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L 7. FIXED INTEREST RATE OPTION (A) Option to Corners to Fixed Rate 86-. on -f 3rG 1 may choose the Conversion Option. The "Conversion Option" is my option to convert my adjustable ratt interest (- Payments to fixed rate interest payments as of the first day of ... February F 19 ...99.., which is called [lnrert .rant date as frrrr Pai• --I Change Datr) the "Conversion Date." Tifs is the only time that 1 may concert my adjustable rate payments. If I choose the Conversion Option I must give the Note Holder notice that I am doing so at least 15 days before the Conversion Date. 1 also must sign and give to the Note Holder the documents, in any form that the Note Holder may require, changifts the terms of the Noe to give effect to the conversion. My new, fixed interest race will be equal to the. Federal National Mortgage Association's published required Net Yield for new, fixed rate mortgages covered he Federal mandatory delivery commitments that was in effect as of the date 45 days before the Conversion Date, plus seven eighths of one pe cent (0.875 %). If this required Net Yield is not available, the Note Holder will determine my interest rate by using a comparable figure. I will pay the Note Holder a conversion fee equal to one percent 0.0%) of unpaid principal as of the Conversion Date plus U.S. S ........ 1.00.4.Q ... 1 will pay the conversion fee on or before the date of my first monthly payment alter the Conversion pate. (B) Rei reA Principal Balance If my unpaid principal balance on the Conversion Date will be greater than the original principal amount of my loan, the Note Holder may require that a qualified real estate appraiser, chosen by the Note Holder, prepare an appraisal report on the value of the secured property. I will pay the Lender a reasonable fee for this appraisal report. If my unpaid principal balance will be an amount grater than 95% of the value of the property securing my loan, as established by the appraisal repon, I will not have the Conversion Option unless 1 pay the Note Holder an amount sufficient to reduce my unpaid principal balance to that amount. (C) Determination of New Payment Amount if 1 choose the Conversion Option, the Note (folder will then determine the amount of a monthly payment that would be sufficient to repay the unpaid principal balance I am expected to owe on the Conversion Date in full on the maturity date at my rte- interest rate in substantially equal payments. The result of this calculation 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. and the interest rate 1 owe will not change from the fixed rate established as of the Conversion Date. (D) Trsaafer of the Property or a Beneficial lme_ ' rn Borrower if 1 choose the Conversion Option and, thereafter, I. all or any part of the Property or any interest in it is sold or Note transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without the Note Holder's Pryor written consent, the Note Holder may, at its option, require immediate payment in full of all amounts 1 owe under this Note. However, this option shall not be exercised by the Note Holder if exercise is prohibited by federal law as of the date of this Note. If the Noe Holder exercises this option, the Note Holder shall give me notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which I must pay all amounts that f owe. >G NOTICE OF CHANCES The Noe Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthy Payment before the eft-Clive date of any change. The notice will include information required by law to be given me and also the litk and telephone number of a person who will answer any question 1 may have regarding the notice. & TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Unless Borrower chooses the Conversion Option under the Note as stated in Section A7 of this Adjustable Rate Rider, in which event the following amendment to Uniform Covenant 17 of the Security Instrument shall cease to be in effect. Uniform Covenant 17 of the Security Instrument is amended to read as follows Transfer of the Pratt" or a Beseticiad Interest in Borrower. If all or any part of ' he 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 may, 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 exercise this option if (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee at if a new loan were being made to the transferee; and b will riot be impaired by the Ian assumption and that the risk Lender f a breach abfs any tcovenant orlagreementSeinuthis Security Instrument is acceptable to Lender. To the extent permitted by applicable law. Lender may charge a reasonable Ter as ;t wnduwn to Lender's consent to the loan assumption. Lender may also require the transferee to sign le fee -is -I c n ;Igron to I that is taeptable to Lender and that obligates the transferee to keep all the pronttscs end .,grecments made in the 'dote and in this Security Instrument. Borrower will continue to be obligated under thr ";`c :rnd this ticcunty Instn,• menl units Lender releaat Borrower in writing. If Lender exereist the option to require immediate payment In full, I ender %haa gisc Horrower notice ,i acceleration. The notice shall .s rovide P pence of nut less than AO days rr,m the d,ttr the n nice mailed within which Harrower must pay all sum Is drhscrcd ,r s secured by this Scrurrts Irtsirtnncnt II Hnrn,wrt I;uls In Ihm Sums Prior to the eapiratton of this period, Lender rnav nrvoke ens n•mrdi <'. t�c•r.n�rlyd hs Ihts ,ti Instrument w I'as nhoul further ncxtct or demand on Horruwer counts J