HomeMy WebLinkAbout0994 ADJUSTABLE RATE RIDER
(1 Ya~ Trea~y t~dex-R~te Cap )
• THIS ADJUSTABLE RATE R1DER is madc this .....~Q... day of ............~~~'~~B~ i4 ~.I....., and i:
inoorporated into and shall ae damcd to amend and :upptement the Mo~tgage~ Deod of Trust ar Soeurity Dea! (the
"Security Instrument") of the same date given by the underaignod (thc "Bo~rower") to aecun Borrower's Adjustabie
Rate Note (the "Notc") to.....INAI,AN.~1XkR.~~A~RA~.SA~'.i~CS.~tAI!IK
( the "Lende~") of ~h~ same date aRd covering the property describcd in
the Security Instrumcnt and locatad at:
.................X.Xl{..m~Gaux~a.. ~~x~aa~....RR~.~..5~....~tI~G~,~..~1......~.49~~...................................................................
iProperty /?ddras)
THE NOTE CONTAINS PROVISION3 ALLOWiNG FOR CHAN~3E81l~! THE INTEREST RATE
AND THE MONTHLY PrAYMENT. THE NOTE LIMITS THE AMO?UNT THE BORROWER'8
INTEREST RATE CAN CHAN~3E AT ANY ONE TMAE AN~ THE MAXIMUM RATE THE BOR•
ROVYER MU8T PAV.
ADDITlONAL COVENAN7'S. ln addition to the covenants and agraments made in the Security Instrument, Borrower
and Lender turther covenant and agra as follows:
A. INTEREST ItA1E AND MONTHLY PAYMEM' CHANGES
The Note provides for an initial interost rate of ....~...ZS.....%. The Note provides for changcs in the interest rate and the
monthly payments, as follows:
4. INTEREST RATE AND MON'CHLY PAYMENT CHANGES
(A) Ci~ta~e D~tes
The int~rest rate 1 will pay may change on the first day of Q~~.ab~~ 19~.~..... and on that day
every l2th month thereafter, Each date on which my interest ratc could change is called a"Change Date."
( B) Tre Iadex
Beginning with the first Changt Date. my interest rate will be based on an indcx. The "Index" is the weekly average
i yiotd on United States Treasury socurities adjusted to a constant maturity of i yea~, as made avaitabie by the Foderat
~ Rsserve Board. The most raxnt Index figure available as of the dat~ 45 days before each Change Date is called the
~ "Curcent Index."
tf the indeic is no tonger available, the Note Hoider wiit chaose a new index which is bascd upon comparable
information. The Note Hotder wiN give me notice of this choice.
(C) Cak+d~tioa ot C6aa~a
Before each Change Date. the Note Holder wilt calcutate my new interest rate by addingT~!~0„AND,THREE„QUARTERS
~AMQUNT..Q~.~i~~~l) perantage points (....~.r.l.~.....%) ta the Currcnt Ind~x. The Note Holder wil! then round ihe
result of this addition to the ncarest onc•eighth of one perctntage poini (0.12596). Subject to the limits stated in Section
4(D) below, this raunded amount wil) be my new interest rate until the next Change Date.
Th~ Note Holder will then determine ths amount of the monthly payment that would be sufficient to repay the
unpaid principal that 1 am expectod to owe at the Change Date in full on the maturity date at my new interest rate in
subatantially equsl p~yments. The result of this calculation will be the new amount of my monthly Payment.
(D) Ilmits oe [eterat Rate C'6~wga
Tho interest rate I am required to pay at the first Change Date will not be greater than ..........10. 25......y~, or Icss than
6.,25.,,,,,,,,,96, Thereafter. my interest rate will never be incrcascd or decreasod on any single Change Date by more
than two perantage point (2.096) from the rate of interest I have ban paying for the prcceding twelvc months. My
interest rate will never be greater than ...14.0,,,,,,,,,,,,,,,,,,,g~,. .
{E) EBectirt Date of C'b~es
My new interest ratc will ba;ome eRective on each Change Date. 1 will pay the amount of my new monthly payment
beginning on the first monthly payment date after the Change Date until the amount of my inonthiy payment changes
again.
( F) Notice oi Chaaga
'I'he Note Hoider will detiver or mail to me a notice of any changes in my interest rate and the amount of my monthly
payment before the effective date of any change. The notice wiil include information roquirod by law to be given me and
also t6e title and telephont number of a person who will answer aoy question I may have regarding the notice.
8. TRANS~ER OF THE PROPERTY OR A BENEF[CIAL iM'EREST IN BORROWER
Uniform Covenant 17 of the Stcurity (natrument is amendod to rcad as follows:
Tn~afer of tbe Pro~erty or a Be~eiicial Iaterest ia Bormwer. If ail or any part of the Property or any interest in it is
soid or transferrod (or if a beneficial interest in Borrower ia sotd or transCerred and Borrowtr is not a natural person)
without Lender's prior writtea ~nsent. Lender may~ at its option~ require immediate payment in tull of all sums aecur~d
by this S~curity instrument. Howcver, this option shaii not be eaercised by Lender if exerciae is prohibitai by federal taw
aa of the date of this Security inatrument. Lendcr atso shall not exerciae ihia option if: (a) Bonower causes to be
submitted to Lender information roquired by i.ender to evaiuate the intended transferee as if a new loan were bcing made
to the transfera; and (b) Lender reasonably determines ihat L,ender's security wil) not be impaired by the lo~n
aasumption and that the risk of a breach of any covenant or agrament in this Security Instrumcnt is acxxptabl~ to
Lendet.
To the cxtent perrnitted by applicable law, Lender may charge a reasonable fee as a condition to I.ender's consent to
the loan assumption. Lcnd~r may also rsquire the transferee to aign an assumption agrament that is actxptable to
Lende~ and that obligates the transfera w kcep all the promisa and agreamonts made in ihe Note and in this Security
Inatrument. Borrower will continue to be obligated under th~ Note and thia Socurity lnstrument unless L,ender rcleasa ~ ~
Borrower in writing. ,
MULTI8TATE ADIUSTAB~E RATE RIDER-ARM 5•Z--Single Famii}~-Fannl• M~• rm n ~n
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IRF M03909-02 (Froni)4-85 r ,
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