3522 Form – Fill Out and Use This PDF

FIXED/ADJUSTABLE RATE NOTE

(One-Year Treasury Index–Rate Caps)

THIS NOTE PROVIDES FOR A CHANGE IN MY FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THIS NOTE LIMITS THE AMOUNT MY ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MINIMUM AND MAXIMUM RATES I MUST PAY.

________________________, ______ ________________________ ____________________________

[City][State]

_____________________________________________________________________________________________

[Property Address]

1.BORROWER’S PROMISE TO PAY

In return fora loan that I have received,Ipromise to pay U.S. $_________________ (this amountis called

“Principal”), plus interest, to the order of Lender. Lender is _____________________________________. I will

make all payments under this Note in the form of cash, check or money order.

I understandthatLendermay transferthis Note. Lenderoranyone who takes this Noteby transferandwho is entitled to receive payments under this Note is called the “Note Holder.”

2.INTEREST

Interestwillbe charged on unpaid principaluntilthe fullamount ofPrincipalhas beenpaid. Iwill pay interest at a yearly rate of___________%. The interest rateIwill pay may changein accordance with Section4ofthis Note.

The interest rate required by this Section 2and Section 4of this Note is the rate I will pay both beforeand after any default described in Section 7(B) of this Note.

3.PAYMENTS

(A)Time and Place of Payments

I will pay principal and interest by making a payment every month.

I will make my monthly payments on the first day of each month beginning on ____________________,

____. Iwill make these payments everymonthuntilIhave paid allofthe principaland interest andanyothercharges

describedbelowthatImay owe underthis Note.Each monthly payment will be applied as ofits scheduled due date and will be applied to interestbefore Principal. If, on ____________________,____,Istill owe amounts underthis

Note, I will pay those amounts in full on that date, which is called the “Maturity Date.”

I will make my monthly payments at_____________________________________________________orat

a different place if required by the Note Holder.

(B)Amount of My Initial Monthly Payments

Each of my initial monthly payments will be in the amount of U.S. $__________________. This amount

may change.

MULTISTATE FIXED/ADJUSTABLE RATE NOTE—ONE-YEAR TREASURY INDEX—Single Family—Fannie Mae Uniform Instrument	Form 3522 1/01
(rev. 6/16)	(page 1 of 5)

(C)Monthly Payment Changes

Changes in my monthly payment will reflect changes in the unpaid principalofmy loan and in the interest rate that I must pay. The Note Holder will determine my new interest rate and the changed amount of my monthly payment in accordance with Section 4 of this Note.

4.ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES

(A)Change Dates

The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of

____________________,____,and the adjustable interest rate Iwill pay may change on that day every 12th month

thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change, is called a “Change Date.”

(B)The Index

Beginning with the first Change Date,my adjustable interest rate willbe based onan Index. The “Index” is the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. The most recent Indexvalue available as of the date 45 days before each Change Date is called the“Current Index,” providedthatifthe Current Indexis less thanzero,thentheCurrent Index will be deemed to be zero for purposes of calculating my interest rate.

If the Indexis no longeravailable,the Note Holderwill choose a newindexthat is based upon comparable information. The Note Holder will give me notice of this choice.

(C)Calculation of Changes

Before each Change Date,the NoteHolderwill calculate my newinterest rateby adding_______________

percentagepoints (___________%)(the “Margin”)to the Current Index. The Note Holderwill then round the result

of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date.

The Note Holderwill then determine the amount ofthe monthly payment that would be sufficient to repay the unpaidprincipalthatIam expected to owe at the ChangeDate in fullon the MaturityDate at my newinterestrate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment.

(D)Limits on Interest Rate Changes

The interestrate Iamrequired to payat thefirst ChangeDate willnot be greaterthan___________%orless

than ___________%. Thereafter, my adjustable interest rate will never be increased or decreased on any single

Change Date by more than two percentage points from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than ___________% or less than the Margin.

(E)Effective Date of Changes

My newinterestrate willbecome effective on eachChange Date. Iwill pay the amountofmy newmonthly payment beginningonthefirst monthly payment date afterthe Change Dateuntilthe amountofmy monthly payment changes again.

(F)Notice of Changes

The Note Holder will deliver or mail to me a notice of any changes in my initial fixed interest rate to an adjustable interest rate and ofanychanges in my adjustable interestrate before theeffectivedateofany change. The notice will include the amount ofmy monthly payment,any information required by lawto be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice.

MULTISTATE FIXED/ADJUSTABLE RATE NOTE—ONE-YEAR TREASURY INDEX—Single Family—Fannie Mae Uniform Instrument	Form 3522 1/01
(rev. 6/16)	(page 2 of 5)

5.BORROWER’S RIGHT TO PREPAY

I have the right to make payments ofPrincipalat any time before theyare due. A paymentofPrincipalonly is known as a “Prepayment.” When Imake a Prepayment,Iwill tell the Note Holderin writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under this Note.

I may make a full Prepayment or partial Prepayments without paying any Prepayment charge. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holdermay apply my Prepayment to the accrued andunpaid interest onthe Prepayment amount before applying my Prepayment to reduce the Principalamount ofthis Note. IfI make a partialPrepayment,there will be no changes in the due dates of my monthly payments unless the Note Holder agrees in writing to those changes. My partial Prepayment may reduce the amount of my monthly payments after the first Change Date following my partial Prepayment. However, any reduction due to my partial Prepayment may be offset by an interest rate increase.

6.LOAN CHARGES

If a law, which applies to this loan and which sets maximum loan charges,is finally interpreted sothatthe interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (a) any suchloan charge shallbe reduced by the amount necessary to reduce thecharge to the permitted limit; and (b)any sums alreadycollectedfromme that exceeded permitted limits will be refunded tome. The Note Holder may chooseto make this refundbyreducingthePrincipalIowe underthis Noteorby making a direct paymentto me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment.

7.BORROWER’S FAILURE TO PAYAS REQUIRED

(A)Late Charges for Overdue Payments

If the Note Holder has not received the full amount of any monthly payment by the end of ___________

calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be

___________% ofmy overdue payment ofprincipaland interest. Iwill pay this late charge promptly but only once

on each late payment.

(B)Default

If I do not pay the full amount of each monthly payment on the date it is due, I will be in default.

(C)Notice of Default

If I am in default,the Note Holdermay send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of Principal that has not been paid andallthe interestthatIowe on thatamount. Thatdatemustbe at least 30days afterthedateon which the notice is mailed to me or delivered by other means.

(D)No Waiver By Note Holder

Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time.

(E)Payment of Note Holder’s Costs andExpenses

If the Note Holderhas requiredme to pay immediately in full as describedabove,the NoteHolderwillhave the right to be paid backby me forall of its costs and expenses in enforcingthis Note to the extent not prohibitedby applicable law. Those expenses include, for example, reasonable attorneys’ fees.

MULTISTATE FIXED/ADJUSTABLE RATE NOTE—ONE-YEAR TREASURY INDEX—Single Family—Fannie Mae Uniform Instrument	Form 3522 1/01
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8.GIVING OF NOTICES

Unless applicable lawrequires a different method,any notice that must be given to me underthis Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address.

Unless the NoteHolderrequires a different method,any notice that mustbe given tothe Note Holderunder this Note will be given by mailing it by first class mailto the Note Holderat the address statedin Section3(A)above or at a different address if I am given a notice of that different address.

9.OBLIGATIONS OF PERSONS UNDER THIS NOTE

If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note,including the promiseto paythefullamountowed. Anypersonwhois a guarantor,surety or endorserofthis Note is also obligated to do these things. Any personwho takes overthese obligations,including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holdermay enforce its rights underthis Note against each person individually oragainst allof us together. This means that any one of us may be required to pay all of the amounts owed under this Note.

10.WAIVERS

I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor. “Presentment” means the rightto require the Note Holderto demandpayment ofamounts due. “Notice of Dishonor” means the right to require the Note Holderto give notice to otherpersons thatamounts duehave notbeen paid.

11.UNIFORM SECURED NOTE

This Note is a uniforminstrument with limited variations in some jurisdictions. In additionto the protections given to the Note Holderunderthis Note,a Mortgage,Deed ofTrust,orSecurity Deed (the “Security Instrument”), dated the same date as this Note,protects the Note Holderfrom possible losses that might result if I do not keep the promises that I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full ofall amounts Iowe underthis Note. Some of those conditions readas follows:

(A)Until my initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section 4 above, Uniform Covenant 18 of the Security Instrument shall read as follows:

Transfer of the Property or a Beneficial InterestinBorrower. As usedin this Section 18, “Interest in the Property” means any legal or beneficial interest in the Property, including, but not limited to,those beneficialinterests transferredin a bondfordeed,contractfordeed,installment sales contractorescrowagreement,theintentofwhich is the transferoftitle by Borrowerat a future date to a purchaser.

If all or any part ofthe Property orany Interest in the Property is sold ortransferred(orif Borroweris not a naturalpersonanda beneficialinterestin Borroweris sold ortransferred)without Lender’s priorwritten consent,Lendermay require immediate payment in full of all sums secured by this SecurityInstrument. However,this option shallnot be exercisedby Lenderifsuch exercise is prohibited by Applicable Law.

If Lender exercises this option, Lender shall give Borrower notice of acceleration. The

MULTISTATE FIXED/ADJUSTABLE RATE NOTE—ONE-YEAR TREASURY INDEX—Single Family—Fannie Mae Uniform Instrument	Form 3522 1/01
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notice shallprovidea periodofnot less than 30days fromthe date the noticeis givenin accordance with Section 15 within which Borrower must pay all sums secured by this SecurityInstrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower.

(B)When my initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section 4above,UniformCovenant 18of the Security Instrument described in Section 11(A)above shallthen cease to be in effect, and Uniform Covenant 18 of the Security Instrument shall instead read as follows:

Transfer of the Property or a Beneficial InterestinBorrower. As usedin this Section 18, “Interest in the Property” means any legal or beneficial interest in the Property, including, but not limited to,those beneficialinterests transferredin a bondfordeed,contractfordeed,installment sales contractorescrowagreement,theintentofwhich is the transferoftitle by Borrowerat a future date to a purchaser.

If all or any part ofthe Property orany Interest in the Property is sold ortransferred(orif Borroweris not a naturalpersonanda beneficialinterestin Borroweris sold ortransferred)without Lender’s priorwritten consent,Lendermay require immediate payment in full of all sums secured by this SecurityInstrument. However,this option shallnot be exercisedby Lenderifsuch exercise is prohibited byApplicable Law. Lenderalso shallnot exercisethis optionif: (a)Borrowercauses to be submittedto Lenderinformationrequired byLenderto evaluate theintendedtransfereeas ifa new loan were being made to the transferee; and (b) Lender reasonably determines that Lender’s security will not be impaired by the loan assumptionand that the riskofa breach ofany covenant or agreement in this Security Instrument is acceptable to Lender.

To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender’s consent to the loan assumption. Lender also may require the transferee to sign an assumptionagreement that is acceptable to Lenderand that obligates the transfereeto keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing.

If Lender exercises the option to require immediate payment in full, Lender shall give Borrowernotice ofacceleration. Thenotice shallprovidea periodofnotless than 30days fromthe date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrowerfails to pay these sums priorto the expiration of this period,Lendermay invoke anyremedies permitted bythis SecurityInstrument without further notice or demand on Borrower.

WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED.

……………………………………………………………. (Seal)

-Borrower

……………………………………………………………. (Seal)

-Borrower

……………………………………………………………. (Seal)

-Borrower

[Sign OriginalOnly]

MULTISTATE FIXED/ADJUSTABLE RATE NOTE—ONE-YEAR TREASURY INDEX—Single Family—Fannie Mae Uniform Instrument	Form 3522 1/01
(rev. 6/16)	(page 5 of 5)