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200700763 DOC ID #: 00015753107801007 THE NOTE PROVIDES FOR A CHANGE IN BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate of 5 . 375 %. The Note also provides for change in the initial fixed rate to an adjustable interest rate, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the fir s t day of FEBRUAR Y, 2012 ,and the adjustable interest rate I will pay may change on that day every 12th month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change, is called a "Change Date." (B) The Index Beginning with the first Change Date, my adjustable interest rate will be based on an Index. The "Index" is the average of interbank offered rates for twelve month U.S. dollar-denominated deposits in the London market, as published in the The Wall Street Journal. The most recent Index figure available as of the date 45 days before each change date is called the "Currcnt Index". If the Index is no longer available, the Note Holder will choose a new index that is based upon comparable information. The Notc Holder will give me notice of this choice. (C) Calculation of Changes Beforc each Change Date, the Notc Holder will calculate my new interest ratc by adding TWO & ONE-QUARTER percentage point,> ( 2.250 %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of onc 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 Change Date. The Note Holder will then determine thc amount of the monthly payment that would be sufficicnt to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Datc at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at thc first Change Date will not be grcater than 10 . 375 % or less than 2 .250 %. Thcreafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more than two percentage points from the rate of interest I have been paying for thc preceding 12 months. My interest rate will never be greatcr than 10.375 %. (E) Effective Date of Changes My new intcrest rate will become effective on each Change Date. I will pay the amount of my ncw monthly payment beginning on the first monthly payment date after the Change Datc until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and of any changcs in my adjustable intcrest rate before the effective date of any change. The notice will include the amount of my monthly payment, any information required by law to bc given to me and also the title and telephone number of a pcrson who will answer any question I may havc regarding the notice. CONY · ARM Fixed Period UBOR Rider 2U652-XX (08/06)h Page 2 of 4 ~/~~ Initial~ /