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(E) UNPAIB INTEREST ADD::D TO PRINCIPAL Because the Limited Payment Amount I choose could be less than the amount of the interest portion of the Full Payment Amount I would have paid after a Payment Change Data aadJor because the interest sate on this Note may increase before the payments change, my monthly payments may not alwaps be enough to pay the interest which is being charged on the principal balance. If so, the Note Holder will, on each Change Date, subtract the amount of my monthly payment from the amount of interest charged for the first month after that Change Date, and will add the difference to the outstanding principal balance of my loan each month until the neat Ghange Date. Thy Note Holder will also add interest on the amount of this difference to my outstanding principal balance each month. Until the next Change Date when the Note Holder determines mg new rate of interest on my then outstanding principal balance, the rate of interest on the interest added to principal will be the rate determined in Section 4 (C} above. (F) Limit as Outstanding Principal Balance - Special Payment Changes `The outstanding principal balance can never exceed a maximum amount dual to oa~e hundred tweatp-five percent (1250 of the principal amount I originally borrowed. If my choice to pay Limited Payment Amount after any Paymenc Change Date would cause the outstanding principal balance to exceed that maximum amount before the next Change Date, I must pay the Full Payment Amount unless the Nste Holder agrees is writing to a different monthly payment amount. If any inr~rest rate change under Section 4 (C} oa any other Change Date would cause the-- outstanding principal balance to exceed that maximum amount before the next Change Date, then the monthly payment amount will be changed. T'ha No-.e Holder will determine a new monthly payment amount sufficient to repay the outstanding principal balance in full on the maturity date at my new rate of interest. A notice under Section 4(i) will b.= sent before the effective date of the change. (G) Required Full Payment amount Beginning oa Jam~ary 3 1987 and on each Payment Change Date every 5th year thereafter, I will pay the Fu11 Payment Amount until the next Payment Change Datz. I will also pay the Full Payment Amount for the period between the last Payment Change Date and the maturity date. (H) Effective Date of Changes The new rate of interest will become effective on each Change Date. Cn Payment Change Dates, I will pay the new amount of my monthly payment each month beginning the first monthly payment date after the Change Date until the amount of my monthly payment is again changed or I have fully repaid the loan. (I) Notice of Changes The Note Holder will mail or deliver to me a notice of any chan;e~ iss tbP amount of my monthly payment be€ore the effective date of any change. The no~.'Lco will include information required by law to be given me and also the ti tie and telephone number of a person who will answer any question I may have regarding the notice. PREFERRED RATE RIDER Ia addition, a preferred rate rider was executed in connection with such Note wherein Borrower amd Leader agree to the following additional provisions: "Beginning on the date of the Note, until the first Change Date, the Note Holder agrees to decrease the Initial Rate of Interest stated in Section 2 to °,~ (Initial Preferred Rate}. The initial monthly payments provided in Section 3 (B) of the Note shall be reduced to S 409.29 The Note Holder shall decrease the new interest rate computed under Section. 4 (C} on subsequent Change Dales by an amount equal to the smallest amount by which the Initial Rate of Interest or any new rate of interest for that or any previous Change Date, computed without regard to this rider, exceeded such Initial Preferred Rate. On s._.,y r~nnge ilnre on which the new rate of interest computed inder Section 4 (C) without regard to this rider is equal to or Tess than the Initial Preferred Rate, the prowvisions of this rider sha-11 terminate. However, the Note Holder may also at its option, waive all or any part of any increase or further decrease the rate at any time beyond the terms of this rider. If it does so, the interest rate on the next Changa Date will be set as if such option had not been exercised,"