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4. ATEREST RATE A.VD MONTHL Y PA YMENT CHANGES (A) Champ Dales ' `Ae interest rate I will pay may change on the first day of APri 19 88 and on that fag every tme V months thereafter. Each date on which m intr rest rate could y change is called a "Change Date." (8) Thefnd- Beginning with the first Change Date, my interest rate will be based on an Index_ The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of I year, as made available by the Federal Reserve Board. The most recent Index figare available as of the date 45 days before each Change Date is called the "Current Inder- If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable information- The Note - Holder will give me notice of this choice. 4' (C) Cakubdom of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding two & one half p e points ( 2.5 sib) to the Current Index and rounding to the nearest 1; 11th of I li, 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 in full the principal I area expected to owe on that Change Date in substantially equal payments by the maturity date at my new interest rate_ The result of this earn will be the new amount of my monthly payment. (D) Limits on Interest Rate Change 7TI% u terest rate I am required to pay at the first Change Ike will con be greater than 13-1/2 —wk at less than R. Thereafter, my interest rate will never be increased or decreased on any single Citsage Date by more than i ror,, :he rate of interest I have been paying for the preceding twdve months. The minimum interest rate on this loan will never be less than 7-1/2 % and the maximum interest rate will never be greater than - (E) Effective Date of Changes My new interest rate will become effectrve on each Cbange Due. I will pay the amount of my new monthly payment beginning on th[' {tree monthly payment date after the Change Dare until the amount of my monthly payment changes again - (F) Nods of Changes The Note Holder will mail or deliver to me a notice before each Change Date. The notice will advise me of: (i) the new interest rate on my loan as of the change Date; (ii) the amount of my monthly payment following the Change Date: (iii) any additional matters %finch the Note Holder is required to disclose; and tiv) the address of the association you could contact regarding any questions about the adjustment notice. 8, CHARGE& LIENS Uniform Covenant 4 of the Security Instrument is amended to read as follows: 4. Charges; Beers, Borrower shall pay all taxes, assessments, and other charges. fines, and impositions attributable to the Property which may attain a priority over this Security Instrument, and leasehold payments of ground rents, if any, in the manner provided under paragraph 2 hereof o, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof- Borrower shall promptly furnish Lender all ounces of amounts due under this paragraph, and in the event Borrower shall make Payment directly, Borrower shall promptly furnish to Leader receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument; however, Borrower shall not he required to dischara_e any such lien so Iona as Borrower_ teal shall service in -,iri— m rt... payment of tsw obligation secured by such lien in the manner acceptable to Lender; (b) shalt in good faith contest such lien by, or defend against enforcement of Stich list in, legal proceedings which in the opinion of Lender operate to prevent the enforcement of the lien or forfeiture of the Property or any pact thereof; or (c) shall secure from the holder of such hen an agreement in a form satisfactory to lender subordinating such lien to this Security Instrument. If Lender determines that all or any part of the Property is subject to alien which may attain a priority over this Security Instrument, 1,40der shall give Borrower a notice identifying such lien. Borrower shall satisfy such lien or take one or more of the actions set forth above within ten ,'. -„ of the giving of the notice. ) C. NMCF Uniform Covenant 14 of the Security Instrument is amended to read as follows: t'► 14. Natke. Except for any notice required under applicable law to be given in another manner, cal any notice to Borrower provided for in this Security Instrument shall he given by delivering it or by mailing it by first class mail to Borrower at the Property .Address or at such other address .. as Bosrrnver may designate by notice to I.todtr as provided herein, and (h) any notice a %fender shall he given by first class mail to l rnder'v address visited herein or to such other address as Lender may designate by notice to Bturnwer as pin %ided l,crem, Anv notice provided fir in this `seer urvy Inxtrumern %hall he deemed to have been given ttr Borrower or i ender when given in the manner dcs,gnaird honed. 1