Sample Document. Intended as reference only

                                                                                                 Your actual closing documents will vary according to the lending institution

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                                              Loan Number 123456

                                                ADJUSTABLE RATE NOTE

                                                                  (I Year Treasury Index-Rate Caps) 

THIS NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN MY INTEREST RATE AND MY MONTHLY PAYMENT. THIS NOTE LIMITS THE AMOUNT MY INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE I MUST PAY. 

        JUNE 5, 2001                                      ANYWHERE.                                      OHIO 

             [Date]                                                                            [City]                                                                   [State]

    125 MAIN STREET, TIPP CITY, OHIO 4537 

                          [Property Address] 

1. BORROWER'S PROMISE TO PAY

In return for a loan that I have received, I promise to pay U.S. $140,000.00 (this amount is called "Principal"), plus interest, to the order of the Lender is SAMPLE MORTGAGE CO>, AN OHIO BANKING CORPORATION.

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

I understand that the Lender may transfer this Note.  The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder".

2. INTEREST 

Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of 7.2 5 O %. The interest rate I will pay will change in accordance with Section 4 of this Note. 

The interest rate required by this Section 2 and Section 4 of this Note is the rate I will pay both before and 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 payment on the 1^st day of each month beginning on AUGUST 1

2001. I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If, on JUL Y 1, 2031, I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date."

I will make my monthly payments at 0000 MAIN STREET, ANYWHERE, OHIO 22222

                                                                                       or at 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. $ 955. 05. This amount may change. 

(C) Monthly Payment Changes 

Changes in my monthly payment will reflect changes in the unpaid principal of my 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.

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MULTISTATE ADJUSTABE RATE NOTE--ARM 5-2Single Family-- Fannie Mae/Freddie Mac MODIFIED INSTRUMENT

FANNIE MAE ARM 4-2/5-2/6-2                                                                                                                                    Form 3502 1/01

Document Systems, Inc. (800) 649-1362                                                 Page 1 of 4

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