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NON~COIe1VER1'IBLE E#DJUS`~'ABLE R~TE RID~R
(INTERE~T RATE LIMITS)
THIS ADJUSTA4L~•RATE R19ER is made this 28th day of July 1986
and is incorporated into and shall bc deemed to amend and supptement the Mortgagc, Deed of Trust, or Securily Dced, (th~ "Securit~~
Instrument'~ of the samc date given by the undersigned (the "BorroK~er'~ to secure Borrow~er's Adjustable Rate Note (the "Note") to
HARBOR FEDERAL SAVINGS AND LOAN ASSOCIATION (the "Lender'~ of the same date and covering thc property
described in the Securi~y Instrument and located at:
926 Fra Mar Place Fort Pierce, F'L 33450
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(Rroperty Address)
'i"he Note contains provlsions altowing fo~ changes 1~ the intereat r~te. !f the
interest rgte tncreases~ the ~orrower'a monthl~! payments wit! be filgh~r. If the
tnter~st rate ~screases, the ~orrower's monihly payments wl~l be lower.
ADLIITIONAL COVENAivTS. ln addition to the covenant and agreements made in the Security Instrument,
Borro~cer and Lender further covenant and agree as follows:
A. INTEREST RATE AND 1110NTHLY PAYMENT CHANGES -
The Note provides for an initial interest rate of 4~~S Section 4 of the Note provides for changes in the interest rate and
the monthly payments, as folloLVS:
d. INTEREST RATE AhD MONTHLY PAYMENT CHANGES
(A) ChRnge Datts
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The interest rate I wilt pay may change on the first day of ~iay , 19 S7 , and on that day of the munth every
T(~j.,~ months thereafter. Each date on whieh my interest rate could change is called a"Change Date."
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~ (B) The Index
Beginning with the first Change Date, my interest rate wiU be based on an °Index."The Index is the wePkly avtrageyietd on L~nited
~ States Treasury securities adjusted to a constant maturity of p~ years, as made avaitable by the Federal Reserve Board. 'The
' most recent lndex figure available as ot 45 days before each Change Dste is called the •`Currcnt l~dex."
If the lndex is no longee available, the Note t-~older willchoosea new Index which isbased uponcomQarableinformation. The Note
~ Holder will give me notice of its choice.
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! (C) Cakulxtion of Changes
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f Before each Change Date, the Note Holder will calculate my new interest rate by adding THREE AND 25/ 100
~ percentage points ( 3• 25 to the Current Index. The Note Iiolder witl then round the result of this addition to the nearest
one-eighth of one percentage point (0.125%). Subject to the timits stated in Section 4{D) below, this rounded amount will be my new
j interest rate until the nsw Change Date.
~ The Note Holder wili then deiermine thc amount of the monthly payment that would be sufficient to repay the unpaid principal
~ that ( am expected to owe at the Change Date in tul! on the mawrity date at my new intsrest rate in substantially equal payments. The
f result of this calcutation plus any required monthly escrow for taxes and insurance will be the new amount of my month{y payment.
(D) Limits on Interest R,te Chan=es
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The rate of interest I am required to pay shall never be increased or decreased on any single Change Date by more than
~ TFJO percentage points ( 2. 00 from the rate of inter~st 1 have been paying for the preceding
TWELVE months. My interest rate also shall never increase more than FIVE
~ percentage points ( S.Q~%) f~om the folly indexed rate of 9.u75 My interest rale shall never decroase below the
~ interest rate established in paragraph A of this instrument.
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(E) Effective Datc of C6an;ts
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~ Mynewinterestr~tewillbecomeeffectiveoneachChangeDate.Iwillpaytheamountotmynewmonthlypaymentbeginningonthe
t first monthly payment date after the Change Date until the amount of my monthly paymcnt changes again.
t (F ) Notice of Changes
The Note Holder will mail or deliver to me a notice hefore each Change Date. The notice will advise me of: ~
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(i) the new interest rate on my toan as of the Change Date: ~
(ii) the amount of my monthly payment following the Change Date; ~
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(iii) Any additional matters which the Note Holder is required to disclose; and ~
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(iv) the titlc and telephonc number of a person who will answer any question I may have regarding the notice. ~
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900K PAGF
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