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<br />I
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<br />, (c)
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<br />~ePting Quotation and Converting. If Borrower wishes to convert
<br />,,' . s loan at the fixed rate and payment quoted, Borrower must notify
<br />the Lender of Borrower's acceptance in writing. Sueh notice must be
<br />received by the Lender at least 15 days before the Change Date and
<br />.uat be acco.panied by the conversion fee.
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<br />(d) Reduction of Tiae Pertoda. If the Notice of Periodic Adjuatiaent is
<br />not sent by the Lender at leaat 35 days before the Change Date, th.n
<br />each ti_ period stated above shall be reduced by five daya.
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<br />g (11i)
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<br />The fi';:'d rate of intereat quoted by LeDder aDd payable by 80n"lIIIJeTwt4:1 be
<br />equal to the "Fixed Rate Index" plus 0.750 %. TII. Fixed .... 1....t.
<br />the net yield requireaent of Fed.ral Na~io_l Mort...e Assoctat1oa(_)
<br />for 60-day mand.tory delivery of new fixed rate loau a. .ucb F1,.....'"
<br />Index is available when the rate quotation ia _de. The new. ,fixedt;'iiDtilnR
<br />rate will becOl8e effective on the applicable C1Ianae Dall4h
<br />
<br />Borrower's monthly payments at the new fixed intere.t rat~ vi-lll1ltft'<.
<br />the first monthly payment after the appltcable Cban&a l)ate',-_i~' .
<br />payment will be the al80unt that ia nece..ary to repaytn full.tlle'''P'I:'l .. ,
<br />Borrover will owe (...uaing tiaely payaent of all a_ots d_p:d'iJ~r'~o,,'~~":'
<br />date) on that Chan&e Date in substantially equal pa]l81lt'& b'i"",~~'Jlt.l~j."
<br />Payment Date at the fixed interest rate. . ,
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<br />1.
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<br />(tv) If the Fixed Rate Index ever cas..s to be publiabltllor ....,........
<br />FNMA, or if FNMA ever ceasea quoting aDd purch..tna. ~'e,'. . '.,
<br />baais now reflected by the Fixed Rate Index, then tills cO.f:
<br />shall terlllillAte. However, if by that ti_. BorrowsI' 1IaiI. ,"
<br />a quotation and converted this loan, such te'l'llinattOll' wtl1
<br />Borrower. Borrower's fixed rate and payment will. in that eve~.
<br />full force and effect.
<br />
<br />(v) If the fixed rate to be quoted on any Chall&e Date exc..... tbe. ~",:
<br />charges or rate allowed by applicable law. then conver.ton wil1,.1l..,rfl'k'
<br />allowed for that Change Date. The Lender .y offer a lover rate or,dla~,~J
<br />than required or pe~tted by Section 1 of tbe Note tn order to ~"""%'
<br />such legal liaitationa, but is not required to do aG.
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<br />(vi) If. after conversion, Borrower aualtes any prepayment ullllar Sectt.",iJ'."i~~i;;;:,'
<br />Note, Borrower will be governed by Section 7 of tll. Note .~Pt ~_",t.ii;,
<br />.-unt of Borrower's I80nthly payments will not be dlana.d. '
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<br />(vU) Upon Borrower's ti_ly exercise of the converaion optton. Sect.i0ll4
<br />Note shall cease to be effective.
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<br />D. TRANSFER OF '!'lIE PROPERTY
<br />
<br />Paragraph 17 of the Security lnatru_nt is _nd..d to react e.follova~,
<br />
<br />If all or any part of the Property or any intere.t theretn i. .0W: .0'1'
<br />transferred by Borrower without the Lender's prior written conaent, iQC'l"i..,
<br />a Contract for Deed sale. but excluding (a) the creation of e lte. or
<br />encuabrance subordinate to the Security In.tl'1mellt, (b) the cre..tao,f .
<br />purchase soney security interest for housebold applianc.., (e) atTa.fer ,by
<br />devise, descent or by operation of law upon the death of a joint te.nt or
<br />(d) the grant of any lea.ehold interest of three years or Ie.. not containt..
<br />an option to purchaee, the Lender "'Y. at the Lender'. option, deClare all
<br />the suas evidenced by the Note and secured by this Security lnatr~.t to be
<br />i-..4iately due and payable. If the Lender exercise. its option to
<br />accelerate under this paragraph, the Lencer shall ...il Borrower notice of
<br />acceleration in accordance with this Security Instrn_nt. Sucb notice shall
<br />provide a period of not less than 30 days froe the date the notice is ...iled
<br />within which Borrower lIlay pay the suas declared due. If Borrower fails to
<br />pay such su.s prior to the expiration of such period, the Lender "'y, without
<br />further notice or de_nd on Borrower. invoke any relledies pe~tted by the
<br />Note and this Security Instrument. The Lender shsll have waived such option
<br />to accelerate if, prior to the sale or transfer. the tender and the person to
<br />wboll the Property Is to be sold or transferred reach agre_nt in writing
<br />that the credlt of such per.on is satisfactory to the Lender. As a condition
<br />to waiving the Lender"s right to accelerate, the loan teras, including the
<br />intere.t rate payable on the Note. the Margin for future interest rate
<br />chanaaa (aa that tera is defined in the Note), and the maximum interest rate
<br />Cap provldeG in Paragraph 4(b) of the Note above the initial interest rate
<br />aball be subject to _dification by the LenGer. If the Lender has waived the
<br />option to accelerate provide4 in this Paragraph. and if Borrower"s successor
<br />in interest haa ,,,,,.cuted " writte" "ssuaption agre_ot accepted in ..riting
<br />by the l...nder, the l.end... shall releaae Borrower froll all obligations under
<br />th1s Security Instrnaent and the Note.
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