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CONVERTIBLE ARM RIDER .
(INTEREST RATE LIMITS)
THIS CONVERTIBLE ARh1 RtD~R is maJe this23Rp........., day of AUGUST ~ 19 85 ,
and is incorporated into and shall be detmed to amend and supplement the Mortgage, Deeci of Trust, or Decd to Secure
Debt (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's
Adjustable Rate Note (the "Note'~ to HARBOR FEOERAL SAVINGS AND LOAN ASSOCiAT10N (the "Lender") of
the same date and covering the p~operty described in the Security l~strument and located at:
41 ] SW TUL 1 P BI.VD PORT ST I.UC I E, Fl,. 33452
(Property Address)
The Note contains pravisior~s allowing for changes in the interest rate. lf the interest rate
increases, the Bomower's mon4hiy payments will be higher. If the interest ~ate decreases,
the BoROwe~'s monthly pay~::.°~~ will be lower. On the first Change Date, Borrower may
conve~t the adjustable rate loan into a fixed rate, level payment, fuliy amurttzing loan.
At7DIT10NAL COVENANTS, II18C~CIIUOII [O [Ile l'OVenant and agreements made in the Security Instrument, Borro~rer and
Lender further covenant and ~gree as foilo~vs:
A. INTERFST RA~'E ANa MONTNLY PAYMENT t:NAtiGE:.ti
10.000
The Note provides for an initial interest rate of ...................................QO. St~tion 4 of the Note provides for changes irt
the interest rate and the monthly payments, as faltow~s:
4. /;YTERFSTNAT£.~i.~'!);~f0.\'THLY'P.4Y11N'.~'T('fi.~t.~'G/::S
(A) Change I~tes
The interest rate l will ay ma • ch~~ 1 ST SEPTEMBER 86
P Y 8e on the da~~ of 19..........., an~ on
that day of the mont~~ ...........................months thereaiter. Ea~h date on ~~hich my intere~t rate routd change is
called a "Change Date."
(B) The Index
Beginning with the first Change Date, m~~ interest rate ~~ill bc ba~ed un an "Inde~." The Index i~ the «~eehiy a~~erage
yield on United States Treasury securities adjusted to a ronstant n~awrit~ ot .,OHE ~tars, as madc available
by the fiederal Resene Board. The most rc~ent Index tigure a~ailablr at of ~i5 da>-t beforc earh Change Date is cailed the
"Current Index."
If the index is no longer a~~ailable, the Note Holder ~~ill rh~~o.e a ~ie~~ indc~ ~~hi~h i. baud upon romparabte
information. The Note~t-iolder will gi.~e me noure oC it~ choice,
(C) Cakulatior~ of ChanRes
THREE AND
Bei'ore each Change Date, the Note Holder will ~al~ulate m~• ne~~ inter.~t rate h~ ad~iing
..........2~/100 ~rcentage pointti (....3•25............°~ol t„ th~ C'urrent Index. The ~um ~cill t~e m~~
new interest rate.
The Note Holder aili then determine the amount of the monthh pa}meni that ++uulcl he,ut'firicnt to repay in (ull
the principal I am ex~ted to ow~e on the Ct~ange Date in .ubstantialh eyual ra~mrnt, b~ the maturit~ date at m~~ new
interest rate. The result of this calculation uill be the ne~~ amount ot n7~~ m<mthh ~a>ment.
(D) Limits Un Iaterest Rate Changes
The raie of interest I am required to pay shall never be increased or decreased on any single Change Date by more
than...TMO ..percentage points{......2....%) from the rate of interest I have been paying for the preceding.... ~~......months.
My interest rate siso shall never inerease or decrease more than..F ~ ~E..percentage points(.....r?...._.%) from the interest
rate established in paragraFh A. of this instrument.
(E) Effective Date of C6anges
1~1y new interest rate will become efferti~~e on earh Char,ge Datc. I~~ill {~a}• the amaunt of m~~ ne« monthly~ payment
beginning on the first monthly payment date after thc Chanee Date until the amount r?t~ r~~~ momhl~~ pa~~ment changes
again.
Nottce of Chaages
The Note Hoider ~~ill mail or deli~er to me a ~zoticc before earh Chan~e Date. The notire ~~ii! ad~ise me of:
(i) the neH interest rate on m~~ loan as of the Change Date;
1ii) the amount of m}~ monthl~~ pa~ment follo~~ing thc Chan~e Date;
(iii) an}~ additional matters ~tihich the ~vote Holder is required to diulotie; and
(i~) the titlc and telephone number <~f a~non ~~hc~ ~sill ans~~er an~~ que,tion t may hatie regarding the notice. ~
CONVERTIBLE ARM LQAM -1?REASJRY ;P~DEX~-6i8~~ a~~K~'~ PAGE 9~2
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