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ADJUSTABLE RATE RIDER 8-7-400450 i I Year Treasvrr Index-- Rate f aps i THIS ADJUSTABLE R VFV RIDER is made thi, ...Mt day of ..... _.... . ?.anua.rY -.. ......... 19 and is incorporated into and shall be deemed to amend and supplement the Mortgage, deed of Trust or Security Decd ( the "Security Instrument ") of the same date given by the undersigned ( the "Borrower") to secure Borrower's Adjustable 1 Rate Note ( the •Note °) to . ..Farlmr.s ..Company...of..5uperi.or . ............ ............ .. ....... ........... .......... ............. ... 1 the "Lender -) of the same date and covering the property described in the Security Instrument and located at: ............ ..................... ......... ..... ... 1421. ..W.. First- _Grand.. Is' and-ME ..... 6880. 1.................. ......................_........ 11'rotun � :1ddre.� j THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BOR- ROWER MUST PAY. ADi1 io-,91 COVEN %Nis. In addition to thecovenams and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND NIONTHLY PAYMENT CHANGES The Note provides for an initiel interest rate of ...7.750... ;'.. The Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of .............. AP ...................., 19.88_., and on that day every IZth month thereafter Each date on which nay interest rate could change is called a "Change Date." (B) The Index Beginning with the first Change Date, me interest rate will be based on an Index. The "Index" is the weekh average yield on United States T rea ury securities ;adjusted to a constant maturity of 1 year, as made available by the L= ederal Reserve Board. The most recent Index figure availablc as of thc. date 45 days before each Change Date is called the "Current Index." If the Index is no longer available. the Note Holder will choose a need index which is based upon comparable information. The Note Holder will give me notice of this choice. (C 1 Calculation of Changes Before each Change Date. the Note Ifolder will calculate n» nets interest rate by adding .. ..three..... ____ ........ percentage points ( ...... 3:tQ.. ' ) to the Current Index. The Note Holder will then round the result of this addition to the nearest one eighth ofone percentage point (0.125'F ). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owc at the Change Date in full on the maturity date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate 1 stn required to pay at the first Change Date will not be greater than 9.750 or less than 5.750 Thereafter, my interest rate will never be increased or decreased on any single Change Dais by more than two percentage points ( ?.0` %) from the rate of interest I have been paying for the preceding 1\%eive months. MN interest rate will never be greater than .....x.3.750 ; (E ) Effective Date of Changes Idly new interest rate will become etTectiye on each Change D;atc. I will pay the emount of nry nry monthly payment beginning on the first monthly payment date after the Change Datc until the amount of nn monthly payment changes again. 1 F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the efreciivc date of any change. The notice will include information required by law to be given me and also the title and telephone number ol' a person who will answer any question 1 may have r"arding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORRON ER Uniform Covenant 17 of the Security Instrument is amended to read as follows. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Proncrtc or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender Wray• at its option. require immediate payment in full of' all sums secured by this Security Instrument. However. this option shall riot be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. Lender also shall not exercise this option if: (a) Burrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security e +ill not be impaired by the loan assumption and that the risk of it breach of any covenant or agreement in this Security Instrument is acceptable to Lender. a MULTISTATE ADJUSTABLE RATE IIIDER —ARM 5- 2 —'._;, ;11. f :it, - ::!•,—Fannie Mae Freddie Mac Uniform tnstrumenl Form 3111 3 85