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<br />S4~, 003327
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<br />Accepting Quotation ana Converting. 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 10"
<br />received by the Lender at least 15 days before the Change Date and
<br />must be accompanied by the conversion fee.
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<br />(d) Reduction o~ Time Periods. If the Notice of Periodic Adjustment is
<br />not sent by the Lender at least 3S days before the Change Date, then
<br />each time period stated above shall be reduced 07 five days.
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<br />(c)
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<br />(ili)
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<br />The fixed rate of interest quoted by Lender and payable by Borrower will be
<br />equal to the "Fixed Rate Index" plus ",750 %. The Fixed Rate Index is
<br />the net yield requirement of Federal National Mortgage Association (FNMA)
<br />for 6Q-day mandatory delivery of new fixed rate lc>ans 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.
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<br />Borrower's monthly payments at the new fixed interest rate will begin as of
<br />the first mc>nthly payment atter 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 pric>r to that
<br />date) on that Change Date in substantially equal payments by the Final
<br />Payment Date at the fixed interest rate.
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<br />(iv) If the Fixed Rate Index ever ceases to be published or made available. by
<br />FNMA, or if FNMA ever ceases quoting and purchasing mortgage loans: on the
<br />basis noW reflected by the Fixed Rate Index, then this conversion option
<br />shall termin4te~ However, if by that -time, Borrower has. already accepted
<br />a quot..Uon and converted this loan, such termination will not affect
<br />Borrower, Borrower's fixed rate and payment will, in that event, remain. in:
<br />full force and effect.
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<br />(v) If the fixed rate to Vt quoted on any Change Date exceeds
<br />charges or rate allowed by applicable law, then conversion will not be
<br />allowed for that Ch"n~e Date. The l.ender may offer a lower rate or..charges
<br />than required or permitted by Section 1 of the Note in order to comply With,
<br />such legal limitations, but 1s not required to do so'
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<br />(vi) If, aiter conversion, Borrower makes any prepayment under Section 7 of
<br />11ote, Borrower will be governed by Section 7 of the Note except thl!lt
<br />amount of llorrolo'er's monthly payments will not be changed.
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<br />(vii) Upon llorrower's tilJ\ely exercise of the conversion option, Section 4 of. the
<br />Note shall ceaSe to be effective.
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<br />D. TRANSfER OF THE PROPERTY
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<br />Paragraph 17 of the SecurIty Instrument ls amended to read as fOllows,
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<br />If all or any part of the Property or any interest therein i8soId or
<br />transferred by llotrower without the Lender's prior written conSent, .in<:,.ludj,ng
<br />a Contract for Ueed sale, but excluding (a) the. cr.eation of. a l,ien, or.
<br />encumbrance subordinate to the Security InstrulJ\ent. (b) the creat!<>l\ of a
<br />purchase Mney security interest for household appliances, (c) atra'(Uihr: by
<br />devise, descent or by operation of 1a.w upon the death ofa . joint tena'l'ltor
<br />(d) the grant of any leasehold interest of three years orleeanot contalnirlg
<br />an option to purchase, the Lender may, at the Lender- s option, dl;1clareall
<br />the sums evidenced by the Note and secured by this Security InstrulJlEu!,t to be,
<br />iwae.diately due and payable. If the Lender exercises its option to
<br />accelerat.e under this paragraph, the Lender shall mall Borrower notice of
<br />aCce leration in accordance with this Secur! ty Instrument. Such. notice shal~
<br />provide a period of not less thsn 30 days from the date the notice i~ mailed
<br />within which Borrower ....y pay the BUllIS 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 permi1:ted by the
<br />Note and this Security Instrument. The Lender shall have .waivedsuch option
<br />to acc.elerateif, prior to the sale or transfer ,the Lender and the person to
<br />whom the Property is to be sold or tI^ansferred 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 tet'llla, inc~uding the
<br />interest rate payable on the Note, the Margla for future interest rate
<br />changes (as that term is defined in toe Note), and the maximum interest rate
<br />Cap provIded in Paragraph 4( b) of the Note above the lniria1 interest rate
<br />shall be aubje.ct to IllOd.ificat1on by the Lender. If the l.ender has waived the
<br />optl~n to accelerate provided in this Paragraph, and if Borrower'a successor
<br />inint"rellr has e"E!cuted a "1ritten assu"'J'tion agreelllent accepted in writing
<br />by tne L-ende,r, th~_ L_e(ld~r !!hall release Borrower from: ;) 11 obligati OTi5 under
<br />this Security rnsuument and the Note.
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