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200504'708 The Lender will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal balance as of the Change Date in full on the Maturity Date at the new interest rate in substantially equal payments. The result of this calculation will be the new monthly payment. (d) Limits on Interest Rate Changes The interest rate at the first Change Date will not be greater than 10.850 % or less than 8.850 %. Thereafter, the adjustable interest rate will never be increased or decreased on any single Change Date by more than One percentage points ( 1.000 %) from the rate of interest applicable during the preceding 6 months. The adjustable interest rate will never be greater than 14.850 %, which is called the "Maximum Rate" or less than 8.850 % which is called the "Minimum Rate ". (e) Effective Date of Changes Each new adjustable interest rate will become effective on each Change Date. The amount of each new monthly payment will be due and payable on the first monthly payment date after the Change Date until the amount of the monthly payment changes again. (f) Notice of Changes The Lender will deliver or mail a notice of any changes in the adjustable interest rate and the amount of the new monthly payment to the Borrower before the effective date of any change. The notice will include information required by law to be given to the Borrower and also the title and telephonenumber of a person who will answer any questions regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 17 of the Security Instrument provides as follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interestin it is sold or transferred(or if a beneficial interestin Borroweris sold or transferredand Borroweris not a natural person) without Lender's prior written consent, Lender may, at its option, require immediatepaymentin full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security 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 which Borrowermust 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 permittedby this Security Instrumentwithout further notice or demand on Borrower. 2. When Borrower's initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section A above, Uniform Covenant 17 of the Security Instrument contained in Section B(1) above shall then cease to be in effect, and Uniform Covenant 17 of the Security Instrument shall be amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interestin it is sold or transferred(or if a beneficial interestin Borroweris sold or transferredand Borroweris not a natural person) without Lender's prior written consent, Lendermay, at its option, require immediatepaymentin full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if Fixed /Adjustable Rate Rider - Libor �{ 1956016 IBs 1 of Page 2 of 3 vvv TM 18560162 (05/03/04) PC Loan No. 6478876 -7879