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I" I ",! ' ADJUSTABLE RATE RIDER 81- 107346 r- L THIS ADJUSTABLE RATE RIDER is made this 2ZwL day of October 19.8.L' and is incorporated into and shal1 .be deetned to amend and supplement the Mortgage. Deed of Trust or Security Deed ("Mortgage"). or even date herewith. given by the undew~'e't,! "'1PIAiagor") to secure Hortgago~' s Adjustab~e Rate Note ("I/ote") .or even date herewith. i2!iGQliU11filA Natiod<rllortgagee"). covertng the premIses described in the Mortgage and located "at ?'l11 Wp!':r- Phnf>nix _ Gr:mil 1..1 ;on.!. 1)T~1;>'{""~k:l. ~gB03 I/otwithstanding anything to the contrary set forth in the Mortgage. Hortgagor and Mortgagee hereby agree to the following: 1. Under the Note. the initial stated interest rate of 8~ per centum (~%) per annum ("Initial Interest Rate") on the unpaid principal balance is subject to change. as here- inafter described. When the interest rate changes. the equal monthly installments of principal and interest'also will be adjusted. as hereinafter provided. so .that each in- stallment will be in an amount necessary to fully amortize the unpaid principal balance of the Note. at the new adjusted interest rate, over the remaining tena of the I/ote. 2. The first adjustment to the interest rate (if any adjustQent is required) will be effective on the first day of .January , 19.a2.... (which date will not be less than twelve months nor more than eighteen months from the due date of the first installment pa)~nt under the Note), and thereafter each adjustment to the interest rate will ~e made effective on that day of each succeeding year during the te~ of the Mortgage ("Change Date"). 3. Each adjustment to the interest rate will be made based upon the following s.ethod of employing the weekly average yield on United States Treasury Securities adjusted to a constant maturity of one year (ftlndex"; the Index is published in the Federal Reserve Bulletin and ma~e available by the United States Treasury Department in Statistical Release H. 15 (519). As of each Change Date, it will be dete~ined Whether or not an interest rate adjustment must be r.~de. and the amount of the new adjusted interest rate, if any, as follows: (a) The amount of the Index will be dete~ined, using the most recently available figure, thirty (30) days before the Change Date ("Current Index.). (b) Two percentage points (bLS; the "!Urgin") will be added to the Current Index and the su~ of this addition will be rounded to the nearest one-eighth of our percentage point (0.1251). The rounded sum, of the Nargin plus the Current Index, will be called the .Calculated Interest Rate. for each Change Date. (c) The Calculated Interest Rate will be compared to the interest rate being earned immediately prior to the current Change Date (such interest rate being called the "Existing Interest Rate-). Then, the new adjusted interest rate, if any, will be dete~ined as follows: (I) If the Calculated Interest Rate is the same as the Existing Interest Rate, the interest rate will not change. . (II) If the difference between the Calculated Interest Rate and the Existing Interest Rate is less than or equal to one percentage point. the ne~ adjusted interest rate will be equal to the Calculated Interest Rate (subject to the maxi~ allowable change over the term of the HortgJge of five percentage points, in either direction, froo the Initial Inlerest Rate. herein called the "5~ Cap~). (III) If the Calculated Interest Rate exceeds the Existing Interest Rate by more than one percentage point, the new adjusted interest rale will be equal to one percentage point higher than the existing Int~resl aate (subject to the 51 Cap). . (IV) If the Calculated Interest Rate is less than the Existing Interest Rate by more than one percentage point, the new adjusted interest rate will be equal to one percentage point less lhan the Existing Inlerest Rate (subject to the 51 Cap). (d) 1l0lwithstanding anything contained in this Adjustable Rate Rider, in no event will any new adjusted interest rate be more than five percentage (51) points higher or lower than the Initial Interest Rate. If any increase or decrease in the Existing Interest Rate would cause the new adjusted interest rate to exceed lhe 51 Cap. the new adjusted interest rate will be limited to five percentage (5\) points higher or lower. whichever is applicable. than lhe initial Interest Rate. (el Mortgagee will perform the functions required under Subparagraphs 3(a). (b) and (c) to determine the amount of the new adjusted rate. if any. Any such new adjusted interest rate will become effective on the Change Date and thereafter will be deemed to be the Existing Interest Rate. The new Existing Interest Rate will remain in effect until the next Change Date on which the interest rate is adjusted. , r ~. -.J.