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HomeMy WebLinkAbout0934 + • . ~ 1' . , . . • ''•~t ~ ~ . ADJUSTABLE RATE RIDER (1 Yar T~easury Iad~ex=Rate Caps ) _ THIS ADJUSTABLE RATE RIDER is made this l lthday of SEPTEMBER , ~987 , and is incorporated into and shall be deemed to amend and supplement the Mortgage. Deed of T~ust or Security Dccd (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to securc Borrower's Adjustablc Rate Note (thc "Note") to AMERICAN FIONEER SAVINGS BANK (the "Lender") of the same dato and covering the property described in the Security Instrument and loeatod at: XXXX CANDLE AVE., PORT ST. LUCIE, FLORIDA 33452 [Proporty Addtas) THE NOTE COPITAINS PROVISIONS ALLOWIN~i FOR CHAN~3ES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIM1T3 THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANOE AT AkY ONE TIM~ AND THE MAXIMUM RATE THE BOR- ~ ROWER MUST PAY. ADDITIONAL COVENAKIS. In addition to the covenants and agreoments made in the Security lnstrument. Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTNLY PAYMENT CHANGES ' The Noto providts for an initial interest rate of 75 96. The Note provides for changes in the interest rate and the monthly payments, as follows: 4. [NTEREST RATE AND MONTHLY PAYMENT CHANGF~ ~ ( A ) Changs Dates The interest rate 1 will pay may change on the first day of SEPTEMBER , 19 88, and on that day every 12th month thereafter. Each date on which my intorrst rate could chang~ is called a"Change Date." ( B ) T6e Index Beginning with the first Change Date. my interest rate will be based on an Index. The "Indez" is the weekly average yield on Unital States Trt~sury securities adjusted to a constant maturity ot 1 year, as made available by the Federal Reserve Board. The most recent Indez figuro available as of the date 45 days befora 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. The Noto Holder will give me notice of this choice. ( C ) Calculatton of C6anges Before each Change Date, the Note Holder will calculate my new interest rate by adding T~+TO AND 875/1000 ` percentage points ( 2.875 to the Current index. The Note Holder will then round the result of this addition to the nearest one-eighth of ont 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 next Change Date. The Note Holder will then determine the amount of thc monthly payment that would be sufficient to rcpay 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 will be the new amount of my monthly payment. ( D) Limits on Interest Rate Changes The interest rate 1 am required to pay at the first Change Date will not be greater than 9. 7 S 96 or Icss than , S. 75 Thereafter, my interest rate wilt never be increased or decreased on any single Change Date by more than two percentage points (2.096) from the rate of interest t have been paying for the preceding twelve months. My interest rate will never be greater than 12. 75 (E) EfTectire Date af C'~anges My new interest rate will become eflectivc on each Change Date. 1 will pay the amount of my ncw monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. ~ ~ j i~uiicc u: i i~~ The Note Noldcr will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly ; payment before the eflective date of any change. The notice will include information required by law to be given me and ' also the title and telephone number of a person who will answer any q~estion I may have regarding the notice. ~ B. TRANSFEIt OF THE PROPERTY OR A BENEFICIAL INTEREST lN BORROWER : Uniform Covenant 17 of the Security Instrument is amendcd to read as follows: ~ Trxnsfer oi the Property or a Beneficial Inttrest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured ~ by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by tederal law - as of the date of this Security Instrument. Lender also shall not exercise this option if: (a) Borrower causes to be = submitted to Lender information required by L~nder to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaire~d by the loan assumption and that the risk of a breach of any covenant or agrcement in this Security Instrument is acceptable to Lender. ~ To the extent permittcd by applicable law, Lcnder may charge a reasonable fee as a condition to Lcnder's consent to the loan assumption. Lendcr may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligatcs the transferee to keep all the promises and agteements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases ~ Borrower in writing. • 0 R 5~8 PAGE t`JJ~ MULTISTATE ADJUSTABLE RATE RIDER-ARNI S-4-Sv~gfe FarrHly-Fannls Ms~/Frsddi~ Miac UNfam~~~ For~n 31 1 3/85 a ~-82YA t8703i VMP MORTGAGE FORMS •!313!293~8100 • 18001521-7191 ~ '-~r,........Y_`.'~~~.Y~~~Jt- .