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I r ~i ,...., ~ ~ 0 0 (iii) r '<::l" CO (c) Acc~Quotation and Converting. If Borrower wishes to convert this loan at the fixed rate and payment quoted, Borrower must notify the Lender of Borrower....s acceptance in writing. Such notice must: be received by the Lender at least 15 days before the Change Date and must be accompanied by the conversion fee. (d) Reduction of Time Periods. If the Notice of Periodic Adjustment is not sent by the Lender at least 35 days before the Change Date, then each time period stated above shall be reduced by five days. The fixed rate of interest quoted by Lenderand payable by Borrower will be equal to the "Fixed Rate Index" plus ':,77') %:' The Fixed Rate Index is the net yield requirement of Federal Nation'al Mortgage Association (FNMA) for 60-day mandatory deli very of new fixed rate loans as such Fixed Rate Index is available when the rate quotation is made. The new fixed interest rate will become effective on the applicable Change Date. Borrower's monthly payments at the new fixed interest rate will begin as of the first monthly payment after the applicable Change Date. The monthly payment ..ill be the amount that is necessary to repay in full the principal Borrower will owe (assuming timely payment of all amounts due prior to that date) on that Change Date in substantially equal payments by the Final Payment Date at the fixed interest rate. (iv) If the Fixed Rate Index ever ceases to be published or made available by FNMA, or if FNMA ever ceases quoting and purchasing mortgage loans on the basis now reflected by the Fixed Rate Index, then this conversion option shall terminate, However, if by that time, Borrower has already accepted a quotation and converted this loan, such termination will not affect Borrower. Borrower's fixed rare' and payment will, in that event, remain in full force and effect. (v) If the fixed rate to be quoted on any Change Date exceeds the maximum charges or rate a~i"wed by applicable law, then conversion will not be allowed for that Change Date. The Lender may offer a lower rate or charges than required or permitted by Section 1 of the Note in order to comply with such legal limitations, but is not required to do so. (vi) If, after conversion, Borrower makes any prepayment under Section 7 of the Note, Borrower wi 11 be governed by Section 7 of the Note except that the amount of Borrower's monthly payments will not be changed. (vii) Upon Borrower's timely exercise of the conversion option, Section 4 of the Note shall cease to be effective. D, TRANSFER OF THE PROPERTY Paragraph 17 of the Security Instrument is amended to read as follows: If all or any part of the Property or any interest therein is sold "".. transferred by Borrower without the Lender's prior written consent, including a Contract for Deed sale, but excluding (a) the creation of a lien or encumbrance subordinate to the Security Instrument, (b) the creation of a purchase money security interes t for household appliances, (c) a tram,fer by devise, descent Ot by operation of law upon the death ofa joint tenant or (d) the grant of any leasehold interest of thre,e years or less not containing an option to purchase., the Lender may, at the Lender"" s option, declare, all the sums evidenced by the Note and secured by this Security InStrument to be immediately due and payable. If the Lender exercises its option to accelerate under thls paragraph, the Lender shall mail Borrower notice of acceleratlon in accordance with this Security Instrument. Sueh notlee shall provide a period of not less than 30 days from the date the notice ls mailed within which Borrower may pay the sums declared due. If Borrower fails to pay such Sums prlor to the expiration of such period, the Lender may, without further notice or demand on Borrower, invoke any remedies permit ted by the Note and this Security Instrument. The Lender shall have waived such option to accelerate if, prior to the sale or transfer, the Lender and the person to whom the Property is to be sold or transferred reach agreement ln writing that: the cred,it of such person is satisfactory to the Lender. As a condition to waiving the Lender's right to accelerate, the loan terms, including the interest rate payable on the Note, the Margin for future interest rate changes (as that t.erm is defined in the Note), and the maximum interest rate Cap prov1ded in Paragraph 4(b) of the Note above the initial interest rate shall ~e subject to modification by t.he Lender. If the Lender has walved the option to accelerate provided in this Paragraph, and if Borrower's successor in interest has executed a written assumption agreement accept:ed in writing ~y the Lender, the Lender shall release Borrower from all obligatlons under this Securlty Instrument and the Note.