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HomeMy WebLinkAbout0917 Dec~eases in the interest rate may (depending on prior inte~est ~ate changes) ~esult in lower payments after a Changa Date, subject to the limitations set out in Secii~n 2(D) of lhis Note. In setting the amount of the monthly payment due atte~ each Change Date, as provided in Section 4(B) of this Note, the Note Holder will assume that the Note interest rate wiU not change again prior to the Final Payment Date. 8ETTINti THE NEW PAYMENT AMOUNT B innin on Ol, 198$ , and on the . 1~ day of the month every t~ thereafter (the "Change Date"), the Note Holder will determine the monthly payment amount that will be sufficient to repay the ptincipal balance in full on the Final Payment Date, at the new interest rate, in substentially equal payments, assuming that there is no turther change in the interest ~ate. The result of ihis calculation will be my new monthly payment. The iirst monthly payment due after the Change Oate will be the new amount. 5. NOTICE OF 6HAN(lES The Note Holder will mail me a notice by first class mail at least thirty (30) and no more lhan one hundred and twenty (120) days before each Change Date if the payment is to change. The notice wilt advise me oi (i) ihe naw interest rate on my loan; (ii) the amount of my new monthly payment; and (iii) any additionaf matters which the Note Holder is required to disclose." B. CHARGES; LIENS Uniform Covenant 4 of the Mortgage is amended to road as tollows: - 4. Charges; Uens. Borrower shalt pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shal! pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time direcily to the person owed payment. Borrower shall promptly turnish to Lender all notices of amounts to be paid under this paragraph. Ii Bor~ower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shali promptly discharge any Lien which has priority over this Security Instrument unless 8orrower: (a) agrees in writing to the payment of the obligation secured by the Lien in a manner acceptable to Lender; (b) contests in good (aith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien or forieiture of any part of the Property; or (c) secures trom the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrowera notice identifying the lien. Borrowe~ shall satisfy the lien or take one or more of the actions set forth within 10 days of ihe giving of notice. ~ C. NOTICE :lniform Covenant 14 of the Mortgage is amended to read as follows: 14. Notlces. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address Borrower designates by notice to Lender. Any notice to lender shall be given by first class mail to Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. D. UNIFORM SECURITY INSTRUMENT; GOVERNING LAW; SEYERABILITY Uniform Covenant 15 of the Security Instrument is amended to read as folldvrg' 15. Governtng Law; Severablllty. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Prop~rty is located. In the event that any provision or clause of this Security Instrument or the Note confticts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given eNect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. E. THANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Uniform Covenant 17 of the Security Inst~ument is amended to read as follows: 17. Tranafer of the Property ot a Beneflclal Inte~eai In ~orrower. If all or any pa~t of the Property or any interest in it is sold or ; transferred (or if a beneticial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior i € ~ ~ written consent, lender may, at its option, require immediate payment in full of all sums secured by this Security InstrumeM. ~ E I ` However, this option shall not be exercised by Lender if exercise is prohibited by tederal !aw as of the date of this Security ~ Instrument. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less : ~ than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by ~ this Security Instrument without further notice or demand on Borrower. ~ Lender will consent to a sale or lransfer if, prior to any such sala or tra~3fer: (1j Borrower causes to be submitted to Lender information required by Lender to evaluate the transferee as if a new loan were being made to the transferee; (2) the transferee submits upon Lender's standard application form a written application fqr permission to assume the loan; (3) the transferee qualifies under Lender's loan undervrriting standards in effect at the time of submission of transteree's application for assumption in the same manner as if a new loan were being made to the iransferee as of the proposed assumption date; (4) the transferee signs an assumption agreement that is acceptable to Lender and that obligates the transieree to keep all the promises a~d agreements made in the Note and in this Security Instrument; (5) the transferee pays all required fees and charges including, but not limited to, an assumption fee as a condition to Lender's consent to the proposed assumption; and (6) no default exists underthe terms oi the Note and this Security Instrument and all payments required thereunder have been made and the loan account is then current. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. F. LOAN CHARGES If the loan secured by the Security Instrument is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed permitted limits, then: (1) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limits; and (2) any sums already collected from Borrower which exceeded permitted limits will be retunded to Borrower. Lender maychoose to make this reiund by reducing the principal ovred under the Note or by making direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment under the Note. ~ 3 ~ ~ ~ ; ~ ~ LQA.*I ~ 1000504 ~ P zof, aooK 55fi ~?cE 916 ~ GF FLSObb7 3-87 NOTE PLAN'S~ ~_...",a~~''""`'. ~~Y - - -