HomeMy WebLinkAbout0997 • r
. .
. ~
~ RATE MODYFICATION RIDER S
• FIXED RATE CONSTRUCTION/PEaMANENT LOAN ~
This Rate Modific~tion Rider is mdde this Sth day of
, 19~R, and shall be eeme to supplement and
amen :(1 t at note the Note ) of the undersigned (the "eorrower)
~held by ~ (the "Lender) in the principal
amount o o same ate, t2) that Mortg~ge, Deed of
Trust, or Secur ty Dee ~he "Security Inatrument") of same date qiven
by..eorrower to Lender to secure the Note and coveri~q ~he property, ~
described in the Security Instrument, which is located ~t the followinq ;
address: ~
, an t at Construct on Loan Agreement o -
even ate execute by orrower in favor of Lender. ~
TNIS RIDER WILL PERMIT THE LENDER TO ADJUST THE INTEREST RATE AND
MONTHLY PAYMENT AMOUNT STATED IN THE NOTE.
Additional Covenants. In addition to the covenants and ~
agreements ma e~n t e Note, Security Instrument ar?d Construction Loan
Agreement, Borrower and Lender further covenant and agree as follows:
A. Pa ents of Interest Durin Construction. Horrower shall ~ _
pay Lender a unpa nterest t en accrue on pr ncipal disbursements ~
. to eorrower beginning on JULY 1 1987 and on the ffrst day of
each consecutive month therea ter unt t e first day of the month ~
following the month in which the Change Date occurs. In the event ~
Lender does not exercise its option to change the interest rate, Borrower ~
shall pay Lender the monthly payment amount stated in the Note commencinq '
on the first day of the month following the month in which the Chanqe Date ~
occurs, and on the first day of each consecutive month thereafter until i
all indebtedness is paid in full. In the event Lender does exercise its ;
option to chanqe the interest rate, Borrower shall pay Lender the new
monthly payment amount, described below, commencing on the first day of ~
the month~followinq the month in which a Change Date occurs, and on the
first day of et+ch consecutive month thereafter until all indebtedness is
paid in full.
B. Lender's Option to Modify Note. Lender may, at its option,
elect to modify the interest rate payable under the Note to the interest
rate described below. If Lender so elects to chanqe the interest rate,
then the new interest ra~e will begin to accrue on the unpaid principal
balance of the Note on the earlier of :(a) ;
ot (b) on the first day of the month follow ng s ursement o t e ast
draw on Borrower's construction laan account establiehed fn the Construction
Loan Agreement. This date on which the interest rate may change is
referred to as the "Chanqe Date". This change could result in an increase
or decrease in the interest rate stated fn the Note. Borrower shall,
t
within is days of Lender's delivery of a modification aqreement,
execute the modification agreement, in that form which I.ender specifies,
stating the interest rate change and any new monthly payment amount.
Borrower's faflure to execute the modificatian agreement within said time
~ period shall be deemed, at Lender's option, a default under the Note, :
Security Instrument and Construction Loan Aqreement, provided however,
Lender's election to chanqe the interest rate shall be effective reqardless
of Horrower's failure to execute the modification agreement. ~
C. Determinntion of New Rate and Payment Amount.
1. If Lender chooses to modify the fnterest rate on the ~
Note, the new interest rate will be equal to the Index figure existing ~
on the Change Date. The Index figure is the prime rate of Lender for
loans having a term for repayment the same as the term for repayment i
1
~
:
' BOOK 5~5 PACE ~i~.l
~
#
l
~ . -
- ~,..,...,K , ~,~.y -
_~_.._=;--r-~.~__:
:~?~!!~liF~ -