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HomeMy WebLinkAbout1450 V • ~ ~ ~ If I want to exercise the Conversion Option, I must first meet certain conditions. Those conditions are that: (i) 1 must give the Note Holder notice that I want to do so; (ii) on the Conversion Date, I must not be in default under the Note or the Security Instn?ment; (iii) by a date specified by the Note Holder, 1 must pay the Note Holdcr a conver- sion fee of U.S. ~ 250.00 ; and li~~) I must sign and gire the Note Holder any documents the Note Holder requires to effect the conversion. (B) Caicutation of Fixed Rate My new, fixed interest rate will be equal to the Federal Home Loan Mortgage Corporation's required net yield as of a date and time of day specified by the Note Holder for (i) if the original term of this Note is greater than 15 years, 30-year fixed rate mortgages crnered by applicable 60-day mandatory delivery commitments, plus three-eighths of one percentage point (0.37546), or (ii) if the original term of this Note is 15 years or less, 15-year fixed rate mortgages covered by appiicable 60-day mandatory delivery commitments, plus three-eighths of one percentage point (0.375~). If this required net yield cannot be determined because the applicable commitments are not available, the Note Holder will determine my interest rate by using comparable information. My new rate calculated under this Section S(B) will not be greater than the Maximum Rate stated in Section 4(D) above. (C) New Payment Amount and Effective Date If I choose to exercise the Com~ersion Option, the Note Holder will determine the amount of the monthly payment that would be sufficient to repay the unpaid principal I am expected to owe on the Conversion Date in full on the maturi- ty date at my new fixed interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. Beginning with my first monthly payment after the Conversion Date, I will pay the new amount as my monihly payment until the maturity date. • C. TRANSFER OF THE PROPERTY OR A BENEF'ICIAL INTEREST IN BORROWER 1. Untii Borrower exercises the Conversion Option under the conditions stated in Section B of this Adjustable Rate Rider, Uniform Covenant 17 of the Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial Inter~st in Borrow~er. if all or any part of the Property or any interest in it is sold or transferned (or if a beneficial interest in Bormwer is sotd or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal taw as of the date of this Security Instrument. Lender also shall not exercise this option if: (a) Borcower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new~ loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is accep- table to Lender. To the extent permitted by applicable law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security ~ Instrument. Borrower will continue to be obligated under the Note and this Security lnstrument unless Lender releases 'i Borrower in writing. ~ If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of accelera- ; tion. The notice shall provide a period 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 Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Bormwer. i E 2_ If Borrawer exercises the Conversion Option under the conditions stated in Section B of this Adjustable Rate Rider, the amendment to Uniform Covenant 17 of the Security Instrument contained in Section Cl above shall then cease to be in effect, and the provisions of Uniform Covenant 17 of the Securiry Instrument shall instead be in effect, ~ as follows: ~ 'I~ansfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Properry or any interest ~ in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Barrower is not a naturai ~ person) without Lender's prior written consent, Lender may, at its oPtion, require immediate payment in full of all sums ~ secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. E ~ If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period ~ 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 Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borr~vwer. ~ BY SIGh'iNG BELU~Y, Borrawer accepts and agrees to the terms and crn~enants contained in this Adjustable Rate Rider. ' '~0 JAN 24 A 9 ~ :G ; _ . < <s~>> . . ~ . . . . . . . . . . . . . . . . . . cs~i> . . ~ i~~ Q g~~ J es W. McGauley ~ ~r r ~ ~ is~i~ Q ~ cs~~~ ~ ~ . ~ Dolores A. McGauley ~ ~ ~ a ~ ~ ~ tc# •~n~e ~•g~~-~uu r~~ • ~ ~ BQGK ~74 PACE1~~ ~ - - - - - - ~ f