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'e,\ ~ ~ If) the methDd set fDrth In this Paragraph 3 Df this Adjustable Rate Rider, fDr deter- mining whether Dr nDt an adjustment must be made tD the E~lstlng Interest Rate IncorpDrate the effects Df the ~rDvlstDns Df 24 CFR 203.4gle) II) and 234.79(el III which require that changes In the Index In e~c,ss Df Dne percentage pDlnt must be carried over fDr Inclusion In adjustments to the E~lstlng Interest Rate In Subsequent years. Ig) If the lnde~ Is nD longer available, MDrtgagee will be required tD use any Inde~ prescribed by the Department of HDuslng and Urban DevelDpment. MDrtgagee will nDtlfy Hortglgor In writing of Iny such substitute Inde~ Iglvlng all necessary Information fDr HartgagDr tD Dbtaln such Index) and after the date Df such nDtlce the substitute Ind,x will be deemed tD be the Inde~ hereunder. 4. (a) If the Existing Interest Rate changes Dn any Change Date, HDrtgagee will recalculate the monthly Installment payments of principal and interest tD determine the amDunt which wDu1d be necessary to repay In full, on the maturity date, the unpaid principal balance (which unpaid principal balance wIll be deemed to be the amount due on such Changl Date assuming there has been nD default In any payment Dn the NDte but that all prepaymQnts Dn the NDte have been taken Into aCcDunt), at the new Existing Interest Rate, In equal monthly payments. On or before the Change Date, HDrtgagee, will gtve HDrtgagDr written nDtlce ("Adjustment Notice") Df any change In the Eklstlng Interest Rat. and of 'the revised amount of the monthly Installment payments of principal and Interest, calculated as provided above. Each Adjustment HDtlce wt 11 set fDrth III 'the date the Adjustment NDtlce is given, (II) the .Change Date, (1111 the new E~lsting Interest Rate as adjusted on the Change Date, (IV) the amount Df the adjusted monthly Installment payments, cal- culAted al prDvlded abDvI, (V) the Current Index, (VI) the methDd of calculating the Idjustment to the monthly Installment payments, and IVII) any other Infor~ltlDn which may be required by liw from time to time. (b) HDrtgagor Igrees to ply the adjusted monthly Installment amount beginning on the first plyment date which occurs at least thirty (30) days after MDrtglgee has given the Adjustment Notice to HDrtglgor. HDrtglgDr will continue to PlY the adjusted monthly Installment lmount set forth In the last Adjustment NDtlce gIven by HDrtglgee to Hartgagor until the first payment date which occurs at least thirty (30) days after .urtglgll has given I further Adjustment NDtice to Hartgagor. NDtwithstanding any- thing to thl contrlry contained In this Adjustable Rate Rider Dr the HDrtgage, MortgagDr wIll be relIeved on any Dbllgatlon to pay, and mortgagee will have forfeited Its ~Ight to collect, Iny Increase in the monthly Instillment lmount Icaused by the re- cllculatlon of such amount under Subparagraph 4(a) for any plyment date Dccurrlng less than thirty (3Dl days after Hortgagee has given the applicable Adjustment Notice to Mortgagor. (c) NDtwlthstandlng anything CDntalned tn thts Adjustable Rate Rider. In the event that (1) the E~tstlng Interest Rate was reduced on a Change Date. and (111 Hortgagee failed to give the Adjustment tiDttce when required, and (III) HDrtgagDr, CDnsequently, hIS made any monthly installment payments In excess of the amount which wDuld hive been set forth in such Adjustment tiDt Ice ("Ezclls Payments"), then MDrtglgDr. at Mortgagor's sDle optlDn, may ei lner (1) demand the return from MDrtgagee (who for the purposes Df this sentence will be deemed tD be the mortgagee. Dr mortgagees. whO received such Excess Payments, whether or not Iny such mortglgee SUbSequently assigned the HDrtgagel of all or any pDrtiDn of such Ezcess Payments, with Interest thereon at I rite equal to the Indea on,the Change Date when the Extsting Interest Rate was 50 reduced, frDm the date each such Eacess Payment was made by MDrtgagDr to repayment, Dr (2) request that III or any portion Df such Excess Payments, tDgether with all Interest ther~Dn calculated a~~rovlded above, be applied as payments against principal. S. HDthing CDntained in this Adjustable Rite Rider will permit HDrtgagee to accomplish an interest rate adjustment thrDugh an 'increase lor decrease) to the unpaid principal balance. Changll to the Ezlstlng Interest Rite may Dnly be reflected through adjustment to HDrtgagDr's monthly installment payments of principal and Interest, IS prDvided for herein. BY SIGHIIIG BElmf, mortgagDr Iccepts and Igrees tD the terms and covenants CDntained in this Adjustable Rate Rider. t- U << a:- t- en . < . - d tit III ~~~~. s! c c .' r--i fO ~ -= , i5 2- l' C::) <X) r-. ~ .=r ,.J if '<:. c:::. , i lJ. -- - " lJ. a.. c L-. Ln C <~ '- ;>.- .....:r; r~ Cf..::;J - L"{"~ ;t:,~,j AJCJ-"J'~ "..;, -IortgagDr JAMES W. GARRETSON I.' c I , ~ o (Sea 1) ~lDrlgagDr 1 oIJ 'J)