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If I wamto cxercisc Ihc Conversion Option. 1 must firsl mect ccrtaln conditions. Those conditions ore that: (I) I must givc thc Note Holdcr notice thaI I want 10 do so; (ii) on thc Conversion Datc, I must not bc in dcfaull undcr thc Note or the Sccurity Instrumcm; (ill) by a datc specified by lhc NOle Holdcr, ! musl pay the Notc Holder a conversion fce of U.S. $ 250.00 ; and (Iv) I must sign and give thc Note Holdcr any documcnts thc NOlC Holder rcquires to cffcct the conversion. (B) Caleulatlon nl Fixed Rate My new, fixed imerest rate will bc equal to the Fcdcrnl National Morlgage Association's roquired nct yield as of a dalc and lime of day specified by lhe Notc Holder for (i) if thc origlnaltcrm of this Note is. grcatcr than IS ycars, 30.ycar rIXed rate mortgages covered by applicable 60.day mandatory delivery commitmems, plus rive-eighths of onc percentage point (0.625%), rounded to thc nearest onc.eighth of onc pcrccntagc poim (0.1250/.), or (ill if the original lerm of lhis Note is IS years or Icss, 15.ycar fixcd rate mortgages covered by applicable 60.day mandatory delivery commitmems, plus five.cighths of one pcrcentage poinl (0.625%), rounded to Ihe nearcst one.eighth of onc percentage point (0.125%). If this required net )ield cannot be dctermined because thc applicable commitments are not available, thc Notc Holder will dClermine my interest rate by using comparable information. My ncw ralc calculaled under lhis Section 5(B) will not he grealcr than lhe Maximum Rate statcd in Section 4(D) above. (C) New Payment Amnunt and Effective Dale If I choose to exercise tbe Conversion Option, lhe Note Holder will delermine tbe amounl of lhe monthly paymenl that would be sufficient to repay the unpaid principal I am expected to owe on the Conversion Date in full on the maturity datc at my new rIXed interest rate in substantially equal payments. Thc result of this calculation will be the new amoum of my monthly payment. Beginning witb my first monthly payment after the Conversion Date, I will pay tbe new amount as my monthly payment until the maturity date. C. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER I. Until Borrower exercises the Conversion Option undcr lhe conditions stated in Section B of this Adjustable Rate Rider, Uniform Covenant 17 of the Security Instrument is amended to read as follows: Transler nl lhe Properly or a Beneficiallnlerest in Borrower. If all or any part of the Property or any inlerest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural pcrson) wilhout Lcnder's prior wriucn consent, Lender may, al its option, rcquire immediate payment in full of all sums sccured by Ihis Security Instrument. Howcver, tbis oplion shall not be cxercised by Lender if exercise is prohibited by federal law as of the date of Ihis Security Instrumenl. Lendcr also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were bcing made to lhe Iransferec; and (b) Lender rcasonably determines that Lendcr's sccurity will not be impaired by Ihe loan assumplion and that the risk of a brcach of any covc.lant or agrcemcnt in this Security Instrument is acceptable 10 Lcnder. To the extent permitted by applieablelaw, Lender may charge a reasnnable fee as a condition to Lender's consenl 10 the loan assumption. Lender also may require tbe transferee to sign an assumption agreement lhal is acceptable .to Lender and that obHgates tbe transferee to keep alllhe promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate paymenl in full, Lender shall give Borrower notice of acceleration. Tbe notice shall provide a period of not less than 30 days from the date the notice is deHvered or mailed witbin whicb Borrower must pay all sums secured by this SecurilY Instrument. If Bnrrower fails to pay tbese sums prior to the expiration of tbis period. Lender may invoke any remedies permitted by this Security Instrumenl without further notice or demand on Borrower. 2. If Borrower exercises tbe Conversion Option under the cnndilions stated in Section B of tbis Adjustable Rate Rider. tbe ammdmeDl to Uniform Covenanl 17 of tbe Security Inslrument contained in Section C I above shall then cease to be in effect, and tbe provisions of Uniform Covenant 17 of the Security lnstrument shall instead be in effect, as follows; Tnufer of tbe Propert)' or a BeaefidaI lalfleSt ia Bono..er. If all or any part nf tbe Property or any inlerest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a naturll!. person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full nf "'> sums secured by this Security Instrument. However, this option sball not be exercised by Lender if exercise is prohibitediC, by federal law as of the date of this Security Instrument. II: ~ If Lender exercises this optinn, Lender shall give Borrower nOli.., of acceleralion. The notice shall provide a periodill , nf nnt less than 30 days from lbe date the notice is delivered or mailed wilhin which Borrower must pay all sums ~ '\.. secured by tbis Security Instrument. II Borrower rails to pay these sums prior to tbe expiratinn of this period, Lender . ~~ may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. -: ~ ~ l' B': SIGNING BELOW, Borrower accepts and agrees 10 the terms and covcnants contained in this Adjustable >>i~ ~ j. ~ .. sJ~::: co ~ 1 e~9kO .. ."'!~i ~N~ UJ u ~ v, 7/1/c!1d//.J 4j/~/ Michael J. teVal1ey <~-s:tIILr a/fi:, h p I Lj Shelley . e a1 ey ,/ ( \_-j (Seal) Borrower (Seal) Dorrowrr (S.al) llorro~'cl (Seal) IhlrrU\\(,1