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<br />I
<br />
<br />(c)
<br />5:00
<br />
<br />Accepting Quotation at.d Convel"ting. If Borrowel" wishes to eonvert
<br />this .loan at the fixed l"ateand' payment quoted, Borl"ower must no~ifY .
<br />the Lender of BOl"rower's acceptance in wl"iting. Such notice must be
<br />received by the Lender at least 15 days before the Change Date and
<br />IllUst be acco.panted by the conversion fee.
<br />
<br />Reduction of Time Pedod.. If the Notice of P.edod!e Adjust_"lt,..:!.s<
<br />not sent by the Lender at least 35 days befol"e the Change Da:t~i.tlrellY;'
<br />each time period stated above shall be reduced by fi:ve days.
<br />
<br />The fixed rate of interest quoted by Lendel" 8:nd,p.1ab~ebYBol"~~e'r
<br />equal to the "Fixed Rate Index" plus 0.750 %'. TllaF1~d::~~'"
<br />the net yield requinment of FederalNationa1MOTtgage'AiJ.l)~.t"'~.
<br />for 6Q-day mandatory delivery of neW fixed rate loans assuch.~~ltia:!'C>
<br />Index is available when the rate quotation' is made. Tbe'new.ftlted\lthtti:hi's,ti'\'
<br />rate will become effective on the applicable Change' Date. ",CC,
<br />
<br />Borrowel"' s monthly payments at the new fixedinteres"l"at~ wHl<.b~lJi!,fja.;ip,fH
<br />the first monthly payment after the applicable Change Date.TM"'I~CiI~~Ii1y:,'
<br />payment will be the amount that is nece&sal"Y to l"epay in fu11thepl"'iJiei~..I;:
<br />Bonower will owe (assuming timely payment of all alllOunts duepl"i:~.r::~Cl:tll~F\;;:
<br />date) on that Change Date in substantially equal payments.b1,.,.the':'F,~~f:i::
<br />Payment Date at the fixed interest rate. '
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<br />(d)
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<br />(iv) If the Fixed Rate Index ever ceases to be publ:Lshed.or. madeavailllble:..by:'/
<br />FNMA, or if FNMA ever ceases quoting and pUl"chas:Lng. .mor.tgage.loSllll..:,oll>ithe,
<br />basis now reflected by the Fixed Rate Index, then thisconveJ:fdion"(lpi;~~k';
<br />shall terminate. Rowevel", if by that time, Bonowel" has alreadYiacCept",d,6",
<br />a quotation and converted this loan, such term1.nation w:LI1.not affe,<:t;:..,;'
<br />Borl"ower. Borrower's fixed rate and payment will, in thatevent',l"emain..:LJ1.""
<br />full force and effect.
<br />
<br />(v) If the fixed rate to be quoted on any Change Date exceeds the max!1II!Dl
<br />charges or rate allowed by applicable law, then conversion will not be.
<br />allowed for that Change Date. The Lender may offer a lower rata or charges
<br />than required or permitted by Section 1 of the Note in order to compit with
<br />such legal limitations, but is not required to do so.
<br />
<br />
<br />(vi) If. af ter convers ion. Borrower makes any prepayment under Section 7 of the
<br />Note, Borrower will be governed by Section 7 of the Note exeept that. the
<br />amount of Borrower's monthly payments will not be changed.
<br />
<br />(vii) Upon Borro>ler's timely exercise of the conversion opt:Lon, Section 4 of. the
<br />Note shall cease to be effective.
<br />
<br />D. TRANSFER OF THE PROPERTY
<br />
<br />L
<br />
<br />Paragraph i7 of the Security Instrument is amended to read as follows:
<br />
<br />If all or any part of the Property or any interest there:Ln is sold or
<br />transferred by Borrower without the Lender's prior written consent, including
<br />a Contract for Deed sale. but excluding <a) the creation of a lien or
<br />encu.brance subordinate to the Security Instrument, (b) the creation of a
<br />purchase money security interest for household appliance", (c) a transfel" by
<br />devise, descent or by op~ration of law upon the death of a joint tenant or
<br />(d) the grant of any leasehold interest of three years or less not containing
<br />an option to purchase, the Lender may, at the Lender's option, declal"e all
<br />the sums evidenced by the Note and secured by this Security Instrument to be
<br />immed:Lately due and payable. If the Lender exercises its option to
<br />accelerate under this paragraph, the Lender shall mail Borrower notice of
<br />acceleration in accordance with this Security Instrument. Such notice shall
<br />provide a period of not less than 30 days from the date the notice is mailed
<br />within which Borrower may pay the sums declared due. If Borrower fails to
<br />pay such sums prior to the expiration of such period, the Lender may, without
<br />further notice or demand on Borrower, invoke any remedies permitted by the
<br />Note and this Security Instrument. The Lender shall have waived such option
<br />to accelerate if, prior to the sale or transfer, the Lender and the person to
<br />whom the Property is to be sold or transferred reach agreement in writing
<br />that the credit of such person is satisfactory to the Lender. As a condition
<br />to waiving the Lender's right to accelerate, the loan terms, including the
<br />inteJ:est rate payable on the Note, the Margin for future interest rate
<br />changes (as that term is defined in the Note), and the maximum interest rate
<br />Cal> provide4 in Paugraph 4(b) of the Note above the initial interest rate
<br />shall be subject to modification by the Lender. If the Lender has waived the
<br />option to accelerate provided in this Paragraph, and if Borrower's SUCcessor
<br />in interest has executed a written as&umption agreement accepted in writing
<br />by the Lender, the Lender shall release 80rrower from all obligaUona under
<br />this Security Instrument and the Note.
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