|
<br />r
<br />
<br />b
<br />
<br />(c)
<br />
<br />84.,"";' 002436
<br />
<br />Accepting Quotation and Convertin~. If Borrower wishes to convert
<br />this loan at the fixed rate and payment quoted, Borrower must notify
<br />the Lender of Borrower's acceptance in writing. Such notice must be
<br />received by the Lender at least 15 days before the Change Date and
<br />must be accompanied by the conversion f.ee.
<br />
<br />Reduction of Time periodJl. If the Notice of Periodic Adjustment is
<br />not sent by th$ Lender at least 35 days before the Change Date, then
<br />each time period stated above shall be reduced by five days.
<br />
<br />{'J f-: .~;~
<br />
<br />(d)
<br />
<br />(Hi) The fixed rate of interest quoted by Lender and payable by Borrower w1:lclbe
<br />equal to the "Fixed Rate Index" plus 0.750 t. The Fixed Rate.lndex, is
<br />the net yield requirement of Federal National Mortgage Assoda,tion (FNIiIA)
<br />for 60-day mandatory deli very of new fixed rate loans as such Fixed'''Rate
<br />Index is available when the rate quotation is made. The new fixed interes't
<br />rate will become effective on the applicable Change Date.
<br />
<br />Borrower's IDOnthly payments at the new fixed interest rate will begin. as..of
<br />the first monthly payment after the applicable Change'Date. Tlfe'mo'nthIy
<br />payment will be the amount that is necessary to repay in full the principal
<br />Borrower will owe (assuming timely payment of all amounts due prior to that
<br />date) on that Change Date in substantially equal payments by tb~'Fi~l.'
<br />Payment Date at the fixed interest rate.
<br />
<br />(vii) Upon Borrower's timely exercise of the c.om1ersionoption.
<br />Note shall cease to be effective.
<br />
<br />
<br />(i v) If the Fixed Rate Index ever c.easeS to be published, or made ' avai:L8:ble: by
<br />FNHA. or if FNHA ever ceases quoting and purchasing mor.tgii,gl!- loans."on..:tche.
<br />hasis now reflected by the Fixed Rate Index, then ,thiscOnveJ:;siol'l<w~j;1?Jl...
<br />shall terminate. However, if by that time, Borrower has alreadrcaGcl!-Pt~:',.
<br />a quotation and converted this loan, such termination wilt no~ af(ect:,
<br />Borrower. Borrower's fixed rate and payment will, in tbat event,re1lllin:iin;;.
<br />full force and effect. .
<br />
<br />(v) If the fixed rate to be quoted on any Cha:1ge Date exceeds thelllllid.ua'.
<br />charges or rate allowed by applicable law, then cOllversion wi.ll not be
<br />allowed for that Change Date. The Lender may offer a lower rate or ch.rg~.'
<br />than required or permitted by Section 1 of the Note in order to c01lpl"wtt.b'"
<br />such legal limitations. but is not required co do so.
<br />
<br />(vi) If. after conversion, Borrower makes any prepayment under
<br />Note, Borrower 101111 be governed by Section 7 of tneNot,e exce;pt'
<br />SIIOunt of Borrower's lllOnthly payments will nOI: be chan&l1ld.
<br />
<br />D.
<br />
<br />TRANSFER OF 1'lIE PROPERTY
<br />
<br />Paragraph 17 of the Security Instt:ument is _nded to read..:ii,sfollows:
<br />
<br />If all or any part of the Property or soy. lnt,er,esl: th4ill:e.,f,nis,,>soJ..4,\,.})'I,",
<br />transferred by Borrower without the Lender's priol," ...ril:l;1l;neo.llnnt"i~,1;1/.4:$ngc
<br />a Contract for Deed sale, but excluding (a) the. cl,"eation o,f'a .l:i,il'll' 01,"
<br />encUlllbrallce subordinate to the S<lcul,"ity Instrulllent, (b) thl1lCr.!I,t~onr:of..':
<br />purcha.e 1IlQlley security interest fQr hOUsehQldapp1.iances,(c}at~.l1f!f4iUI;,J,y:
<br />devise. descent or by operation of law: uponthedeaeh.,of a,jobt t,eI1Slll;, 01,":
<br />(d) the grant. of any leasehold interest of threeyeal,"sorlesilnot>cQnt.a,f,lIi1l8.
<br />an option to purchase, the Lender may. at the Lender's oPt.:Lotij decl;a'reall
<br />the suas evidenced by the Note and secured by this Security Inatru-'llt;."to be-
<br />i~diaeely due and payable. If the Lender exercises its opt;;f;on to.
<br />ac.celer&te u~4er this paragi'aph_~ th6 L~fidtlr so.11 mai.i BQ~.rowe.~ --nqtice of.
<br />acceleration in accordance with this Security Instru~nt. Such notice shall
<br />provide a period of not less than 30 days from the date the nOtice is m.iled
<br />within which Borrower _y pay the SUIllS declared dl,l"" If Borrower faila to
<br />pay such SUlllS prior to the expiration of such period, the Lenclel; 1lljlY, wi.thoue.
<br />further notice or de!llSnd on Borr"wer, invoke allY re~dies perlll.itted by the
<br />Note and this Security Instrument. The Lender shall have waived such option
<br />tv ac;-ce..l~l:~t:e- if. p-rivt" -to th~ s~_le, Qr tr_ap~fe-r:, t.h~_ Lender, a~4 t:he,,-pe~:ao-p- ,to
<br />wllo_ the. Property i". to be. s()ld or transfe.rred reach aglle~l1t in writing
<br />thllt. tbe crlldit of such person is sachfactory to the Lender. As.a. condi.Hon
<br />to waiving the Lender's right to accelerate, the loan ter..., including the
<br />intll,re,st rate payable on the Note, the Margin for futuu interest rate
<br />ch~ (aell that t.u'... bdet'ined in the Note), a.nd the Ux1IllUl& intere$t rate
<br />Cl!IJI p.r()vi~d in P~I:ll&raph 4(b) of the Note al>>vQ the ,ini,tial interest rate
<br />.~ll b...ll"bj~tt.()lIlC>dUic.ation by the Lender.. If the Lender has waivel! the
<br />OPtion, to a~~eleratQ PlIpvided in this Paragraph, and if BorrOWer's successor
<br />in inte:rl!-llt "a. e.lI.e~u.tlld a written assUQIptlon agr"ellellt accepted in writing
<br />by the Lender, the. Lender sn.ll releaae Borrower fr00 all obligations under
<br />thh Security I nil t rumel1t. and the Note.
<br />
|