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HomeMy WebLinkAbout0985 Decreases in the interest rate may (depending on prior interest rate changes) resuli in lower payments after a Change Date, subject to ihe limitations set out in Section 2(D) oi this Note. In setling the amount of the monthly payment due aiter each Change Date, as provided in Section 4(B) of this Note, the Note Nolder will assume that the Note interest rate will not change again prior to the Final Paymenl Date.~ B. SETTING THE NEW PAYMENT AMOUNt Beg~mnin on ~'I'sL Ol, 19II9 , and on the - 1~T day of the month every `It•+ELVl; ?~~Ti'fiS thereaiter (the "Change Date"), ihe Note Holder will determine the monthly payment amount that will be sufficient to repay ihe principal balance in full on ihe Finat Payment Date, at the new iMerest rate, in substantially equal payments, assuming that there is no further change in the interest rate. Tl~e result of this calculation will be my new monthly payment. The first monthly payment due atter the Change Date will be the new amount. 5. NOTICE OF Cl~IANGES The Note Holder will mail me a notice by tirst class mail at least thirty (30) and no more than one hundred and twenty (120) days betore each Change Date ii the payment is to change. The notice witt advise me of (i) the new interest rate on rr~y loan; (ii) !he amount oi my new monthly payment; and (iii) any additionat matters which the Note Holder is required to disclose." B. CHARGES; UENS Unitorm CovQnant 4 of the Morigage is amended to read as follows: 4. Charges; Liens. Borrower shap pay all taxes, assessments, charges, fines and impositions attributable to ihe Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in 1he manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay ihem on time directly to ihe person owed payment. Borrower shall promptly furnish to ~ender all notices of amounts to be paid under this paragraph. tf Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shall promptly discharge any Lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obtigation secured by the Lien in a manner acceptable to Lender; (b) contests in good faith ihe lien by, or defends against enforcement of the lien in, lega! proceedings which in the Lender's opinion operate to prevent the eniorcement of the lien or torfeitu!e o1 any part of the Property; or (c) secures from the holder of 1he lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part oi the Property is subject to a lien which may attain priority over this Security Instrument, lender may give Borrower a notice identitying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth within 10 days of the giving of notice. C. NOTICE Uniform Cove~ant 14 of the Mortgage is amended to read as follows: 14. Notices. 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 taw 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 8orrower or Lender when given as provided in this paragraph. D. UNIFORM SECURITY INSTRUMENT; GOVERNING LAW; SEVERABILITY Unitorm Covenant 15 of the Security Instrument is amended to read as follows: 15. Governing Law; Seve~ability. This Security Instrument shall be governed by federai law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrur?~ent or ihe Note conflicts with applicable law, such conftict shall not affect other provisions of ttris Security lnstrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Securily Instrument and the Note are declared to be severable. E. TRANSFER OF THE PAOPERTY OR A BENEFICIAL INTEREST IN BOHROWER Uniform Covenan! t7 ot the Security Instrument is amended to read as follows: 17. Transier of the Property of a 8eneticlal Interest (n Borrower. If all or any part of ihe Property or any interest in it is sold or transferred (or if a beneficial inte~est in Borrcwer is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender rnay, at its option, require immediate payment in ful{ of all sums ~ecured by this Security Instrument. Fiowever, this option shall not be exerc~sed by Lender if exercise is prohibited by feder~t law as of ihe date of this Security Instrument. If lender exercises this option, Lender shalt give 8orrower notice o! acceleration. The notice shall provide a per~od 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 8orrower fails to pay these sums prior to the expiralion of this period, Lender may invoke any remedies permitted by this Sscurity Instrument without further notice or demand on Borrower. Lender will consent to a sale or transfer if, prior to any such sale or transfer: (1) 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 for permission to assume the loan; (3) the transferee qualifies ~nder Lender's loan underwriting standards in effect at the time of submission of transferee's application for assumption in the same manner as if a new loan were being made to the transferee as of the proposed assumption date; (4) the transferee signs an assumption agreement that is acceptabie to Ler~derand that obligates the transferee to keep all the promises and agreements made in the Note and in this Security lnstrument; (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 under the terms of the Note and this Security Instrument and atl payments required thereunder have been made and the loan account is then current. Borrowerwill 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 lo a law which sets maximum loan charges, and that taw is finally ~nterpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed permiited limits, then: (1) any such ioan charge shall be reduced by the amount necessary to reduce the charge to the permitied limits; and (2) any sums already cotlected from Borrower which exceeded permitied limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principa! owed under the Note or by making direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a parfial prepayment under the Note. BOOX 5~~ PAGE ~7~ LQ~2J 1063259 Psge 2 ot 3 GF fL50651 3-87 NOTE ALAN ~ 62 ~I •~r ~ ' a .