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Home My WebLink About2435 ~ 6?.84 37 ~ ADJUSTABLE flATE RIDER (1 libar TMasury Index - Rate Caps) THIS ADJUSTABLE RATE RIDER ~s made this _~2nd day of January, 199~d ~s corporated ~nto ar.d shal! be deemed to amend and supplement the Mortgage, Deed of Trust or Secunty Deed (the "Secunty Instrument") of the same date given by the unders~gned (the "Borrower") to secure Borrower's Acl~ustable Rate Note (the "Note"' to RARNF?iT A lst t~' ST~ TZi(`TF [Yk1rTPY _(the "Lender") of the same date and ca,~enng the property described in the Security Ins;rument and located at: (Property dressJ The Note contains provisions allowing for chenges in the interest rate and the monthly payment. The Note Iimits the amount the Borrower's interest rate can change at am? one time and the maximum rate the Bor- rower must pay. Additional Covenanta. In addit~on to the covenants and agreements made in the Secunty Instrument, Borrower and Lender furtner covenant and agree as foll~ws: A. Interest Rate antf Monthly Payment Changes The Note provides (or an initia! ~nterest rate of 9. 500 The Note provides for changes in the interest rate and the monthly payrnents, as follows: 4. inte~st Rate and Monthly Payment Changes (A) Change Dates The interest rate I wi!I pay may change on the f~rst day of ~RUARY 19 95 and on that day every 12th month thereaftec Each date on wh~ch my interest rate coufd change ~s ca11e~ a"Change Date" (8) Thelndex Beginning with the first Change Date, my mterest rate will be based on an Index. The "~ndex" is the weekly average y~eld on United States Treasury securities adjusted to a constant matunty of one year, as made available by the Federal Reserve Board. The most recent Index figure available as o( the date 45 days before each Change Date ~s catled the "Current Index" If the Index is no longer available, the Note Hoider will choose a new ~ndex wh~ch is based upon comparab;e ~niormation. The Note Holder wiit give me notice of this cho~ce. (C) Calculation of Changes Be(ore each Change Date, the Note Holder will calculate my new ~nterest rate by adding ~~~"~~S percentage points ( 2•750 ~/o) to the Current Index. The Note Holder wili then round the resuli of this addition to the nearest one•e~ghth of one percentage pomt (0.125%). Sub~ect to the limits stated in Section 4(D) below, this round- ed amount will be my new interest rate untii the next Change Date. The Note Holder wili then determ~ne the amount of the monthiy payment that would be s~fficient to repay the unpaid principal that I am expected to owe at the Change Date ~n fuil on the maturity date at my new ~nterest rate ir subs'ant~aily equal payments. The result of this caiculation w~ll be the new amount oi my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at ?he f~rst Change Date w~ii not be greater than 11.500 wo or I less than 7.500 0~0. Thereafter, my ~nterest rate v;iN 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 12 months. My interest ; rate w~ll never be greater than 14.500 0~0. ! (E) Effective Date of Changes ~ My new interest rate will become effective on each Change Date. I wdl pay the amount of my new monthiy payment beginning i on the first monthiy payment date after the Change Date unUl the amount af my monthly payment changes again. f Note of Changes ~ The Note Holder will de!iver or ma~l to me a notice of any changes in my ~nterest rate and the amount of my monthiy payment ~ before the efieciive date of any change. The notice w~ll ~nciude information required by law ro be g~ven me and also the Utle and ~ telephone number of a person who will answer any auestion I may have regarding the notice. ~ B. Transfer of the Property or a Beneficia! interest in Borrower ~ Uniform Covenant 17 of the Security Instrument is amended to read as foilows Transter of the Property of a Beneficial interest in Borrower. If all or any part of the Property of any interest in it is sold r or transferred (or if beneficial interest in Borrower is solti or transferred and Borrower is not a natural person) without Lender's prior written ~onsent, ! ender may, at its option, require immediate payment in fu!! of all sums secured by this Security Instrument. Hawever, this option shall not be exercised by Lender if exercise is proh~bited by federal law as of the date of this Security Instrument. Lender ~ aiso shall not exerc~se this option if: (a) Borrower causes fo be subrnitted to Lender information required by Lender to evafuate the e intended transferee as ff a new loan were be~ng made to the transferee: and (b) LEnder reasonably determines that Lender's secunty wiil not be impaired by the loan assumpt~an and tf~at the risk of a breach of any covenant or agreement in this Security Instrument ~ is acceptable to Lender. ~ To the e~ent perm~tted by applicable lavr, Lend2r may charge a reasonable fee as a condition to Lender's consent to the loan t assumption. Lender may aiso require the iransferee to s~gn an assumption agreemenr that is acceptable to Lender and ihat obl+gates z the tran~+eree to keep all tne promises anci agreements made fn the Note and in ,his Security instrument. Borrower w~ll conUnue to be obligated under the Note and this Security Instrument unless Lender releases 8arrower +n writing. If Lender exercises the option to req~~~re ~mmed~ate payment in full, Lender shail give 8orrower notice of acceleration. The notice ; shall provide a period oi rot less than 30 days from the date the notice is delivered or mailed within which Borrower must pay al! sums secured by this Security Instrument. !f Borrower fails to pay these sums prior to the expiration of this penod, Lender may invoke ~ any remedies permitted by this Secur~ty Instrument without further not~ce or demand on Borrower. ~ BY SIGNING BELOW. Borrower accepts and agrees to the terms a~d covenarts contained ,is Adiustable Rate Rider. ~ ~.a, ~ ~ ~ (Seai) (Seal) DTIC~tOI~AS A. L~0('I ICE tBorrower) ~~A j.,pCICp fBorrower) ~ ~ _ (Seal) (Seal) ~ (Borrower) (Borrawer) ~ ' MULTISTATE ADJUSTABIE RATE RIDER - ARMi S2 - S rg~e Fa.m,iy - FannM MIaNFt~ddk AAae UnHwm InsWmtnt Fwm 3111 3/t5 i ' 2 3 ~ 5 6 7 B 9~0 CY~1 An pre.-~rws ed.a~ns are obsae!e ~ P ie73 kev Sep 9fi (t6t0~PC ~ s~~K67~ ; ~.y. ~r. - - ~ -