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G. BOR~tOWE~i'8 OPTION TO CONVEBT
Borrower may, at Borrower's option, modify the repayment terms of the indebtedness serured herebyon the first
Ctiange Date. At that time, Borrower may convert the Ac~ustable Rate Loan evidenced by the Note into a fixed
interest rate lcaan to be fully repaid in equal monthty paym~nts of principal and interest ov~er the remaining term
of the loan. In order to excer~ise this option, Borrower must notify Note Holder in writing of his intent to do so at
least thirty (30) days prior to the first Change Date. Note Holder will then provide the necesssary dceument
which must be promptly executed and returned weth the correct conv+ersion fee.
H. SEIECTION OF FII~D INTEBEST SA'IE AND MON'18LY PAYMENT ADJUSTMENT
Lender shall set the fixed rate of inter~st payment by Borrower at a rate identical to the sum of the F~ederal Home
L~an Mortgage corporations required net yield for 120 day delivery of 30 y+ear, fixed rate mortgages available 45
days prior to the first Change Date plus dne-half of one percent (0.5%), ff no such Requireai Net Yield is available,
Lender will determine the Sxed interest rate by using a compatable figure. 'Rie new fixed interest rate will
become etTective on the ftrst Qiange Date, if Borrow~er chooses to convert to a fixed interest rate. ~I
Borrower's monthly payments at the new fixed inter~st rate will begin as of the first monthly payment after the ,
first Cl~ange DaLE. '1~?e monthly principal and interest payment will be the amount that is necessary to repay in
fuA the principal Borr~ower is expecteci to ow~e on the Qiange Uate in substantially equal payments by the
maturity date at the fixed interest rate.
1. BOjtROWEB'3 ELECTION NOT 1~0 CONVEBT
Borrower must execute and deliv~er to Lender the document evidencing the modification of the Note. If Borrower
dces not do this, Borrower can no longer exercise the option to convert. In this case, the terms of Borrower's Note
will continue in effect without any change.
J. EFFECTIVENESS OF PBOVISIONS
Upon Borrower's delivery of the executed modification to the Note, paragraph A above shall cease to be effective.
Irt WtT[vESB W~~oF. Bo~owBR has ezecnted thia Converlible A$M Blder.
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