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G. B4RROWER'S ilP'TION TO CONVERT
Borrower may, at Borroa~er's option, ~nodify the repayment terms of the indebtedness secured hereby on the first Change
Date. At that time, BorroH~er may convert the Adjustable Rate Loan evidenced by the Note into a fixed interest rate loan to
be fulfy repaid in equal monthly payments of principal and interest over the remaining term of the loan.
H. LENDER'S NOTICE TO BORROWER
Lender's "Notice of Changes" to Borrower pursuant to paragraph 4(E) of the Note given prior to the first Change Date
shall also contain the following additional information pcrtaining to Borrower's option to convert:
(i) the tixed interest rate payable by Borrower if Borrower converts into a fixed interest rate loan;
(ii~ the amount of Borrower's new monthly payment at the fixed rate of interest; and
(iii) a date. not more than 15 days from the date the notice is given, by whi~h Borrower must exec.ute and deliver to Lender
a document in ihe form requirecl b~• Lender evidenring the modification of the Note to provide a fixed interest rate.
1. S~LECTION OF F1XED INTERFST RATF AND MONTH[Y PAYMFNT AD.lUSTMFhT
Lender shall set che i~xed rate of interest pa~~able by Borrow•er at a rate identical to the sum of the Federal Nome Loan Mort-
gage Corporation's Reyuired Net Yield for 60-da~~ delivery of 30 pear, ti~ed rate mortgages available 45 days prior to the
first Change Date plus three-eighths ot~ one percent (.375°'0). If no such Required Net Yield is available, Lender will deter-
mine the fixed interest rate by using a comparable f?gure. The ne~r ~xed intere;t rate ~+~ill berome effective on the first
Change Date if E3orro~~~er rhoose; to con~en to a hxed interest rate.
Borrow~er's monthly paynents at the new~ fixed interest rate will begin as oF the first monthly payment after the first Change
Uate. The monthly payment ~~~ill be the amount that i~ necessary to repa~~ in fuli the principal Borrower is experted to owe
on the Change Date in substan[iall~~ equal pa}~ments by the maturitp date at the fi~eci interest rate.
J. BORROWFR'S EI.£CT10N tiOT TO CO'~~'ERT
Borrow~er must execute and deli~•er to Lender the documcnt e~ iden~ing the modit?ration of the Note ~+ithin the period set in
Lender's notice as provided in paragraph H abo~~e. If Borro~~~er does not do this ti~ithin the s~x~it`ied date, Borrower can no
longer exercise the option to com~ert. fn this case, the termti of E3orrower's Note wiU continue in effect ~~~ithout anp change.
K. EFFECTIVEtiESS Ot PROVISIOti~
Upon Borrow~er's deli~~ery of the execut~d m~ciitiration t~~ the Notr, ~aragraPh A ah~~~e ~hall ~ease to be effecti~•e.
1~ V1'ir~t,• ~'iit.KF.~,t, &~rruwer hati exeruted this Con.ertible ARM Rider.
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