|
<br />84 - 006116
<br />
<br />0908782-5
<br />
<br />FIXED RATE CONVERSION RIDER
<br />
<br />THIS RIDER is made tll1.S 15th day of November ,1984 8.ne, is
<br />incorporated into and shall be deemed to amend and supplellleut Bol'rower~ s No,te iilid
<br />the Deed, of Trust or Mortgage along, with any AdjustahleRateRiderthereto.(tb,e
<br />"Security Instrument") of the same date given by tbe undersigned (the "Borrowei:..) "
<br />to secure Borrower's Note to TOWER FINANCIAL,D.C. '
<br />(the "Lender") of the same date (the "Note") and covering thepropert:Y;,de,$er':Lblad
<br />in the Security Instrument and located at:
<br />
<br />
<br />309 E. 6th
<br />
<br />
<br />Wood River. Nebraska 68'883
<br />, (Property Address)
<br />
<br />In connection with the Note and Security Instrum.ent eXi:!:;IJted<bY'c1.t,l.l~lJ
<br />undersigned BorrQwer and of even dace herewith, Borrower and Lender.her,e,:~J~g11e'E!:"
<br />to thl;> following additional provisions: ',;,;;i'::
<br />
<br />,.,: -: -:::-,:;,~
<br />
<br />A. CONVERSION TO HXED RATE AND PAYMENTS
<br />(1) Right to Ccnverta
<br />I have the option, prior to any Payment Change Date, ofconvert~:,<t~~
<br />to a fiited interest rate and fixed monthly payment plail as provid~';{i;~':i;
<br />section. Once I have converted my loan, the :;:C,rest rate and, the IcEig!'.l.1.ar'mo
<br />payment will remain unchanged for the t"est (> c, ~n" t'erlll of the loan.
<br />
<br />"?-;,,.
<br />
<br />_,-":i._
<br />
<br />
<br />,';.{.:
<br />
<br />.,~". ;~-~<:;,-:;;:
<br />
<br />i;. -:~:,,\(-~;ci;~~?t1~
<br />",','-'~ '
<br />
<br />(2) Rate and Pay~nt aft~r Lonvers~uu.
<br />If I elect to- convert my loan!, th-€n the int.eresl: rate
<br />will not exceed the "Fixed Rate Index" plus 0.7 SO .percent:.TheFi,Xed'~'j[.;'l'til'l.~"f
<br />is the net yield requirement of Federal National Mortgag.e Associa.tion'{'F:N.MAf'for<;,
<br />6D-day mandatory delivery of neloT fixed rate loans as such Fixe1;lRa~I..a~iiS"
<br />available when the rllte <JuOtat1on referred to in paragraph (3)(b) below1$llladfh,
<br />The new fixed rate will be effective on the next Payment Change Date. The.:ne~"
<br />fixed payment amount will be the amount which is sufficient to repay the,~paj,d.:
<br />principal balance of my loan in full in substantially equal pa}"llleIU:shy->the<'
<br />maturit:y date. I will pay this new fixed amount beginning on the first'lI1onthly-
<br />payment date after the Payment Change Date on which I converted.
<br />
<br />for ther_ini~~;e~:",;':
<br />
<br />
<br />(3) Exercise of Fixed Rate Option.
<br />(a) Request for Quotation.
<br />If I am interested' in converting my loan, I must. notify the .note hplder,
<br />in writing, that. I wish to have a fixed rate and payment: quoted to lI1e. ...J~t
<br />send this request: for quotation after receiving I!. Payment Change Nottce- urid.~r
<br />section 7 and at least 30 days before the Payment Change Date.
<br />
<br />(b) Quotation.
<br />When it receives my request for quotation. the note holder will send me
<br />a notice quoting the fixed rate and payment being offered and the conversion' fee
<br />which I will have to pay if I decide to convert. The conversion fee will not
<br />exceed 2.GOO percent of the unpaid principal balance of the loan on the Payment
<br />Change Date. The note holder will send this quotation at least 20 but no 1I10re
<br />than 30 days before the Pa}~nt Change Date.
<br />
<br />(c) Accepting Quotation and Converting.
<br />If I wish to convert my loan at tile fixed rate and payment quoted to ~@,
<br />I must notify the note holder of my acceptance ic ~.iting. Such notice must be
<br />recelved by the note holder a t least 15 days before the Pa}"1llent Change Date and
<br />must be accompanied by the conversion fee.
<br />
<br />(d) Reduc::ion of 'Time Period.s.
<br />If the Payment Change Notice is not sent by the note holder at least 35
<br />days before the Payment Change Date, then each time period stated above shall be
<br />reduc;;;rl by five days.
<br />
<br />(4) Tenaination of Conversion Option.
<br />If the Fixed Rate Iooex ever cease.: to be published or made available by
<br />FRMA, or if FNMA ever ceases quoting and purchasing mortgage loans on the basis
<br />nowreflec.ted by the Fixed Rate Index. then this conversion option shall terlllinate
<br />and thi. Rider shall cease to have any effect. However, if by that time, I have
<br />already accepted a quotation and converted my loan, such tenn1nat:ion ",ill not
<br />affect \lie. l'!y filted rate and payment will, in that event. remain in full force
<br />and effect.
<br />
<br />
<br />L
<br />
<br />(5) L.~l Ltmit~ticn on Rote_
<br />U the fixed rate to be quoted on any Payment Change Date exceeds the ma:it!.ll1ulII
<br />chArges or rate allowed by applicable law, then conversion will not be allowed for
<br />tllat l'a1S~t en..... Dau. i'he note holder Illa)" offer II lower rate or charges than
<br />
<br />r~tC-4) :.: {qc)
<br />t'L-'H~ -"'~
<br />
<br />~\'l,"1,J J f"; '"
<br />
|