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, - CONVER~'IBL~ ARM RIDER
{1NTEREST RATE LIt1~9lTS)
THIS CONVERTlBLE ARM RIDER is made this .~4L.h........ day of APR l9.8~
and is incorporated into and shaU be deemeci to amend and suppfement the Mortgage, Deeci uf Trust, or Deed to Secure
Debt (the "Security tnstrument") of the same date given by the undersigned (the 'Borrower") to secure Borrower's
Adjustable Rate Note (the "Note'1 to HARBOR FEDERAL SAVINGS AND LOAN ASSOCIA710N (the "Lender") of
the same date and covering the property described in the Security Instrument and located at:
E1. NUEVA AVENUE FORT PIERCE, 3345U
. . . . . . . . . . ~
(Property Address)
The Note contains prov~sions allawing tor changes in the interest rate. If the interest rate
increases, the Borrowe~s mcnthly payments will be higher. If the interest rate decreases,
the Borrower's monthly payments will be lower. On the first Change Date, BoROwer may
conven the adjustable rate loan into a fixed rate, levei payment, fully amortizing loan.
ADbIT10NAl_COYE!va;~TS. ln addition to the corenant and agreements made in the Security Instrument, Borrower and
Lender further covenant and ag•ee as follo~~~s:
A. 1NTERFST RATE AND MONTNl.Y PA~'MENT C'!-IAti(;I~:.ti
The Note provides for an initial interest rate oi S00 .................~'o. Se~tion -i of thr Note providcs for changes in
the interest rate and the mvnthly payments, as Foflu~~s:
4. It~?ENFST RATF~.~,\'!) :t11).~'THL3' P.-1 }"tff:'.~'T ('f/.•a.~'Gf::S'
(A) Change Dates
The interest rate I wi1! pay ma~~ chan~e on the ~ ST.... da~ c,t ...........MAY ly..... 8b... and on
that day of the month e~~ery ...................munth~ thcreafter. Earh date un ~~hich m~ intere~t rate ri~uld change is
calleci a "Change Date."
(B) The indfx
Beginning with the frst Change Date, m~~ interetit rate ~~+lE be ba~ec! un an "ln~e~." T he lndex i, the ~~eekly average
yield on United States Treasury~ securities adjustc~! to a rom!ant maturii~~ ot .QNE >car~, a. made available
by the Federal Reserve Board. The most recent lndex tigure a~ailable a~ ol -35 c1a~. hetelrz earh ('ha«ge Uate is ~alled the
"Current Index."
!f the index is no longer a~ailable, the Not~ Holder ~~ill ~h~~~~.e a nr~~ in~1e~ ~chich i. ba,eei u~c~n ~omparable
information. The Nore Holder ~~ill give mz noti~e af i?. rhoice.
(C) Catculation of ChanRes
BeforeeachChange Date, the Note Holder «itl.:al~ulate ~n} ~~~u intere~t rateh~ ~tJclin~ .....TI~O.-.•--ANII•••••.••••••••
~Q~100 ~ercentage p<~int~ ~..2.SQ.............° 1 t~, ihr C urr~nt In:le~. Thr ~um ~cill t>e m~.
. o
Rew' 1I7[e(eSI fSle,
The Note Holder ~~ill then :ietermine the amouni c~f the me~nthh ~a~m~nt ~hat ~~~~ul~i h~ .uffi~icnt [c~ re~at in full
the principal I am expected to o~e on the Chanee [)ate it~ ,uh;tantiali~ eyual ~a~~r,~•nt, h~ ~he maturit} ~late at m~ ne~ti~
intPrest rate. The result of this calculation ~~ili be the nr« arne~unt e~f nt} nxxtthl~ ~a~n~rnt.
(D) Limita On [nterest Rate Chaages
The rate of interest I am required to pay shall never be increased or decreased on any single Change Date by more
than..T.~Q.....percentage poiats(....2......96) from the rate of interest I have been paying for the preceding...~ ~.........months.
My interest rate also shall never inerease or decrease more thanE.111E....percentage points(....~j.......96) from the interest
rate established in paragaph A. of this instrument. ~
(E) Ettective Date of C6anges
ti1>~ new interest rate will bc~;ome efferti~ e on each Change Date. 1~~ ill ~a~ thr amc~unt ui m~ ne~~ munthl~~ ~a} ment
beginning on the firct monthl}• ~avment date after the (~hangc l~ate until the amuunt uf' m~ muntitl} ~a)rnent changes ~
again.
I
(F~ Notice of C6anges ,
The Note Holder ~ill mail or deli~er to me a noti~e before carh Change 1)at<. The nuti~e ~~iN ad~ire n~e r>f: '
(i) the ne~~ interest ra,e on m} loan a~ of the Change Uate;
(ii) the amount af m} month!} pa~mrnt follu~~ing ~he C'hange Datc:
liiil am~ additional matters ~chich the tiote H~Ider iti reyuired tu di.rlou; and
(i~) the title and tele~hone number of a{ier~on ~~ho ~~i11 anti~~er am~ question 1 ma~ ha~e regar~iing the notice.
BQQK
466 PaGf 973
CONVERTIBLE ARM LOAN -ITREASURY !ra~~x~-6~~3~
p; j-~,y~;;:, BO~K 4~3 PA~~ ~VZ $QfOK PAG~~~1 LN #4AMLC
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