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<br />ADJUSTABLE RATE RIDER
<br />(I 'Vtar Treasury Index-Rate Caps)
<br />
<br />88- 104237
<br />
<br />THIS ADJUSTABLE RATE RIDER is made this ..,Z.mL day of .........lm&\lll.l;........................ 19 .aIL... and is
<br />incorporated into and shall be de.:med to amend and supplement the Mortgage, Deed of Trust or Security Deed (the
<br />"Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable
<br />Rate Note (the "Note") to ..,... ~g,r.w,~.~.~ ...~i!-~~..}':!~!?n~~.~~.l. ..Ni!-.~.~!?.J.:I.?.~, ,!~!!.~.9.!;;t?1;:!-.9.!!. ....................... .................
<br />.............................................................................. (the "Lender") of the same date and covering the properly described in
<br />the Security Instrument and located at:
<br />
<br />..... ......,. ...... '. ....?f...yJ~...\;C?l!Ig.1,.. 9.r.~ !J..rJ..,. I~.~~n!!.,...~.'f.p.t.o?;~~,~.. ~.~~9}.,."... .... ,. ..... ,. ..,..... ...... ,..... ............................,...
<br />[Properly Address)
<br />
<br />THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE
<br />AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S
<br />INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BOR.
<br />ROWER MUST PAY.
<br />
<br />ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument. Borrower
<br />and Lender further covenant and agree as follows:
<br />A. INTEREST RATE AND MONTHL'V PAYMENT CHANGES
<br />
<br />The Note provides for an initial interest rate of ....!!".QQ.....%. The Note provides for changes in the interest rate and the
<br />monthly payments, as follows:
<br />4. INTEREST RATE AND MONTHLY PAYMENT CHANGES
<br />
<br />( A) Change Dales
<br />
<br />The interest rate I will pay may change on the first day of ..)\~p.J.~l!I.l.>,~E......................, 19~.~...... and on that day
<br />every 12th month thereafter. Each date on which my interest rate could -;hange is called a "Change Date."
<br />
<br />( B I The Index
<br />
<br />Beginning with the first Change Date. my interest rate will be based on an Index, The "Index" is the weekly
<br />average yield on United States Treasury securities adjusted to a constant maturity of t year. as made available by the
<br />Federal Reserve Board. The most recent Inde~ figure available as of the date 45 days before each Change Date is called
<br />the "Current Index. ....
<br />
<br />If the Inde~ is no longer available. the Note Holder will choose a new index which is based upon comparable
<br />information, The Note Holder will give me notice of this choice.
<br />
<br />( C) Calculalion of Changes
<br />Before each Change Date, the Note Haider will calculate my new interest rate by adding ,..!~?...~~~...?.~~.......
<br />ha~r....,......................... percentage points (......?,.,.?Q...%) to the Current Index. The Note Holder will then round the
<br />result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject 10 the limits stated in Section
<br />4( D) below, this rounded amount will be my new interest rate until the next Change Date,
<br />
<br />The Note Holder will then delermine lhe amount of the monthly payment that would be sufficient to repay the
<br />unpaid principal that I am eXf1ected to owe at the Change Date in full on the maturity date at my new inlerest rate in
<br />substantially equal payments, The result of this calculation will be the new amount of my monthly payment.
<br />
<br />( D I limits on Interesl Rale Changes
<br />
<br />The interest rate I am required to pay at the first Change Date will nOI be greater than .JQ.!.QQ..............% or less than
<br />.~.,.Q.Q.............,...%. Thereafter, my inlerest rate will never be increased or decreased on any single Change Date by more
<br />thall IWO percentage points (2.0%) from the rate of inlerest I have been paying for the prec-:ding twelve months. My
<br />interest rale will never be greater than ......J.3.,.!JO..%.
<br />
<br />(E) ElI'eclhe Dale of Changes
<br />
<br />My new interest rate will become effective on each Change Date, I will pay the amount of my new monthly payment
<br />beginning on the first monthly payment date after the Change Dale until the amounl of my monthly payment changes
<br />again.
<br />( F) Notice of Changes
<br />The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my momhly
<br />payment before the effective date of any change. The nolice will include information required by law to be given me and
<br />also the title and telephone number of a person who will a nswer any question I may have regarding the notice.
<br />B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER
<br />
<br />Uniform Covenant 11 of the Security Instrument is amended to read as follows:
<br />Transfer of the Properly or a Benellclallnteresl in Borrower. If all or any part of the Property or any interest in it is
<br />sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is nOI a natural person)
<br />without Lender's prior written consen!. Lender may. at its oplion. require immediate paymenl in full of all sums secured
<br />by this Security Instrument. However, this optIOn shall not be exercised by Lender if exercise is prohibited by federal law
<br />as of the date "r this Security Instrument. lender also shall nol exercise Ihis option if: (a) Borrower causes to be
<br />submitted to Lender information required by lender to evaluate the intended transferee as if a new loan were being made
<br />to the transferee; and (b) Lender reasonably delermines Ihal Lender's security will not be impaired by the loan
<br />assumption and that the risk of a brea.:h of any covenant or agreement in this Security Instrument is acceptable to
<br />Lender.
<br />
<br />..The Index figure available a,~ of the dUle Ihe iniliul inlere~1 nile \lU' llelermincd for Ihi, loan \\U, ...7.,~,;3........, 0'0,
<br />
<br />II1J1TISTATt ADJUSTABLE RATE RIDER- ARM 5.7- ," .'" 'I" ". -Flnnll Mil Freddie MIe Uniform Inllrumen'
<br />
<br />Form J n, J 85
<br />
<br />" f}.~'''.JI'JO/''''..I.r.,
<br />
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