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Home My WebLink About1099 _ • 'l'14510 ~ ~ AQJUSTABLE RATE RIDER (1 Year Treasury Index - Rate Caps) TH~S ADJUSTABLE RATE RIDER ~s made this 2 ~ day of December , 1989 , and ~s corporated ~nto and shail be deemed to amend and supplement the Mortgage, Deed of Trust or Secunty Deed (the "Secur~ty Instrumen;") of the same ~ate g~ven by the unders~gned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note') to ~~~~i~'3'~' 9F ~V.~1. j (the "Lender"j of the same date and covenng the property described in tdQ $ecunty instrument and located at: ~ Prope y dress] The Note contains provisions allowing for changes in the Interost rate and the monthly payment. The Note Itmita the amount the Borrower's fnterest rate can change at any one time and the maximum rate the Bor- rower must pay. Additionai Covenants. In add~t~on to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. Interest Rate and Mo~thly Payment Changea The Noke providss tor an initial interest rate oi ~,o. The No!e provides for changes in the ~nterest rate and the monthly payments, as follovtis: 4. Interest Rate and Monthly Payment Changes (A) Change Dates The ~nterest rate I will pay may change on the first day of a~~~ , tg and on that day every 12th month thereaftec Each date on which my interest rate could change ~s called a"Change Date." (B) The Index Beg~nrn~g w~th the f~rst Change Data, my ~nterest rate wi?I be based on an Index. The "~ndex" is the weekly average y~eid on United States Treasury secunUes adjusted to a constant maturity of one year, as made ava~lable by the Federai Reserve Board. The most recent Index f~gure ava~lable as of the date 45 days before each Change Date is calle~ the "Current Index" If the Index ~s no longer ava~labie, the Note Holder will choose a new index which is based upon comparable information. The Note Holder w,il g~ve me noUce oi this choice. (C) Calculstion of Changes j Before each Change Date, the Note Holder wili calculate my new i~terest rate by adding ~,r~ n*m muu~F._rv~nn?rE~ percer.tage po+nts ( ~~n to the Current Index The Note Holder wdl then round the result of th~s add~Uon to the nearest one-e~ghth of one percentage point (0.125%). Subject to the i~mits stated in Sect~on 4(D) below, this round- ed amount will be my new interest rate until the next Change Date. The Note Ho!der wili then determine the amount of the monthly payment that would be sufficient to repay the unpaid principai that i am expected to owe at the Change Date in full on the maturity date at my new interest rate ~n substantialty equal payments. The resul! ot this caiculation will be the new amount o( my monthly payment. (D) Limits on Interest Rate Changes I, The interest rate I am required to pay at the first Change Date will not be greater than % or j ~ess than ~T~~ Thereafter, my ~nterest rate w~li never be increased or decreased on any single ~ Change Date by more than two percentage points (2.0%) from the rate of interest I have been paying for the preced~ng 12 months. ~ My ~nterest rate w~ll never be greater than ~~T~AA ~ (E) Effective Date of Changes i E My new interest rate vr~ll become effect~ve on each Change Date. I w~ll pay the amount of my new monthty payment beg~nning ~ on the f~rst monthly payment date after the Change Date unt~f the amount of my mon?hly payment changes again. i (F~ Note of Changes The Note Holder w~il dei~ver or ma~l to me a notice of any changes in my interest rate and the amount of my monthly payment P before the effecUve date a any change. The notice will mc!ude information reqwred by law to be given me and also the title and ~ telephone number of a person who w~tt answer any question I may have regarding the notlce. B. Transfer of the Property or a Beneficial interest in Borrower ~ Uniform Covenant 17 of the Security Instrument is amenCed to read as iollows: ~ Transter of the Property of a Beneficial Interest in Borrower. If ali or any part of the Property of any interest fn ~t ~s soid ~ or transferred (or if beneficial interest ~n Borrower is sold or transferred and Borrower is not a natural person) without Lender's pnor ~ wntten consent, Lender may, at ~ts option, require immed~ate payment in fuif of a!I sums secured by this Security Instrument. However, ~ th~s option shall not be exerc~sed by Lender if exercise is proh~bited by federal Iaw as of the date of this Ser.urity Insirument. Lender ~ also shall not exerc~se this option if: (a) Borrower causes to be submitted to Lender iniormation reqwred by Lender to evaluate the ~ ~ntended trans'eree as if a new loan were be+ng made to the trans'eree: and (b) Lender reasonably determines that Lender's security w~l! not be ~mpaired by the laon assumption and that the risk of a breach of any covenant or agreement in th~s Security Instrument ~ ~s acceptab'e to Lender. To the extent perm~tted by app!~cable law. Lender may charge a reasonable fee as a condit~on to Lender's consent to the loan - assumpt~on. l~nder may also requ~re the transferee to sign an assumption agreement that is acceptable to Lender and that obli~ates the transferee to keep all the promises and agreements made in the Note and in this Security Instrumeni. Bo~rower w~li continue ' to 't~e oCl~gated under the Note and this Secunty Instrument unless Lender releases Borrower in wnting a ~ ~ € . ~ ~ . t € ' ° R 6?4 ~E1099 AWUSTABLE RATE RIDER - 5~~ •:e FaT.' 6OOK , , - ARM 3n 11i85 ~ 3. 5.•.: a,P. n.,s ~r,~n ra r.o: B5 m,ay oe ~sed ~Oa906 Hev kov 96 ('6~0) PC ~ - _ _ ~ ~ a r a~..~.: ~ . _ ' - - ~:::~'c '~i. ~ .1-~~ ~ .a-~a:s-y~~-~~C.,~.a-'a~~~: ~