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If 1 H~ant to exercise the Can~ersion Option, ! must tirst meet certain condinons. Thc~se condstions are that: (i)
1 must give the Note Holder nutice that I~~ant to do so; (ii) on the Conversiun Date, 1 must not be in default under
the Note or the Security Inswment; (iii) by a date specified by the Note Holder, t must pay the Note Holder a conver-
sion fee of U.S. S 250.00 : and li~'1 1 mu~t ,ign and gi~~~ the 1ot~ Hul~ier an~~ ~1~kuments the Note Huldcr
requires to effect the ronver~ion.
(B) Caku{ation of Fixed Rate
My new, fixed interest rate will be equal to the Federal Home Loan Mortgage Corporation's required net yield
as of a date and time of day specified by the Note Holder for (i) if the original term of this Note is greater than 15
yean. 30-year fixed rate mortgages covered by applicable 60-day mandatory delivery commitments, plus three-eighths
of one percentage point (Q.375°~ or (ii) if the original term of this Note is l5 years or less, l5-year fixed rate mortgages
covered by applicable 60-day mandatory detiti•ery commitments, plus three-eighths of one percentage point (0.375~).
If this required net yield cannot be determined because the applicable commitments are not available, the Note Holder
will determine my interest rate by using comparable informatian. M}~ new rate calculated under this Section 5(B) will
not be greater than the Maximum Rate stated in Section 4(D) above.
(C) \"ew Payment Amount ar+d Effectire Date
If 1 choose to exercise the Com~ersion Option, the Note Holder w•ill determine the amount of the month{y payment
tha? ~nuld be sutticient to repay the unpaid principal I am expected to owe on the Conversion Date in futl on the maturi-
ty date at my new fixed interest rate in substantially equal payments. The result of this calculation will be the new amount
of my monthly payment. Beginning with my first monthly payment after the Com~ersion Date. 1 will pay the new amaunt
as my monthly payment until the maturity date.
C. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTERESt IN BORROWER
Until Sorrower exercises the Conversion Option under the conditions stated in Section B of this Adjustable Rate
Rider, Uniform Covenar?t 17 of the Securiry Instrurnent is amended to read as follows:
Transfer ot' the Property~ or a Beneficial Interest in Borrower. If all or any part of the Property or any interest
in it is 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 by this Security Instrument. However, this option shalf not be exercised by i.ender if exercise is prohibited
by federal law as of the date of this Security Instrument. Lender also shall not exercise this option if: (a) Bonower
causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan
were being mad~ to the transferee; and (b) Lender reasonably determines that Lender's s~curity will not be impaired
by the loan assumption and that the risk of a breach of any crn•enant or agreement in this Security Instrument is accep-
table to Lender.
~ To the extent permitted t~y 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 L.ender releases
~ Borrower in writing.
If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of accelera-
tion. The noiice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within
~ which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to
~ the expiration of this period, Lender may invoke any remedies pertnitted by this Security Instrument without further
notice or demand on Borrower.
; 2. If Borrower exercises the Conversion Optian under the conditions stated in Section B of this Adjustable Rate
j Rider, the amendment to Uniform Covenant !7 of the Security Instrument contained in Section Cf above shall then
~ cease to be in effect, and the provisions of Uniform Covenant 1? of the Security Instrument shall instead be in effect,
~ as follows:
~ 'I~ansfer of the Property or a Beneficial Interest in Borrow~er. If all or any part af the Property or any interest
I
i ;r~ is s~;u u~ ~ra~~~ierrcu iur ii a oenei~ciai interest in tsorrower 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 fu11 of all sums
secured by this Security Instrument. However, this option shali not be exercised by Lender if exercise is prohibited
~ by federal taw as of the date of this Secusity Instrument.
; If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period
of not less than 30 days from the date the notice is delivered or mailed within whicl~ Borrower must pay all sums secured
by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke
any remedies permitted by this Security Instrument without further notice or demand on Borrower.
BY SIGNItiG $ELoM', Borrower accepts and agrees to ihe terms and crn•enants c~ontained in this Adjustable Rate Rider.
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EMMA SMITH
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