HomeMy WebLinkAbout0938 ADJUSTABLE RATE RIDER
l 1~ear Tnasury Index-Rate Caps 1
_ THIS ADJI;STABLE RATE R1DER is made this ~ d~y of January . 19 86 , and is ~
incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust ur Security Deed (the
"Security Instrument") of the same date given by the undersigned (the "Borrower") tu secure &~rruwer's Adjustable
Rate tiote (the "\ote") to Fint Nadonsl 8ank and T~1 Compaay ot Stuart. Stuart, Flo~ida 33495-2316
(the "Lender") of the same date and cuvering the Froperty described in
the Securit~ Instrument and located at: 12567 Indian River Drive
Jensen 8each, Florida 33457
~Proprrl~ Addre+s~
THE NOTE CONTAINS PROVISIONS ALLOWiNC FOR CHANGES IN THE tNTEREST RATE
AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE 80RROWER'S
INTERE~T RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE 80R-
ROWER MU~T PAY.
ADDITIO\AL CO~'E\A\TS. In addition to the covenants and agreements made in the Securit~~ Instrument, Borrower
and Lender further covenant and ag~ee as follows:
A. [NTEREST RATE AND MONTHLY PAYMENT CHANGES
The tiote provides for an initisl interest rate of 9. 75 The Note provides for changes in the interest ratc and the
monthly payments, as follows:
. 4. INTERFST RATE AND MOtiTHLY PAYMENT CHANCES
! A 1 Change Dates
~ The interest rate 1 will pay may change on the first day uf Janu3ry . 19 87, and un that day
every 12th month thereafter. Each date on which m}~ interest rate could change is called a"Change Date."
1 B 1 The Index
Beginning with the first Change Date, my interest rate will be based on an Index. The "Index" is the weckly average ~
~ }•ield on United States Treasury securities adjusted to a constant maturity of 1 year, as made available by the Federal
~ Reserve Board. The most recent Index figurc available as of the date 45 days before each Change Date is called the
~ "Current Index." I
If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable
information. The Note Holder will give me notice of this choice. ~I
1 C 1 Calculation of Chnnges
Before each Change Date, the Note Holder will calculate my new interest rate by adding
2. 90 percentage points ( 2.90 to the Current Index. The Note Holder will then round the '
~ resuh of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section
4( D) below, this rounded amount will be my ne~.v interest rate until the next Change Date.
The Note Holder will then determine the amount of the monthly payment ihat would be suflicient to repay the '
unpaid principal that I am expected to owe at the Change Date in full on the mawrity date at my new interest rate in
substantially equal payments. The result of this calculation will be the new amount of my monthly payment.
t D 1 Limits on Interest Rate Changes
The interest rate I am required to pay at the first Change Date will not be greater than 11. 75 °/o or less than
7. 75 °10. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more
than two percentage points (2.0%) from the rate of interest 1 have been paying for the preceding twelve months. My
: interest rate will never be greater than 14.75
~ 1 E I Efiective Date of Changes
-
M new interest rate will become efTective on each Chan e Date. I wili a the~amount of m new monthl a ment
E; Y B P Y Y Y P" Y
beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes
again.
- 1 f 1 Notice of Changes
The tiote Nolder w-ill deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly
payment before the ef~ective date of any change. The notice will inc{ude information required by law to be given me and
also the title and telephone number of a person who will answer any question I may have regarding the notice.
B. TRAhSfER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER
e Uniform Covenant 17 of the Security Instrument is amended to read as follows:
~ Transter of the Property or s Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is
sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person)
~ without Lender's prior written consent, Lender may, at its option, require immediate payment in full oi all sums secured
by this Security Instrument. However, this option shall not be exercised by Lender i(exercise is prohibited by federal law
as of the date of this Security Instrument. Lender also shail not exercise this option if: (a) Borrower causes to be
submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made
to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan
assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to
Lender.
To the extent permitted by applicable law, Lender may charge a reasonable fee as a condition to Lender's consent to
' the loan assumption. Lender may also require the transferee to sign an assumption agreem~nt that is acceptable to
~ Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security
Instrument. Borrou~er will continue to be obligated under the Note and this Security Instrument unless Lender releases
Borrower in writing.
MULTISTATE ADJUSTA9LE RATE RIDER-ARM 5-2-S~ng~e Fam~ly-Fuuti~ Mas Uniform ~nt Form 3111 tldS
~ Flnancial L~w Forms" ~t~~yR Ai~
. fom, 2ax 8Q~1n ~i PAGE ~z
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