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200503222 (B) The Index Beginning with the first Change Date,my adjustableinterestratewill be based on an Index. The "Index" is the average of interbankoffered rates for one -year U.S. dollar- denominatedleposits in the London market ( "LIBOR "), as published in The Wall Street Journal. The most recentlndex figure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index that 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 One Quarter percentage points ( 2.2 5 0 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one- eighth of one percentagepoint (0.125 %). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determinethe amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Datein full on the MaturityDate at my new interestratein substantiallyequal payments. The result of this calculationwill be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 7.12 5 % or less than 3.12 5 %. Thereafter, my adjustable interest ratewill never be increasedor decreasedon any single Change Dateby morethan two percentagepoints from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 10.125 %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Dateuntil the amount of my monthly payment changes again. (F) Notice of Changes The Note Holderwill deliver or mail to me a notice of any changes in my initial fixed interestrateto an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any change. The notice will include the amount of my monthly payment, any informationrequiredby law to be given to me and also the title and telephonenumber of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower's initial fixed interestrate changes to an adjustableinterestrate under the termsstated in Section A above, Uniform Covenant 18 of the Security Instrument shall read as follows: DOC #:332062 APPL #:801224409 LOAN #:8012244094 Initials: (M-160R (0108) Page 2 of 4 �� L. Form 3187 6/01