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~Pmpen~ Ad1rc~sJ !
THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE lNTEREST RATE ; i
AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT TNE BORROWER'S ~ ~
ADJUSTABLE INTEREST RATE CAN CHANOE AT ANY ONE TIME AND THE MAXlMUM
RATE THE BORROWER MUST PAY. THE NOTE AL30 CONTAINS THE OPTION TO CON•
VERT THE ADJUSTABLE RATE TO A FIXED RATE.
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At~rnTU~~,?t. C~r~t:v;~x~n. ln aJditiun to the crn~enant~ an~i agreements made in the Security In~tniment, Borrov?~er and
Lrnder further r~n~en~nt and agree as foll~n~~~: ~
A. ADJUSTABl.E RATE AtiD MO!~THLti' PAl'~1F tiT CHAtiGE.S
The Note pru~~ide~ fi?r an initial interest rate uf$ ~ 12S . The Note pr~n~ides fix changeti in the :~djustable interest ~
rate and the monthh• payment~, as foiluw~:
4. ADJt?STABI.E I'~TERE.tiT RATE A\U ~tOtiTH11' PAYMEtiT CHANGE.S
(A) Chan~e Dates
The adjustable interest rate I will pay may change on the fint day ofAugust , ~y89. and on that day every
Ihh month thereaftec Each date un which m} adju,wble intrre:t rate cc~uld change is called a"Change Date"
(B) The tndex
Beginning w~ith the tint Change Date, m} a~ju~t~hle ~ntcrest rate will be ba.ed un an Index. The "Index" is the
weekl}~ average yield on United State. Trea.ur}' securitic~ adjusted tci a cun~tant maturity of I year, as made available
tn~ the Federal Rr~en~e &~ard. The mo.t recent InJex figure a~ailable as oF the date 45 days before each Change Date
i. called the "Current Index"
lf the Index is nu lunger available, the N~~te H~~Wer will rh~x?tie a nc~+ index Nhi~h u ba~ed uExm comp:~rable infor-
mation. The Nc?te Holder ~.ill g~ve me n~~tire ~?f ~hi. rh~~irr.
(C) Cakulation of Changes
E3ef~re each C a nate, the N~~te H+?I~ier w ill ~:ilrulate m~ ncw interetit rate h} aelding 5.
percentagr pu~m~ t~ :~5 . Y1 t~~ the ('urrent Inde~. "fhe tiute Hulder wiil then round the result of this a~lditiun to
the ne:~re+t unc-eighth ~~f one percentagr pu~ni (0.1 _'S`~ 1. Subject to the lim~ts stated in Section a1D) below, this rc~und-
e~i am~~unt ~ill hc: m~ nev? intere~t rate unul the next Change Date.
The !~ote Holder w ill thcn determine the :~mc?unt uf the m~mthl~ p:iymrnt that wuuld be sufficient to repay the ~
unpaid pn~cipal that I am expected to ow•e at the Change Date in full on the matunty date at my new~ interest rate
in ~ut+~tenti:~lly eyual pey ment~. 'The re~ult uf thi, .:alrulatiun will be the new amc?um ~~f my munthly payment.
IDl t.imits on Inter~t Rate ChanRes '
The interest rate I am reyu~red to pay at the fir~t Change Date will not be greater thz~0.125 .g~. or less than ~
~ 6.125 ~ Thereafrer, m~ nt •re5t rate w~ill never he ~nrreased or decreased on an} single Change Date by more than
i 2:0..... ~ ~ ~
percenwge ~?int~ t..'...~? frum the rate ~f int~rest 1 have t~een pa~~ing for the preceding 12 months. My
intere~t rate will ne~~r he greater thar~4.125 wh~rh iti callc~l thr "4lacimum Rate." ,
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' (E? Fffecti~e Uate of ChynRes ,
~
'~1v new° intcre~t rate v?•ill become effective c~n rach Change Date. 1 will pay the amount of m~ new monthly pay-
; ment beginn~ng on thc fir~t monthl~ pa~ ment date after the Changc Date until the amount of my monthly payment
~ changes again.
~ iF) tiotice ot ChanKes
~ The tiu~e Hulder v?ill deliver ~x rr~a~l to me a notirc ut ~ny chenges in mp ad~ustable interest rate and the amount
' of m~ monthl~ payment he(~~re the effective date e?f any ch~nge. The n~xire wilt ~nclude ~nforniation required by law
~ to be gi~~en me and ~lu~ the utlc and telephone number ~?f a persun ahn u~ill answer an}• yuestion { may have regarding
the n~tice.
B. F1XED 1'~TFRE:.ST RATF OPTIOti
The Note pn»~de~ for the Borr~?++er'ti opt~~m tu comert fmm an ad~u,table interest rete wuh interest rate Lm~ts
t~? a fixed intere~t rate, as foll~n~s:
5. FIXED ItiTERFS~T' RATE COtiVERSIOti OPTI(~\
(A) Option fo Convert to Fixed Rate
1 ha~e a Co~sversion Opti~~n wh~ch I can excrcise unle~~ I am in default or this Secuon S(A) will not permit me
~ to do u~. "The "Comenwn Option" is my option to convert the inserest rate 1 am rcyuired to pay by this Ncxe fmm
an adjustable rate with interest rate limits to the fixcd ratt calculated under Section S(B) belaw.
The comenion can only take plac.e on a date(s) spe~ifiod by the Note Holder during the period beginning on the
first Change Qate and ending on the fifth Change Date. F.ach date on which my adjustable inter+cst r~te can conveR
to the new fixecl rate is called the "Conversion Dale"
ea~ ~c~ 9~
MULTISTATE CONVERT181.E ADJUSTABIE RATE RIOEA - 5~nqfe Fam+?y - F~ Mac Ut~ilorm f~+Wu~eaK Fa~n 11~0 1Iq
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