HomeMy WebLinkAbout0370 - ~ .aDJL~ST.aBLE R.aTE RIDER
lear Tre~~ur~ Index-Rate C~ps-Fixed Rate Comersion Uption ~
THIS :~DJI ~T:~BLE R:~TE RIUER i~ made this ..1.9th.. d1~ ~f JANUARY ~~0
. ly .~nd
,ncorpurated into and ;hall br deemed tu .~mend and supplement the ~lorteage. Deed ot Trust or 5ecurit~ Deed t thc:
"~ecunt~ Instrument") ~t the ;sme date _i~en b~ the undersigned Ithe "Borroµer") to :ecure Burru~~er~i -\~1ju,table
Rate `ote Ithe "\ote") to......S~N BANiC/TREASURE COAST, NATIONAL ASSOCiATION
. .
1~he "Ltnder" ) ot the .ame date and cuve~ing the proDert} de,cnbcd ;n
the 5e~urit~ In~trument :~nd l~cated .it:
XXXX STRAIT AVENUE, P'JRT ST. LUCIE, FLORIDA 34984
; Pn~~rt~ \Sdrr~, i
THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES iN THE INTEREST RATE
AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S
ADJIlSTABLE INTEREST RATE CAN CNANGE 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.
.-~[~urno~ o~ Co~ e~ a~ r~, In additiun to the covenants ~nd sgreement~ n~ad~ in the Security Instrument. Burro«er
and Lender further wvenant ~nd :iaree as follows:
a. -~DJ~'ST.aBLE R.aTE .a`D ~tONTHLY P.aY`tEVT CHaNGES
The ~ote pru~•ides For an iniual interest rate of .9.~.~0........".. The tiote provides for changes in the ad;u.tabl~
~nterest rate and the monthlv ~a~ments, as tollows:
-t. aDJI~STABLE ItiTEREST R.aTE .~\D `10NTHL1~' P.~Y`tE\T CHA`GES
~ ? Change Dates
The adiustable interest rate I~~ill o,i~~ m~~ chanee on the hrst dac of .__.Auqust t9 91 ~~~j
th~t day ever~ I'_th month therealter. Each date on ~~hich my adjustable interest rate could change is called a"Change
Date."
~ B ? The (ndex
Beeinnine with the fi~st Chanee Date, m}~ adJustable interest rate ~vill be based on an Index. The "Index" is the
j ~+eekl: ~vera¢e ~ield on l;nited States Tre:~sur`~ ~ecurities adjusted to a constant mawrit}~ ol I~ear, 1S fll'1de 1~'11I;IbIC b~
' tne Federal Resen~e Board. The ~nust recent Index tigure available as ot the date -1~ days before each Chan¢e Uate is
called the "Current Index."
If the Index is no loneer 1~'11I1bIZ, the \ore Helder will choose s new index which is based upon cumparable
information. The :~iote Holder will eive me notice of this chuice.
i C i Calculation of Changes
~ Before each Ch~nee Date, the \ote Holder will c~,!Iculate mv ne~~ interest rate br adding'I'WQ..ANA..THR~~..QUARTERS
! percentage points 1~.~ 75......... % 1 to the Current Index. The ~ute Holder ~~ill then ruund the result ot this additi~n w
! the nearest one-eighth of one percentage point 10.1 Subject to the limits ~tated in Section ~I DI belu~~. chi.
~ rounded amount ~sill be m} ne« interest rate until the next Change Date.
N The ~ute Holder will then determine the amount uf the monthlr~ pa}ment that wuuld be sufficient tu rep.i~ the
j unpaid principal that I am expected tu oµe .it the Change Date in tull un the maturit~ date at m~ ne~~ intere,t r.ic~ ~n
` ,ubstantially eyual payments. The result of this calculatiun will be the ~e« amount of my monthl~ pa~ment.
f i D? Limits on Interest Rate Chan~es
` he interest rate I am reyuired tu pa}• at the tirst Change Date will not be ereater than ,11. 00
~ , or le., than
' . 00 Thereafter, m} adjustable in[erest rate will never be increased or decreased on am ;ingle Ch~n~e
f Date b~~ more than two percentage points 1?.Or) from tt~e rate of interest I ha~•e been pa}inc for the prececiing I'
! munths. ~iy interest rate will ne~~er be ~reater than ....1... • 00 hich is ralled the "~taximum Rate~'.
~
~ i E i Efiectire Date of Changes
~ ~t~ new interest rate ~~~ill become ~tTecti~~e on each Chanee Date. I~+ill pa~ the smuunt ul mv new munthl~ ~+,i~ n;rnt
€ beginnine on the tirst munthl~ pa}ment date after the Change D~te until the amount ~f m} monthl~ p~}ment ~h;~n~~~.
! - .
E ,i~ain.
f
~ i F i \otice of Chan~es
` The `ute Hulder ~+ill deli~•cr or mail w me a nutice ul ~im ~hanges in m} .idjustabie interest rate and the am~unt ~~i
E -
€ m~ munthl~ pa~ment befure the elTecti~e date uf ~nv change. The nutice ~~ill include informatiun reyuirrd b~ <<~ b:
~ - - -
~ tiven me and alsu the title ~nd telephune number ~f a persun ~vho will ~ns~~er am yuestion I ma~ have re~~ar~iin~ th~
€ nutice.
~
~ B. FttED t`TEREST R.aTE c)PTto`
The ~~~te provide~ (or the Burru~+er~~ ~i~tiun tu cuncLrt trum an ,idiwt~ble ~nterest r:it~~ with mt~ce,r r:~r,• ~
t;~..a, i^tcrest raie. a, r~~!!u•.ss:
5. F1XED ItiTEREST RATE COti~~ERSIO~I OPT'IOti
~ A? Option to Comert to Fixed Rate
I ha~-e a Cunversion Option that ( can exercise unless t am in delault ur this Sectiun ~1 A) will not perrrsit me tu ~1~.~.
The "Conversion Option" is mv uPuun to c~n~~ert the interest rate 1 am reyuired to pay by this Nute trom sn .~d~u,t~bl~
rat~ with interest rate limits to the tixed rate calculated under Section 5(B) be~ow.
The conversion can onl} take place u~ a datels 1 specihed by the vote Hulder during the periud beginning un the tirst
Change Date and ending un the tifth Change Date. Each date on which my adjustable interest rate can cunvert to the ne~~
fixed rate is called the "Conversiun Date."
= If I want tu exercise the Conversion Uption, I must first meet certain conditions. Thuse conditiuns are that: 1 i) 1
m~st ¢ive the ~ute Holder notice that I want to do so: ( ii) on the Cunversiun Date, I must not be in deiault under ~he
vute ur the Security Instrumenr. 1 iii ) by a dste specified by the Vote Holder, t must pay the ~lute Huider a com•ersiun
MULTISTATE AOJUSTABIE RATE R1pER-ARM PLAN 57--.r,;se Fam~-Fannie Ma~ Uniform in3trument Form 31t8 12 87
bo~K6 ~5 P~f 370
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