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86- 104165 (5) iJ If this box is checked, the interest rate that I pay shall not decrease more than .................... percentage points on any Rate Change Date. (6) [$ If this box is checked, the interest rage that I pay shall never he more than ----- 13.950 e during the period I have my loan. (7) [$ If this box is checked, the interest rate that I pay shall never be less than ....... T. 950 ... during the period I have my loan. (8) ❑ If this box is checked, the principal and interest payment that I pay shall not increase more than ...................... percent on any Payment Change Date. (9) ❑ If this box is checked, the principal and interest payment that I pay shall not decrease more than ............... _.. percent on any Payment Change Date. The Note Holder will adjust the interest rate on each Rate Change Date and on each Payment Change Date so that the change in the interest rate will not be more than those limits marked above. The monthly payment amounts will also change on Payment Change Dates as provided in the Note. Because paymentt changes may occur less often than interest rate changes and /or may be subject to certain limitations described in the Note, the monthly payments may be insufficient at times to pay ac- cruing interest. In such case, unpaid interest is added to the principal balance of the Note and itself will accrue interest thereafter. under the terms of the Note, the unpaid principal balance can never exceed a maximum amount equal to One Hundred Twenty -Five Percent (125%) of the principal amount originally borrowed. (C) Notice of Changes The Note Holder will mail me a notice by first class mail of any changes in my interest rate and the amount of my monthly payment at least thirty and no more than ;orty -five days before each Payment Change Date. The notice will include information required by law to be given me and also the title and telephone number of a person who will answer any questions I may have regarding the notice. The notice will also include the following information: (i) The Fixed Interest Rate I will pay if I choose to convert my loan into a Fixed Interest Rate Loan as described in Section 3 below; (ii) The amount of my new monthly payment at the Fixed Rate of Interest; and (iii) A date not more than 15 days from the date the notice is given, by which I must execute a Modification Agreement in the Form that Lender may require evidencing the Modification of the Note to provide for a Fixed Interest Rate, and the payment of a conversion fee as { described in Section 4 of this Rider. (D) Conversion to Fixed Interest Rate ` The Note Holder will provide the Borrower the option to convert the Adjustable Rate Loan into a Fixed Interest Rate Loan as follows: 3. CONVERSION TO FIXED INTEREST RA'Z'E y . (A) My Option to Convert I may convert the Adjustable Rate Loan evidenced by a Note of the same date to a Fixed Interest Rate Loan to be fully repaid in substantially equal monthly installments of principal and interest over the 1st, 2nd, & 3rd remaining term of the loan on the . -------- .......... ... __... _ . _...... _ ... ...............Payment Change Dates. (B) My Fixed Rate of Interest and Monthly Payments If I choose to convert to a Fixed Rate, the Note Holder will set the Fixed Rate of Interest at 11.000 The new Fixed Interest Rate will become effective on the Payment Change Date on which ; I convert to a Fixed Interest Rate. My monthly payments at the new Fixed Interest Rate will begin as of the first monthly payment after the Payment Change Date on which I convert_ The monthly principal and interest payment will be the amount that is necessary to repay in full the principal I am expected to owe at that Change Date in substantially equal payments on the maturity date at my Fixed Interest Rate. (C) Required Conversion Fee If I choose to convert to a Fixed Rate, I will be required to pay to the Note Holder a Conversion Fee equal to . 1.5 . 0 % . of the original amount of the loan upon execution of a Modification Agreement.. (D) How to Convert If I choose to convert to a Fixed Rate Loan. I will be required to execute a Modification Agree- ment and pay the required Conversion Fee to the Note Holder within the period set in the Note Holders notice as provided in Section 2 (C) above. If I do not do this within the specified period, I will not have an option to convert unless I can exercise another option on other Payment Change Dates as indicated in Section 3 (A) above. In that case, the interest rate that I will pay will continue to adjust in accordance with Section 2 (B) above. (E) Effectiveness of Provisions Upon Borrower's execution of the Modification Agreement and payment. of the required Conver- sion Fee, Section 3 (A) above shall cease to be effective. 1. LOAN CHARGES It. could be that the loan secured by the Security Instrument is subject to a law which sets maximum loan charges and that law is interpreted so that the interest or other loan charges collected or to be collected in with the loan would exceed limits. If this is the case, then: (A) any such loan connection permitted charge shall be reduced by the amount ne.ce-,sary to reduce the charge to the permitted limit. and (B) any sums already collected from Borrower which excced:d permittt -d limits will be refunded to Borrower. ; Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower.