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<br />I
<br />84.........
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<br />003327
<br />
<br />CAPPED ONE-YEAR AIM RIDER TO THE
<br />MORTGAGE/DEED OF TRUST/TRUST INDENTURE
<br />
<br />r
<br />
<br />NOTICE, THIS SECURITY INSTRUMENT SECURES A NOTE WHICH CCNTAINS A PROVISION
<br />ALLOWING' FOR CHANGES IN THE INTEREST RATE. INCREASES IN THE INTEREST RATE MAY
<br />RESULT IN HIGHER PAYMENTS, DECREASES IN THE INTEREST RATE MAY RESULT IN LOWER
<br />PAYMENTS,
<br />
<br />This Rider is made this ",T.( day of .June ; ""L . and is
<br />incorporated into and shall be deemed to amend and supplement the Mortgage/Deed of
<br />Trust/Trust Indenture (the "Security Instrument") of the same dJite given by the
<br />undersigned (the "Borro"'er") to secure Borro",er's Note to To",er Financial, Inc.
<br />(the "Lender") of the same date (the "Note") and covering the property described
<br />in the Security Instrument and located at:
<br />
<br />.'~~: 'T \ '~::. r:',", j i. ;~l..i_':"l__.....!i:~' l~: l~~.J.'-:'i~~.L;' (: l~_
<br />(Property Address)
<br />
<br />MODIFICATIONS. In addl tIon to the covenants and agreements made in the Security
<br />Instrument. Borro",er and Lender further covenant and agree as follows:
<br />
<br />A. INTEREST RATE AND MONTHLY PAYMENT CHANGES
<br />
<br />The Note has an initIal interest rate of .,:t. The interest rate may be
<br />increased or decreased e'!ery 12th raonth on each "Change Date" J as. desctlbed,' in. the
<br />Note. Changes in the interest tate are governed by the level of the lndex as
<br />defined In the Note. The Index is the ",eekly average yield on United States
<br />Treasury securIties adjusted to ~ constant maturity of one year, as published by
<br />the Federal Reserve Board. Th '3ximum change in the interest rate at anyone
<br />time is 2 percentage points. The maximum inr;erest rate is 14. 9~r; %.
<br />
<br />The ..onthly payment alllOunt may be adjusted every 12th month to take effect on
<br />the UlOnth follOwing ~&ch Ch..;.;~ge Date as de:sct"-lbed 1u the Note. The-_ new_ :UlOl1t-hly-
<br />payment a..ount is based on the interest rate in effect on the CbangeDate and . ",i 11
<br />remain in effect until the month following the next succeeding Change Date.
<br />
<br />B ' LOAN CliARGE S
<br />
<br />If the loan secured by the Security Instrument is .ubjectto a law which sets
<br />....ximu.. interest rates and loan charges and that law is finally int'erpreted.,so
<br />that the inte,est 0, other loan charges collected or to be collected in connect:l.on
<br />with the loan would exceed pet'lll1tted limits, then: (i) the interest rate or any
<br />..uch loan charge shall be reduc..d to the p..rmitted limit; and (li,) any, sums
<br />alre.ady collected from Borrower which el<c....ded permitted li1ll1ta ",ill be refunded
<br />to Borro",..r. Lender ""'y choose to ....ke thb refund by redUCing the princtpa.l.of
<br />th.. Note or by making a direct payment to Borrower.
<br />
<br />C, CONVERSION FEATURE. Th" Note contains the following provisions permitting
<br />conversion to a fixed inte,eat rate and paY$O!nts'
<br />
<br />(i) Provided Borro"'er is cunent with respect to sll paY$O!nU due onthecHot..
<br />for twelve months prior to the fint, second, third, or fourthChangel)ate,
<br />Borrower _y, at Borrower's option, lllGdify the repaY$O!nt te1'lll& of the
<br />indebtedness secured here!>:; on the first, .econd, third, or fourth ChllUge
<br />Date (defined in paragraph 4 of the Note), At that time, Ror;ower may
<br />convert the adjustable rate loan evidenced by the Note into a fixed
<br />int..n.st rate loan to be fully repaid in ..qual monthly payments of
<br />principal and int..rest ov..r the relllS.lning term of this loan (1.... ,29, 28,
<br />27. or 26 years, depending on the conversion date sel..cted),
<br />
<br />(il) Exercise of Fixed Rate Option,
<br />
<br />(a) Request for .fluotation, If Borrower is interested in converting this
<br />losn., Borro"'eI' must notify the Lender, in "'riting, tbatBorrower
<br />wishes to have a fixed tata and payment quoted. Rorro"'er must send
<br />this request for quotation after ,eceiving a Notice of Periodic
<br />Adjustment under Section 4 of the Note a~d at least 30 days before the
<br />Change Date,
<br />
<br />(b) .Quotation. When the Lender receives Borrower"s request for quotation,
<br />the Lender "'ill "end Bonower a notIce quoting the f.txed rate and
<br />payment being off..red and the conversion fee ",hicn Bortower will nave
<br />to pay if Borrower decides to convert. The conversion /'eelolill not
<br />tr.xc-eed- t -", .% of tht! unpaJd princ.ipal balallce. of this loan on the
<br />Change oii';;:-- The Lender ,.,Ul nnd this quotatIon at least 20 but 110
<br />more: than JO days before th~ Change Date.
<br />
<br />TMC-~(L;9 \. q<: )
<br />Rt~-.,; 2/8-f~
<br />
<br />( P ~lg~ I)
<br />(CAJ! S)
<br />
<br />1/.;-/,
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