200602890 - Laserfiche WebLink

Browse

200602890 A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate of 12.375 %. The Note also provides for a change in the initial fixed rate to an adjustable interest rate, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Interest Change Dates The fixed interest rate I pay may change on the first day of April, 2008 and on that day every 6th month thereafter. Each date on which my interest rate could change, is called an "Interest Change Date." (B) The Index Beginning with the first Interest Change Date, my interest rate will be based on an Index. The "Index" is the average of interbank offered rates for six-month U.S. dollar-denominated deposits in the London market ("UBOR"), as published in The Wall Street Journal. The most recent Index figure available as of the first business day of the month immediately preceding the month in which the Interest Change Date occurs 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 HOlderwill give me notice ofthis choice. (C) Calculation of Interest Rate Changes Before each Interest Change Date, the Note Holder will calculate my new interest rate by adding Eleven and Three Eighths percentage points ( 11.375 %) to the Current Index. The Note 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 new interest rate until the next Interest Change Date. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Interest Change Date will not be greater than 15.375 % or less than 12.375 %. Thereafter, my adjustable interest rate will never be increased or decreased on any single Interest Change Date by more than One and One Half percentage points ( 1.500 %) from the rate of interest I have been paying for the preceding 6 months. My interest rate will never be greater than 19.375% or less than 12.375 %. FIXED/ADJUSTABLE RATE BALLOON RIDER WSJ SIX MONTH LIBOR He 54205.6 DDS.BR2 ( 2 of 5) )}f? ~(X.Q