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CONVE~'TIBLE ARM RIDER ~
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(lIV'TLREST RA1'E LIMIT$) ' • . .
THIS CONVERTIBLE ARM R1DER is made this ZSTH day of MARCH , 19 86 ~
and is incorporated into and shall be deemed to a[nend and supplement the Mortgage, Ueed of 1Yust, or Ueed to
Secure Debt (the "Security Instrument") of the same date given by the undersigned (the "Borrower) to secure
Horrower's Ac~justabfe Rate Note (the "Note') to NARBOR FEDERAL SAVINGS AND LOAN ASSOCIATIOh (the
"Lender") of the same date and cov~ering the property described in the Security lnstrument and located at: ,
~AWNtil00D C I RCI.E 30C FORT P 1 ERCE. Fl.. 33450
(Frope?-t11 Address)
'ILe Note contdns provisions allowing for changes in the lnterest rate. If the interest ~
rate increases, tLe Borrowcr's monthly pa,yments w~W be higher. If tbe interest rate
decrea8es, the Borrower'8 montlily psyment8 will be lower. On the IIrst t~ange Date, ;
Bornow~er ma,y convert the s~netable rate loan into s~ced rat~, level payment, fully
uaord:ing Loan.
ADncr~ort~I.CovEt~uta'rs. In addition to the covenant and agreements made in the Security Instrument, Borrower
and Lender further covenant and agree as follows:
A. Illi'IZBEST BATE AND MON1~iLY PAYMENT C~~ANGES
'Ihe Note provides for an initial inter~st rate of 9, 2~Q Section 4 of the Note provides for changes
in the interest rate and the monthly paymenis, as follows:
4. INTERESf RATE AND MONTHLY PAYMENT CNANGES
~ (A) Change Dstes
'Rie interest rate I will pay may change on the ~ ST day of ppR , 19 ,
and on that day of the month every TMEI.VE months thereaft.er. Each ciate on which my interest rate
could change is called a"C1?ange Date "
(B) '!be Index
Beginning with the first (~ange DaCe, my interest raCe will be based on an "Index".'Itie Index is the weekly
av~rage yield on United States 'IYeasury securities acijusted to a constant maturity of ONE Y~a~~ ~
made available by the Federa! Reser~~e Board. 'Ihe most recent Index figure available as of 45 days before each
Change Date is called the "Current lndex'
If the index is no longer available, the Note Holder will choose a new index which is based upon
comparable information. 'I~e Note Holder will give me notice of i~5 choice.
(C) Calcnlation of Changes
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Before each Change Date, the Note Holder will calculate my new interest rate by adding
TNO AND 75/100 Percentage points ( 2~ to the Current Index. 'Ilie hote Holder will
~ then round the result of this addition to the nearest one-e h of one percentage point (0.125'~). Subject to the
~ limits stated in Section 4(D) below, this rounded amount will be my new ir~terest rate until the next Change Date.
F The Note Holder will then determine the amount of the monthly payment that would be sufficient to
~ repay the unpaid principal that I am expected to owe at the Change Date in full on the maturity date at mynew ~
~ interest rate in substanti~llly equal payments. 'I~e result of this calculation plus any required monthly escrow for
taxes and insurance wiU be the new amount of my monthly pay[nent.
~ (D) I3mite on Interest Bate Changes
~ 'I7~e rate of interest I am required to payshbll never be increased or decreased on anysingle Change Date ~
by more than ~ percentage points ( from the rate of interest I have been paying y
for the precedin~ months. My int~tE~~ rate aLso shall never increase more than ~
TWEI.VE ~rcentage points ( from the fuily indexed rate of
My ir~t~~~st rate shall never decrease below the ir~t~st rate established in paragraph A of this ~
~ instrurr~~rft000 ~
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~ (E) Effective Date of (~anges ~
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~ My new interest rate w-ill become effective on each Change Date. I will pay the amount of my new monthly a,c ~
~ payment beginning on the first monthly payment day after the Change Date until the amount of my monthly ?°ot~,
~ payment changes again. ~
CD
(F) Nodce of Changea ~1 3
'Itie Note Halder w111 mail or deliv~er to me a notice before each Change Date. Tt~e notice will advise me of: „ j
(i) the new interest rate on my loan as of the Change Date; ~ ~
(u) th~ amount of my monthly payment following the Change Date; ~V ~
(ui) any additional matters which tt~e Note Nolder is required to disclose; and ~ ~
~ (iv) the titlz and telephone number of a person who will answer any question T may hati~e regarding the ~ !
notice. ~
COAIVE$TIBLL ABM LOAN-(TR~ASURY IxDEX)-11;85
goo~ 4~7 ~~1f ~5~ ~ '
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