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CONVF:RTlBl.~: ARM R1DER
1i23191651 ~ ~
(INTEREST RATE LIMITS)
THIS C'ONVERTiBI.E AR`t RtUER i~ ma~e thi~3QTt1.......... d:~> i~iA.ERII. 1965.........,
and is incorporated imo and ~hall be dc~cmed to amend and ~up{~l~ment th~ \lortgage, Dced of Tru.t, or Deed to Se~ure
Debt (the "Sc~:urity Instrument") of the same date gi~en b~ ~he und~nignc~l (ttie "~3orro~+er") to ~c~ure Borro~~er's
Adjustable Rate Nate (the "Note") to HARBOR FEOERAL SAVINGS AND IOAN ASSOCIATION (the "Lender~ of
the same date and covering the property described in the Security Instrument and located at:
372 TRAUB AVE FORT PI6RCE; FL. 33450
. . . . .
(Property Addressl
7he Note contains provisions allowing for changes in the interest rate. lf the interest rate
i~creases, the Bonower's monthfy payments witl be higher. If ih~ interest rate decreases,
the BoROwe~'s monthly payments wiN be lower. On the first Change Date, Borrower may
convert the adjustable rate loan into a fixed rate, level payment, fully amortizing loan.
A~~t~~TU~tiat Cc~~'E~~:~~ts. In 3ddition to thr rotienant and agre~mrnt~ macl~ in the Se~uritr In~tn~ment, (3osn~~~•er an~i
Lender further co~enant and aerec as folle~~~s:
A. 1\TERFSI' RATE: A`D MO\THl1' PA1'~1k:\T C'tiA\G}:S
The Note pro~~ides far an initial interest rate ot .....10 . S00 u„ ~,f ch~ 1vt~ ~r~~~ idt~ sc>r changes in
the interest rate and the monthh~ pa~~ment,, x> fe?Ilo~+~:
4. l.~~TF.RF..ST fl.aTE.-~.\U 11O.~TH! 1'.-1 }~~l/~~~T (~//~1 ~G/~.:1
IA) ChanRe [?ates
The interest rate l~~~ill pa~ ma~ ~hanee ~~n ~hr ..........1ST...... ~a~ ~,t JULY iy....86.... 3f1(~ Oll
that da}~ of the month e~er~ --.12 .....................munth, th~r~att~~. 4 a~h :latr ~,n ~~k~i.h n~~ u~t~r~,; ratc ~uuW ~hange i~
ralled a "Chane~ Date."
(B) The Index
Beginning ~~~ith the fir~t Change Dat~, m~ intert,t r.~tr ill h< h.i~r~l ~m ;~n "In~i~ I hr In~ir~ i. thr ~~eckh acerage
~•ield on United States Treasur~ se~uritie~ adju~te~i t~~ a ~~m`tant matunt~ u?ONE ~~ar~, a. made a~ailablz
b~~ the Federal Reser~e Board. The mo~t re~ent Inde~ fitit?s~ a~.ii4ah4~ ;t. ~~t -l~ ~la~~ i~~~t~~rr ea~h ( hans~~ !)~~t~ iti ~alted ~he
"Current Index."
lf the inde~ is no longer a~ailahle, th~ \ut~ Nul~kr ~~ill ~h~~~~•~• ii~.~~ i~s~i~~ ~tihi~kti h,i.t~f u(~i~n ~om}~arable
information. The tiote Holder ~~ill ~~i~~ me n~~tir~ ut it~ ~h~,i~~.
(C) Calcufation of Chan~es
Before each Change Da?.e. the tiotc H~~Icler ill ~alcul,t<< m~ n:~~ in~~r..t r.~<<~ h~ a~f~lin~rl'{d0..... AND
50 j100 ~errentage ~+uinh ~..2..50............."~~~ t~~ thr ( urrrnt In~1<~. I hc ,i~n~ ~~ill he m~
ne~~ interest rate.
~
The Note Holder ~cill then cietermine the amot:nt ~~f thc~ nu~i~thl~ pa~n~~nt th,it ~~~~:~1~I hz• .iif7i~i~~nt tc~ rr~a~ in full
~ the ~rincipal 1 am e~~e~ted to u~~e on the ('han~e Da~e in ~uh•~anii.:ll~ ~yu.il ~,a~m~ni, t,~ th~~ !nan~ri~~ .ia~r at rn~ ne«
~ inierest rate. The result of th:; ~alrul'atic~n ~~ill he thr n~~~ am~~unt ut ni~ m~~z~tl~l~ ,~a~nirnt. .
~ (D) Limits On Interest Rate Changes
~ The rate of interest I am required to pay shall ne ~er be increased or decreased on am~ single Change Date by more
~ tha~'.1Q.......percentage points(..2.._.....%) from the rate of interest I have been paying for the precedin8.1.2...........months.
~ My interest rate also shall never increase or decrease more thafllYE......percentage points(.5.........%) from the interest
rate established in paragraph A. of this instrument.
k
g (E) Effective Date of Cbanges
s
~ '~1}• ne~~ intere~t rate ~~ill be~ome el ie~ti~ e un ~a~h C fian~~ U~it~. I~~ ill ~a~ th~ am~~uiu m~ n~~. m~~nthl~ {~a~~i~cnt
~ beeinning on the fir~t monthl~ ~a~ment date after the Chan~~ I)atr iir.til the am~~un[ ut ni~ m~~si:hl~ ~~a~m~nt ~han~~~
; aga:n.
l~otice of Changes
~ The :~exr Holder ~~ill mail c~r cleii~er t~~ n~c .i nuti~~ h~l~,rc ra~h ( hanti~ Otite. I hr n~~n~~ ~~ill a~l~i•~ n~r ~~f:
lil the ne~~ intere~t rate on m~ luar~ a• ut the Ch.?nie I)at~;
~ liiy th~ amuunt ot m~ mi~ntt~h~ ~a~~ment f~~Vl~,~~in~ tht t~ha~~~~• [)~u~•:
~ -
; (iiil an~ acJclitic~nal matt~r, ~~hi~h th~ '~<~t~ Fiolcler i, r~yuir~cl tc~ ~li,~l~~.~: .i~i~!
~
~ (i~? ~h~ title anJ tele~+hnn~ numh~r ~~t a s~~r~~.,n ~~t~~, ~~ill an~~.e:r a~n yue~ti~~n l ma~ ha~~ e~~~arciinc th~ n~ni~~.
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~ CONVERTIBLEARM LOAN-~~r~f~s~R~~ ~ a;;
~ 60`lK `~~•J P'JGE vi/~ LN #4AML-C
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