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HomeMy WebLinkAbout0958 interest rate may (depending on prior interest rate changes) result in lower payments after a Change ~ate, subject to the limitetio~s set out in Section 2(D) ot this Note. In settir~g the amount of the monthly payment due after each Change Oate, as provided in Section 4(B) of this Note, the Note Holder will assume that the Note interest rate will not change again prior to tne Final Payment Dete. B. 9ETTINti TNE NEW PAYMENT AMOUNT B inn~in_~ _o-n ~E 15, 1°87 , and on the 1`'`~j day of the month every ihereafter (the "Change Oate"), the Note i~older will determine the monthly payment amount that will be suffic~ent to repay the principal balance in lull on the Final Payment Date, at the new interest rate, in sub3tantialty equal paymE?nts, assuming that there is no further change in the interest rate. The result of this calculation will be my new moMhljr ~ayrnent. The first monthly peyment due after the Change Date will be the new amount. 5. NOT~CE OF CHANGES The Note Holder will mail me a notice by first ciass mail at least thirty (3t~) and no more ihan one hundred and twenty (120) days hefore each Payment Change ~ate if the payrtoent is to change. The notice will advise me of: (i) the new interest rate on my loan; (ii) tne amount of my new monthly payment; and (iii) any additional matters which the Note Hdlder is required to disclose." B. CHARGES;LIENS Uniform Covenant 4 of the Mortgage is amended to read as follows: 4. Cha~s; LNns. Borrowe~ shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority overthis Secu~iry Instrument, and leasehold payments or ground rents. if any. Borrower shall pey these obligations in the manner provided in paragraph 2, or if not paid in that menner, Borrower shali pay them on tirrne directly to the person owed payment. Borrower shall promptly furnish to Lender ail notices oi amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shell promptly furnish to Lender receipts evidencing the paymenta. Borrower shall p~omptly discharge any Lien which has priarity over this Security Instrument unless Borrower: (e) agrees in writing to the payment of the obligation secured by the Lien in a manner acceptable to Lender, (b) contests in good taith the lien by. or defends against enio~cement af the lien in, legal proceedings which in the Lef~der's opinion operate to prevent the enforcemant of the lien or fo~ieiture of any part of the Property; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security instrument. If Lender determines that any part of the Property is subject to lien which mey attain priarity over this Securiry Instrument, Lender may give Borrowera notice identifying the lien. Borrowershall satisiy the tien or take one or more of the actions set forth within 10 days of the giving of notice. C. NOTICE Uniform Covenant 14 of the Mortgage is amended to read as follows: 14. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicabte law requires use of another method. The notice shall be directed to the Property Address or any other address Bo~rower designates by nutice to Lender. Any notice to Lender shall be given by first class mail to Lender'saddress stated herein or any other address Lender designates by notice to 8orrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. D. URlIFORM SECUAITY INSTRUMENT;GOYERNING LAW; SEVERABILITY Uniform Cavenant 15 of the Security Instrument is amended to read as foliows: 15. Govemin~ L.aw; Severabtllty. This Security Instrument shall be governed by federal iaw and the law of the jurisdiction in the Property is iocated. In the event that any provision or ~lause of this Security Instrument or the Note conflicts with appiicable law, such conftict shall not affect other provisions of this Security Instrument or the Note which can be given effect wiihout the conflicting provision. To this end the provisions of this Securiry tnstrument and the Note are declared to ba severable. E. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 17 of the Security Instrument is amended to read as foliows: ! 1~. Trsnsfer of the Property or a Beneflcial Interest in Borrower. If alf or any part of the Property or any interest in it is sold or ~ tranferred (or if a beneficial interest in Borrower is sold or transierred and Bor~ower is not a natural person) without Lender's prior writtan conseni, Lender may, at its option, require immediate payment in futl of all sums secured by this Security Instrument. However, this option shall ~ot be exercised by lender if exercise is prohibiied by federal !aw as of the date of this Security Instrument. ~ If Lender exercises this option, Lender shall give Borrower notice of acceieration. The notice shall provide a period of not less than 30 days from the date the notice is dalivered or mailed within which Borrower must pay all sums seCUred by this Security Instri~ment. If Borrowerte'sls to pay these sums prior to the expiration of this period, Lender may invoke any remedies perm9tted by this Security Instrument without further notice or d~mand on Borrower. lender will consent to a sale or transfer if, prior to any such sala or transfer: (1) Borrower causes ta be submitted to Le~der 6nformation required by Lender to evaiuate the transferee as if a new loan were being made to the transferee; {2) the transferee submits upon Lenders standard appiication form a written application for permission to ass~me the foart; (3) the transferee qualifies under Lenders loan underwriting standards in effect at the time of submission of transferee's application for assumption in t~e same rnanner ss if a new loan were being made t~ the transteree as of the proposed assumption date; (4) the transferee signs an assumption agreement that is acceptabie tc Lender and that obligates the transteree to keep aIl the promises and agreements made in the Note and in this Sacurity Instrument; (5) the transferee pays all required fees and charges including, but not limited to, 3n assumption fee as e condition to Lenders consent to the proposed aasumption; and (S) no detault exists under the terms of the Note and this Security instrument and all paymer,ts required the~eunder have bee~ made end the loan account is then current. Eorrower will r,ontinue to be obligated under the Note and this Security Instrument unl~ss ~ender releases Borrower in writing: ' ~ F. LOAN CWARGES ~ ~ If the loan secured by the Security I nstrument is subject to a law which seis maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed permitte~ limits, then: (1) any ~ such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limits; and (2) any sums already collected fr~m Borrower which exceeded permitted fimits will be refunded to Borrower. Lender may choose to make this refund by ~ reducing the principal owed under the Note or by making direct payment to Borrower. If a refund reduces principal, the reduction ~ will be treeted as a partial prepayment under the Note. 7~ r ~ 5~V 1 ~OL=K t.~l,: Ibp~ 2 d 3 GF FC50320 7-81 NOTE PLAN 45 ~N ~ OH~Sl~l ~ -~~-au:~~ e. _ ~