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CONVERTIBL~ ARM RIDER
(INTEREST RATE LIMITS)
THIS CONVERTlBLE ARM RIDER is made this ~~R~......... day of .AtJGUST ~ ~Q $5 •
and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Deed to Secure
Debt (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to st~ure Borrower's
Adjustable Rate Note (the "Note'ry to HARBOR FEDERAL SAVINGS AND LOAN ASSOCIATION (the "Lende~'~ of
the same date and covering the property descrlbed in the Security Instrument and located at
162. BURGANDY DR 1 VE PORT ST I.UC I E, Fl,. 33~+52
(Property Address)
The Note coniains provisions allowing for changes in the interest rate. ii the interest rate
increases, the BoROwe~s monthiy payments will be higher. If the interest rate decreases,
the BoROwe~'s monthly payments will be lower. On the first Change Date, Borrower may
conve~t the adjustable rate loan into a fixed rate, tevel payment, fully amonlzing loan.
AD[)ITIONAL CO\'E!v~~tvTS. In addition to the rovenant and agreement, ~rade in the Security Instrument, Borro~ver and
Lender further covenant and agree as follo~~-s:
A. INTERFST RATE AND MONTHI.Y PA1~'MENT CNANGhS
The Note provides for an initial interest rate of ~.O.U00 0:o k~~~on 4 of thc Note prc~~~ides for changes in
the interest rate and the monthl}• payments, as fulloa~s:
4. 1;~'TF_Rf:ST X.4 TE' A:~'D :1f0.~'Tt/l. f' P.-1 f",'11F.~'T l'//.-1.~ G/-'S
(A) Change Dales
The interest rate 1 will pay ma}• change on the ~ ST... day ot ........,.:.SEPTEMBER ~y 86., and on
ihat day of the month e~~er~~ ~ Z ..................month~ thereafter. E:arh date on ~~hirh m~• interest rate rould change is
called a "Change Da[e."
(B) The Index
Beginning with the first Change Date, m~~ interest rate iil tre batied on ~n "(nde~." The Indcx i; the ~~eekly a~~erage
yield on United States Treasury securities adjusted to a ~onstant maturin oi~ ..ON~ ~~ears, as made available
by the Federal Reserve Board. The most rerent IndeK tigure a~~ailablr a~ ot 45 ~a~~, betore ea~h Chang~ Uate is ralied the
"Current Index."
If the index is no longer a~~ailable, the Note Hulder ~~ill rh~~u~r a ne~~ inde~ ~~hi~h i, hatirc.l ur~n romparable ~
information. The Note Holder ~vill gice me norire ot~ itti rhoi~r.
(C) Cafculation of Chan~;es
Before each Change Uate, the Note Holder ill ralculate m~~ ne~~ intere.t rate h~ a~idinti ......T.HR~E.. ANR
..........~5/. ~QQ ~rrentage poi?it~ i..._3..ZS............u-o1 tc, thr C'urrent Irdet. Thc sum ~~ill be m~•
new interest rate. ~
The Note Hotder wiH then determine the amount of the ma~thh ~a~rnent that ~~e~uld hr ~utti~ient to repa~~ in t~ull
the principal I am expected to owe on the Change Uate in tiub`tantia~l~ eyual ra~ment, b~ the maturit~~ aate at m~~ new
interest rate. The result of this calculation ~~ill be the ne~~ amount ~~i m~~ monthh ~a~•ment.
(D) Llmlta On Intereat Rate C6anges
The rate of interest I am required to pay shali never be increased or decreased on any single Change Date by more
than...T.1~1A...percentage points(......2....%) from the rate of inierest I have been paying for the preceding....12.......months.
My interest rate also shall never increase or decrease more than.~.l.YE..percentage pointsf.....~.....96) from the interest
rate established in paragraph A. of this instrument_
(E) Effectlve Date of Changes
My new interest rate will become effecti~e on carh Chanee Da[e. 1«ill ~a~~ ttte anluunt ot~ r»~~ r~e~~ monthly~ payment
beginning on the first monthly pa~~ment date after the Chanee Date ~?ntil ti:e an~c~~~nt oi mc mor,thl~~ pa}~rnent changes
agai n.
(F~ Notice of C6anges
The Note Holder ui!! mai! or deli~er to me a noti~e beforc each Cha~ge Uate. T~he noti~e ~+i{l ad~ile me of:
(i) the ne~ interest rate on m~ loan as of the Chanee Date;
(ii) the amount of m~~ month{y~ pa~~ment follo~~ing the Change Date;
(iii) an~~ additional matters ~chich the Nc>te Holder iti reyuired to disclose; and
(i~~) the title and tele~hone number of a~xrson ~~ho ~~il( ans~~er an~ question I~z~a~~ hatie regarc~ing the notice.
CONVERTlBLE ARM LOAN -.?RtASURY !~dDEX~-6~83) ~~R
~ooK 47~ Pac~ 950
LN #4AMLrC
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