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,pi)DENDUM T~ ADJUSTABLE RATE/GRADUATED P~4Y11~~A~~ ~iDER,
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' ' • ( ~ixed R~te Convenion Option 1 ~ ~ ~ t'' ~ "
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TNIS ADDENDUM TO ADJUSTABLE RATE RlD~R OR GRADUATEQ PAYMENT RtDER is madc this
13'1~aY of p~y+~ , 19 ~ and is incorporated into a~d shall be deemcd to amend and supplement the _
Adjustable Ratc Rider or Graduated Aayment Ridcr (the "Ridc~") to the Mortgage, Dced af Trust or Secu~ity Dced
' (the "Security Instrument"), cach dated the same date as this Addendum and given by the undersigned (thc "Bor-
rower") to secure Borrower's Adjustable Ratc Note or Graduated Payment Notc, with Addendum Tu Adjustable
Rate/Graduated Payment Note, to
AM~tICAN PIO1~IF.E~t SAVIPIGS ~ (the"Lender")
and dated tht same date as this Addendum (the "Note"), co~•ering the property described in the Security Instrumtnt and
located at:
920 BtifJORF~GE AVE PC~t'P ST. LUCIE PLO~tIDA 3345Z
( Propcm Addrt.r ~
• Aun~T~ovA~ CoveH~Hr~. In addition to the covenants and agreements made in the Secarit~• lmtrument and ihe
Rider, Borrower and Lender further covenant and agree as follows:
~ A. FIXED INTEREST RATE OPTION
The Note provides for the BorroKer's option to convert trom an adjustablc intcre,~ rate t~~ a lixcd intcrest ratc, as
foflows:
1. Option to Conrert to Fixed Rate
I have a Comersion Op?ion ~~hich I can exercise unless t am in default ur this Scrtiun A 1 c?r Scctiun A i bclu~~ w~ill
not pcrmit mc tu do so. 7he "Convcrsion Option" is m~• option to com-crt thc intcrest ratc ! am rcyuircd tu pa~~ by~ thc
Note from an adjustable rate to a fixeJ rate.
The com~ersion can only take place on the ihird, fourth or fiRh Changc Date. E:arh ChanKc 1)atc ~n whirh my
interest rate can convert trom an adjustable rate to a fixed rate alsa is ralled a"Cum•crsion natr." f can convert my
interest rate only on one of these lhree C'onrersion I}Ates.
I(' 1 want to exercise the Conversion Option, I must tirst mcct rcrtain ~unditiun~. Th~rc runditiun~ arc Ihat: (a ) I
must givc thc Note Hulder notice that 1 am doing so at Ieast IS days br.fare the ncxt Cunversiun I)ate: (bi un thc
Convcrsion Date, 1 am not in default under ihe Ivote or thc Serurity~instrument: (c) by the Cun~~crsiun f)atc, I must p~y
the Note Holder a com~ersion fee equal to one ~rcent ( i.0`l. ) of the unpaid prinripa! 1 am expccted ta uwc un th.U
Conversion Date ptus L.S. S ;(d ) hy the Convcrsion Datc, if an appraisal rc~wrl is reyuired by
Scction A3 below~, the Note Nolder has received thc report and 1 havc paid Ihc ap~r.~i.,+l fce and any anwunt ncresa;~ry to
rcducc unpaid principal; and (c) I must sign and gi~~c thc Notc Holdcr an} dcxxumcnts thc ti~itc Iluldcr rcyuires tucti~cct
the conversion.
2. Calculation o! Fixed Rate
My new, fixed interest ratc a~ilt Fx~ eyual to thc Federal National Murtgagr ~1,.ixiation'~ rryuired nct yield fur )(1-
}car, fixcd rate mortgagcs covcrcd b~~ 3Q-day mai~dator}• dcli+~cry commi~mcnts in cll'cct as of thc datc 4S day~ txturc Ihc
Com•ersiun Date, plus fi.•e-eighths of one percent l0.625': If thi~ rcyuired net vicld i. nut avail:~blc, thc Nutc IIuIJer
~~•ill detcrmine my interest rate by osing a comparablc figurc.
3. Reduction of Prinripa! Balance $efore C'on+ersion; Appraisal
If the unpaid principat t am expected to ow•e un the Canvercion Date Hil1 bc grcater than the original principal
amount of my loan, ihe 'Vote Holder ma~~ require an appraisal re~r~ on thc ~alur of the pruJkrty described in the
Security lnstrument. The appraisal repurt must be preparcd by ~ yualificd apprai.cr cho~cn by thc Nutc Holdcr. I will
pay the Nute Holder a reasonable fee for this appraisal rc~wrt.
The unpaid prineipal 1 am exrected to ov?e on the Cunversion Date could bc an amount greaicr tha~ y5'.; of the
appraisal report's stated value af the property-.securing m}~ loan. If so~ 1 cannot exercise the ('onversion Option untess I
pay the'~ote Holder an amount sufi'icient to reduce mv unpaid principal to an amount equal to 95'~',, of the stated ~alue of
the property.
, 4. Determination of tiew Payment Amount
' If I choose to excrcise the Conversion Option, thc \utc Holdcr w~ill dctcrmin~ thc amount uf thc monthlr paymcnl -
that ~~~ould be suffieient to repa} ,he unpaid prineipal I am ex~cted tu oHC on ihe Com~er+ion Uc~te in full on the ma~urit~~
date at m~• ne~~~ fixed interest rate in substantially eyual pay~ments. The retiutt of thi. c.~lculatiun witt be thc ncw amount
of my monthl~~ pa}~ment. Be~inning with m~~ first monthly payment after thc Convcrtiion Date, I«ill pay Ihc ncw antount
as m~• monthly pa~~ment untit the maturit~~ datc.
I B. TR:~tiSFER OF THE PROPERTI~ OR A BE1EF!('IA1. ItiTFRfST Iti RORROWER
~ If Borro~~er exercises the Conversion Option undcr thc \ote:~~,t:~ted in Scctiort A of thi~ Addcndum To Adju,t~blr
~ Rate/Gradaated Pa~ment Rider, the amendmenl to l:niform Coven~nt 17 of the Security ln,lrumem conlaincd in thc
' Rider sha!! cease tu be in efTect, and the provision. uf l;niform Co~~cn,~m 17 of ~hc Securit}~ Imtrumcnt ~hall instcad bc in
E efTect, as tolJows:
Transter ot the Properh or a Beneficial laterest in Borro++er. !f :~1! or any par~ uf thc Pro~x.rt~ ur an~ intcrc~t in it is
sold or transferred (or if a beneficial i~terest in Borr~wer is tiold or trantiferred and Borrow~cr is not a n:iwral ~x;rticm?
without Lender's prior ritten conscnt. Lcnder ma~, at its option, reyuirc immcdiate pa~ ment in full of afl sums sccurcd
b}~ this Securit} Instrument. Nu~~~ecer, this option shall not bc cxerciscd b~ Lcndcr if cxcrcisc is prohibi~cd b~ fcdcrat law
as of the date of this Securit~ Instrument. 800X 5~4 PACE
FIXED RATE OPTION ADDENDUM (SECURITY lNSTRUMENT)-1 Year Treasury Inda:-S~~R_;~N E-:+~,iy-Fannie Mse Uniform In:trument
Finanual law Forms" FOIR13109 11 '84
Form 2038 +
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