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87. 106642 The ronveralon can only take place anytiM between December I , 19 88 � and November 1 1! 91 TM data on aduich I elect to eofwert n istar mot rate from an adjustable rate to a fixed rate is called the "Conversion Date ". I car convert my interest rate only once. If I want to exercise the Conversion option, I wet meet certain conditions. Those condition@ are that, (i) I meat give the Note Molder notice that I an doing so at lust 30 days before the Conversion Date; (it) on the Conversion Data, I an not in default under the Mote or the Security Instrument; (ill) at the time I ate notice to convert, I must pay the Mote Holdsr a conversion fee of D.S. $500.00; (iv) 1 wet sign and at" the Mote molder any docu010ats the Mote Holder requires to effect the conversion; and (v) I wet qualify based on the Federal Hasa Loan Mortgage Corporation's conversion guidelines. (B) Calculation of Fixed Rate My now. fixed interest rate will be equal to the Federal Home Loan Mortgage Corporation's required net yield for: (1) if the original tan of this Rote is greater than 15 years, 30 -year fixed rate mortgages covered by applicable 60 -day mandatory delivery commitments in effect as of the date 30 days before the Conversion late, plus three-eighths of one percent (0.375%). or (it) if the original ten of this Note is 15 years or less, 15 -year fixed rate mortgages covered by applicable 60-day mandatory delivery commitments in effect as of the date 30 days before the Conversion Dote, plus three - eighths of one percent (0.3751). If this required net yield cannot be determined b*csww the applicable commitments are not available, the Note Holder will determine my interest rate by using a catparable cammitnent that In available on such date. The Conversion Rate will be rounded up to the nearest ona- eighth percentage point (0.1251). (C) Determination of New Payment Amount If I choose to exercise the Conversion Option, the Note Holder will determine the amount of the monthly poysmnt that would be sufficient to repay the unpaid principal I an expected to owe on the Conversion Date in full on the maturity date at 4 new fixed interest rate in substantially equal payments. The result of this calculations will be the new amount of my monthly payment. Beginning with my first monthly payment after the Conversion Date, I will pay the new amount as my monthly payment until the maturity date. C. TRANSFER OF THE PROPERTf OR A BENEFICIAL INTEREST IN BORROWER 1. Until Borrower exercises the Conversion Option under the conditions stated in Section B of this Adjustable Rate Rider, 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 Property 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 nay, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. Lender also shall not exorcist this option if: (a) Borrower causes to be submitted to lender information required by Lender to evaluate the intended transferee as if s new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be Impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by applicable law, Lender will charge a fee of U.S. $500.00 as a condition to Lender's consent to the loan assumption. Lender my also require the transferee to sign an assumption agreement that is acceptable to Lander and that obligates the transferee to keep all the promises and agreements saes in the Note and in this Security Ieat,t ..t. Borrower will continue to be obligated under the Note and this Security Instrument unto" Lefler releases Borrower in writing. If Lender exercise* the option to require mediate payment in full, lender shall give Borrower notice of aotaletatton. The notice dull provide a period of not less than 30 days from the data the notice is delivered or "1104 within which Borrower must pay all suss secured by this Security Instrument. If Borrower fails to pay these ammo prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or des" on Borrower. 2. If Borrower exercises the Conversion Option under the conditions stated in Section B of this Adjustable Rata Rider, the amendment to Uniform Covenant 17 of the Security Instrument contained in Section C1 above shall than ea*se to be in effect, and the provisions of Uniform Covenant 17 of the Security Instrument shall Instead be in effect, as follows. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower to sold or transferred and Borrower it not a natural person) without Lender's prior written consent, Lender any, at its option, require immediate paymmmt in full of all am* secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal low as of the date of this Security Instrument. If Lender exorcises this option, Lender shall give Borrower notice of acceleration. The notice shell provide a period of not less than 30 days from the date the notice is delivered or sailed within which Borrower @east pay all 00010 secured by this Security Instrument. If Borrower fails to pay theme ems prior to the expiration of this Nrm, Leader may tnvalte any remedies permitted by this Security Instrument without further notice or demand on so an". By SIQ(I116 SELOW9 Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. —(Seal) Dwaine G. Skopec Borrower —(Seal) Borrower 4006-19