88102701 - Laserfiche WebLink

Browse

88- 102~J01 ADJUSTABLE RATE RIDER THIS ADJUSTABLE RATE RIDER Is made this .22!JL day of MAY 19...81L' and Is Incorporated Into and shall be deemed to amend and supplement the Hortgage, Deed of Trust or Security Deed ("Hortgage"), or even date herewith, given by the undersl ned "~rt agor") to secure Mortgagor's Adjustable Rate Note ("Hote"), or Iven datI herewltl"J~ 0 wes n dlHortgag.."). covering the premises delcrlbtd In th. Hartgage and lactte, el ~~~~~. 3410 E Bismark. Gr..nn T<l' "n~. Mil l111IHH. NotwIthstanding anythIng to th. contrery let forth In the f1ortgage, Mortgagor and Hortgagee hereby agree to the following: ' . Eight and . 1. Under the Note, the Initial stated Interest rate obwa..Jl&l~r centum (~I' per annum ("Initial Interest Rate") on the unpaid principal balance Is SUbject to change, as here- Inafter descrtb.d. Uhen the Int.rest rate changes, the equal monthly Installments of principal and Interest'also will be adjusted, as hereinafter provided, so that each In- stallment ,,111 be hi an emount necessary to fully amortize the unpaid principal balance of the HOtl, at the new adjusted Interest rate, over the remaining tenn of the lIote. Z. The first adJus~nt to the Interest rate (If any adjustment II required' will be ef(ectlve on the first day of October ,19..a!L (whtch date will not be less than tw!!lve months nor more than li9hteen months from the due date of the first installment payment under the Note), and thereaf~r each adjustment to the interest rate will be made effective on that day of lach succeeding year during the term of the Hortgage (~Change Date"'. 3. Each adjustment to the tnterest rate will be made based upon the following method of employing the Wlekly Iyerage yield on United States Trelsury Securities adjusted to a constant ..turity of onl yelr ("India": the Indea is published In thl Federal Reserve Bulletin and made Ivallable by the United Stites Trelsury Oep.rtme~t In Stltistlc.1 Release H. 15 (519). As of each Change Date, It will be detennlned whether or not an Interest rite IdJustment .ust be made, and the lmount of the new adjusted Interest rate. If Iny, U follows: (a) The a.ount of the Indea will be determined, using the most recently available figure, thirty (3D! dlYs before the Chlnge Date ("Current lndex-). (b! ~ percentage points (~I; the "Hargln"' will be added to the Current IndeA Ind the SUi of this addition will be rounded to the nearest one-eighth of our perc.ntage point 10,12511. Thl rounded sum, of the Hargln plus the Current Index, will be called the "Calculated Interest Rate" for each Change Date. leI The CIlculated intlrest Rate will be compared to the Interest rite being earned I-.-dlately prior to the current Change Date (such interest rite being called the "Existing Interest Rlte"). Then, the new adjusted Interest rate. If any, will be determined as follows: (II If the Cllculated Interest Rate Is the slme IS the Existing !nterest Rate, Chi Interlsl rate will not change. (II) If the difference between the Calculated Interest Rite and the Ealstlng Interest Rate is less than or equal to one percentage point, the new adjusted tnterest r.te will be equal to thl CIlculat!d Interest Rate (subject to the maxlwvrn allow.ble chl~ge over the term of the Hortgage of five percentage points, In either direction, frOlll the Initial Interest Rite. herein called the "5S Cap"). ' (Ill) If the Calculated Interest Rate exceedi the Ealstlng Interest Rate by more than onl percentage point, the new adjusted Interest rate will be equal to onl percentage point hlghlr than the ealstlng Interest ~ate (subje~t to the 51 Ca~l~ . . (IV) If the Calcullted Interest Rite Isles, than the Ealstlng Interest Rate by.ore than one percentage point. the new adjusted Interest rite will be equll to one percentage point less lhan the Exlstl,ng Interest Rate (subject to the 51 Capl. (d) Notwithstanding anything contained In this Adjustable Rale Rider, In no event will any new adjusted Interest rate be more than five percentage (51) points higher or lower than the Inltlll Interest Rate. If any Increase Dr decrease In the E.istlng Interest nate would ceuse the new .djusted Interest rate to ,.ceed the SI Cap, the new Idjusted Interest rate will be 11~lted to fIve percentage (511 points higher or lower, whichever Is applicable, than the InItial Interest nate. (el Hortgagee will perfor~ the functions reaulred under Subplragraphs 3(al, (b) Ind lcl to determine the amount of the new adjusted rite. if any. Any such new adju~ted Interest rate will become errectlve on the Change Dale and therearter will be deemed to be the [.istln1 Interest Rate. Ihe new EIlstlng Interest Rate will remain in effrct unt II the neat Chlnge Ollr on which the Interest rile Is adjusted.