any ~emedies permitted by this Security Instrument without further notice or demand on Borrower. n ~ ~ BY Sic;~i~c Bt=.t_oH, Borrow~er accepts and agrees to the terms and covenants contained in this Addendum To F - ~ Adjustable Rate/Graduated Payment \ote. : / _ ` ' ~ ~Z P3~~2 (Seal) ~ di~ ~ ~'lf'Tl -Bur~uwcr ' ~ ' _ v, FILc~ - . .l,l-C..~..J .~~<.~Z.~,,~- (Seal) ROGER f'~~~;,;`~, Grace P. O'Brien -B~«~µ« ST. LUC~E ` ~ ` ; ; '704113 ~Seal) • Borrowcr , . (Seal) -BurroKcr /SiRn OriRinal On!?•f FlXED RATE Oi~TION ADOENDUM ( WOTE )-1 rear Treasury IrM~x-S~ngle Fam~ly-Fannie Mae Uni}orm M~trument Form 3256 t t: 84 F~nanc~a~ Law fo~ms'' ~1 n ~ FormI037 ;;t.,~,~~J3 PacE ~1„~ ~ ,~y" , . - ~ ~ '`z-.,v-'~~.-.~s~~~~~:. - : ~ ~ ' .