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RE•RECQ 0566?
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<br />7. FIXED INTEREST RATE OPTION 1
<br />(A) Option to Coavatt to Fixed Rate 85— 001220
<br />1 may choose the Conversion Option. The "Conversion option.. is m) optiun us %ilmert ut) adjustable rate interest
<br />payments to fitted rate interest payments as of the first day of ..FOira y 1 y 90, w Mich 0s called
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<br />_ �fmwert ramv date 0,r 110,11 Par memo f'Aeep Parr)
<br />`0 Abe " Conversoon Date." This k the eWy dose that l tarry convert my adjustable rote payments.
<br />, p� If ! chOw the Conversion Option, I must give the Note Holder notice that I am doing so at leas) 1 S days before the
<br />:I Xontersias Date. 1 also must sign and give to the Note Holder the documents, in any form that the Note Holder may require.
<br />changing the tennis of the Note to give effect to the conversion. My new, fixed interest rate will he equal to the Federal
<br />National Mortgage Assodation's published required Net Yield for 30.year, fixed rate mortgages covered by 30-day
<br />mandatory delivery commitments that was in effect as of the date 45 days before the C om ersicm Date, plus seven-eighths of
<br />one percent (0.875%). If this required Net Yield is not available. the Note Holder will determine my interest rate by using a
<br />comparable figure.
<br />1 will pay the Note Holder a conversion fee equal to one percent ( t.rv) of unpaid principal as of the Conversion Date
<br />plus U.S. S ........ 1.QA•.AR ..................... I will pay the conversion fee on or before the date of my first monthly
<br />pay mCoil after
<br />the Conversion Date.
<br />(13) RMss>red Prisxl'al Balance
<br />! If my unpaid principal balance an the Conversion Date will be greater than the original principal amount of my loan, the
<br />Note Holder may require that a qualified real estate appraiser. chosen by the Note llolder, prepare an appraisal report on the
<br />value of the secured property. 1 will pay the Lender a reasonable fee for this appraisal report If my unpaid principal balance
<br />will be an amount greater than 95% of the value of the property securing my loan, as established by the appraisal report. l will
<br />not have the Conversion Option unless I pay the Note Holder an amount sufficient to reduce my unpaid principal balance to
<br />that An tow.
<br />(C) Oeltradiaalion of New Payment Amount
<br />If 1 chnaae the Conversion Option, the Note Holder will t hen determine the amount of a monthly payment that would be
<br />suf dent to repay the unpaid principal balance 1 am expected to owe on the Conversion Date in futl on the maturity date at
<br />MY new interest rate in substantial) equal 1
<br />y eq payments. The result of this calculation will be the nr.•w amount of my monthly
<br />.payment. Beginning with my first monthly payment after the Conversion Date. 1 will pa) the new amount as my monthly
<br />Payment- sad the ingest rate 1 owe will not change from the fixed rate established as of the Conversion Date.
<br />' (0) Trottafer of the Property or a Beneficlal Interest in Borrower
<br />If I choose tlhc Convenion Option and, thereafter, if all or any part of the Pntsperty or any interest in it is sold or
<br />transferred (ior if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without the
<br />Note }loitler';s pricy written consent, the Note Holder may, at its option, require
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<br />immediate payment in full of all amounts 1
<br />owe vadea i bis Note. Mawrevsr. this option shall not be exercised by the Note Holder if exercise is prohibited by federal law as
<br />a!
<br />of the date of this None.
<br />if the. Note H -older exercises this option. the Note Holder shall give me notice of acceleration. The notice shall provide a
<br />period of not less than 30days from the date the notice is delivered
<br />or mailed within which I must pay all amounts that 1 owe.
<br />>L NOME OF C191►iNC.IFS
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<br />t The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthis
<br />payment before the eflrective date of any change. The notice will include information required b) law to be given me and also
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<br />the tick and telephone cumber of a person who will answer any question I may have regarding the notice.
<br />L T'RANSIFER 4)F THE PROPERTY OR A BENEFICIAL INTEREST IN' BORROWER
<br />Unless forrowe( ChOO athe Conversion Option under the Note as stated in Section Ay of this Adjustable Rate Rider, in
<br />which event the (olllowing Amendment to Uniform Covenant 17 of the Security Instrument shall cease to be to effect, l;nifornr
<br />' Covenant 17 of Ike Security bnsirumtnl is amended to read as follows:
<br />Traasfee.01law PC--ft o. •, ta...�M,i I��t i« Iw:�s «e0,, If,;;; sir any part of rite rroperty or any interest
<br />in it is told or trsnsfernd Qor if a beneficial interest in Borrower is
<br />sold or transferred and Burrower is not a natural
<br />person) without Ltr+der's prior written consem. Lender ma), at tls Option, require immediate payment in full of all
<br />sums secured by •tits Security Instrument. However, this option shall not be cserrned by 1 ender if exercise is
<br />prohibited by federal flaw an of the date •f this Security Instrument. Lender also shall nut exercise this option if
<br />(a) Borrower prises lobe swbai,ittod to Lender information
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<br />required by Lender to evaluate the intended transferee
<br />as if A new loan were being m,sde so the transferee; and (b) Lender reasonably determines that I
<br />ender's security
<br />will not be impsir#A by tihe loan assumpirom and that the risk of a breach of any covenant or agreement in this
<br />Security fugf- umertt is acceptable la Lewdcr.
<br />To the extent permitted by applicable law. Lender may charge a reasonable fee as a condition to 1 ender's
<br />consent to the Ian assumpt;um. Lender miv also require the transferee to sign an ,iswniption agreement that is
<br />acceptable to 'Lender and 'that obligates itht transferee to keep all the prornrscs and tercements made in the \roue
<br />and in this Security linsttumgril. Bono%%.-, will continue to be obligated under the %oic and the. ticsurirs Iti%iru
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<br />ment unless Lender releases borrower it writing.
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<br />If Lender etercisea the option to require immedsale payment in full. 1 cn,icr ,haii gn c Itwr.�wrr n „ti.c „I
<br />acceleration. The notice shall provide r petlod of not less than )A dais t0,,nrr
<br />10
<br />tt,c date the notice i% oo,.rrr,l ..r
<br />mailed within which Borrower muss pad. all sums secured by this Securrts In.truni,.,I It Itilrh,wt'r 1.0% no p.rs
<br />these sums prior to the expitration of this period, lender m.ts in %okc an. rrii„•,t . , I,, i.s tt,i. %c,ritit,
<br />Instrument without further rtoiict or demand on Borrower
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