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F 1 Rt.- record to show correct Payment change date. . RE•RECORD90 $0..•� 103496 89_- 100483 ADJUSTABLE RATE RIDER (1 Year Treasury Index —Rate Caps - -Fixed Rate Conversion option) THIS ADJUSTABLE RATE RIDER is made this .24th ... day of ... JAnq .... . . . ....... 1988......, and is incorporated into and shall be deemed to amend and supplement the A9ortgagt Deed of 71•ust or Security Deed (the "Security Instrument ") of the same date given by the undersigned (the "Borrower ") to secure Borrower's Adjustable Rate Note (the "Note ") to . Nat�w�'eti .$pR14 .Ngbt;a�jCA,� ,Nptional Association, , , , ... (the "Lender ") of the same date and covering the property described in the Security Instrument and located at: N047cop 4.0 ?qRl .......... . .............................. . !Property Addmul THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT, THE NOTE LIMITS THE AMOUNT THE BORROWER'SADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONETIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. THE NOTE ALSO CONTAINS THE OPTION TO CONVERT THE ADJUSTABLE RATE TO A FIXED RATE. ADDMONALCOVENAmM In addition to the covenants and agreements made in the Security Instrument, Borrower irnd Lender further covenant and agree as follows: Al. - ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES TiTe Note provides for an initial interest rate of , 9: 375, . qo. The Note provides for changes in the adjustable itzre=est rate and the monthly payments, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYh3ENT CHANGES 41� (A) Change Dates November The adjustable interest rate I will pay may change on the first day of ...:ft ?': , , , ..... , , 19 91......., and on that day every 12 months thereafter. Each date on which my adjustable interest rage, cculd change is called a " Chan8e Dail' (B)• The Index•' Beginning with the first Change Date, my adjustable interest m *� w ilt be _ trtT. s 3;.dw.. The "Ir ►dam ' is the weekly average yield on United States Treasury securities adjusted to a constant maturity of I 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 ig 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) Calculation of Changes Before each Change. Date, the Note Holder will calculate my new-interest rate by adding Two, and, Three, Quarters percentage points %) to the Current Index. The'Rete Holder will 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 ne+x interest rate until the next Change Date The Note Holder wM then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the maturity date at my new interest rate in substantially equal payments. The kviult of this calculation will be the,aew amount of my monthly payment (D) Lltnits on Interest Rate Ci�nges The interest rate I am required to pay at, the first Change Date w;U not be greater than 11...375..% er, tess than. 7..375..%. Thereafter, my adjustable inteaestrate will never be increased or decreased on any single ChangeDate 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 will never be greater than 1.440 ... go, v fiich is called the "Maximum Rate!' (E) Effective Date of Changes My new interest rate will become effective on each Chnage Date. I will pay the amount of my new monthly payment beginning on the first mombly payment date after the Change Date until the amount of mymonthly payment changes again. (> ) Notice of Changes The Note Holder will deliver or mail tome a notice of any changes in my adjustable. interest rate and the amount of my monthly 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 the notice B. FIXED': INTEREST RATE OPTION The Notice provides for the Borrower's option to convert form any adjustable interest rate with interest rate limits ' to a fixed interest rate; as follows: 5. FIXED INrTERESr-RATE CONVERSION OPTION (A) Oytfon 6 Convert to Fixed Rate I have a Conversion Option that 1 can exercise unless I am in default or this Section 5(A) will not permit me to do so. The "Conversion Option" is my option to convert the interest rate 1 am required to pay by this Note from an adjustable rate with interest rate limits to the fixed rate calculated under Section 5(B) below: The conversion can only take place during the period beginning 30 days before the first Change Date and ending 1S days before the fifth Change Date. Each date on which my adjustable interest rate can convert to the new fixed rate is called the "Conversion Date. "The Index figure available as of the date the initial interest rate was determined for this loan was ....7.. 33.... %. MULTISTATE ADJUSTABLE RATE RIDER —ARM PLAN 5T-- Single Fanuly -- Fannie May Uniform Instrument Farm 3118 12/87 -12M" uro (r- Wfz4rq i;e WE