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~tOI~•CONVERTIBL~E ~~JUS'ICABL~ RATE RIIDER
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(INTEREST RATE LIMI'PS)
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TNIS ADJUSTABL~ RA R)p R is made this 17th day of SEPTEMBER, 1986
' and is incorporatcd into artd shal~ '~e~msd to.amend and,supplement tha Mo~tgage~ Dred of Trust, or Secarity Deed, (the "Security
Instrument'~ of thc same date given by the undersigned (thc "Borrower'~ to stcure Borrower's Adjustablc Rate Note (the "Nott'~ tn
EtARBOR FEDERAL SAVlNGS AND LOAN ASSOCIATlON (the "l.endsr'~ of 1he same date and covering ths property
described in the Security lnstrument and located at:
387 EUCLID AVENUE, FORT PIERCE, FL 33G50
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• (Property Address)
= Th~ ~lot~ contalna provialo~a siloa~ng tor changes in ~ the tnter~et rat~. If th~
tnterest r~te increases, tha ~~rrower's monthly paymenta wtit R~ hlgher, tf the
Interest rate dec~ea~es, the ~orrower's m~~fhly payment~ wfi! be lower.
ADDITIOIYAL COYENANTS. In addition to the covenant and agreements made in the Security instrument,
Borrower and Lender further covenant and agree as follows:
A, INTER~ST RATE AND MONTHLY PAYMENT CI~ANGES
The Note provides for an initiat interest rate of 8. 000 ~~tion 4 of the Note pravides for changes in the interest rate and
the monthty payments, as foliows: ~
4. 1NTEREST RATE AND MOAITHLY PAYMENT C}iANGBS ~
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~ (A) Ch~n~e Detes
t. The interest rate [ will pay may ehangc or, the first day of OCTOBER , t9 $7 , and on that day of tho month evory
z TWELVE moriths thereafter. E~ch date on which my interest rate could cha~ge is called s"Change Date."
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(8) The Ir+dex .
x: Beginning wiih thc first Change Date, my inierest rate wnll bc based on an "lndex,"The Indcx is tht weekly averagtyield on United
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~ States Treasury securities adjusted to a constant maturity of ONE years, as made availabte by the Federal Reserve Board. The
most r~cent Index figure available as of 45 days before each Change I3ate is called the "Current Index."
If the Index is no longer available, th~ Note Holder, will choose a ne~v Index which is bases~ upon camparable information. The Note
Hotder will give me notice of its c6oice.
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- (C) Calsuiation of Cdan~es
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g Before each Change Date, the Noto Nolder wil! calculate my new interest rate by adding TWO AND 7 5/ 100
z percentage points ( 2. 75 to the Current Index. The Note Hold~r wifl then round the result of this addition to the nearest
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; one-eighth of one percentage point (0.125~). Subject to th~ limits stated in Ssction 4(D) botow, this roundcd acnount wili tse my new
~ interest rate untii the new Change Date.
~'he Note Holder wiil then determine the ainount of the monthty payment that would be su~cient to repay the unpaid prinzipal
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~ that 1 am expected to owo at the Change Date in fult on the maturity date at my new inteetst rat~in substantially equal p~yments. Thc
~ result of this calculation plus any required rnonthly escrow tor taxes and insuranee will bs the new amount of my monthly payment.
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~ (D) Umhs on ~lnteicst Rite C6sn$es
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The ratc of interest 1 am required to pay shall never ba increased or decreastd on any single Change Date by more than
? T~Tp perantage points ( 2. 40 q6) from the rate of interest I have been payingforthe preceding ~
TWELVE months. My interest rate also shall never increase more than FIVE
~ percentage points ( 5.00 9'0) from the tutly indexed rate of 8. 7$0 ~Ya. My interest rate ahall nevtr decrease beiow the
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~ interest rate established in paragraph A of this instrument.
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(E) Etfrctire D~ts o! Cbanges
My nevr interest rate wiil bccome effective on cach Chang~ Date. I viiU pay the amount of my new monthly payment beginning on the
first monthly payment datt after the Change Date untii the amount ot my monthty ~ayment changes again.
(F) Natiu oi Clungss
"Th= Noie Nfl)des wiA mni! or d4liver to me a ns~ticc befors each Change Date. The natice will advise me of:
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~ (i) the new interest rate on my loan as of the Change Date: . ~ - ' f=~
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(ii) the amount of my monthiy payment following the Change Date;
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(iii) Any additionat matters which tht Nots Holder is required to disclose; and .
(iv) the title and telephone number of a peraon w6o will answtr any~queation i may havs regarding the not'sce.
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