HomeMy WebLinkAbout2733 ADJUSTABLE RATE RIDER
, (1 Yexe Tres~sury ladex - RAte C~ps)
.
THIS ADJUSTABLE RATE RIDER is made this 24TH day of JANUARY , 19 90 , and is
incorporated into and shal! be deemed to amend and supplement the Mortgage, De~d of Trust or Security Deed (the
"Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable
Rate Note (the "Note") tc~ CNARTER SAVINGS & LOAN ASSOCIATION OF FLORIDA
(the "l.ender") of the same date and covering the property described in
the Security Instrument and located at:
1440 N. LAWNWOOD CIRCLE U22B FORT PIERCE, FL 34950
[Propeny Address]
TNE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE
AND THE MONTHLY Pl~1YMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S
INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE
BORROWER MUST PAY.
I
ADDITIONAL COVENAN"I'S. In addition to the covenants and agreements made in the Security Instrument, I
Borrower and Lender further covenant and agree as follows:
A. INTERFST RATE AND MONTHLY PAYMENT CHANGES
The Note provides for an initial interest rate of 10 .000 °lo. The Note provides for changes in the interest rate and
the monthly payments, as follows:
4. 1NTERFST RATE AND MONTHLY PAYMENT CHANGES
(A) C6aage Dstes
"fhe interest rate t will pay may change on the first day of FEBRUARY , 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) T6e Index
Beginning with the first Change Date, my interest rate will 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 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) Calculs~tion of Changes
Before each Change Date, the Note Holder will calculate my new interest rate by adding THREE AND ONE
QUARTER percentage points ( 3. 250 °10) to the Current Index. The Note Holder wiU then round the
result of this addition to the nearest 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 Ct~ange Date.
~ The Note Holder will then determine the amount of the monthly payment that would be suf~cient to repay the
~ unpaid principal that I am expected to owe ai the Change Date in full on the maturity date at my new interest rate -
i in substantially equal payments. The result of this calculation will be the new amount of my monthly payment.
~
: (D) Limits oa Interest Rate C6anges
i
~ The interest rate I am required to pay at the first Change Date will not be greater ihan 11. 000 °10 or less than
~ 9. 000 °10. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more
~ than one percentage point (I.0%) from the rate of interest I have been paying for the preceding twelve months. My
~ interest rate will never be greater than 14.000
(E) Etfective DAte of Chs~ages
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 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 interest rate and the amount of my
monchly 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
x the notice.
B. TRANSFER OF THE PROPERTY OR A BENEFICIAL 1NTEREST IN BORROWER
F Uniform Covenant 17 of the Security Instrument is amended to read as follows:
Trs~nsfer of the Property or A Benefiris~l tnterest in Borrower. If all or any part of the Property or any interest in it is
r sold or transferred (or if a beneficial 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
F 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 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 [nstrument is acceptable 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 Instrument unless Lender releases
~
~ Borrower in writing.
~ MUITItTATE ADJUfTABIE 1{ATE RIDER-ARM 5~1-Single Family-h~ Ma~ frM~ We IkifKa I~su~i G~~ ri~~h~~a'.~ii5
~ ~`-821A ~6Wn VMP MOi1TGAGE FORMS • 13131293-8100 • 16001525 7281 . ~t~:. ti_
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