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NON-CONVEBTIBLE ADrTUSTABLE RATE RIDER
50-23252560
(INTEItEST RATE I.IMITS)
THIS ADJUSTABLE RATE RIDER is made this 30THday of DSC~lBBR 1986
and is incorporated into and shatl be deemed to amend and supplement the Mortgage, Deed of'I~ust, or Security
Deed, (the "Security Instrument") of the same date given by the undersigned (the "Borrorwer") to secure
Bonower's Ac~justable Rate Note (the "Note") to HARBOR FEDERALSAVINGSAND LOAN ASSOCIATION (the
"Lender") of the same date and covering the property described in the Security Instrument and located at:
SUNSBT BLVD FORT PIERCS, FL. 33482
(Property Address)
The Note contains provisions allowing tor changes tn the interest rate. If the
interest rate increases, the Bor~ower's monthly payments wiil be higher. if the
interest rate decreases, the 8orrower's monthly payments wiil be lower.
ADDITIONAL COVENANfS. In addition to the covenant and agreements made in the Security
Instrument, Borrower and Lender further covenant and agree as follows:
A, INTEQEST BATE AND MONTHLY PAYMENT CHANGES
The Note provides for an initial interest rate of 500 ~tion 4 of the Note provides for changes
in the interest rate and the monthly payments, as follows:
4. INTEREST RATE AND MONTHLY PAYMENT CHANGES
(A) Change Dates
The interest rate I will pay may change on the first dayof JANUARY ,19 8$ , and on that day
of the month every T~L~ months thereafter. Each date on which my interest rate could chan~e is called a
"Change Date".
(B) The Index
Beginning with I,he first Change Date, my interest rate will be based on an "Index". The Index is the weekly
average yield on United States 'h~easury securities ac~justed to a constant maturity of ~N$ years, as made
available by the Federal Reserve Board. 'Ihe most recent Index figure available as of 45 days before each Change
Date is called the "Current Index°.
If the Index is no longer available, the Note Holder will choose a new Index which is based upon comparable
information. 'It~e Note Holder will give me notice of its choice.
(C) Calcnlation of Changee Two AND 75/100
Before each Change Date, the Note Holder.will catculate my new interest rate by adding
percentage points ( 2• 75 to the Current Index. 'I~e Note Nolder will then round the result of this
addition to the nearest one-eighth of one percentage point (0.125~). Subject to the limits stated in Section 4(D)
below, this rounded amount will be my new interest rate until the new Change Date.
'l~e Note Holder will then determine the amount of the montly payment that would be su~cient to repay the
unpaid principal that I am expected to owe at the Change Date in full on the maturity date at my new interest
rate in substantially equal payments. The result of this calculation plus any required monthly escrow for taxes
and insurance will be the new amount of my monthly payment.
(D) I3mit8 on Interest Sate Changes
The rate of interest I am required to pay shall never be increased ordecreased on anysingle Change Date by
more than Tw0 percentage points ( 2•~~ ~6) from the rate of interest I have
been paying for the preceding T~L~ months. My interest rate also shall never increase more
than FIV$ percentage points ( 5.00 from the fully indexed rate
of 8• 50 My interest rate shall never decrease below the interest rate established in paragraph A of this
instrument.
(E) Effecdve Date of Changee
My new interest rate will become effective on each Change Date. I will pay the amount of ~ny new monthly
payment beginning on the first monthly payment date after the Change Date until the amount of my monthly
payment changes again.
(F) Notice of Changeg
The Note Holder will mail or deliver to me a notice before each Change Date. The notice will advise me of:
(i) the new interest rate on my loan as of the Change Date:
(ii) the amount of my monthly payment following the Change Date; ~
(iii) Any additional matters which the Note Holder is required to disclose; and ,
(iv) the title and telephone number of a person who will answer any question I may have regarding the i
notice.
IN WITNESS WHESEOF,Borc9ower haa execu~d ST RATE $ider. ~
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