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<br />(B) Airount of Monthly Paynents '
<br />My rronthly paynent will be in the annunt of U.S. $ 2 (, 2 ,I; 5 . The Note Holder will change'
<br />1I!f rronthly paynent as ra:juired by Section 4(C) bel"" on the 6th Interest Change Date and on that day
<br />every 36th rronth thereafter. Each of thesa dates is called a "Paynent Change Date." The Note Holder
<br />will also ~ 1I!f nonthly paynent on any Interest Change Date if SectiOll 5(B) beJ.ON ra:juires. rre to
<br />pay the Full Monthly Anoont. '
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<br />(C) Cala1latioo of Monthly Paynent Changes
<br />Before each Paynent Change Date, the Note Holder will calo.1late arew nonthly paynent' sufficient
<br />to repay the unpaid principal balance on 1I!f loan in full 00 the rraturity date, at the Paynent Rate in
<br />sub3tantially a:jual paynents. ,The ''Paynent Rate" is the swn of the Index figures 00 the five
<br />Interest Change Dates preceeding a Paynent Change Date plus the Current Index, divided ~the IJ.lIIlbet
<br />6 plus , ',."', percent~ points ( c "1" %), roonded to the rearest ooe-eighth ,of ooe
<br />percenta~ Point (V.125%). F.:<C(Tt th! ;1.:.~}l:-.npt wte ';-1111 I"fC)t f'}~CeE.~.1 15.440:;.
<br />(D) Bor-ra...er- s Right to Liml.t l-bnthly Paynent
<br />Regardless of the paynent annmt COIllJUted in Section 4(C), 1I!f rew 1Wnthly paynentamunt(nthe
<br />first Paynent Change Date and on the Paynent Change Date each sixth yearthereafterwillnot:,:!hcteaSe
<br />IlDre than, c'% of the last IlDnthly paynent annunt due before, such Payrrent Change Date. Ibis
<br />limitatioo does ~ot apply to Paynent Change Dates ocrurring on each sixth anni ""'J:SaIY of this loon or
<br />to any requirenent, at any tine, to pay the Full Paynent Annmt under jYll'8gl:aph 5(B).
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<br />(E) Effective Date of Paynent Changes
<br />Until the mxt Payuer.t Change Date, I will pay the annmt of 1I!f rew IlDnthly payneI1t each rronth
<br />heglnning on the first rronthly paynent date after the PayneIlt Cl=....nge Date, or Interest Change Date if
<br />Section 5(B) helCM requires Ire to pay the Full Moothly Annmt.
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<br />5. UNPAID PRINCIPAL BAL&~CE
<br />(A) ~ in My Unpaid Principal Balance
<br />My IlDnthly pajIllEnt cculd 1:e less than the annunt of the interest portion of the' first, Full
<br />Monthly Anoont I "'"" or less than the interest portion of 1I!f first full Monthly Am?unt after an
<br />Interest Change Date. If so, the Note Holder will subtract the auIlt1Ilt of 1I!f IlDnthly paym:ntfranthe
<br />anoont of interest I "'"" and will add the difference to uv '.lIlpC., 1 principal I:a1ance each IlDtIl:h until
<br />the rex!: Interest Change Date. The Note Rolder will wo j interest on the', aIlDtlnt of this
<br />difference to uv unpaid principal ba1c..lce each IlDnth. ,,_ n t;1e next Interest Change Date when the
<br />Note Holder determires UV IEW interest rate on UV then unpaid principal 1:a1ance, the interest rate 00
<br />the interest added to principal will l:e the rate determined in Section 2 above.
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<br />My rronthly paynent cculd l:e IlDre than the annunt of the Full Moothly Anount. If so, the Note
<br />Holder will &1btract the difference fran the unpaid principal I:a1ance of 1I!f loan each 1Wnth until the
<br />next Interest Change Date as if I had llBde a partial prepaynent under Section 8 below.
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<br />(B) Liml.t 00 Unpaid Principal Balance; Required Full Monthly Anount
<br />My unpaid principal l:elance can oo""r exceed a naxilllJll1 annunt a:jUa1 to ooe hmdred tWenty-five
<br />percent (125%) of the principal anv.mt I originally boITONed. If UV paying the amJUlll: of 1I!f 1lIJnthly
<br />paynent after ~ Interest Change Date IoUlld cause the ~d principal l:al.ance to eXceed that
<br />1IBXinum amJUlll: at any tine, I llllSt pay instead the Full Monthly A1Iwm: as 1I!f rronthly paynent, until
<br />the mxt Paynent Change Date.
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<br />6. CONVERSION TO FIXED RATE AND PAYMENTS
<br />(A) Right to Convert.
<br />I ha"" tre q>tion, prior to any Paynent Change Date, of a:nverting this loan to a fi1<ed interest
<br />rate ao:l fb<ed llDnth1:j paytrent plan as provided in this section. Once I ha\O! converted 1l!f loan, the
<br />interest rate and the regJlar rronthly paynent will rerrain unchanged for the rest of the term of the
<br />loan.
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<br />(B) Rate and Paynent after Conversion.
<br />If I elect to convert UV loan, then the ,interest tate for the reue.ining term..'ill not e>o:eed
<br />the "Fired Rate Index" plus ~rcent. The Fired Rate Index is the net yield ra:juireuent of
<br />Federal National, Mortgage Assocraa:on (FNMI\) for 6O-day marrlatory deli very of oow fb<ed rate loans as
<br />such Fired Rate Index is available when the rate quotatioo referred to in paragraph 6(C)(2) bel"" is
<br />l18de. The r&I fi>ed rate will be effecti"" 00 the rex!: Paynent Change Date. The rew fi1<ed paynent
<br />aunmt will 1:e the amJUlll: which is sufficient to repay the unpaid principal balance of 1l!f loan in
<br />full in &.Ib3tantially equal paymmts by the rraturity date. I will pay this r&I fUad annunt
<br />1:eginning 00 too first IlDnthly paytrent date after the Paytrent Change Date 00 which I con""rted.
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<br />(C) ~rcise of Fi>ed Rate Option.
<br />(l) Reqoost for Q,1atation.
<br />If I am interested in converting nv loan, I DUSt notify the rote holder, in writing, that I
<br />wish to have a fi>ed rate ao:l paynent quoted to Ire. I uust senl this request for quotatioo after
<br />receiving a Payneril: Change Notice under section 7 am at least 30 days before the Paynent Change
<br />Date.
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<br />(2) Q,1atatioo.
<br />When it receives UV reqcest for quotation, the note holder will seoo ne a rotice quoting
<br />the fb<ed rate and paynent being offered am tre con""rsion fee which I will ha"" to p~ if I decide
<br />to coo...rt. The COll""rsion fee will not e>o:eed percent of the unpaid principal 1:a1ance of
<br />the loan 00 the Paynent Change Date. The note ro"I<lerWill selxl this quotation at least 20 bJt no
<br />IlDre than 30 days before the Paynent Change Date.
<br />(3) Accepting Quotatioo and Con\O!rting.
<br />If I ~....sh to convert nw loan at the fL~ rate am paynent quoted to ne, I rrust notify the
<br />note ffilder of nv acceptance in writing. Such notio;> uust be recei~ ~ tre note ffilder at least 15
<br />days before the Payuent Change Date ao:l uust l:e acCC<1\'8Ilied ~ the COOversiOll fee.
<br />(4) Re<:Lttioo of Tine Periods,
<br />If the Payneut Change Notice is mt sent by the rote !-older at least 35 days before the
<br />Paynent Change Date, then each tine period stated abow shall be reduced by fhe days.
<br />(D) Te.l;1Ilination or Con\O!rsion Option.
<br />If the Fi>ed Rate Index e""r ceases to be p..tblished or nBde amilable by !-NolA, or if Rt1A ,'wr
<br />ceas... quoting am purchasil~ nprt~ l,:affi on too basis llOo1 mf1ect<'(\ ~ the Fi&d Rate r ndex, tt.,n
<br />this (tAlWrsion q>tion shall tenuinate ani this section 6 shall ce.ase to t\.i\~ ,'\11)' i:'tfect. Ho,..ewr j
<br />if l':!I that tine) [ hii\e already accepted a qWJtat..ioo arxi COU'l.ertoo ny It-XU1, such tenu'tnation w'lH not
<br />,:'Iffect rre. My fil<lld rate ",xl PllyttlOnt will, in that "..ant, rennin 1n full tow, ~n;:i e.tf,,"t.
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