HomeMy WebLinkAbout1910 ~ ADJUSTABLE RATE RIllER .
• 1 YeAf Treasury lndex-R~te Caps-Fixed Rate Conversion Option)
THIS ADJU~TAB[.E RATE RIDER is maJe this o? ~ day of ,
19 ~ , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or
Security Decd (the "Security Instrument") oC the same date given by the undersigned (the "Borrower") to secure
Borrower's Adjustable Rate Note (the "Note") to SOUTHEAST MORTGAGE COMPANY
(the "Lender") of the same date and covering the property described in the Security lnstrument and located at:
9400 S. OCEAN DRIVE #1005-B JENSEN BEACH, FLORIDA
~Property Add~essJ
THE NOTE CONTAiNS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE
AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT TNE BORROWER'S
ADJUSTABLE lNTERFST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM
RATE THE BORROWER MUST PAY. THE NOTE ALSO CONTAINS THE OPTION TO CON-
VERT THE ADJUSTABlE RATE TO A FIXED RATE.
ADDITIONAL COVENAN'TS. In addition to the covenants and agreements made in the Security Instrument,
Borrower and Lender further covenant and agree as follows:
A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES
The Note provides for an initial interest rate of 9. 250 The Note provides for changes in t~e
adjustable interest rate and the monihly payments, as follows:
4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES
(A) C6ange Dates
The adjustable interest rate I will pay may change on the first day of NOVEMBER , 19 92 , and
on that day every 12ch month thereafter. Each date on which my adjustabte interest rate coufd change is called a"Change
Date."
(B)T6elndex (THE INTTIAL INDEX VALUE FOR THIS LOAN IS 8.OOOX)
Beginning with the ~rst Change Date, my adjustable interest rate wiil be based on an Index. The "Index" is the
weekly average yield on United States Treasury securities 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 Index is no ionger availabte, the Note Holder will choose a new index that is based upon comparable
information. The Note Holder wil! give rne notice of this choice.
(C) Calculation of C6anges
Before each Change Date, the IYote Holder will calculate my new interest rate by adding TWO AND
THREE-QUARTERS percentage points ( 2. 750 to the Current Index.
The IYote Hoider will ihen round the result of this addition to the nearest one-eighth of one percentage point (0.125°l0}.
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 1 am expected to owe at the Change Date in tull on the Maturity Date at my new interest rate
in substantially equal payments. The result of this calculation wiil be the new amount of my monthly payment.
(D) I.imits on Interest Rate ChAnges
The interest rate I am required to pay at the first Change Date witl not be greater than ~11. 250 °10
or less than 7. 250 Thereafter, my adjustable interest rate will never be increased or decrease
on any single Change Date by more than two percentage points (2.0~'0) from the rate of interest I have been pa '
for the preceding 12 months. My interest rate wil! never be greater than ~:~~8- 13. 875 °10, which is call +N,
the "Maximum Rate."
(E) Effective Date of Chnnges .
My new interest rate wili become effective on each Change Date. I will pay the amount of my new monthly pay-
ment beginning on the ~rst monthly payment date after the Change date until the amount of my monthly payment
changes again.
(F) Notice of Chaages
The Note Holder will deliver or mail to me a notice of any changes in my adjustable interest rate and the amount
of my monthly paymens before ihe 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. FIXED INTEREST RATE OPTION
The Note provides for the Borrower's option to convert from an adjustable interest rate with interest rate limits
to a fxed interest rate, as foliows:
5. FIXED INTEREST RATE OPTION 80QX 66o PACF~O~O
(A) Option to Convert to Fixed Rate
I have a Conversion Option that I can exercise unless I am in default or this Section 5(A) wiit not permit me ~
to do so. The "Conversion Option" is my option to convert the interest rate I am required to pay by this Note from
an adjustable rate with interest rate limits to the fixed rate caicuiated under Section S(B) below. ~
The conversion can only take place on (1) if the ~rst Change Date is 2t montt?s or less from the date of this Note,
the third, fourth or ~fth Change Date, or (2) if the first Change Date is more than 2I months from the date of this ~
Note, the first. second or third Change Date. Each Change Date on which my interest rate can convert from an ad- ~
justab(e rate to a fixed rate also is called the "Conversion Date." I caa convert my ioterest mte only on oae of t6ese I~
Conversioa Dates. ~
If I want to exercise the Conversion Option, I must first meet certain conditions. Those conditions are that: (i) Qo
I must give the Note Holder notice that I want to do so at least 15 days before the next Conversion Date; (ii) on the
Conversion Date, l must not be in defauit under the Note or the Security Instrument; (iii) by a date specified by the Note
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