HomeMy WebLinkAbout0980 • ~ • , AdJustable Ra1e Rlder
i•
{Inlerest Rate Lim~ts)
This Adjustable Rate Rider is madQ lhis _..2-- day of T~~~myrr _ ,19.$G.-_. and is mcorpaaled ~nto
and shall be deemed to amend and supplement Ihe Mlcrigage, Deedol T: ust, o~ Deeti lo Secur~ Debl (7he "Security Inslrurnent") of
the same date given by Ihe undersigned !The ' E3onower") to secure E3orrower's Ad~ustable {7ate Nole to _
BI~I2NF`1'I' BA.~TK...QF ST i,[1C''[E,~t'iTFi'Y _ (7he "lende~")
of the same date (The ' No1e") and covering the property described in the Security Ins!rument and located at:
(Property Address) ~
The f+lote co~talns provi~lons a!lowing (or changes in Ihe Inta~esl ~ate every yeer subJect lo the Ilmit~ slaled In Ihe Nole. II the
lnlerest rate Incree~e~, the Borrower's monthly payments wlll be hlflher. II Ihe Inleresl rale decreases, Ihe Borrower's
monlhly peymenl~ wiil be lower.
Addltional Covenents. In addition to the covenants and agreemenis made in lhe Secur~ly Instrumenl. E3orro•.ver and lender lurih.er covenant
and agree as 1011ows: ~ y ~t.~
A. Interest Rate And Monthly Paymenl Chenges ~ ~
The Note provides tor an initial inlerest rate ol 96 Section 4 oi the Note pro•: ides ~or changes ;n the in?erest ~ate and Ihe
monthly payments as lo!!ows:
"4. Intereal Rela A~d Monthly Paymenl Chenges
(A) Chenge bales
The interesl rate I w+ll pay may change on !he firsl day ol ~r 19 87 and cn Ihat day evey 12th month
tt~ereatler. Each date on which my interest rate could change is called a"Change Da1e."
(B) TAe Index
Beginning with Ihe lirsl Chang~ Date, my interest rate ~ti711 be based on an Index. Ihe "Index" is the weekty average yietd on Un~ted States
Treasury securilies adjusted to a constant maturity of t year, as made avaitabte by the Federal Reserve Qoard The most recent Irdex hgure
ava~tabte as ot Ihe date 45 days before each Change Da1e is called the "Current Index "
il Ihe Index is no longer avai!able, the Note HofJer wiit chooss a ne:v index which ~s 43sed upon comparable intOrmahon The Note Holder w;ll
g~ve me nolice of th~s choice.
(C) Celculation of Change:
Betore each Change Date. Ihe Note Hotder ~vi~l cafculate my new interest rate by adding three Fercentage po;n~s
( to the Current Index. The Note Holder witl lhen round the result ol Ih~s add~tion to the nearest or.e-eighth of one
pec~entage po:nt {0.125?b) SuC;ect to Ihe limils stated in SeCtion 4jD) bs!ow, lhis rourx~d amount wiil be my r~~,~ interest rate urtd Ihe next Change Date
The Note Holder vrf11 then dctermine Ihe amount ot ?he menthly payment Ihat would be sut(icient to repay Ihe unpa:d prirc~pa~ ba'ance of rriy
toan f am e~cpected toowe on lhe rhange Date in lull on ihe maturity date at my rer+ inlerest rate in subsianirally equal paymenls Theresuu ot th~s
calcu!ation will be the new amount ol my monthly payment
(D) Llmlt on Inlerest Rate Chanyes
The rate of interest t am requ+red to pa?~ sh N never be i,n-~reased or decreased on any single Change Date by more than
? one percentage point (1.0%) ~t~p~l~nt~ p~in~;7~~heck only one boxJ (rom lhe rate of interest I have been
paying lor the precedin~ twelve months. My interest rate also ~hall never be greater than 15
(E) Eilecttve Date ot Changea
My new inleresl rata will become elfective on each Change Dale. I wiU pay the amount ot my new montt~ly payment beginn+ng
on the hrsl monthly payment date 2tter the Change Date ur,!i! the amount o( rny monthly paymer,t changes again
(F) Notlce o( Changes
The Note Holder will mait or deliver ro me a notice of any changes in the arnou~t of my month{y payment before the effective
date of any change. The notice wi!! include informalion required by law to be given me and a~sothe tiUe and tetephone number c' a
person who wiN answer any question I may have regardng the not~ce."
B. Charges; Llens
Unilorm Covenan! 4 of Ihe Security Instrumenl is amended lo read as follovrs:
4. Charges; Llens. Borrower shall pay all taxes, assessmenls, and ot!~er charges. fnes and impositions aunbutab'e to the
Property which may attain a priority over Ihis Security Instrument, and leasehotd payments ot ground rents, i1 any, in the manr~r
prov~ded under paragraph 2 hereoi or, if not paid in such manner, by Borro~ti~er making payment, v:hen due, directty to the pa~ ee
therec!. Eiorrower shall promptty tumish to Lender all notices of amounts due under this paragraph, and in the event Borrower sha11
ma~e payment directly. E3orrower shall promptly furnish lo Lender receipts evidencin3 such paymenis E3orrower shall pramptiy
~ d~scharge any lien which has priority over this Security Instrumenk provided, Ihal Borrower shall not be required to d~scharge any
such lien so long as BorroK•er: (a} shaN agree in wnting to the payment ot Ihe obligation secured by such lien in a marner
acr_eptable to lender; (b) shaR in good failh contest such lien by, or detend aga~nst enlorcement of such lien in, ?egat proceed:rgs
~vh~ch in the opini~n of Lender aperate to prevent the enforcement o! the lien or torteiture of the Properly or any part th~reo(: or (c)
shall secure (rom the holder of such lien an agreement in a brm satisfactory to Lender subordinating such lien to this Secur~ty
Instrument.
I( Lender determin~s that all or any part ot the Property is subject to a t~en which rnay afta;n a prior~ly over this Sect~n'y
Instrument, ~ender shall send Berrower notice identify~ng such lien. Qerrower st~all sat~sty s~~ch lien or lake one or mere of th~ "
aclions set forth above w~thin len days of the givin~ oi notice. ~
C. Notlce ,
Uni!orm Covenant t4 of fhe Security ~nstrument is amended to ~cad as tcllows
14. Notlce. Exr~pt tor any notice required under app~icab'e law to be g;ven in another manner, (a) any notice to E3orro~•:er !
proviCed for in this Securrty Ins!rument shall be given by deliveri~y it or by mait~ng it by hrst class ma~l addressed fo F3orro~r~r at ~t,e
P~o~,erty Address or a! such olher address as E3orro~r~er may designate by noticetoLender as ~rovided herein, ard (b) any notice to
Lender sh~ll be given by tirst cla~s mail to Lender's add~ess s!a+ed her~in or to such other address as Lend~r may designate hy
r.;,t~ce to Borro•r~er as provided herein Any notice provi;.~ed for in !his Se~~nry lnslrument sha!I be deemed to ha;~e been giver, ro
E3orro;;er or Lender when g~ven in the manner designated herein
0 5 Qe R
Adjustable Rale Rlder-Plans A-2 and A-3.1-4 Far~,uy-9l83-~~~~~iTbrtrlT~Ku~~SfO m~sec e3~~~oz>w~
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