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1 89 - )C) Mai (f► The method sit forth In this Poragraph 3 of this Adjustable Rate Rider, for datermIning whether or not an ediuslimr.�I. must be made to the Existing Interest Rata interfttirates 14 effects of the provisions of 24 r CFR 203.014%Ml) and 234.791e)(1) which require that changes in the tnwMx its oxress of ano Percentage Point must bif�carried over for inclusion its adjustments to the Existing interest Rate in subsequent years. (g) P the ind" is no longer available, Mortgagee will ha required to twee any Index prescribed by the Department of Housing and Urban Development. Mortgagee will notify Mortgagor In writing of any such substitute index (giving all necessary information for Mortgagor to obtain such index) and after the date :cd such notice the substitute index will be deemed to be the Index hereunder, 4. (a) If the Existing Interest Rate changes on any Change Date, Mortgagee will recalculate the monthly bostaliment payments of principal and interest to determine the amount which would be necessary to repay in full, on the maturity date, the unpaid principal balance (which unpaid principal balance will be deemed to be the amount due on such Change Date assuming titers has been no default in any payment on the Note but that all prepayments on the Note have been taken Into account), at the new Existing Interest Rate, In equal monthly payments. On or before the Change Date, Mortgagee will give Mortgagor written notice ( "Adjustment Notice ") of any change In the Existing Interest Rate and of the revised amount of the monthly Installment payments of principal and Interest, calculated as provided above. Each Adjustment Notice will set forth (i) the date the Adjustment Notice is given, (lit the Change Date, (iii) the new Existing interest Rate as adjusted on the Change Onto, (iv) the amount of the adjusted monthly installment payments, calculated as provided above, (v) the Current Index, (vi) the method of calculating the adjustment to the monthly installment payments, and (vii) any other information which may be required by law from time to time. IN Mortgagor agrees to pay the adjusted monthly installment amount beginning on the first payment date which occurs at least thirty (30) days after Mortgagee has given the Adjustment Notice to Mortgagor, Mortgagor will continue to pay the adjusted monthly installment amount set forth In the last f, Adjustment Notice given by Mortgagee to Mortgagor until the first payment date which occurs at least thirty (30) days after Mortgagee has given a further Adjustment Notice to Mortgagor. Notwithstanding anything to the contrary contained in this Adjustable Rate Rider or the Mortgage, Mortgagor will be relieved of any obligation to pay, and Mortgagee will have forfeited its right to collect, any increase in emwni icauserd oy the recaicuiation of such amount under Subparagraph 4(b)) for any payment date occurring less than thirty (30) days after Mortgagee has given the applicable Adjustment Notice to Mortgagor. (e) Notwithstanding anything contained in this Adjustable gate Hider, in the event that iii the Existing Interest Rate was reduced on a Change Date, and (ii) Mortgagee failed to give the Adjustment Notice when required, and (iii) Mortgagor. consequentty, has made any monthly installment payments in excess of the amount which would have been set forth in such Adjustment Notice ( "Excess Payments"). then Mortgagor, at Mortgagor's sole option, may either (1) demand the return from Mortgagee (who for the purpose of this sentence will be deemed to be the mortgagee, or mortgagees, who received such >s Excess Payments, whether or not any such mortgagee subsequently assigned the Mortgage) of all or any portion of such Excess Payments, with interest thereon at a rate equal to the Index on the Change Date when the Existing interest Rate was so reduced, from the date each such Excess Payment was �= made by Mortgagor to repayment, or (2) request that all or any portion of such Excess Payments, together with all interest thereon calculated as provided above, be applied as payments against , principal. S. Nothing contained in this Adjustable Rate Rider will permit Mortgagee to accomplish an interest rate adjustment through an increase (or dei4ase) to the unpaid principal balance. Changes to the Existing interest Rate may only be reflected through adjustment to Mortgagor's monthly Installment payments of principal and interest, as provided for herein. BY SIGNING BELOW, Mortgagor accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. (Seal) KEVIN R FRUIN -Mortgagor - - -. PAMELA A FRt1IN Mmtq u�ar r h1rn1 {�ngnr • fir•ali rt4.r trt ot•^ r.�