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Home My WebLink About1887 ~G~911 ADJUSTABLE RATE RIDER (t Y~ear Theasury lndax Rate Caps) THIS ADJUSTABLE RATE RIDER ~s made th~s g,.J t h day oi and is corporated ~nto and shali be deemed to amend and supplement the Mortgage. Deed of Tr~st or Security Deed (the "Secur~ty Instrument") of the same date g~ven by the undersigned (the ':Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to BABNNF~T RAnK [~F ~T, i,t,~TF (x~jy (the "Lender") of the same date and cnvenng the property described ~n the Security Instrument and located at: (303-S) --_'~1 7n N~ A1 A '2-~` ~~'I'. P. TF~`E~ , Flc~rir.kz--~QQQQ (Property Address~ The Note contatns provisions allowing tor changes in the interest rate and the monthly payment. The Note Iimits the amount the Borrower's tnteroat rate can change at any one tlme and the meximum rate the Bor- rower must pay. Additlonal Covena~ts. In add~t~on to the covenants and agreements made in the Security instrument, Borrower and Lender further covenant and agree as foliows: A. Interost Rate and Monthly Payment Changes The Note p~ovides for an iniUal ~nterest rate of 9.500 a/o. The Note provides for changes ~n the ~nterest rate and the monthly payments, as tollows: 4. Interest Rate and Monthly Paymant Changes (A) Change Dates . The interest rate I wili pay may change on the first day of ~Rt~ , 19 95 , and on that day every 12th month ihereafter. Each date on which my interest rate could change ~s called a"Change Date." (B) The Index . Beginning with the first Change Date, my interest rate will be based on an Index. The "index" ~s the weekty average yield on United States Treasury securities adjusted to a c~nstant matunty of one 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 catled the "Current Index" If the Index is no longer available, the Note Halder wili choose a new ~ndex which is based upon comparable informat~on. The Note Holder will g~ve me notice of th~s choice. (C) Calculation of Changes Before each Change Date, the Note HQlder will calculate my new interest rate by add~ng perceniage points ( 2.750 to the Curren; Index. The hote Holde~ w~il then round the result of this addition to the nearesi one-eighth of one percentage po~nt (0.125%). Subject to the tim~ts stated in Section 4(D) below, this round- ed amount wifi be my new interest raie unt~l the next Change Date. The Note Holder will then determ~ne the amount of the monthly payment that vrould be sufiicient to repay the unpaid principat that I am expected to ov~~e at the Change Date ~n full on the maturity date at my new interest rate in substant~ally equai payments. The result of this calculat~on will be the new amount of my monthfy payment. (D) Limits on Interest Rate Changes The interest rate I am required ta pay at the f~rst Change Date w~l! not be greater than 11.500 % or less than 7.500 0~. Thereafter; my ~r,terest rate w~li never be ~ncreased or decreased on any single Change Date by more than two percentage points (2.0~/0) from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 14.500 0~0. ' (E) ENective Date of Changes i ~ My new interest rate w~ll become effecUve on each Change Date. I wil! pay the amount of my new monthly payment beginning ` on the f~rst monthly payment date after the Change Date until the ameunt of my monthiy payment changes again. E Note of Changes The Note Holder will deliver or mail to me a not~ce of ary changes in my interest rate and the amount of my monthly payment before the efiective date of any change. The notice wi11 ~nclude iniormation required by law to be given me and also the title and i ~ telephone number of a person who will answer any question I may have regard~ng the notice. ~ B. Ttansier of the Property or a Beneficial Interest in Borrower i ~ Uniform Covenant 17 of the Security Instrument ~s ame~ded to read as follows: ~ Transfer of the Froperty oi a Beneficlal Interest In Borrower. If all or any part of the Property of any interest in it ~s sold € or transferred (or if benefic~al interest in Borrower is sold or transferred and Borrower ~s not a natural person) without Lender's prior ~ written consent. Lender may, at its option, require immediate payment in full of ail sums secured by thi.~ Security Instrument. Ho~wever, ~ this option shall not be exercised by Lender rf exercise is prohibited by federal law as of the date of th,~s Security Instrument. Lender also shall not exercise th~s oRtion ii: (a) Borrower causes to be subm~tted to Lender information require~ by Lender to evaluate the ~ ~ntended transferee as if a r,ew loan were be~ng made to the transferee: and (b) Lender reasonably determines that Lender's security ~ will not be impaired by the loan assumption and that ihe risk of a breach of any covenant or agreement in this Secunty Instrument ~ is acceptable to Lendec . ~ To the e~ent permitted by applicable !aw Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also requ~re the transferee to sign an assumption agreement that ~s acceptabte to Lender and that obligates the transferee to keep atl the promises and agreements macie in the Note and in th~s Secunty Instrument. Borrower w~ll continue to be obligated under the Note and this Secur~ty Instrument unless Lender releases B~rrower in wtiUng. If Lender exercises the opUon to reqwre imrnediate payment in fuil, Lender shall give Borrow~er notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is del~vered or mailed within which Borrower must pay all sums secured by this Secunty Instrument. If Borrower fads to pay these sums pnor to the expiration of this period. Lender may invoke any re edes permitted by this Secunty Insirument tivRhout (urther notice or demand on Borrower. SiGNI BE , Bor ' r acc and rees to the terms and covenants contained in this Ad~~stable Rate Rider. ~ e ~ ~ ~ s • c (Seal) (Seal) ~ M. ~ ( orrower) (Sorr~r) ~ ~ ~ ' (Seal) (Sea1) = A. 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