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+ r --n ~ ~ ~3 ~ f? :? CE) UNPAIIT INTEREST ADDED TO PItTNCIPAL 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<Date and/or because the interest rate on this Note may increase-bef®re the payments chaagr, my`monthly payments map not always'be eaough'to psy the interest which is beng:charged on the principal balance. If'so, the Note Holder will, oa each Chaaga'Date, subtract the amount of my monthly payment from the amount o£ interest charged-for the first month after that Change Date, and will add the difference to-the outstanding principal balance of my lean each month until the next Change'>Date. The'Not6 Bolder will also add interest on'the amount of this difference to mq outstanding principal balance each month. Until-the next Change Date when the Note-Holder determines my new rate of interest on my then outstanding-principal balance, thr rate of interest oa the interest added to principal will be the rate determined in Section 4 (C) above. (F} Limit on'Outstanding Principal Balance - Special Payment Changes ~_ The outstanding principal balance can never exceed a maximum amount equal to one hundred-twenty-five percent (125X) of the principal amount-I orgiaslly borrowed. If'my choice to pay Limited. Payment Amount after any Payment Change Date would cause the outstanding principal balance to exceed that maximum amount before the next Change Date, I must pag the Fu11 Payment Amount.unless the Note. :Holder `agrees is writing,, to a different monthly payment amount. Zf'any_r_aftrest sate change under Section 4 (C) oa any other Change; Date would cause thy-- outstanding prncipaY balance to exceed that maximum amount before thi next Chaagr Date, then-the monthly payment amount will be changed. The No-.e Holaer will determine a new monthly payment amount siifficieat to repay the nutstaading principal balance is full on-the maturity date at my new rate of interest. A notice under:Sectioa'4(I} will be seat. before she:effective date of the: change. (G) Required Full`Paymeat Amount: Beginning-on October L, i9$J` y sad oa_each Payment Change Date every Sth`year thereafter, I will pay~the Full Payment Amount until the. next Payment:. Change Date. I will also. pay the Full.. Payment Amount for the period between the last Paymeat.Chaage Date and the maturity date. (H) Effective Date of Changes> The new rate of interest will become effective on each Change Date. On Payment Change Dates,"L will pay the new amour" of my moa2hly payment each month beginning the :first monthly paymea,t date after..the Change;Date,until the amount' of my monthly paymeat,.is again changed or I have fully :repaid the loan; (I) Notice of'Changes The Notre Holder willmail or-deliver to me a notice of any,chaAge~s in tbP aswunL of my monthly payment before the effective date of any change. The notLc~ :will include-information :required by law.to'be given me and also the title-and telephone nuaber of a'person,who will answer any question I may have regarding the notice. B. PREFERRED RATE RIDER' In addition, a-preferred rate rder'was executed in connection with such Note wherein $orrower sad Lender 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_ ~y_°,F, (Initial Preferred Rate). The initial monthly :payments provided in Section 3 (B) of the Note shall be reduczd to $ The. Note Holder shall decrease the new interest rate computed under Srctio (C) on subsequent Change Dates by an amount equal to_the smallest amount by which the Initial Rate. of Interest or nay new rate `of interest-for that: or any .previous Change Date, computed c:ithaut regard_to this rider, excceeded such Initial Prefe=red Rate: On _ any Change Date on which: the new rate of interest computed inder Section;4 (G) without regard to this rider is equal to or less than the Initial Preferred Rate, the provisions of this rider shall terminate. However, the Note Holder may also at its option, waive `all or aay,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 c~ext Change Date will be set as if such option had not been exercised."