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HomeMy WebLinkAbout1483 • . i ADJUSTABLE RATE RIDER ; (1 Yeae Tressury Index-Rate Caps) THIS ADJUSTABLE RATE RIDER is mad~ this 22nd day of JANUARY , 19 90 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security lnstrument") 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: GILROY ROAD, PORT ST. LUCIE, FL. 34953 (Property Address] ~ i THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEitEST EtATE j AND THE MONTHLY PAYMENT. THE NOTE I.IMiTS THE AMOUNT THE BORROWER'S i INTEREST RATE CAN CHANGE AT ANY ONE TiME AND THE MAXIMUM RATE THE BOR- ~ ROWER MUST PAY. I ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower anci Lender further covenant and agree as follows: ~ A. INTERFST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of 10. 50 The Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTERFST RATE AND MONTHLY PAYMENT CHANGES (A) Cbange Dates The interest rate I will pay may change on the first day of FEBRUARY 1 , 19 91 , and on that day every 12th month thereafter. Each date on which my interest rate could change is called a"Change Date." (B) The Index Beginning with the first Change Date, my interest rate will be based on an Index. The "Index" is the ~veekly average yield on United States Treasury securities adjusted to a constant maturity of l yeaz, as made available by the Federal Reserve Board. The most recent Index ~gure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable information. The Note Holder will give me notice of this choice. (C) Cs~kuls~don of ChAnges Before each Change Date, the Note Holder will calculate my new interest rate by adding THREE percentage points ( 3.00 °10) to the Current Index. The Note Holder will then round the result of this addition to the nearesi one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. ; The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay ~ the 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. ~ ~ (D) Limits on Interest Rpte C6anges The interest rate I am required to pay at the fust Change Date will not be greater than 12 . 50 % or less than 8. 50 Thereafter, my interest rate will 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 preceding twelve months. My interest rate will never be greater than 16. SO ~70. (E) Effect~ve Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date unti! the amount of my monthly pay- ment changes again. Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given me and also the title and telephone number of a person who will answer any question I may have regarding the notice. ~ B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER ~ Uniform Covenant 17 of the Security Instrument is amended to read as follows: ~ Transfer of the Property or a Benetic[s~l Interest in Borrowa. If all or any part of the Property or any interest ~ ir. it is sold or transferred {or if a bene~cial interest in Borrower is sold 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 law as of the date of this Security Instrument. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information :equired 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 wiU not be impaired by the Ioan assumption and that the risk of a breach of any covenant or agreement in this Securi- ty Instrument is acceptable to Lender. To the extent permitted by applicable law~ Lender may charge a reasonable fee as a condition to Lender's con- sent to the loan assumption. Lender may also require the transferee to sign an assumption agrcement that is accept- able 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 obligatod under the Note and this Security Instrument unless Lender releases Borrower in writing. MULTI8TATE AD~USTABLE MTE RIDER-ARM 6-2-$ingb Fart?ily-Fww~ MN/Fr~ddi~ Mac UnHam Instn/nN+t Fpm 3111 3/86 ~V .82 ~~i VMP MORTGAGE FOitMS • 13131I93-8100 • 1800162 5-7 2 9 5 ~~~~c! 3 ~_3 ~ - - - - .