|
<br />I
<br />
<br />84 - 003195
<br />
<br />r
<br />
<br />(c) Accepting Quotation and Converting. If Borrower wishes to convett
<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 fee.
<br />
<br />(d) Reduction of Time Periods. If the Notice of Periodic Adjustment is
<br />not sent by the Lender at least 35 days before the Change Date, then
<br />each time period stated above shall be reduced by five days.
<br />
<br />(iii) The fixed rate of interest quoted by Lender and payable by Borrower will be
<br />equal to the "Fixed Rate Index" plus n./50 %. The Fixed Rate lildexis
<br />the net yield requirement of Federal -NBtTona:1Mortgage Asaociation (FNMA)
<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 interest
<br />rate will become effective on the applicable Change Date.
<br />
<br />Borrower's monthly payments at the new fixe!'! interest rate w1'll begin as of
<br />the first monthly payment after the, applicable Change Date. The monthly
<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 tlrat
<br />date) on that Change Date in substantially equal payments by the Fina1
<br />Payment Date at the fixed interest rate.
<br />
<br />(i v) If the Fixed Rate Index ever ceases to be published or made svailable.,by
<br />FNMA, or if FNMA ever ceases quoting and purchasing mortgage 10ans>oIl'~he
<br />basis now reflected by the Fixed Rate index, then this c()nversion opt;(1311
<br />shall terminate, However, if by that time, Borrower has alreadY',accepted
<br />a quotation and converted this loan, such termiootion will, not" affec.t'
<br />Borrower. Borrower's fixed rate and payment will, in that event,remain'in
<br />full force and effect~
<br />
<br />
<br />(v) If the fixed rate to be quoted on any Change Date exceeds the maximum
<br />charges or rate ,Uowed by applicable law, then conversion will not:be
<br />allowed for that Change Date. The Lender may offer alowerrateorcharge&c'
<br />than required or permitted by SectIon 1 of the Note in order to compl.y,with
<br />such legal limic&tions, but is not required to do so.
<br />
<br />(vi) If, after conversion. Borrower makes any prepa.yment under Section 70'f
<br />Note, Borrower will be governed by Secuon 7 of the Note except that
<br />amount of Borrower'" s m.onthly paym@ut.s .ill not ,be -changed.
<br />
<br />(vii) upon Borrower-s timely ~xercise of the con.vers.ion optiooJ Section 4:
<br />Note shall cease to be effective,
<br />
<br />L
<br />
<br />D. T~~SFER Of TfiE PROPERTY
<br />
<br />Paragraph 17 of the Security Instrument is amended to read as follows:
<br />
<br />I f all or any part of the Prop<trty or any interest therein is sold or
<br />transferred by Borrower without the Lender-s priorwritte.n consent, including
<br />a Contra.ct for Deed sale, but excluding (a) the creation, of a lien Or
<br />encumbrance subordinate to the Security Instrument, (b) thecreati<in of,a
<br />purchaae money security interest for householdappl1ances, (c) a trans.ferby
<br />devise, descent or by operation of law upon the death of a joint tenant or
<br />(d) the gra~t of any leasehold interest of thr~t1- years or less not cont~:inin.g
<br />an option to purchase, the Lender may, at the Lender's option, declare all
<br />the sums evidenced by the Note and secured by this Security Irlstrument to be
<br />immediately 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 />""ithln which Borrower may pay the sums declared due. If Borrower fails to
<br />pay such sums prior to t.he expi ration of such period 1 the Lender ~y',. ~ithout
<br />further notice or demand on Bonower. invoke any remedies permitted by", the
<br />Note and this Security Inst.rument. The Lender shall have waived such option
<br />to accelerate If. prior to the sal.e or t.ransfer. the Lender and the person to
<br />.....he.. (he Prop€'rty is to be sold or transferred reach agreement 1n writ-ing
<br />that the credit of such person is satisfactory to the Lender. As a condition
<br />tv -waiving the LendE'.r~s right t.o acc~le.rate, the loan 'terms, including the
<br />inte-ttt--8t rate payable on the Note:, the Margin for .future interest race
<br />changes (as that t&rm i8 d"Uned In the Note), and the maximum Interest rate
<br />Cap pr"vld..,j in Paragraph :'(ll) of the Note above the initial interest rate
<br />$ha.ll he subject to IDOdifi-cation by the L~nder. If the tender haa wai.v~d the
<br />opt.t,on to il.;;;,c;e1-et.at~ prov.Ldu,-d tn this Pacagraph. and tf B{)r'[~}we.r"'$ s-ucceSSQI'
<br />In lnt\u~'.,\H, has ".fX(H:,\J.t~d 4. w-rltt-lHl _ass'iJ-mption agcoee-ment. ZlC(~epte-d .ifl _rtclng
<br />by the L/t'lJd~r. the L~':;ldv-r ~h4ill re,leAse Dotr-t)\Jt:c froUt all t)blt~VJ.tinn:i until-:n
<br />thi'3- :;e~utlty JftGtt'.lillent .:find th~ !iot.#,
<br />
|