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(c) Accepting Quotation and Converting. If Borrower wishes to convert this loan at the fixed rate and payment quoted, Borrower must notify the Lender of Borrower's acceptance in writing. Such notice must be received by the Lender at least 15 days before the Change Date and must be accompanied by the conversion fee. r,y (d) Reduction of Time Periods. If the Notice of Periodic Adjustment is not sent by the Lender at least 35 days before the Change Date, then C each time period stated above shall be reduced by five days. (III) The fixed rate of interest quoted by Lender and payable by Borrower will be equal to the "Fixed Rate Index" plus X1.750 X. The Fixed Bate index, is, the net yield requirement of Federal National Mortgage Association (ice,I for 60 -day mandatory delivery of new fixed rate loans se such Fixed Bath; Index is available when the rate quotation is made. The new fixed Interests Vrrate will become effective on the applicable Change Date. Borrower's monthly payments at the new fixed interest rate will begin as of. the first monthly payment after the applicable Change Data. The monthly payment will be the amount that is necessary to repay in full the principal Borrower will owe (assuming timely payment of all amounts due prior to that date) on that Change Date in substantially equal payments by the Final - Payment Date at the fixed interest rate. (iv) If the Fixed Rate Index ever ceases to be published or made available by FNMA, or if FNMA ever ceases quoting and purchasing mortgage loans on -.the basis now reflected by the Fixed Rate Index, then this conversion option . shall terminate. However, if by that time, Borrower has already accepted a quotation and converted this loan, such teraination will not affect Borrower. Borrower's fixed rate and payment will, in that event, remain in full force and effect. (v) If the fixed rate to be quoted on any Change Date exceeds the maximums charges or rate allowed by applicable law, then conversion will not be allowed for that Change Date. The Lender may offer a lover rate or charges than required or permitted by Section 1 of the Note in order to comply with such legal limitations, but is not required to do so. (vi) If, after conversion, Borrower makes any prepayment under Section 7 of the Note, Borrower will be governed by Section 7 of the Note except that the amount of Borrower's monthly payments will not be changed. (vii) Upon Borrower's timely exercise of the conversion option, Section 4 of the Note shall cease to be effective. D. TRANSFER OF THE PROPERTY Paragraph 1.7 of the Security Instrument is amended to read as follows: if all or any part of the Property or any interest therein is sold or transferred by Borrower without the Lender's prior written consent, including a Contract for Deed sale, but excluding (a) the creation of a lien or encumbrance subordinate to the Security Instrument, (b) the creation of a purchase money security interest for household appliances, (c) a transfer by devise, descent or by operation of law upon the death of a joint tenant or (d) the grant of any leasehold interest of three years or less not containing an option to purchase, the Lender may, at the Lender's option, declare all the sums evidenced by the Note and secured by this Security Instrument to be immediately due and payable. If the Lender exercises its option to accelerate under this paragraph, the Lender shall mail Borrower notice of acceleration in accordance with this Security Instrument. Such notice shall _ride a period of than '!? days from the date the notice is mailed within which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, the Lender may, without further notice or demand ,n Borrower, invoke any remedies permitted by the Note and this Security Instrument. The Lender shall have waived such option to accelerate if, prior to the sale or transfer, the Lender and the person to whom the Property is to be sold or transferred reach agreement in writing that the ..r =dit such person .., satisfactory �. the Lender. As a condition to waiving the Lender's right to accelerate, the loan terms, including the interest rate payable on the Note, the Margin for future interest rate changes (as that term is defined in the Note), and the maximum interest rate Cap provided in Paragraph +(b) of the Note above the initial interest rate shall be subject to modification by the Lender. If the Lender has waived the option to accelerate provided in this Paragraph, and if Borrower ", successor in interest has executed a written assumption agreement .accepted in writing, by the I..ender, the Lender shall release Borrower from .all ibligations ,ender this Security instrument and the Note.