HomeMy WebLinkAbout1267 aDJL;STABLE ItATE RID~R
~ I lear Treasury lndex-Rate C:~ps-.-Fixed Rate Conrenian Option i ~
THIS :~DJI.ST:~BLE R.~TE RIDER is made this ..29th. day of ....~7.A~`IVARX 19 ..9Q..., snd i~ ~
incorporated ~nto ~nd ;hall be deemed to amend and supplement the ~turteage. Deed of Trust ur Security Deed 1 the ~
"Security Instrument") of [he s,ime date given by the undersigned Ithe "Borrower") to secure Borrower', .~djustable
Rate ~ote t the "tiute" 1 tu..... SUN BANK/TRE.A,~u.K~...~5?l~S.~i...NA.T.xRN~AJ,~..ASSQCII~~ION ~
1~he "Lender" 1 uf' the same date :~nd covering the pruperty described in
the Securit~ Instrument and I~xat~d ar.
5308 PAI.M DRIVE FORT_.PIERCE.~.. FLOR~I~A.......3498~ ~
.............................................................i......
~Pru~._rt~ ~ddr~ti.j
THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE '
ANO THE MONTHLY PAYMENT. THE NOTE LIMiTS THE AilAOUNT THE B~RROWER'S
ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM
RATE THE BORROWER MUST PAY. TNE NOTE ALSO CONTAINS THE OPTION TO CON-
VERT THE AOJUSTABLE RATE TO A FIXED RA7E.
.~Dl)ITIO~ ~L CO~ E~a~TS. In additiun to the covenants and ~greements made in the Security tnstrument, Borrowtr
and Lender further covenant and agree ss follows:
:~DJI,'ST:~BLE R:~TE ~VD ~10~YTHLY PAY~IEYT CHANGES
The ~ote provides for an initial interest rate of ...9..50......"~. The \ote provides for changes in the ad~ustablr
interest rate and the monthly pa}ments, as follows:
4. .~DJI;ST~16l.E tNTEREST R,~TE :~~1D ~tONTHLY P:~Y~IENT CH,~vGES
1.~ 1 Change Dates
The adjustable interest rate ( will pay map change on the hrst day oi ........~~HRUARY 1991...., and on
that day every I'_th month thereatter. Each date un which my adjustable interest rate could change is called a"Change
Date." .
1 B 1 The [odex
Beginning with the hrst Change Date, my adjustable interest rate will t~e based un an Index. The "Index" is the
j weekly average yield un Lnited St~tes Treasury securities adjusted to a constant mawrity of l year, as made availabte b~
the Federal Reserve Board. The must recent Index hgure available as ut the date 45 days before each Change Date is
called the "Current tndex."
If the Index is no loneer available, the Vote Holder will choose a new index which is based upon compar;~ble
information. The '.~1ote Holder will ¢ive me notice of this choice.
1 C? Calculation of Changes
Before each Chan e Date, the ~lote Holder will calculate m new interest rate bv addin T~"'o and Three Quarters
g Y . 8
~ percenta¢e points (..2_.7.~....... to the Current Index. The tiote Holder will then round the result of this addition tu
! the nearest une-eighth of one percentage point l0.125~ Subject to the limits stated in Section ~3( D? belu~~. thi.
~ rounded amount will be my new interest rate until the next Chan¢e Date.
~ The \ute Nulder will then determine the amount uf the monthly payment that ~~ould be sutfiicient to repa~~ the
unpaid principal that I am expected to uwe at the Change Date in 1'ull on the mawrit}~ date at m~~ new interest rate in
~ ~ubstantiaily equal payments. The result ui this calcuiatiun w~ill be the ne~~• amount of my monthl~~ pa}~ment.
E ~ D? Limits on Interest Rate Changes
f
~ The interest rate ! am required to pay at the first Changt Date will not be greater than ..1.1...5~Q : or less than
.........7....~~........`,'r. Thercafter, my adjustable interest rate wi~l never be increased ur decreased on any single Change
i Date bv more than two percentage points ( 2A~ ) from the rate uf interest I have been payin¢ for the preced~ng I'_
; months. ~iv interest rate will never be greater than ..l~..S.Q......."~, which is calied the "~taximum Rate".
~ i E? EfTective Date of Changes
~ ~1~ new mterest rate will become CtTective on each Change Date. I w ill pay the amuunt of my new monthl~ pa~ ment
~ beeinning on the hrst munthly payment date after the Change Date until the amount of my monthl} pa~ment ~han~~~.
~ ~gain.
~ i F i rotice of Changes
[
~ The Vote Holder.will deliver ur mail to me a nutice of any changes in m}~ adjustable interest rate and the amount
~ mv monthly pay~ment before the eiTective date of any change. The notice will include information required by I~~~ w br
~ gi~~en me and also the title snd telephune number uf a person who will answer any yuestiun I may have ree~rding thc
~ notice.
~ B. FIXED IVTEREST R~TE OPTION
The ti~~te provides for the Borrower'. ~~ptiun to comrrt trom an adiustable interest r?te with interr;r r:~r,• r„ ~
!:-ed ir.tcrest rate, a~ fulluws:
5. FIXED ItiTEREST RATE COtiVeRSION OPTION
1 A ~ Option to Conrert to Fixed Rate
I have a Conversion Option that I can exercise unltss ( am in deiault ur this Section A) will not permit me tu du,o.
The "Conversion Option~ is my uption to convert the interest rate I am required to pay by this vote from an aajustable
~ rate with interest rate limits to the fixed rate calculated under Section 5( B) below.
~ The conversion can only take place on a date(s) specified by the Note Holder during the peri~xi beginning on the tirst
~ Change Date and ending on the fif'th Change Date. Each date on which my ad}ustabte interest rate can cunvert to the ~ew
~ fixed rate is called the "Convcrsiun Date."
~ If I want to zxercise the Conversion Option, I must first meet c~ertain conditions. Those conditions are that: ( i) I
~ rnust give the Note Holder notice that 1 want to do so: (ii) on the Cunversiun Date, I must not be in default under the
Vote or the Security instrument: f iii) by a date specified by the Note Holdsr. 1 must pay the Nute Hoider a conversiun
htUITISTATE AWUSTABLE fiATE RIQER-ARwA PLAf! 57-Srx~e Famav-Fsnnit Mls~ Uniform lrtstrwn~nt Form 3118 12 87
BOOK U75 PAGE~~61
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