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• ~ ADJUSTABLE RATE RIDER
THI3ADJUSTABLERATERIOERi~m~dethisa~..d~?yof....OG'1'RSRR .....................19.8~....and , :
is incb~porated into and shati be deemed to amend a~d supplement ~he Monqage, Deed ot Trust or Security Deed
_(the "3ecurity InstrumenYq of th~ aelms,date 9h?sn by ths und4rsipned (the "BoROwe~ to decure Ba~rowers
Ad~uatable Rate Note tthe "Note~~ to l~Irst Comeaunit~? ~r~lo~ Cap
. . . . : . . . . . . . : . . . . . . . . . . . . . . . '
. . . . . . . . . . . . . . . . . . . . . . . . (the "Lenderl ot ths sema date and coveNny the propeny
described~in the Secariry lnstrument ~nd Ipcated a~
~N.~~PD41't.Arl~I~~.~9~'t. Stti.44~f~,.F.jRrl~~.34953
, . IProaKb Addr~W ~
THIS NOTE C4NTAINS A PROYI~ION AI.LOW~NG FOR
~ CHANG~E8 IN iIAY INTERE$T RATE._ iF MY II~TERES'P
RATE INCREASE8, MY M~NTHtY PAYIlAEI~01°~ WILL -
~BE HIGii°IEF~: IF iMY IN7'E~iE8T~~/1TE DECREA8ES, MY
MONTHLY PAYMENTS WILL LOWER.
Additional Cod~nants. in addition to the covenants and aqreements made in the Security Inatrument~
Borrower and lender fu~ther covenant ard a~ree as follows:
A. INTEREST RATE AND MON'U'HLY PAYINIENT CHANGIES ~
; .
The Note providesfor an initial interest rate of..... ~~25...%. The Note providesiorchanges in the i~te~est rate and
_ t~?e monthiy payment$ as toliows:
4. IN7EREST RATE AND MONTHLY PAYMENT CHANGES; 60RROWER'S RIGHT TO ~
LIMIT PAYMENT . .
(l~ Chan~e Ostes ~
The interest rate I wilt pay may change on the i(rat day ot Ha~te~aber . . . . . . . . . . . . . 19 .88 . . . . , and on
that day every~_month thereafter. Each date on which my interest rate couid change is call a"Change Date."
(B) The Indsx ~
Beginning with the first change date, my interest wiil be based on an index available with the Federai
Home Loan Bank 8oard. The "Index" to be used is the:
Weekly~average yield of United States T~easury Securities adjusted to a constant maturity of_year.
( X) National Monthiy Median Cost of Funds (NACSTM)
The most recent index figure available at leest 30 days but not more than 120 days is calied the "Current
Index".
If the Index is no longer available, the Note Hoider wilf choose a new index which is based upon eomparabie
information. The Note Hofder wiil give me notlce of this choice.
(C) Caiculation of Changes
8efore each Change Date, the Note Holder will calculate my new interest rate by adding Trro.
..and.fixe..Eigbths percentagepoinis(...2.b25..........%) tothecurrent index Thisamountwill be my
new ~nterest rate until the next Change Date.
The Note Holde~ will then determine the amount ot the monthly payment that would be sufticient to repay
the unpaid principal that I am expected to owe at the Change Date in f ull on the maturitydate at my new interest rate
r_ in substantially equal payments The result of thiscalculation iscalled the"Full Payment" It will be the new amount
' of my monthly paym~nt unless I choose the amount permitted by Seciion 4(F) below.
(D) EHectlvs DatO ot Chsn~~s
My new interest ~ate will become effective on each Change Date. I will pay the amount of my new monthly
payment beginnng an the first monthly payment date after the Change Date until the amount of my month{y
~ payment changes again.
(E) Notice of Chwn~~s
The,Note Holder will deliver or mail to me a notice ot any changes in my interest rate and the amount of my
monthly payment betore the eHective date of anychange. The notice will include information required by taw to be
given me and also the title and tElephone numbe~ of a person who wltl anawer any question I may have regarding
the notice.
iFl Limib of Inter~st R~ts Chan~~s
r
The interest rate as calculated he~eir~ wil not be increased by more than 2-00 percentage points on
the tirst Change Date, or more than • ~.00 percentage points on any chan~e date thereafter. Decreases in
inte~est rates will not exceed 1-~ percentaye polnts on sny chanqe date. In no event shall the intereat rate
on this loan at any point in time, be greater than 13.25 % or {ess than 4.00 96.
~ ~ BOOKS~J PAGE 994