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HomeMy WebLinkAbout1449 ADJUSTABLE RATE RIDER (1 Year 'IYeasury Index - Rate Caps - Fixed Rs~te Conversion Option) THIS ADIUSTABLE RATE RIDER is made this 22nd da~~ of January 19 90 , and is incorporated into and shall be deemed to ainend and supplement the Mortqage, Deed of Trust or Security Deed (the "Security Instru- ment") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to Riverside National Bank of Florida (the "Lender") of the same date and covering the property described in the Security Instrument and located at: Melon Court Pt. St. Lucie, FL 34952 IP~nY M~3rcss) THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LI~AITS THE AMOUNT THE BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM R/1TE THE BORROWER MUST PAY. THE NOTE ALSO CONTAINS THE OPTION TO CON- VERT THE ADJUSTABLE RATE TO A FIXED RATE. Ann~rtoxAL CovFlv~tw[s. In addition to the cavenants and agreements made in the Security Instrument, Borrawer and Lender further covenant and agree as follaws: A. ADJUSTABI.E RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 8. 875 ~b. The Note provid~s for changes in the adjustable interest rate and the monthly payments, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGE.S (A) Change Dates The adjustable interest rate 1 will pay may change on the first day of January , 19 91 , and on that day every 12th month thereafter. Each date on which my adjustable interest rate coufd change is called a"Change Date." (B) The Index Beginning with the first Change Date, my adjustabie interest rate will be based on an Index. The "Index" is the weekly average yield on United States Treasury secutities adjusted to a constant maturity of 1 year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index: ' If the Indez is no longer available, the Note Holder will choose a new index which is based upon comparable infor- mation_ The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding Three percentage points ( 3.00 5b) to the Cunent Index. The Note Holder will than round the result of this addition to the nearest one-eighth of one percentage point (0.125 °b Subject to the limits stated in Section 4(D) below, this round- ~ ed amount will be my new interest rate until the next Change Date. ~ The Note Holder will then determine the amount of the monthl ment that would be sufficient to re the ~ y ~y~ ~y i unpaid principal that I am expected to owe at the Change Date in full on the maturity date at my new interest rate ~ in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. f (D) Limits on Interest Rate Changes j The interest rate I am required to pay at the first Change Date will not be greater than 10.875 % or less ~ than 6. 875 `I~. 'rhereafrer, my interest rate will never be increased or decreased on any single Change Date by more ~ than Two percentage points ( 2.00 i'b) from the rate of interest I havebeen paying for the preceding 12 ~ months. l~iy interest rate will never be greater than 14.875 which is called the "Maximum Rate." (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly pay- ment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. ~ Notice of Changes The Note Holder wifl deliver ~r mail to me a notice ot any changes in my adjustable interesi rate and the amount ~ of my monthly payment before the effective date of any change. The notice will include information required by law t to be given me and also the title and telephone number of a person who will answer any question I may have regarding the nocice. B. FIXED INTERESI' RATE OPTION The Note provides foc the Borrawer's option to convert from an adjustable interest rate with interest rate limits to a fixed interest rate, as follows: ' S. FIXED INT'~REST RATE CONVERSION OP'TION (A) Option to Convert to Fixed Rate I have a Conversion Option which I~an exercise unless I am in default or this Section 5(A) wiU not permit me g to do so. The "Conversion Option" is my option ro convert the interest rate I am required to pay by this Note from ~ an adjustable rate with interest rate limits to the fixed rate calculated under Section 5(B) below. ~ T'he conversion can only take place on a date(s) specified by the Note Nolder during the period beginning on the ; ~ first Change Date and ending on the fifth Change Date. Fach date on which my adjustable interest rate can convert ~ to the new fixed rate is called the "Conversion Date: ' MULTISTATE CONVERTIBLE ADJUSTABIE RATE FIIDER - Single Famify - Freddit Mac Untform Insirurtf~M Forrti 3130 1l6d Form 4819 ~seo~~ ::f1-:_~E~~.t~~csa~s r+c ~ BU' <i3 ~r~ • `F ' SGC 359 ~3 • E~52a3G335 ~ ~ F t i ~ BOOIl67~ PACE~~~9 ~ _ ~ ~x-`~ ~ "