FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
for the quarterly period ended June 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________ to
_____________
Commission file number 0-13423
FNB ROCHESTER CORP.
____________________
(Exact name of registrant as specified in its charter)
New York 16-1231984
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
35 State St., Rochester. New York 14614
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (716) 546-3300
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for shorter period that the registrant was required to file
such reports) and (2) has been subject to such filing
requirements for the past 90 days.
Yes __X__ No ______.
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.
Class Outstanding at Aug 5, 1997
_____________________________ __________________________
Common stock, $1.00 par value 3,581,887
<PAGE>
INDEX
Page No.
Part I Financial Information
Condensed consolidated balance sheets -
June 30, 1997 and December 31, 1996 3-4
Condensed consolidated statements of
income for the six months and three months
ended June 31, 1997 and 1996 5
Condensed consolidated statements of cash
flows for the six months ended June
31, 1997 and 19966- 7
Notes to condensed consolidated financial
statements 8-10
Management's discussion and analysis of
financial condition and results of operations 11-14
Part II Other information 15-16
Index of Exhibits 18
<PAGE>
PART I - FINANCIAL INFORMATION
FNB ROCHESTER CORP. AND SUBSIDIARY
Condensed Consolidated Balance Sheets (unaudited)
(In thousands, except per share data)
<TABLE>
<CAPTION>
June 30, December 31,
Assets 1997 1996
______ ____ ____
<S> <C> <C>
Cash and due from banks $20,764 $20,060
Interest-bearing deposits with other banks 1,089 1,121
Federal funds sold 5,600 1,500
Securities available-for-sale, at fair 106,975 72,318
value
Securities held-to-maturity (fair value of
$27,057 in 1997 and $29,305 in 1996) 27,235 29,532
Loans:
Commercial 196,168 187,721
Mortgage 78,540 71,263
Home Equity 21,818 21,297
Consumer 24,097 23,153
______ ______
Total loans 320,623 303,434
Net deferred loan fees 252 226
Allowance for loan losses (5,501) (5,696)
_______ _______
Net loans 315,374 297,964
Premises and equipment, net 8,695 9,152
Accrued interest receivable 3,647 3,242
FHLB and FRB stock 1,655 1,516
Other assets 1,241 1,493
_____ _____
Total assets $492,275 $437,898
======= =======
Liabilities and shareholders' equity
Deposits:
Demand:
Non-interest bearing $ 62,755 $ 56,111
Interest bearing 70,969 63,702
Savings and money market 82,430 81,018
Certificates of deposit:
Under $100,000 145,371 141,504
$100,000 and over 92,336 62,436
Total deposits 453,861 404,771
Securities sold under agreement to
repurchase and short-term borrowings 3,955 786
Accrued interest payable and other 3,115 2,900
liabilities
Long-term debt 210 210
____
Total liabilities 461,141 408,667
Shareholders' equity:
Common stock, $1 par value; authorized
5,000,000 shares; issued and outstanding
3,580,797 in 1997 and 3,571,063 in 1996
Additional paid in capital 13,152 13,035
Undivided profits 14,084 12,357
Unrealized net holding gain on securities
available-for-sale, net of taxes in 1996 317 268
___ ___
Total shareholders' equity 31,134 29,231
_______ _______
Total liabilities and shareholders' $ 492,275 $ 437,898
equity ======= =======
See accompanying notes to condensed consolidated financial statements
</TABLE>
<PAGE>
FNB ROCHESTER CORP. AND SUBSIDIARY
Condensed Consolidated Statements of Income (unaudited)
(In thousands, except for share data)
<TABLE>
<CAPTION>
Six months ended Three months ended
June 30, June 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans:
Commercial $ 8,861 $ 8,210 $4,524 4,196
Mortgage 2,804 2,084 1,447 1,138
Home equity 968 925 499 468
Consumer 1,012 906 515 482
_____ ___ ___ ___
Total interest and fees on 13,645 12,125 6,985 6,284
loans
Federal funds sold and time 207 97 120 33
deposits
Securities 3,983 3,302 2,174 1,620
_____ ______ _____ _____
Total interest income 17,835 15,524 9,279 7,937
______ ______ _____ _____
Interest expense:
Savings, checking and 1,548 1,511 803 771
money market accounts
Certificates of deposit 6,310 4,823 3,320 2,480
Short-term borrowings and 62 82 42 29
other __ ___ ____ ___
Total interest expense 7,920 6,416 4,165 3,280
_____ _____ _____ _____
Net interest income 9,915 9,108 5,114 4,657
Provision for loan losses - - - -
___ __ ___ ____
Net interest income
after provision for loan 9,915 9,108 5,114 4,657
losses _____ _____ _____ _____
Non-interest income:
Service charges on deposit 819 719 428 375
accounts
Credit card fees 374 349 181 197
Loan servicing fees 131 137 66 67
Other operating income 317 295 159 137
___ ___ ___ ___
Total non-interest 1,641 1,500 834 776
income _____ _____ ___ ____
Non-interest expense:
Salaries and employee 4,720 4,513 2,348 2,234
benefits
Occupancy 1,856 1,666 953 844
Marketing and public 293 267 156 117
relations
Office supplies, printing 314 314 163 164
and postage
Processing fees 499 493 230 229
Legal 114 126 57 63
Other 844 769 451 389
____ ___ ___ ___
Total non-interest 8,640 8,148 4,358 4,040
expenses _____ _____ _____ _____
Income before income taxes 2,916 2,460 1,590 1,393
Income tax expense 939 689 515 390
___ ___ ___ ___
Net income $ 1,977 $ 1,771 $ 1,075 $ 1,003
====== ===== ===== =====
Weighted average shares
outstanding-primary 3,725,563 3,569,737 3,724,974 3,570,510
========= ========= ========= =========
Net income per common $ .53 $ .50 $ .29 $ .28
share - primary ===== ===== ==== ====
</TABLE>
See accompanying notes to condensed consolidated financial statements.
<PAGE>
FNB ROCHESTER CORP. AND SUBSIDIARY
Condensed Consolidated Statements of Cash Flows (unaudited)
(In thousands)
<TABLE>
<CAPTION>
Six months ended
June 30,
1997 1996
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,977 $ 1,771
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 791 690
Amortization of goodwill - 79
Increase in mortgage loans held-for- (1,010) (405)
sale
Increase in accrued interest receivable (405) (61)
(Increase) decrease in other assets 230 (209)
Increase in accrued interest payable 143 2,179
and other liabilities ___ _____
Net cash provided by operating 1,726 4,044
activities _____ _____
Cash flows from investing activities:
Securities available-for-sale:
Purchase of securities (40,195) (11,613)
Proceeds from maturities 5,620 10,259
Proceeds from sales - 4,022
Securities held-to-maturity:
Purchase of securities (474) (2,503)
Proceeds from maturities 2,771 3,215
Loan origination and principal (16,410) (35,507)
collection, net
Capital expenditures, net (334) (1,879)
Increase in other assets - investing (139) (217)
_____ _____
Net cash used by investing (49,161) (34,223)
activities
Cash flows from financing activities:
Net increase in demand, savings and
money market accounts 15,323 10,567
Certificates of deposit accepted and
repaid, net 33,767 12,900
Increase in short-term borrowing and
securities sold under agreement to 3,169 814
repurchase
Increase in long-term debt - 210
Payment of common stock dividend (179) -
Employee common stock purchase and 127 10
exercise of option to purchase common ___ __
stock
Net cash provided by financing 52,207 24,501
activities ______ ______
Increase (decrease) in cash and 4,772 (5,678)
cash equivalents
Cash and cash equivalents at beginning of 21,681 23,923
year ______ _______
Cash and cash equivalents at end of period $ 26,453 $ 18,245
====== ======
The Company paid cash during the six months ended June 30, 1997
and 1996 as follows:
Interest $ 7,635 $ 6,305
Taxes 1,216 535
</TABLE>
See accompanying notes to condensed consolidated financial
statements.
<PAGE>
FNB ROCHESTER CORP. AND SUBSIDIARY
Notes to Condensed Consolidated Financial Statements (unaudited)
(1) Summary of Significant Accounting Policies
Basis of Presentation
FNB Rochester Corp. (the Company) operates as a bank holding
company. Its only subsidiary is First National Bank of
Rochester (the Bank). The consolidated financial statements
include the accounts of the Company and its wholly owned
subsidiary, the Bank. All material intercompany accounts
and transactions have been eliminated in the consolidation.
The financial information is prepared in conformity with
generally accepted accounting principles and such principles
are applied on a basis consistent with those reflected in
the December 31, 1996 Form 10-K Report of the Company filed
with the Securities and Exchange Commission. The financial
information included herein has been prepared by management
without audit by independent certified public accountants.
The information furnished includes all adjustments and
accruals, solely of a normal recurring nature, that are in
the opinion of management necessary for a fair presentation
of results for the interim period ended June 30, 1997.
Amounts in prior periods' financial statements are
reclassified whenever necessary to conform with current
presentation.
(2) Allowance for Loan Losses
Changes in the allowance for loan losses for the six months
ended June 30, 1997 and 1996 are as follows:
1997 1996
____ ____
Balance at beginning of $5,696 $5,776
period
Provisions (recovery) for - -
loan losses
Loans charged off (328) (44)
Recoveries on loans 133 71
previously charged-off ____ ___
Balance at end of period $ 5,501 $ 5,803
====== ======
The principal balance of loans not accruing interest totaled
$2,244,000 and $1,865,000 at June 30, 1997 and 1996
respectively and $1,419,000 at December 31, 1996.
At June 30, 1997 and 1996, the recorded investment in loans
that are considered to be impaired totaled $2,665,000 and
$253,000, respectively. The average recorded investments in
impaired loans during the six months ended June 30, 1997 and
1996 was approximately $2,502,000 and $245,000,
respectively. For the six months ended June 30, 1997, the
Company recognized $112,000 in interest income on the
impaired loans during the period in which they were
considered impaired. No interest income was recognized on
impaired loans in the six-month period ended June 30, 1996.
(3) Income per Common Share
Per share data is based upon the weighted average number of
common shares and equivalents (stock options) outstanding
during the period. Fully diluted per share data is not
applicable. The weighted average number of shares and
equivalents outstanding during the period ended June 30,
1997 and 1996 amounted to 3,725,563 and 3,569,737
respectively for the six-month period and 3,724,974 and
3,570,510 for the three-month period.
In February 1997, the Financial Accounting Standards Board
(FASB) issued Statement of Financial Accounting Standards
No. 128, Earnings Per Share (Statement 128). Statement 128
supersedes APB Opinion No. 15, Earnings Per Share (APB 15)
and specifies the computation, presentation, and disclosure
requirements for earnings per share (EPS) for entities with
publicly held common stock or potential common stock.
Statement 128 was issued to simplify the computation of EPS
and to make the U.S. standard more compatible with the EPS
standards of other countries and that of the International
Accounting Standards Committee. It replaces the
presentation of primary EPS with a presentation of basic EPS
and fully diluted EPS with diluted EPS. It also requires the
dual presentation of basic and diluted EPS on the face of
the income statement for all entities with complex capital
structures and requires a reconciliation of the numerator
and denominator of the basic EPS computation to the
numerator and denominator of the diluted EPS computation.
Basic EPS, unlike primary EPS, excludes dilution and is
computed by dividing income available to common stockholders
by the weighted-average number of common shares outstanding
for the period. Diluted EPS reflects the potential dilution
that could occur if securities or other contracts to issue
common stock were exercised or converted into common stock
or resulted in the issuance of common stock that then shared
in the earnings of the entity. Diluted EPS is computed
similarly to fully diluted EPS under APB 15.
Statement 128 is effective for financial statements for both
interim and annual periods ending after December 15, 1997.
Earlier application is not permitted. After adoption, all
prior-period EPS data presented shall be restated to conform
with Statement 128. Management has determined that the
adoption of this Statement will not have a material impact
on the Company's stated earnings per share.
(4) Stock Option Plans
The Company has incentive stock option plans under which
options to acquire 325,000 shares of its common stock were
available to grant to key employees and options to acquire
25,000 shares of its common stock were available to grant
to directors. At June 30, 1997, options to purchase 317,600
shares were held by grantees under the plan. The range of
exercise prices of the options is $5.63 to $12.75 per share
with an average exercise price of $7.30 per share. At June
30, 1997, options to acquire 258,100 shares were
exercisable. The remaining options become exercisable at
various times through December 1998. As of June 30, 1997
options to acquire 3,600 shares have been exercised.
On January 1, 1996, the Company adopted SFAS No. 123,
Accounting for Stock-Based Compensation. As disclosed in the
Company's Form 10-K for the period ended December 31, 1996,
the adoption of SFAS No. 123 did not have a material impact.
(5) Dividends
The Company declared a $.07 per share dividend on common
stock on June 24, 1997 payable July 31, 1997 to shareholders
of record July 15, 1997. The dividend increased $.02 per
share as compared to the $.05 per share dividend on common
stock declared in December 1996 and payable January 31,
1997. Dividends are expected to be declared semiannually.
The January 1997 dividend was the first dividend the
Company had declared since 1991.
(6) New Accounting Pronouncements
In February 1997 the Financial Accounting Standards Board
(FASB) issued Statement No. 129 entitled Disclosure of
Information About Capital Structure. The Statement applies
to all entities, public and nonpublic, that have issued
securities addressed by this Statement. This Statement is
effective for financial statements for the periods ending
after December 15, 1997. This Statement has no impact on
the Company since it contains no change in disclosure
requirements for entities that were previously subject to
the requirements of Opinions 10 and 15 and Statement No. 47.
In June 1997 FASB issued Statement No. 130 entitled
Reporting Comprehensive Income. Comprehensive Income is
defined as A the change in equity (net assets) of a business
enterprise during a period from transactions and other
events and circumstances from nonowner sources. It includes
all changes in equity during a period except those resulting
from investments by owners and distributions to owners. The
Statement is effective for fiscal years beginning after
December 15, 1997 and requires that items that meet the
definition of components of comprehensive income be reported
in a financial statement that is displayed as prominently as
other financial statements. While this Statement will
increase the Company's financial disclosures it will have no
impact on operating results.
FASB Statement No. 131 entitled Disclosures about Segments
of an Enterprise and Related Information was also issued in
June 1997. This Statement establishes standards for the way
that public business enterprises report information about
operating segments in annual financial statements and
requires that those enterprises report selected information
about operating segments in interim financial reports issued
to shareholders. It also establishes standards for related
disclosures about products, services geographic areas, and
major customers. This Statement will increase the Company's
financial disclosures but will have no impact on operating
results.
<PAGE>
FNB ROCHESTER CORP. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain
significant factors which have affected the Company's financial
position and operating results during the periods included in the
accompanying condensed consolidated financial statements.
Management's discussion and analysis supplements management's
discussion and analysis for the year ended December 31, 1996
contained in the Company's Form 10-K for the period then ended
and includes certain known trends, events and uncertainties that
are reasonably expected to have a material effect on the
Company's Financial position or operating results.
OVERVIEW
Total assets increased $54 million, or 12.4% in the first six
months of 1997. Loans increased $17.2 million, or 5.7% as
compared to December 31, 1996 and deposits increased $49 million,
or 12.1%. The loan growth has been primarily in commercial loans
and residential mortgages. Because of the reduced rate of growth
in demand for loans as compared to deposit growth, the Company
increased investments in securities available-for-sale by $34.7
million, or 47.9%, over the amount at year end. Deposits
increased to $454 million as compared to $405 million at December
31, 1996. $29.9 million of the increase was in certificates of
deposit of $100,000 or more and of that total $26.9 million was
in public fund certificates. $14 million of the public fund
increase was the result of an increase in one municipal
relationship. Other deposit increases from December 31, 1996 were
$6.6 million for demand, $7.3 million for interest checking, $1.4
million for Savings and Money Market, and $3.9 million for
certificates less than $100,000.
Net income for the six- month and three-month periods ended June
30, 1997 increased $206,000, or 11.6%, and $72,000, or 7.2%,
respectively, as compared to the same period in 1996. Income per
share increased to $.53, up $.03 in comparison to $.50 for the
six months ended June 30, 1996 and increased $.01 per share to
$.29 for the three-month period. The increases in both periods
were primarily due to increased net interest income. Net interest
income increased $807,000, or 8.9% for the six-month period and
$457,000, or 9.8% for the three-month period as compared to the
same periods in 1996. For the six-month period ended June 30,
1997, non-interest income increased $141,000, or 9.4%, and non-
interest expense increased $492,000, or 6%. As in the first
quarter of 1997, non-interest expense showed increases in
salaries and employee benefits and occupancy.
NET INTEREST INCOME
Commercial mortgage and residential mortgage lending have
provided much of the Company's loan growth. The increases in net
interest income in the six-month and three-month periods ended
June 30, 1997 as compared to the same periods in 1996 are
primarily the result of that increased lending activity and
increased securities available-for-sale, with offsetting interest
expense from increased certificate of deposit volumes. Net
interest margin declined somewhat for the three-month period
ended June 30, 1997, to 4.51% from 4.56% for the three-month
period ended March 31, 1997. The decline in the margin is
primarily due to the deposit mix with its greater emphasis on
higher interest rate certificates of deposit and the increase in
the residential mortgage portfolio and securities available-for-
sale. The margin may be expected to continue to decline if
deposits continue to grow primarily through higher interest rate
certificates of deposit and if commercial loan demand remains at
current levels so that deposit growth is used primarily to fund
residential mortgages and securities-available-for-sale.
Residential mortgages typically have a lower interest rate than
other types of loans and the Company's securities investments
typically carry interest rates lower than loans. Increased loan
volume resulted in interest and fees on loans increasing
$1,520,000, or 12.5%, for the six-month period ended June 30,
1997 as compared to the same period in 1996. Interest and fee
income increased $1,766,000 because of increased volumes and
declined $246,000 due to lower rates.
Average commercial loans increased $16.2 million, or 9.4%, from
the period ended June 30, 1996 to the period ended June 30,
1997. The increased volume contributed $758,000 to income, which
was partially offset by rate declines that reduced income by
$107,000. Average mortgage loans increased $19.9 million, or
35.9%. The increase in the mortgage portfolio was primarily made
up of 15 year fixed rate mortgages. Increased mortgage volumes
resulted in an increase in interest income of $740,000 while
lower rates caused a $20,000 decline for a net increase of
$720,000. Average home equity loans and consumer loans increased
$3.9 million with an increase in income of $149,000. Average
securities increased $18.1 million and income from those
investments increased $681,000. To lessen both interest rate risk
and market risk, $18 million of the securities purchased in the
six-month period have been variable rate. While the variable rate
securities typically carry a lower rate than the fixed rate they
have less market risk should the Company need to liquidate them
to fund loan growth or deposit outflows.
Interest expense increased $1,504,000, or 23.4%, for the six-
month period ended June 30, 1997 as compared to the period ended
June 30, 1996. The net average balance total of savings,
interest checking, and money market categories have shown a
modest decline of $770,000, or .5% and the interest expense
associated with those deposits is relatively unchanged. Average
balances for certificates of deposit increased $28.9 million for
the six-month period and the Bank's deposit growth in
certificates of deposit resulted in $1,381,000 additional
interest expense due to increased balances and $106,000 because
of increased rates.
PROVISION FOR LOAN LOSSES
The Bank provides for loan losses by a charge to current
operations. The provision is based upon discretionary adjustments
which, in the opinion of management, are necessary to bring the
allowance to an appropriate level considering the character of
the loan portfolio, current economic conditions, analyses of
specific loans, and historical loss experience.
The Bank had net charge-offs of $195,000 for the six-month period
ended June 30, 1997 as compared to net recoveries of $126,000
for the same period in 1996. Net charge-offs (recoveries)
(annualized) as a percent of average loans were .13% and (.09)%
for the six months ended June 30, 1997 and 1996. The ratios of
the allowance for possible loan losses as a percent of period end
loans for the comparable periods were 1.71% and 2.03%,
respectively. Non performing assets increased $531,000, or 25.2%
to $2,642,000 at June 30, 1997 from $2,111,000 at June 30,
1996. $522,000 of the increase is for a loan that is categorized
as nonaccrual because it was expected to be sold to a second
mortgage holder in the third quarter. The sale of the loan took
place on July 31, 1997. Management undertakes a quarterly
analysis to assess the adequacy of the allowance for possible
loan losses taking into account non-performing and delinquent
loans, internally criticized loans, historical trends, economic
factors, and overall credit administration. Based on this
analysis, the allowance is considered adequate at June 30, 1997
to absorb anticipated losses. Management believes that the
inherent risk in the current portfolio has already been provided
for, and because of credit standards that the Bank has
implemented, new loans are expected to be of high quality.
However, should the market or the economy change significantly,
some provision could be required in 1997.
NON-INTEREST INCOME AND NON-INTEREST EXPENSE
Non-interest income of $1,641,000 for the first six months of
1997 represents an increase of $141,000, or 9.4%, from $1,500,000
for the comparable period in 1996. The increase was primarily the
result of increases in service charges on deposit accounts.
Non-interest expense was $8,640,000 for the first six months of
1997 as compared to $8,148,000 for the comparable period in 1996,
an increase of $492,000, or 6%. The largest components of non-
interest expense for the six-month and three-month period ended
June 30, 1997 were salaries and employee benefits and occupancy.
Salaries and employee benefits increased $207,000, or 4.6%, from
$4,513,000 for the six-month period in 1996 and occupancy which
increased $190,000, or 11.4%. Both increases were caused
primarily by expenses associated with new banking offices as well
as normal salary increases and promotions. While operating
expenses have continued to increase, the Company's operating
expense as a percent of average assets is declining. The ratio
has declined, from 5.18%, 4.28% and 4.02% for the years ended
December 31, 1994, 1995 and 1996 respectively, to 3.74% for six-
month period ended June 30, 1997.
PROVISION FOR INCOME TAXES
The provision for income tax was $939,000 for the period ended
June 30, 1997 as compared to $689,000 at June 30, 1996. The
Company's effective tax rates for the periods were 32% and 28%
for 1997 and 1996 respectively. During both the periods ended
June 30, 1997 and 1996 the Company reduced its effective tax rate
by recognizing deductible temporary differences for which a
valuation allowance had previously been established.
Income taxes are accounted for under the asset and liability
method. Deferred tax assets and liabilities are recognized for
the future tax consequences attributable to differences between
the financial statement carrying amounts of existing assets and
liabilities and their respective tax basis and operating loss and
tax credit carry forwards. Deferred tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are
expected to be recovered or settled. The effect on deferred tax
assets and liabilities of a change in tax rates is recognized in
income for the period that includes the enactment date.
The realization of deductible temporary differences depends on
the Company having sufficient taxable income within the carry
back period permitted by the tax law to allow for utilization of
deductible amounts. A valuation allowance has been established
for the portion of the Company's net deductible temporary
differences which are not expected to be realized.
CAPITAL ADEQUACY
Total shareholders' equity was $31,134,000 at June 30, 1997,
which represents an increase of $1,903,000, or 6.5% from
$29,231,000 at December 31, 1996. Shareholders' equity increased
primarily as a result of $1,977,000 in retained earnings offset
by dividends of $251,000.
At June 30, 1997, the Company and its banking subsidiary
exceeded the minimum guidelines for Tier 1 and Total Risk-Based
Capital of 4% and 8%, respectively. The Company's ratios were
10.12% and 11.38% respectively, at June 30, 1997. Banking
organizations must also maintain a minimum Tier 1 Leverage Ratio
of 3% of assets, while banking organizations that are not top-
rated according to regulators' "Camels" ratings, must meet
leverage ratios of at least 100 basis points above the 3%
standard. The Company's Tier 1 Leverage Ratio at June 30, 1997
was 6.44%.
LIQUIDITY
Liquidity measures the ability to meet maturing obligations and
existing commitments, to withstand fluctuations in deposit
levels, to fund operations, and to provide for customers' credit
needs. Management carefully monitors its liquidity position and
seeks to maintain adequate liquidity to meet its needs. The
fundamental source of liquidity will continue to be deposits.
Available sources of asset liquidity include short-term
investments, loan repayments, and securities held in the
available-for-sale portfolio. Additionally, the Bank has the
ability to pledge securities to secure short-term borrowing. The
Bank is a member of the Federal Home Loan Bank which provides an
additional source of funding.
The vast majority of the assets of the Company are held by the
Bank. Dividends and cash advances to the Company from the Bank
are subject to standard bank regulatory constraints. An analysis
of projected expenses and cash flows indicates that the Company
has sufficient cash to meet its anticipated cash obligations
through 1997.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
a) An Annual Meeting of Shareholders of FNB Rochester
Corp. was held May 27, 1997 for the following purpose:
1) Nine directors were elected for the ensuing year and
votes were cast as follows:
<TABLE>
<CAPTION>
Votes Broker Other
Name For Withheld Abstain Against Non-Vote Non-Vote
____ _____ ________ _______ _______ ________ ________
<S> <C> <C> <C> <C> <C> <C>
R. Carlos 3,066,467 6,776 0 0 0 0
Carballada
Michael J. 3,067,480 5,763 0 0 0 0
Falcone
Gail C. 3,066,771 6,472 0 0 0 0
Johnston
Joseph M. 3,066,555 6,688 0 0 0 0
Lobozzo II
Francis T. 3,067,615 5,628 0 0 0 0
Lombardi
Carl R. 3,063,251 9,992 0 0 0 0
Reynolds
H. Bruce 3,064,767 8,476 0 0 0 0
Russell
James D. 3,065,526 7,717 0 0 0 0
Ryan
Linda 3,060,337 12,906 0 0 0 0
Cornell
Weinstein
</TABLE>
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits
Exhibit Incorporation by
Reference or page in
sequential numbering
where exhibit may be
found:
(3.1) Certificate of Exhibits 4.2-4.5 to
Incorporation as Registration Statement
amended, of the Registrant No. 33-7244, filed July
22, 1986
(3.2) Amendment to Exhibit 3 to Form 10-Q
Certificate of for period ended
Incorporation of Registrant June 30, 1992
dated August 6, 1992
(3.3) By-laws of the Exhibit 3.3 to Annual
Registrant, as Report on Form 10-K
amended for the year ended
December 31, 1992
(10.1) Residential Mortgage Page 19
Loan Agreement between
Stacy C. Campbell and First
National Bank of Rochester
(27) Financial Data Page 44
Schedule
(b) Reports on Form 8-K:
None
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
FNB ROCHESTER CORP.
Date August 8, 1997 s\s Stacy C. Campbell
_____________________
Stacy C. Campbell
Senior Vice President and
Chief Financial Officer
(Principal Financial Officer
and Duly Authorized Officer)
<PAGE>
INDEX OF EXHIBITS
Exhibit Incorporation by
Reference or page in
sequential numbering
where exhibit may be
found:
(3.1) Certificate of Exhibits 4.2-4.5 to
Incorporation as amended, of Registration Statement
the Registrant. No. 33-7244, filed July
22, 1986
(3.2) Amendment to Exhibit 3 to Form 10-Q
Certificate of Incorporation for period ended June 30,
of Registrant dated August 1992
6, 1992
(3.3) By-laws of the Exhibit 3.3 to Annual
Registrant, as amended. Report on Form 10-K for
the year ended December
31, 1992
(10.1) Residential Mortgage Page 19
Loan Agreement between Stacy
C. Campbell and First
National Bank of Rochester
(27) Financial Data Schedule Page 44
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 20,764
<INT-BEARING-DEPOSITS> 1,089
<FED-FUNDS-SOLD> 5,600
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 106,975
<INVESTMENTS-CARRYING> 27,235
<INVESTMENTS-MARKET> 27,057
<LOANS> 320,875
<ALLOWANCE> 5,501
<TOTAL-ASSETS> 492,275
<DEPOSITS> 453,861
<SHORT-TERM> 3,955
<LIABILITIES-OTHER> 3,115
<LONG-TERM> 210
0
0
<COMMON> 3,581
<OTHER-SE> 27,553
<TOTAL-LIABILITIES-AND-EQUITY> 492,275
<INTEREST-LOAN> 13,645
<INTEREST-INVEST> 3,983
<INTEREST-OTHER> 207
<INTEREST-TOTAL> 17,835
<INTEREST-DEPOSIT> 7,858
<INTEREST-EXPENSE> 7,920
<INTEREST-INCOME-NET> 9,915
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 8,640
<INCOME-PRETAX> 2,916
<INCOME-PRE-EXTRAORDINARY> 1,977
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,977
<EPS-PRIMARY> 0.53
<EPS-DILUTED> 0.53
<YIELD-ACTUAL> 4.54
<LOANS-NON> 2,244
<LOANS-PAST> 388
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 5,696
<CHARGE-OFFS> 328
<RECOVERIES> 133
<ALLOWANCE-CLOSE> 5,501
<ALLOWANCE-DOMESTIC> 5,501
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
ADJUSTABLE RATE NOTE
(3 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.
MAY 30, 1997 ROCHESTER NEW YORK
(City) (State)
604 BEACH AVENUE, ROCHESTER, NEW YORK 14612
(Property Address)
1. BORROWER'S PROMISE TO PAY
In return for a loan that I have received, I promise to pay
U.S. $166,250.00 (this amount is called "principal"), plus
interest, to the order of the Lender. The Lender is FIRST
NATIONAL BANK OF ROCHESTER. 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 6.875%. 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 payments every
month.
I will make by monthly payments on the 1st day of each month
beginning on JULY 1, 1997. 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. My
monthly payments will be applied to interest before principal.
If, on JUNE 1, 2027, 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 35 STATE STREET,
ROCHESTER, NEW YORK 14614 or at a different place if required by
the Note Holder.
(B) Amount of Monthly Payments
Each of my initial monthly payments will be in the amount of
U.S. $1,092.15. 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.
MULTISTATE ADJUSTABLE RATE NOTE 3 YEAR ARM- Single Family -
Fannie Mae/Freddie Max Uniform Instrument Form 3504 7/88
4. INTEREST RATE AND MONTHLY PAYMENT CHANGES
(A) Change Dates
The interest rate I will pay may change on the first day of
JUNE, 2000, and on that day every 36th month thereafter. Each
date on which my interest rate could change is called a "Change
Date".
(B) The Index
Beginning with the first Change Date, my interest rate will
be based on an Index. The "Index" is the weekly average yield on
United States Treasury securities adjusted to a constant maturity
of 3 years, as made available by the Federal Reserve Board. The
most recent Index figure available as of the date 45 days before
each Change Date is called the "Current Index".
If the Index is no longer available, the Note Holder will
choose a new index that is based upon comparable information.
The Note Holder will give me notice of this choice.
(C) Calculation of Changes
Before each Change Date, the Note Holder will calculate my
new interest rate by adding two and eight hundred seventy-five
thousandths percentage points (2.875%) to the Current Index. The
Note Holder will then round the result of this addition to the
nearest one-eighth of one percent 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 Holder will then determine the amount of the
monthly payment that would be sufficient to repay the unpaid
principal that I am expected to owe at the Change Date in full on
the maturity date at my new interest rate 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 interest rate I am required to pay at the first Change
Date will not be greater than 8.875% or less than 4.875%.
Thereafter, my interest rate will never be increased or decreased
on any single Change Date by more than two percentage points
(2.0%) from the rate of interest I have been paying for the
preceding 36 months. My interest rate will never be greater than
11.875%.
(E) Effective Date of Changes
My new interest rate will become effective on each Change
Date. I will pay the amount of my new monthly payment beginning
on the first monthly payment date after the Change Date until the
amount of my monthly payment changes again.
(F) Notice of Changes
The Note Holder will deliver or mail to me a notice of any
changes in my interest rate and the amount of my monthly payment
before the effective date of any change. The notice will include
information required by law to be given me and also the title and
telephone number of a person who will answer any question I may
have regarding the notice.
5. BORROWER'S RIGHT TO PREPAY
I have the right to make payments of principal at any time
before they are due. A payment of principal only is known as a
"prepayment". When I make a prepayment, I will tell the Note
Holder in writing that I am doing so.
I may make a full prepayment or partial prepayments without
paying any prepayment charge. The Note Holder will use all of my
prepayments to reduce the amount of principal that I owe under
this Note. If I make a partial prepayment, there will be no
changes in the due date of my monthly payment 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 so that the interest or
other loan charges collected or to be collected in connection
with this loan exceed the permitted limits, then: (i) any such
loan charge shall be reduced by the amount necessary to reduce
the charge to the permitted limit; and (ii) any sums already
collected from me which exceeded permitted limits will be
refunded to me. The Note Holder may choose to make this refund
by reducing the principal I owe under this Note or by making a
direct payment to me. If a refund reduces principal, the
reduction will be treated as a partial prepayment.
7. BORROWER'S FAILURE TO PAY AS REQUIRED
(A) Late Charge for Overdue Payments
If the Note Holder has not received the full amount of any
monthly payment by the end of 15 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 2.00% of my overdue payment of principal
and interest. I will 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 Holder may 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 which has not been paid and all of
the interest that I owe on that amount. That date must be at
least 30 days after the date on which the notice is delivered or
mailed to me.
(D) No Waiver By Note Holder
Even if, at a time which 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 and Expenses
If the Note Holder has required me to pay immediately in
full as described above, the Note Holder will have the right to
be paid back by me for all its costs and expenses in enforcing
this Note to the extent not prohibited by applicable law. Those
expenses include, for example, reasonable attorneys' fees.
8. GIVING OF NOTICES
Unless applicable law requires a different method, any
notice that must be given to me under this 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.
Any notice that must be given to the Note Holder under this
Note will be given by mailing it by first class mail to the Note
Holder at the address stated in Section 3(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 promise to pay the full amount owed.
Any person who is a guarantor, surety or endorser of this Note is
also obligated to do these things. Any person who takes over
these 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 Holder may enforce its
right under this Note against each person individually or against
all of 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 right to require the Note Holder to
demand payment of amounts due. "Notice of dishonor" means the
right to require the Note Holder to give notice to other persons
that amounts due have not been paid.
11. UNIFORM SECURED NOTE
This Note is a uniform instrument with limited variations in
some jurisdictions. In addition to the protections given to the
Note Holder under this Note, a Mortgage, Deed of Trust or
Security Deed (the "Security Instrument"), dated the same date as
this Note, protects the Note Holder from possible losses which
might result if I do not keep the promises which I make in this
Note. That Security Instrument describes how and under what
conditions I may be required to make immediate payment in full of
all amounts I owe under this Note. Some of those conditions are
described as follows:
Transfer of the Property or a Beneficial Interest in
Borrower. If all or any part of the Property or any interest in
it is sold or transferred (or if a beneficial interest in
Borrower is sold or transferred and Borrower is not a natural
person) without Lender's prior written consent, Lender may, at
its option, require immediate payment in full of all sums secured
by this Security Instrument. However, this option shall not be
exercised by Lender if exercise is prohibited by federal law as
of the date of this Security Instrument. Lender also shall not
exercise this option if:(a) Borrower causes to be submitted to
Lender information required by Lender to evaluate the intended
transferee as if a new loan were being made to the transferee;
and (b) Lender reasonably determines that Lender's security will
not be impaired by the loan assumption and that the risk of a
breach of any 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 may also require the transferee to sign an
assumption agreement that is acceptable to Lender and that
obligates the transferee to keep all the promises and agreements
made in the Note and in this Security Instrument. Borrower will
continue to be obligate under this 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 Borrower notice of acceleration. The
notice shall provide a period of not less than 30 days from the
date the notice is delivered or mailed within which Borrower must
pay all sums secured by this Security Instrument. 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.
WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED.
s/ Stacy C. Campbell (Seal)
_________________________
STACY C. CAMPBELL -Borrower
s/ Judith A. Campbell (Seal)
_________________________
JUDITH A. CAMPBELL -Borrower
<PAGE>
ADDENDUM TO ADJUSTABLE RATE NOTE
(FIXED INTEREST RATE CONVERSION OPTION)
This Addendum is made this 30th day of May, 1997, and is
incorporated into, amends and modifies the Adjustable Rate Note
(the "Note") by the undersigned (the "Borrower") to FIRST
NATIONAL BANK OF ROCHESTER (the "Lender") and dated the same date
as this Addendum.
A. INTEREST
The last sentence of Section 2 of the Note is deleted, and
the following sentence is added in its place:
The interest rate required by this Section 2 and either
Section 4 of the Note or Section B of this Addendum and the
Addendum to the Adjustable Rate Rider is the interest rate I will
pay both before and after any default described in Section 7(b)
of this Note.
B. FIXED INTEREST RATE CONVERSION OPTION
1. Option to Convert to Fixed Rate
I have a "conversion Option" which I can exercise unless I
am in default or the terms of this Section B will not permit me
to do so. The Conversion Option is my option to convert the
interest rate I am required to pay by this Note from an
adjustable rate with interest rate limits to the fixed rate
calculated under Section 3 below.
Upon my notification to the Lender that I want to convert my
interest rate, I have exercised My Conversion Option. The date
of my notification is the "Election Date". I may exercise the
Conversion Option only once and only during the period beginning
with my thirteenth (13th) full monthly payment of principal and
interest and ending on the fifth (5th) anniversary of the date of
Note ("Conversion Period").
2. Conditions of Conversion Option
The Lender may approve the Conversion if the following
conditions are met: (i) I must exercise my Conversion Option by
notifying the Lender of my desire to convert; (ii) I may not have
been in default at any time in the 12 months preceding the
Election Date; (iii) on the Conversion Date, I must not be in
default under the Note or the Security Instrument; (iv) by a
date specified by the Lender, I must pay the Lender a conversion
fee of U.S. $250.00; (v) I must sign and postmark for return to
the Lender, all documents the Lender requires in order to process
the conversion request, within (10) calendar days of the date on
which the Lender sent me the Conversion Package containing all
such documents; (vi) I must qualify for the outstanding principal
balance owed to the Lender based upon the Lender's then existing
policy and underwriting standards for converted fixed rate loans;
and (vii) the property must be occupied by me as my primary or
secondary residence as a legal 1-4 family residence.
3. Calculation of Fixed Rate
The Conversion Rate shall be equal to the Federal National
Mortgage Association's required net yield as of the Election Date
for:
(a) (If the original term of the Note is greater than 15
years), 30-year fixed rate mortgages covered by applicable 60-day
mandatory delivery commitments, plus either five eights of one
percent (.625%) or, plus one percent (1%) if the original
principal balance of the Note exceeds conforming balance limits
as defined by FNMA at the time of conversion.
or
(b) (If the original term of the Note is 15 years or less),
15-year fixed rate mortgages covered by applicable 60-day
mandatory delivery commitments, plus either five-eights of one
percent (.625%) or, plus one percent (1%) if the original
principal balance of the Note exceeds conforming balance limits
as defined by FNMA at the time of conversion.
The Lender will then round the result of this addition to
the nearest one eighth of one percentage point (0.125%) if this
required net yield cannot be determined because the applicable
commitments are not available, the Lender will determine my
Conversion Rate by using comparable information. In no event
will the Conversion Rate exceed the Maximum Rate stated in
Section 4(D) of the Note.
To notify Lender of my desire to convert my interest rate
(exercise my Option to Convert) or to obtain information relative
to the effective interest rate(s) for converted fixed rate loans,
I must call the Lender at the following telephone number(s): 325-
6297 (within Rochester, NY), 1-800-824-5018 (all other areas
within NY State), or 1-800-843-8434 (outside of NY State).
4. Lien Priority
Even if I have satisfied all of the conditions described in
Subsections 1,2 and 3 above, the Lender must receive such title
insurance that the Lender deems to be necessary to insure the
continued first priority lien status of the Security Instrument
after the Conversion Rate becomes effective. Satisfactory title
insurance may be available only if I pay all amount(s) that may
be secured by a lien or encumbrance on the mortgaged property
that arose after the date of the Note.
5. New Payment Amount and Effective Date
If I exercise my Option to Convert, the Lender will
determine the amount of the monthly principal and interest
payment that would be sufficient to repay the unpaid principal
balance that I am expected to owe on the Conversion Date in full
on the maturity date at the Conversion Rate in substantially
equal monthly payments. The result of this calculation will be
the new amount of my monthly principal and interest payment. The
"Conversion Date" shall be the effective date of the Conversion
Rate and will be set forth in the modification agreement that the
Lender and I will execute. The Conversion Date will no later
than the first day of the third month following the Election
Date.
C. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN
BORROWER
Paragraph 11 of the Note is deleted and the following is
inserted in its place:
11. Uniform Secured Note. This Note is a uniform
instrument with limited variation in some jurisdictions. In
addition to the protections given to the Note Holder under this
Note, a Mortgage, Deed of Trust or Security Deed (the "Security
Instrument") dated the same date of this Note, protects the Note
Holder from possible losses which might result if I do not keep
the promises which I make in this Note. That Security Instrument
describes how and under what conditions I may be required to make
immediate payment in full of all amounts I owe under this Note.
Some of those conditions are described as follows:
(a) Unless my interest rate is converted pursuant to the
condition stated in Section B of the Addendum of the Note,
Uniform Covenant 17 of the Security Instrument is described as
follows:
Transfer of the Property or a Beneficial Interest in
Borrower. If all or any part of the property or any interest in
it is sold or transferred (or if a beneficial interest in
Borrower is sold or transferred and Borrower is not a natural
person) without Lender's prior written consent, Lender may, at
its option, require immediate payment in full of all sums secured
by this Security Instrument. However, this option shall not be
exercised by Lender if exercise is prohibited by federal law as
of the date of this Security Instrument. Lender also shall not
exercise this option if: (a) Borrower causes to be submitted to
Lender information required by Lender to evaluate the intended
transferee as if a new loan were being made to the transferee;
and (b) Lender reasonable determines that Lenders security will
not be impaired by the loan assumption and that the risk of a
breach of any covenant or agreement in this Security Instrument
is acceptable to Lender.
To the extent permitted by applicable law, Lender may charge
a reasonable feet as a condition to Lenders consent to the loan
assumption. Lender may also require the transferee to sign an
assumption agreement that is acceptable to Lender and that
obligates the transferee to keep all 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 release Borrower in writing.
If Lender exercises the option to require immediate payment
in full, Lender shall give Borrower notice of acceleration. The
notice shall provide a period of not less than 30 days from the
date the notice is delivered or mailed within which Borrower must
pay all sums secured by this Security Instrument without further
notice or demand on Borrower.
(b) If the interest rate I am required to pay under this
Note is converted to a fixed rate of interest pursuant to the
terms and conditions stated in Section B in the Addendum to the
Note, Uniform Covenant 17 of the Security Instrument described in
Section (11a) above, shall then cease to be in effect and Uniform
Covenant 17 of the Security Instrument shall instead be described
as follows:
Transfer of the Property or a Beneficial Interest in
Borrower, if all or any part of the Property or any interest in
it is sold or transferred (or if a beneficial interest in
Borrower is sold or transferred and Borrower is not a natural
person) without Lender's prior written consent, Lender may, at
its option, require immediate payment in full of all sums secured
by this Security Instrument. However, this option shall not be
exercised by Lender if exercise is prohibited by federal law as
of the date of this Security Instrument.
If Lender exercises this option Lender shall give Borrower
notice of acceleration. This Notice shall provide a period of
not less than 30 days from the date the notice is delivered or
mailed within which Borrower must pay all sums secured by this
Security Instrument. 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.
By SIGNING BELOW, Borrower accepts and agrees to the terms
and covenants contained in this Addendum to the Note.
s/ Stacy C. Campbell
_______________________
STACY C. CAMPBELL Borrower
s/ Judith A. Campbell
________________________
JUDITH A. CAMPBELL Borrower
3232\3233 Note Add. 3-92
<PAGE>
PLEASE RECORD & RETURN TO:
FIRST NATIONAL BANK OF ROCHESTER
35 State Street
Rochester, New York 14614
Attn: Pat Falkoff
---------(Space Above This Line For Recording Data)--------------
MORTGAGE
WORDS USED OFTEN IN THIS DOCUMENT
(A) "Security Instrument". This document, which is dated May
30, 1997, will be called the "Security Instrument".
(B) "Borrower". STACY C. CAMPBELL and JUDITH A. CAMPBELL
sometimes will be called "Borrower" and sometimes simply "I" or
"me".
(C) "Lender". First National Bank of Rochester
will be called "Lender". Lender is a corporation or association
which exists under the laws of the United States of America.
Lender's address is 35 State Street, Rochester, New York 14614
(D) "Note". The note signed by Borrower and dated May 30, 1997,
will be called the "Note." The Note shows that I owe Lender ONE
HUNDRED SIXTY-SIX THOUSAND TWO HUNDRED FIFTY and 00/100 Dollars
(U.S. $166,250.00) plus interest. I have promised to pay this
debt in monthly payments and to pay the debt in full by June 1,
2027.
(E) "Property". The property that is described below in the
section titled "Description of the Property", will be called the
"Property".
(F) "Sums Secured". The amounts described below in the section
titled "Borrower's Transfer to Lender of Rights in the Property"
sometimes will be called the "Sums Secured".
BORROWER'S TRANSFER TO LENDER OF RIGHTS IN THE PROPERTY
I mortgage, grant and convey the Property to Lender subject to
the terms of this Security Instrument. This means that, by
signing this Security Instrument, I am giving Lender those rights
that are stated in this Security Instrument and also those rights
that the law gives to Lenders who hold mortgages on real
property. I am giving Lender these rights to protect Lender from
possible losses that might result if I fail to:
(A) Pay all the amounts that I owe Lender as stated in this Note;
(B) Pay, with interest, any amounts that Lender spends under
Paragraphs 2 and 7 of this Security Instrument to protect the
value of the Property and Lender's rights in the Property; and
(C) Keep all of my other promises and agreements under this
Security Instrument;
NEW YORK--Single Family-- Fannie Mae/Freddie Mac UNIFORM
INSTRUMENT form 3033 10/91
Item 1930 (9111)
DESCRIPTION OF PROPERTY
I give Lender rights in the Property described in (A) through (G)
below:
(A) The Property which is located at 604 Beach Avenue
[Street]
Rochester, New York 14612 This property is in
[City] [Zip Code]
MONROE County. It has the following legal description:
SEE SCHEDULE "A" ATTACHED HERETO AND MADE A PART HEREOF.
Mortgagors covenant that the within described premises is a
dwelling or residence for not more than two families.
(B) All buildings and other improvements that are located on the
Property described in subparagraph (A) of this section;
(C) All rights in other property that I have as owner of the
Property described in subparagraph (A) of this section. These
rights are known as "easements and appurtenances attached to the
Property";
(D) All rights that I have in the land which lies in the streets
or roads in front of, or next to, the Property described in
subparagraph (A) of this section;
(E) All fixtures that are now or in the future will be on the
Property described in subparagraph (A) and (B) of this section;
(F) All of the rights and property described in subparagraphs (B)
through (E) of this section that I acquire in the future; and
(G) All replacements of or additions to the Property described in
subparagraphs (B) through (F) of this section.
BORROWERS' RIGHT TO MORTGAGE THE PROPERTY AND BORROWER'S
OBLIGATION TO DEFEND OWNERSHIP OF THE PROPERTY
I promise that: (A) I lawfully own the Property; (B) I have the
right to mortgage, grant and convey the Property to Lender; and
(C) there are not outstanding claims or charges against the
Property, except for those which are of public record.
I give a general warranty of title to Lender. This means that I
will be fully responsible for any losses which Lender suffers
because someone other than myself has some of the rights in the
Property which I promise that I have. I promise that I will
defend my ownership of the Property against any claims of such
rights.
PLAIN LANGUAGE SECURITY INSTRUMENT
This Security Instrument contains promises and agreements that
are used in real property security instruments all over the
country. It also contains other promises and agreements that
vary, to a limited extent, in different parts of the country. My
promises and agreements are stated in "plain language".
COVENANTS
I promise and I agree with Lender as follows:
1. BORROWER'S PROMISE TO PAY
I will pay to Lender on time principal and interest due under the
Note and any prepayment and late charges due under the Note.
2. MONTHLY PAYMENTS FOR TAXES AND INSURANCE
(A) Borrower's Obligation
I will pay to Lender all amounts necessary to pay for taxes,
assessments, water frontage charges and other similar charges,
sewer rents, leasehold payments or ground rents (if any), hazard
or property insurance covering the Property, and flood insurance
(if any). If Lender required mortgage insurance as a condition
of making the loan that I promise to pay under the Note, (i) I
also will pay to Lender all amounts necessary to pay for mortgage
insurance, and (ii) if, under Paragraph 8 below, instead of
paying for mortgage insurance I am required to pay Lender an
amount equal to the cost of mortgage insurance, I will pay this
amount to Lender. I will pay all of these amounts to Lender
unless Lender tells me, in writing, that I do not have to do so,
or unless the law required otherwise. I will make these payments
on the same day that my monthly payments of principal and
interest are due under the Note.
My payments under this Paragraph 2 will be for the items listed
in (i) through (iv) below, which are called "Escrow Items":
(i) The estimated yearly taxes, assessments, water frontage
charges and other similar charges, and sewer rents on the
Property which under the law may be superior to this Security
Instrument as a lien on the Property. Any claim, demand or
charge that is made against Property because an obligation has
not been fulfilled is known as a "lien".
(ii) The estimated yearly leasehold payments or ground rents on
the Property (if any);
(iii) The estimated yearly premium for hazard or property
insurance covering the Property:
(iv) The estimated yearly premium for flood insurance covering
the Property (if any);
(v) The estimated yearly premium for mortgage insurance (if any);
and
(vi) The estimated yearly amount I may be required to pay Lender
under Paragraph 8 below instead of the payment of the estimated
yearly premium for mortgage insurance (if any).
Lender will estimate from time to time the amount I will have to
pay for Escrow Items by using existing assessments and bills and
reasonable estimates of the amount I will have to pay for Escrow
Items in the future, unless the law requires Lender to use
another method for determining the amount I am to pay. The
amounts that I pay to Lender for Escrow Items under this
Paragraph 2 will be called the "Funds". The Funds are pledged as
additional security for all Sums Secured.
The law puts limits on the total amount of Funds Lender can at
any time collect and hold. This total amount cannot be more than
the maximum amount a lender for a "federally related mortgage
loan" could require me to place in an "escrow account" under the
federal law called the "Real Estate Settlement Procedures Act of
1974", as that law may be amended from time to time. If there is
another law that imposes a lower limit on the total amount of
Funds Lender can collect and hold, Lender will be limited to the
lower amount.
(B) Lender's Obligation
Lender will keep the Funds in a savings or banking institution
which has its deposits insured by a federal agency,
instrumentality, or entity, or in any Federal Home Loan Bank. If
Lender is such a savings or banking institution, Lender may hold
the Funds. Except as described in this Paragraph 2, Lender will
use the Funds to pay the Escrow Items. Lender will give to me,
without charge, an annual accounting of the Funds. That
accounting must show all additions to and deductions from the
Funds and the reason for each deduction.
Lender may not charge me for holding or keeping the Funds, for
using the Funds to pay Escrow Items, for making a yearly analysis
of my payment of Funds or for receiving, verifying and totaling
assessments and making a yearly analysis of my payments of Funds
or fore receiving, verifying and totaling assessments and bills.
However, Lender may charge me for the services if Lender pays me
interest on the Funds and if the law permits Lender to make such
a charge. Lender also may require me to pay a one-time charge
for an independent real estate tax reporting service used by
Lender in connection with my loan, unless the law does not permit
Lender to make such a charge. Lender will not be required to pay
me any interest or earnings on the Funds unless either (i) Lender
and I agree in writing, at the time I sign this Security
Instrument, that Lender will pay interest on the Funds; or (ii)
the law requires Lender to pay interest on the Funds.
(C) Adjustments to the Funds
Under the law, there is a limit on the amount of Funds Lender may
hold. If the amount of Funds held by Lender exceeds this limit,
then the law requires Lender to account to me in a special manner
for the excess amount of Funds. There will be an excess amount
if, at any time, the amount of Funds which Lender is holding or
keeping is greater than the amount of Funds Lender is allowed to
hold under the law.
If, at any time, Lender has not received enough Funds to make the
payments of Escrow Items when the payments are due, Lender may
tell me in writing that an additional amount is necessary. I
will pay to Lender whatever additional amount is necessary to pay
the Escrow Items in full. Lender will determine the number of
monthly payments I have in which to pay that additional amount,
but the number of payments will not be more than twelve.
When I have paid all of the Sums Secured, Lender will promptly
refund to me any Funds that are then being held by Lender. If
under Paragraph 21 below, Lender either acquires or sells the
Property, then before the acquisition or sale, Lender will use
any Funds which Lender is holding at the time of the acquisition
or sale to reduce the Sums Secured.
3. APPLICATION OF BORROWER'S PAYMENTS
Unless the law requires otherwise, Lender will apply each of my
payments under the Note and under Paragraphs 1 and 2 above in the
following order and for the following purposes:
First, to pay any prepayment charges due under the Note;
Next, to pay amounts due to Lender under Paragraph 2 above;
Next, to pay interest due;
Next, to pay principal due; and
Last, to pay any late charges due under the Note.
4. BORROWER'S OBLIGATION TO PAY CHARGES, ASSESSMENTS AND CLAIMS
I will pay taxes, assessments, water frontage charges and other
similar charges, sewer rents, and any other charges and fines
that may be imposed on the Property and that may be superior to
this Security Instrument. I will also make payments due under my
lease if I am a tenant on the Property and I will pay ground
rents (if any) due on the Property. I will do this either by
making the payments to Lender that are described in Paragraph 2
above or, if I am not required to make payments under Paragraph
2, by making the payments on time to the person owned them. (In
this Security Instrument, the word "person" means any person,
organization, governmental authority or other party). If I make
direct payments, then promptly after making any of those payments
I will give Lender a receipt which shows that I have done so. If
I make payment to Lender under Paragraph 2, I will give Lender
all notices or bills that I receive for the amounts due under
this Paragraph 4.
I will promptly pay or satisfy all liens against the Property
that may be superior to this Security Instrument. However, this
Security Instrument does not require me to satisfy a superior
lien if: (A) I agree, in writing, to pay the obligation which
gave rise to the superior lien and Lender approves the way in
which I agree to pay that obligation; or (B) in good faith, I
argue or defend against the superior lien in a lawsuit so that,
during the lawsuit , the superior lien may not be enforced; or
(C) I secure from the holder of that other lien an agreement,
approved in writing by Lender, that the lien of this Security
Instrument is superior to the lien held by that person. If
Lender determines that any part of the Property is subject to a
superior lien, Lender may give Borrower a notice identifying the
superior lien. Borrower shall pay or satisfy the superior lien
or take one or more of the actions set forth above within 10 days
of the giving of notice.
5. BORROWER'S OBLIGATION TO MAINTAIN HAZARD INSURANCE OR
PROPERTY INSURANCE
I will obtain hazard or property insurance to cover all buildings
and other improvements that now are or in the future will be
located on the Property. The insurance must cover loss or damage
caused by fire, hazards normally covered by "extended coverage"
hazard insurance policies and other hazards for which Lender
requires coverage, including floods and flooding. The insurance
must be in the amounts and for the periods of time required by
Lender. I may choose the insurance company, but my choice is
subject to Lender's approval. Lender may not refuse to approve
my choice unless the refusal is reasonable. If I do not maintain
the insurance coverage described above, Lender may obtain
insurance coverage to protect Lender's rights in the property in
accordance with paragraph 7 below.
All of the insurance policies and renewals of those policies must
include what is known as a "standard mortgage clause" to protect
Lender. The form of all policies and renewals must be acceptable
to Lender. Lender will have the right to hold the policies and
renewals. If Lender requires, I will promptly give Lender all
receipts of paid premiums and renewals notices that I receive.
If there is a loss or damage to the Property, I will promptly
notify the insurance company and Lender. If I do not promptly
prove to the insurance company that the loss or damage occurred,
then Lender may do so.
The amount paid by the insurance company is called "proceeds".
The proceeds will be used to repair or to restore the damages
Property unless: (A) if is not economically feasible to make the
repairs or to restoration; or (B) the use of the proceeds for
that purpose would lessen the protection given to Lender by this
Security Instrument; or (C) Lender and I have agreed in writing
not to use the proceeds for that purpose. If the repair or
restoration is not economically feasible or if it would lessen
Lender's protection under this Security Instrument, then the
proceeds will be used to reduce the amount that I owe to Lender
under the Note and under this Security Instrument. If any of the
proceeds remain after the amount that I owe to Lender has been
paid in full, the remaining proceeds will be paid to me.
If I abandon the Property, or if I do not answer, within 10 days,
a notice from Lender stating that the insurance company has
offered to settle a claim, Lender may collect the proceeds.
Lender may use the proceeds to repair or restore the Property or
to pay the Sums Secured. The 3-day period will begin when the
notice is given.
If any proceeds are used to reduce the amount of principal which
I owe to Lender under the Note, that use will not delay the due
date or change the amount of any of my monthly payments under the
Note and under Paragraphs 1 and 2 above. However, Lender and I
may agree in writing to those delays or changes.
If Lender acquires the Property under Paragraph 21 below, all of
my rights in the insurance policies will belong to Lender. Also,
all of my rights in any proceeds which are paid because of damage
occurred before the property is acquired by Lender or sold will
belong to Lender. However, Lender's rights in those proceeds will
not be greater than the Sums Secured immediately before the
Property is acquired by Lender or sold.
6. BORROWER'S OBLIGATION TO OCCUPY THE PROPERTY, TO MAINTAIN AND
PROTECT THE PROPERTY, AND TO FULFILL ANY LEASE OBLIGATIONS;
BORROWER'S LOAN APPLICATION
(A) Borrower's Obligations to Occupy the Property
I will occupy the Property and use the Property as my principal
residence within sixty days after I sign this Security
Instrument. I will continue to occupy the Property and to use
the Property as my principal residence for at least one year.
The one-year period will begin when I first occupy the Property.
However, I will not have to occupy the Property and use the
Property as my principal residence within the time frames set
forth above if Lender agrees in writing that I do not have to do
so. Lender may not refuse to agree unless the refusal is
reasonable. I also will not have to occupy the Property and use
the Property as my principal residence within the time set forth
above if extenuating circumstances exist which are beyond by
control.
(B) Borrower's Obligations to Maintain and Protect the Property]
I will keep the Property in good repair. I will not destroy,
damage or harm the Property, and I will not allow the Property to
deteriorate.
I will be "in default" under this Security Instrument if I fail
to keep any promise or ruling agreement made in this Security
Instrument. I also will be in default under this Security
Instrument if any civil or criminal action or proceeding for
"forfeiture" (that is, a legal action or proceeding to require
the Property, or any part of the Property, to be given up) is
begun and Lender determines, in good faith, that this action or
proceeding could result in a court ruling (i) that would require
forfeiture of the Property or (ii) that would materially impair
the lien of the Security Instrument or Lender's rights in the
Property. I may correct the default by obtaining a court ruling
that dismisses the legal action or proceeding, if Lender
determines, in good faith, that this court ruling prevents
forfeiture of my interests in the Property and also prevents any
material impairment of (i) the lien created by this Security
Instrument or (ii) Lender's rights in the Property. If I correct
the default, I will have the right to have enforcement of this
Security Instrument discontinued, as provided in Paragraph 18
below, even if Lender has required immediate payment in full.
(C) Borrower's Obligation to Fulfill Any Lease Obligations
If I do not own but am a tenant on the Property, I will fulfill
all my obligations under my lease. I also agree that, if I
acquire the fee title to the Property, my lease interest and the
fee title will not merge unless Lender agrees to the merger in
writing.
(D) Borrower's Loan Application
If, during the application process for the loan that I promise to
pay under the Note, I made false or inaccurate statements to
Lender about information important to Lender in determining my
eligibility for the loan, Lender will treat my actions as a
default under this Security Instrument. False or inaccurate
statements about information important to the Lender would
include a misrepresentation of my intentions to occupy the
Property as a principal residence. This is just one example of a
false or inaccurate statement of important information. Also, if
during the loan application process I failed to provide Lender
with information important to Lender in determining my
eligibility for the loan, Lender will treat this as a default
under this Security Instrument.
7. LENDER'S RIGHT TO PROTECT ITS RIGHTS IN THE PROPERTY
If: (A) I do not keep my promises and agreements made in this
Security Instrument, or (B) someone, including me, brings an
legal proceeding that m may significantly affect Lender's rights
in the property (such as a legal proceeding in bankruptcy, in
probate, for condemnation or forfeiture, or to enforce laws or
regulations), Lender may do and pay for whatever is necessary to
protect the value of the Property and Lender's rights in the
Property. Lender's actions may include appearing in court,
paying reasonable attorneys' fees and entering on the Property to
make repairs. Although Lender may take action under this
Paragraph 7, Lender does not have to do so.
I will pay to Lender any amounts, with interest, which Lender
spends under this Paragraph 7. I will pay those amounts to
Lender when Lender sends me a notice requesting that I do so. I
will also pay interest on those amounts at the Note rate.
Interest on each amount will begin on the date that the amount is
spent by Lender. However, Lender and I may agree in writing to
terms of payment that are different from those in this paragraph.
This Security Instrument will protect Lender in case I do not
keep this promise to pay those amounts with interest.
8. MORTGAGE INSURANCE
If Lender required mortgage insurance as a condition of making
the loan I promise to pay under the Note, I will pay the premiums
for the mortgage insurance. If, for any reason, the mortgage
insurance coverage lapses or ceases to be in effect, I will pay
the premiums for substantially equivalent mortgage insurance
coverage. However, the cost of this mortgage insurance coverage
must be substantially equivalent to the cost to me of the
previous mortgage insurance coverage, and the alternate mortgage
insurer must be approved by Lender.
If substantially equivalent mortgage coverage is not available,
Lender will establish a "loss reserve" as a substitute for the
mortgage insurance coverage. I will pay to Lender each month an
amount equal to one-twelfth of the yearly mortgage insurance
premium (as of the time the coverage lapsed or ceased to be in
effect). Lender will retain these payments, and will use these
payments to pay for losses that the mortgage insurance would have
covered. Lender may choose to no longer require loss reserve
payments, if mortgage insurance coverage again becomes available
and is obtained. The mortgage insurance coverage must be in the
amount and for the period of time required by Lender. The Lender
must approve the insurance company providing coverage.
I will pay the mortgage insurance premiums, or the loss reserve
payments, until the requirement for mortgage insurance ends
according to my written agreement with Lender or according to
law. Lender may require me to pay the premiums, or the loss
reserve payments, in the manner described in Paragraph 2 above.
9. LENDER'S RIGHT TO INSPECT THE PROPERTY
Lender, and others authorized by Lender, may enter on and inspect
the Property. They must do so in a reasonable manner and at
reasonable times. Before or at the time an inspection is made,
Lender must give me notice stating a reasonable purpose for the
inspection.
10. AGREEMENTS ABOUT CONDEMNATION OF THE PROPERTY
A taking of property by any governmental authority by eminent
domain is known as "condemnation". I give to Lender my right:
(A) to proceeds of all awards or claims for damages resulting
from condemnation or other governmental taking of the Property;
and (B) to proceeds from a sale of the Property that is made to
avoid condemnation. All of those proceeds will be paid to
Lender.
If all of the Property is taken, the proceeds will be used to
reduce the Sums Secured. If any of the proceeds remain after the
amount that I owe to Lender has been paid in full, the remaining
proceeds will be paid to me.
Unless Lender and I agree otherwise in writing, if only a part of
the Property is taken, and the fair market value of the Property
immediately before the taking either is equal to, or greater
than, the amount of the Sums Secured immediately before the
taking, the amount that I owe the Lender will be reduced only by
the amount of proceeds multiplied by a fraction; That fraction
is as follows: (A) the total amount of the Sums Secured
immediately before the taking, divided by (B) the fair market
value of the Property immediately before the taking. The
remainder of the proceeds will be paid to me.
Unless Lender and I agree otherwise in writing or unless the law
requires otherwise, if only a part of teh Property is taken, and
the fair market value of the Property immediately before the
taking is less than the amount of teh Sums Secured immediately
before the taking, the proceeds will be used to reduce the Sums
Secured.
If I abandon the Property, or is I do not answer, within 30 days,
a notice from Lender stating that a governmental authority has
offered to make a payment or to settle a claim for damages,
Lender has the authority to collect the proceeds. Lender may
then use the proceeds to repair or restore the Property or to
reduce the Sums Secured. The 30-day period will begin when the
notice is given.
If any proceeds are used to reduce the amount of principal which
I owe to Lender under the Note, that use will not delay the due
date or change the amount of any of my monthly payments under the
Note and under Paragraphs 1 and 2 above. However, Lender and I
may agree in writing to those delays or changes.
11. CONTINUATION OF BORROWER'S OBLIGATION AND OF LENDER'S RIGHTS
(A) Borrower's Obligation
Lender may allow a person who takes over my rights and
obligations to delay or to change the amount of the monthly
payments of principal and interest due under the Note or under
this Security Instrument. Even if Lender does this, however,
that person and I will both still be fully obligated under the
Note and under this Security Instrument.
Lender may allow those delays or changes for a person who takes
over my rights and obligations, even if Lender is required not to
do so. Lender will not be required to bring a lawsuit against
such a person for not fulfilling obligations under teh Note or
under this Security Instrument, even if Lender is requested to do
so.
(B) Lender's Rights
Even if Lender does not exercise or enforce any right of Lender
under this Security Instrument or under the law, Lender will
still have all those rights and may exercise and enforce them in
the future. Even if Lender obtains insurance, pays taxes, or
pays other claims, charges or liens against the Property, Lender
will have the right under Paragraph 21 below to demand that I
make immediate payment in full of the amount that I owe to Lender
under the Note and under this Security Instrument.
12. OBLIGATIONS OF BORROWER AND OF PERSONS TAKING OVER
BORROWER'S RIGHTS OR OBLIGATIONS
Any person who takes over my rights or obligations under this
Security Instrument will have all of my rights and will be
obligated to keep all of my promises and agreements made in this
Security Instrument. Similarly, any person who takes over
Lender's rights or obligations under this Security Instrument
will have all of Lender's rights and will be obligated to keep
all of Lender's agreements made in this Security Instrument.
If more than one person signs this Security Instrument as
Borrower, each of us is fully obligated to keep all of Borrower's
promises and obligations contained in this Security Instrument.
Lender may enforce Lender's rights under this Security Instrument
against each of us individually or against all of us together.
This means that any one of us may be required to pay all of the
Sums Secured. However, if one of us does not sign the Note: (A)
that person is signing this Security Instrument only to give that
person's rights in the Property to Lender under the terms of this
Security Instrument; and (B) that person is not personally
obligated to pay the Sums Secured; and (C) that person agrees
that Lender may agree with the other Borrowers to delay enforcing
any of Lender's rights or to modify or make any accommodations
with regard to the terms of this Security Instrument or the Note
without the person's consent.
13. LOAN CHARGES
If the loan secured by this Security Instrument is subject to a
law which sets maximum loan charges, and that law is finally
interpreted so that the interest or other loan charges collected
or to be collected in connection with the loan exceed permitted
limits: (A) any such loan charge shall be reduced by the amount
necessary to reduce the charge to the permitted limit; and (B)
any sums already collected from Borrower which exceeded permitted
limits will be refunded to Borrower. Lender may choose to make
this refund by reducing the principal owned under the Note or by
making a direct payment to Borrower. If a refund reduces
principal, the reduction will be treated as a partial prepayment
without any prepayment charge under the Note.
14. NOTICES REQUIRED UNDER THIS SECURITY INSTRUMENT
Any notice that must be given tome under this Security Instrument
will be given by delivering it or by mailing it by first class
mail unless applicable law requires use of another method. The
notice will be addressed to me at the address stated in the
section above titled "Description of Property". A notice will be
given to me at a different address if I give Lender a notice of
my different address. Any notice that must be given to Lender
under this Security Instrument will be given by mailing it to
Lender's address stated in subparagraph (C) of the section above
titled "Words Used Often In This Document". A notice will be
mailed to Lender at a different address if Lender gives me a
notice of a different address. A notice required by this
Security Instrument is given when it is mailed or when it is
delivered according to the requirements of this Paragraph 14 or
of applicable law.
15. LAW THAT GOVERNS THIS SECURITY INSTRUMENT
This Security Instrument is governed by federal law and the law
that applies in the place where the Property is located. If any
terms of this Security Instrument or of the Note conflicts with
the law, all other terms of this Security Instrument and of the
Note will still remain in effect if they can be given effect
without the conflicting term. This means that any terms of this
Security Instrument and of the Note which conflicts with the law
can be separated from the remaining terms, and the remaining
terms will still be enforced.
16. BORROWER'S COPY
I will be given one conformed copy of the Note and of this
Security Instrument.
17. AGREEMENTS ABOUT LENDER'S RIGHTS IF THE PROPERTY IS SOLD OR
TRANSFERRED
Lender may require immediate payment in full of all Sums Secured
by this Security Instrument if all or any part of the Property,
or if any right in the Property, is sold or transferred without
Lender's prior written permission. Lender also may require
immediate payment in full if a beneficial interest in Borrower is
sold or transferred and Borrower is not a natural person.
However, Lender shall not require immediate payment in full if
this is prohibited by federal law on the date of this Security
Instrument.
If Lender requires immediate payment in full under this Paragraph
17, Lender will give me a notice which states this requirement.
The notice will give me at least 30 days to make the required
payment during that period, Lender may act to enforce its rights
under this Security Instrument without giving me any further
notice or demand for payment.
18. BORROWER'S RIGHT TO HAVE LENDER'S ENFORCEMENT OF THIS
SECURITY INSTRUMENT DISCONTINUED
Even if Lender has required immediate payment in full, I may have
the right to have enforcement of this Security Instrument
discontinued. I will have this right at any time before sale of
the Property under any power of sale granted by this Security
Instrument or any time before a judgment has been entered
enforcing this Security Instrument if I meet the following
conditions:
(A) I pay to Lender the full amount that then would be due under
this Security Instrument and the Note as if immediate payment is
full had never been required; and
(B) I correct my failure to keep any of other promises or
agreements made in this Security Instrument; and
(C) I pay all of Lender's reasonable expenses in enforcing this
Security Instrument including, for example, reasonable
attorneys's fees; and
(D) I do whatever Lender reasonably requires to assure that
Lender's rights in the Property, Lender's rights under this
Security Instrument, and my obligations under the Note and under
this Security Instrument continue unchanged.
If I fulfill all of the conditions of this Paragraph 18, then the
Note and this Security Instrument will remain in full effect as
if immediate payment in full had never been required. However, I
will not have the right to have Lender's enforcement of this
Security Instrument discontinued if Lender has required immediate
payment in full under paragraph 17 above.
19. NOTE HOLDER'S RIGHT TO SELL THE NOTE OR AN INTEREST IN THE
NOTE; BORROWER'S RIGHT TO NOTICE OF CHANGE OF LOAN SERVICER
The Note, or an interest in the Note, together with this Security
Instrument, may be sold one or more times. I may not receive any
prior notices of these sales.
The entity that collects my monthly payments due under the Note
and this Security Instrument is called the "Loan Servicer".
There may be a change of the Loan Servicer as a result of the
sale of the Note; there also may be one or more changes of the
Loan Servicer unrelated to a sale of the Note. The law requires
that I be given written notice of any change of the Loan
Servicer. The written notice must be given in the manner
required under Paragraph 14 above and under applicable law. The
notice will state the name and address of the new Loan Servicer,
and also tell me the address to which I should make my payments.
The notice also will contain any other information required by
the law.
20. CONTINUATION OF BORROWER'S OBLIGATIONS TO MAINTAIN AND
PROTECT THE PROPERTY
The federal laws and the laws of the jurisdiction where the
Property is located that relate to health, safety or
environmental protection are called "Environmental Laws". I will
not do anything affecting the Property that violates
Environmental Laws, and I will not allow anyone else to do so.
Environmental Laws classify certain substances as toxic or
hazardous. There are other substances that are considered
hazardous for purposes of this Paragraph 20. These are gasoline,
kerosene, other flammable or toxic petroleum products, toxic
pesticides and herbicides, volatile solvents, materials
containing asbestos or formaldehyde, and radioactive materials.
The substances defined as toxic or hazardous by Environmental
Laws and the substances considered hazardous for purposes of this
Paragraph 20 are called "Hazardous Substances".
I will not permit Hazardous Substances to be present on the
Property. I will not use or store Hazardous Substances on the
Property, and I will not allow anyone else to do so. I also will
not dispose of Hazardous Substances on the Property, or release
any Hazardous Substance on the Property, and I will not allow
anyone else to do so. However, I may permit the presence on the
Property of small quantities of Hazardous Substances that are
generally recognized as appropriate for normal residential use
and maintenance of the Property, and I may use or store these
small quantities on the Property. In addition, unless law
requires removal or other action. the buildings, the improvements
and the fixtures on the Property are permitted to contain
asbestos and asbestos-containing materials if the asbestos and
asbestos-containing materials are undisturbed and "non-friable"
(that is, not easily crumbled by hand pressure).
If I know of any investigation, claim, demand, lawsuit or other
action by the government or by a private party involving in the
Property and any Hazardous Substance or Environmental Laws, I
will promptly notify the Lender in writing. If the government
notifies me (or I otherwise learn) that it is necessary to remove
a Hazardous Substance affecting the Property or to take other
remedial actions, I will promptly take all necessary remedial
actions as required by Environmental Laws.
21. LENDER'S RIGHTS IF BORROWER FAILS TO KEEP PROMISES AND
AGREEMENTS
Except as provided in Paragraph 17 above, if all of the
conditions stated in subparagraphs (A), (B) and (C) of the
Paragraph 21 are met, Lender may require that I pay immediately
the entire amount remaining unpaid under the Note and under this
Security Instrument. Lender may do this without making any
further demand for payment. This requirement is called
"immediate payment in full".
If Lender requires immediate payment in full, Lender may bring a
lawsuit to take away all of my remaining rights in the Property
and have the Property sold. At this sale Lender or another
person may acquire the Property. This is known as "foreclosure
and sale". In any lawsuit for foreclosure and sale, Lender will
have the right to collect all costs and disbursements and
additional allowances allowed by law and will have the right to
add all reasonable attorneys' fees to the amount I owe Lender,
which fees shall become part of the Sums Secured.
Lender may require immediate payment in full under this Paragraph
21 only if all of the following conditions are met:
(A) I fail to keep any promise or agreement made in this Security
Instrument, including the promise to pay when due the Sums
Secured.
(B) Lender sends to me, in the manner described in Paragraph 14
above, a notice that states:
(i) The promise or agreement that I failed to keep;
(ii) The action that I must take to correct that default;
(iii) The date by which I must correct the default. That date
must be at least 30 days from the date on which the notice is
given;
(iv) That if I do not correct the default by the date stated in
the notice, Lender may require immediate payment in full, and
Lender or another person may acquire the Property by means of
foreclosure and sale;
(v) That if I meet the conditions stated in Paragraph 18 above, I
will have the right to have Lender's enforcement of this Security
Instrument discontinued and to have the Note and Security
Instrument remain fully effective as if immediate payment in full
had never been required; and
(vi) That I have the right in any lawsuit for foreclosure and
sale to argue that I did keep my promises and agreements under
the Note and under this Security Instrument, and to present any
other defense that I may have.
(C) I do not correct the default stated in the notice from Lender
by the date stated in that notice.
22. LENDER'S OBLIGATION TO DISCHARGE THIS SECURITY INSTRUMENT
When Lender has been paid all amounts due under the Note and
Under this Security Instrument, Lender will discharge this
Security Instrument by delivering a certificate stating that this
Security Instrument has been satisfied. I will not be required
to pay Lender for the discharge, but I will pay all costs of
recording the discharge in the proper official records.
23. AGREEMENTS ABOUT NEW YORK LIEN LAW
I will receive all amounts lent to me by Lender subject to the
trust fund provisions of Section 13 of the New York Lien Law.
This means that if, on the date this Security Instrument is
recorded, construction or other work on any buildings or other
improvements located on the Property has not been completed for
at least four months, I will: (A) hold all amounts which I
receive and which I have a right to receive from Lender under the
Note as a "trust fund"; and (B) use those amounts to pay for that
construction or work before I use them for any other purpose.
The fact that I am holding those amounts as a "trust fund" means
that for any building or other improvement located on the
Property I have a special responsibility under the law to use the
amount in the manner described in this Paragraph 23.
24. RIDERS TO THIS SECURITY INSTRUMENT
If one or more riders are signed by Borrower and recorded
together with this Security Instrument, the promises and
agreements of each rider are incorporated as a part of this
Security Instrument. [Check applicable box(es)]
X_Adjustable Rate Rider __Condominium Rider __1-4
Family Rider
__Graduated Payment Rider __Planned Unit Development Rider
__Biweekly Payment Rider
__Balloon Rider __Rate Improvement Rider __Second
Home Rider
X Other(s) [Specify} __VA Rider X Due-on-
Transfer X Mortgage Rider
Schedule "A"
BY SIGNING BELOW, I accept and agree to the promises and
agreements contained in pages 1 through 12 of this Security
Instrument and in any rider(s) signed by me and recorded with it.
s/ Stacy C. Campbell (Seal)
____________________
STACY A. CAMPBELL Borrower
s/ Judith A. Campbell (Seal)
_____________________
JUDITH A. CAMPBELL Borrower
__________________________(Seal)
Borrower
__________________________(Seal)
Borrower
<PAGE>
DUE ON TRANSFER RIDER
This rider, is dated May 30, 1997, and is a part of and
changes the Mortgage of same date which I have given to secure my
Note of this date (the "Note") to FIRST NATIONAL BANK OF
ROCHESTER (the "Lender"). The Mortgage covers the property
described in the Mortgage and located at:
604 BEACH AVENUE, ROCHESTER, NEW YORK 14612
(Address)
NOTICE: This Rider adds a provision to the Mortgage allowing
the Lender to require repayment of the Note in full upon the sale
or transfer of the property.
AMENDED PROMISE.
Lender and I agree that Uniform Promise 17 of the Mortgage is
changed to read as follows:
17. AGREEMENTS ABOUT LENDER'S RIGHTS IF THE PROPERTY IS SOLD OR
TRANSFERRED.
Lender may require Immediate Payment in Full, as that phrase is
defined in Paragraph 18 below, if all or any part of the
Property, or if any right in the property, is sold or transferred
without Lender's prior written permission. Lender also may
require Immediate Payment in Full is a beneficial interest in
Borrower is sold or transferred and Borrower is not a natural
person. However, Lender shall not require Payment in Full if it
is not authorized by Federal Law to do so.
If Lender chooses to require immediate Payment in Full under this
Paragraph 17, Lender will send me a notice, in the manner
described in Paragraph 14 above, which states this requirement.
The notice will give me at least 30 days to make the required
payment. The 30 day grace period will begin on the date the
notice is mailed or delivered. If I do not make the payment
during that period, Lender may bring a lawsuit for "foreclosure
and sale" under Paragraph 19 below without giving me any further
notice or demand for payment.
I will continue to be responsible for all of my promises and
agreements under the Note and Mortgage even if I sell or transfer
the Property to someone else, unless the Lender releases me in
writing from my promises and agreements.
By signing this Rider, I agree to all of the above.
s/ Stacy C. Campbell
______________________
STACY C. CAMPBELL
s/ Judith A. Campbell
______________________
JUDITH A. CAMPBELL
DUE-ON-TRANSFER RIDER - New York - 1-4 Family - 3/83 FNMA/FHLMC
Plain Language
<PAGE>
ADJUSTABLE RATE RIDER
(3 Year Treasury Index-Rate Caps)
THIS ADJUSTABLE RATE RIDER is made this 30th day of May,
1997, and is incorporated into and shall be deemed to amend and
supplement the Mortgage, Deed of Trust or Security Deed (the
"Security Instrument") of the same date given by the undersigned
(the "Borrower") to secure Borrower's Adjustable Rate Note (the
"Note") to First National Bank of Rochester (the "Lender") of the
same date and covering the property described in the Security
Instrument and located at:
604 BEACH AVENUE, ROCHESTER, NEW YORK 14612
(Property Address)
THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE
INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE
AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME
AND THE MAXIMUM RATE THE BORROWER'S MUST PAY.
ADDITIONAL COVENANTS. In addition to the covenants and
agreements made in the Security Instrument, Borrower and Lender
further covenant and agree as follows:
A. INTEREST RATE AND MONTHLY PAYMENT CHANGES
The Note provides for an initial interest rate of 6.875%.
The Note provides for changes in the interest rate and the
monthly payments, as follows:
4. INTEREST RATE AND MONTHLY PAYMENT CHANGES
(A) Change Dates
The interest rate I will pay may change on the first day of
JUNE, 2000, and on that day every 36th month thereafter. Each
date on which my interest rate could change is called a "Change
Date."
(B) The Index
Beginning with the first Change Date, my interest rate will
be based on an Index. The "Index" is the weekly average yield on
United States Treasury securities adjusted to a constant maturity
of 3 years, as made availability by the Federal Reserve Board.
The most recent Index figure available as of the date 45 days
before each Change Date is called the "Current Index".
If the Index is no longer available, the Note Holder will
choose a new index that is based upon comparable information.
The Note Holder will give me notice of this choice.
(C) Calculation of Changes
Before each Change Date, the Note Holder will calculate my
new interest rate by adding two and eight hundred seventy five
thousandths percentage points (2.875%) to the Current Index. The
Note Holder will 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 Holder will then determine the amount of the
monthly payment that would be sufficient to repay the unpaid
principal that I am expected to owe at the Change Date in full on
the maturity date at my new interest rate 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 Interest rate I am required to pay at the first Change
Date will not be greater than 8.875% or less than 4.875%.
Thereafter, my interest rate will never be increased or decreased
on any single Change Date by more than two percentage points
(2.0%) from the rate of interest I have been paying for the
preceding 36 months. My interest rate will never be greater than
11.875%.
(E) Effective Date of Change
My new interest rate will become effective on each Change
Date. I will pay the new amount of my new monthly payment
beginning on the first monthly payment date after the change date
until the amount of my monthly payment changes again.
(F) Notice of Changes
The Note Holder will deliver or mail to me a notice of any
changes in my interest rate and the amount of my monthly payment
before the effective date of any change. The notice will include
information required by law to be given me and also the title and
telephone number of a person who will answer any questions I may
have regarding the notice.
B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN
BORROWER
Uniform Covenant 17 of the Security Instrument is amended
to read as follows:
Transfer of the Property or a Beneficial Interest in
Borrower. If all or any part of the Property or any interest in
it is sold or transferred (or if a beneficial interest in
Borrower is sold or transferred and Borrower is not a natural
person) without Lender's prior written consent, Lender may, at
its option, require immediate payment in full of all sums secured
by this Security Instrument. However, this option shall not be
exercised by Lender if exercise is prohibited by federal law as
of the date of this Security Instrument. Lender also shall not
exercise this option if: (a) Borrower causes to be submitted to
Lender information required by Lender to evaluate the intended
transferee as if a new loan were being made to the transferee;
and (b) Lender reasonably determines that Lender's security will
not be impaired by the loan assumption and that the risk of a
breach of any 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 may also require the transferee to sign an
assumption agreement that is acceptable to Lender and that
obligates the transferee to keep all the promises and agreements
made in the Note and in this Security Instrument unless Lender
releases Borrower in writing.
If Lender exercises the option to require immediate payment
in full, Lender shall give Borrower notice of acceleration. The
notice shall provide a period of not less than 30 days from the
date the notice is delivered or mailed within which Borrower must
pay all sums secured by this Security Instrument. 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.
BY SIGNING BELOW, Borrower accepts and agrees to the terms
and covenants contained in this Adjustable Rate Rider.
s/ Stacy C. Campbell (Seal)
__________________________
STACY C. CAMPBELL Borrower
s/ Judith A. Campbell (Seal)
___________________________
JUDITH A. CAMPBELL Borrower
MULTISTATE ADJUSTABLE RATE RIDER - 3 YEAR ARM Single Family -
Fannie Mae/Freddie Mac
Form 3114
<PAGE>
ADDENDUM TO ADJUSTABLE RATE RIDER
(FIXED INTEREST RATE CONVERSION OPTION)
This Addendum is made this 30th day of May, 1997, and is
incorporated into, amends and modifies the Adjustable Rate Rider
(the "Rider") to the Mortgage, Deed of Trust, or Deed to Secure
Debt (the "Security Instrument") each dated the same date as this
Addendum and given by the undersigned (the "Borrower") to secure
Borrower's Adjustable Rate Note, as amended by the Addendum to
Adjustable Rate Note to First National Bank of Rochester (the
"Lender") and dated the same date as this Addendum (the "Note")
covering the property described in the Security Instrument and
located at: 604 BEACH AVENUE, ROCHESTER, NEW YORK 14612. This
Addendum shall supersede and control in the event of any
inconsistency between this Addendum and the terms of the Note,
the Security Instrument and/or the Rider.
In accordance with Section B of the Addendum to the
Adjustable Rate Note, the Borrower may elect to change the
interest rate and the monthly payment, as follows:
A. INTEREST
The last sentence of Section 2 of the Note is deleted, and
the following sentence is added in its place:
The interest rate required by this Section 2 and either
Section 4 of the Note or Section B of this Addendum and the
Addendum to the Adjustable Rate Rider is the interest rate I will
pay both before and after any default described in Section 7(b)
of this Note.
B. FIXED INTEREST RATE CONVERSION OPTION
1. Option to Convert to Fixed Rate
I have a "conversion Option" which I can exercise unless I
am in default or the terms of this Section B will not permit me
to do so. The Conversion Option is my option to convert the
interest rate I am required to pay by this Note from an
adjustable rate with interest rate limits to the fixed rate
calculated under Section 3 below.
Upon my notification to the Lender that I want to convert my
interest rate, I have exercised My Conversion Option. The date
of my notification is the "Election Date". I may exercise the
Conversion Option only once and only during the period beginning
with my thirteenth (13th) full monthly payment of principal and
interest and ending on the fifth (5th) anniversary of the date of
Note ("Conversion Period").
2. Conditions of Conversion Option
The Lender may approve the Conversion if the following
conditions are met: (i) I must exercise my Conversion Option by
notifying the Lender of my desire to convert; (ii) I may not have
been in default at any time in the 12 months preceding the
Election Date; (iii) on the Conversion Date, I must not be in
default under the Note or the Security Instrument; (iv) by a
date specified by the Lender, I must pay the Lender a conversion
fee of U.S. $250.00; (v) I must sign and postmark for return to
the Lender, all documents the Lender requires in order to process
the conversion request, within (10) calendar days of the date on
which the Lender sent me the Conversion Package containing all
such documents; (vi) I must qualify for the outstanding principal
balance owed to the Lender based upon the Lender's then existing
policy and underwriting standards for converted fixed rate loans;
and (vii) the property must be occupied by me as my primary or
secondary residence as a legal 1-4 family residence.
3. Calculation of Fixed Rate
The Conversion Rate shall be equal to the Federal National
Mortgage Association's required net yield as of the Election Date
for:
3232/3233 Rider Add. 3-92
(a) (If the original term of the Note is greater than 15
years), 30-year fixed rate mortgages covered by applicable 60-day
mandatory delivery commitments, plus either five eights of one
percent (.625%) or, plus one percent (1%) if the original
principal balance of the Note exceeds conforming balance limits
as defined by FNMA at the time of conversion.
or
(b) (If the original term of the Note is 15 years or less),
15-year fixed rate mortgages covered by applicable 60-day
mandatory delivery commitments, plus either five-
eights of one percent (.625%) or, plus one percent (1%) if the
original principal balance of the Note exceeds conforming balance
limits as defined by FNMA at the time of conversion.
The Lender will then round the result of this addition to
the nearest one eighth of one percentage point (0.125%) if this
required net yield cannot be determined because the applicable
commitments are not available, the Lender will determine my
Conversion Rate by using comparable information. In no event
will the Conversion Rate exceed the Maximum Rate stated in
Section 4(D) of the Note.
To notify Lender of my desire to convert my interest rate
(exercise my Option to Convert) or to obtain information relative
to the effective interest rate(s) for converted fixed rate loans,
I must call the Lender at the following telephone number(s): 325-
6297 (within Rochester, NY), 1-800-824-5018 (all other areas
within NY State), or 1-800-843-8434 (outside of NY State).
4. Lien Priority
Even if I have satisfied all of the conditions described in
Subsections 1,2 and 3 above, the Lender must receive such title
insurance that the Lender deems to be necessary to insure the
continued first priority lien status of the Security Instrument
after the Conversion Rate becomes effective. Satisfactory title
insurance may be available only if I pay all amount(s) that may
be secured by a lien or encumbrance on the mortgaged property
that arose after the date of the Note.
5. New Payment Amount and Effective Date
If I exercise my Option to Convert, the Lender will
determine the amount of the monthly principal and interest
payment that would be sufficient to repay the unpaid principal
balance that I am expected to owe on the Conversion Date in full
on the maturity date at the Conversion Rate in substantially
equal monthly payments. The result of this calculation will be
the new amount of my monthly principal and interest payment. The
"Conversion Date" shall be the effective date of the Conversion
Rate and will be set forth in the modification agreement that the
Lender and I will execute. The Conversion Date will no later
than the first day of the third month following the Election
Date.
C. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN
BORROWER
Paragraph 11 of the Note is deleted and the following is
inserted in its place:
11. Uniform Secured Note. This Note is a uniform
instrument with limited variation in some jurisdictions. In
addition to the protections given to the Note Holder under this
Note, a Mortgage, Deed of Trust or Security Deed (the "Security
Instrument") dated the same date of this Note, protects the Note
Holder from possible losses which might result if I do not keep
the promises which I make in this Note. That Security Instrument
describes how and under what conditions I may be required to make
immediate payment in full of all amounts I owe under this Note.
Some of those conditions are described as follows:
(a) Unless my interest rate is converted pursuant to the
condition stated in Section B of the Addendum of the Note,
Uniform Covenant 17 of the Security Instrument is described as
follows:
3232/3233 Rider Add. 3092
Transfer of the Property or a Beneficial Interest in
Borrower. If all or any part of the property or any interest in
it is sold or transferred (or if a beneficial interest in
Borrower is sold or transferred and Borrower is not a natural
person) without Lender's prior written consent, Lender may, at
its option, require immediate payment in full of all sums secured
by this Security Instrument. However, this option shall not be
exercised by Lender if exercise is prohibited by federal law as
of the date of this Security Instrument. Lender also shall not
exercise this option if: (a) Borrower causes to be
submitted to Lender information required by Lender to evaluate
the intended transferee as if a new loan were being made to the
transferee; and (b) Lender reasonable determines that Lender's
security will not be impaired by the loan assumption and that the
risk of a breach of any covenant or agreement in this Security
Instrument is acceptable to Lender.
To the extent permitted by applicable law, Lender may charge
a reasonable feet as a condition to Lender's consent to the loan
assumption. Lender may also require the transferee to sign an
assumption agreement that is acceptable to Lender and that
obligates the transferee to keep all 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 release Borrower in writing.
If Lender exercises the option to require immediate payment
in full, Lender shall give Borrower notice of acceleration. The
notice shall provide a period of not less than 30 days from the
date the notice is delivered or mailed within which Borrower must
pay all sums secured by this Security Instrument without further
notice or demand on Borrower.
(b) If the interest rate I am required to pay under this
Note is converted to a fixed rate of interest pursuant to the
terms and conditions stated in Section B in the Addendum to the
Note, Uniform Covenant 17 of the Security Instrument described in
Section (11a) above, shall then cease to be in effect and Uniform
Covenant 17 of the Security Instrument shall instead be described
as follows:
Transfer of the Property or a Beneficial Interest in
Borrower, if all or any part of the Property or any interest in
it is sold or transferred (or if a beneficial interest in
Borrower is sold or transferred and Borrower is not a natural
person) without Lender's prior written consent, Lender may, at
its option, require immediate payment in full of all sums secured
by this Security Instrument. However, this option shall not be
exercised by Lender if exercise is prohibited by federal law as
of the date of this Security Instrument.
If Lender exercises this option Lender shall give Borrower
notice of acceleration. This Notice shall provide a period of
not less than 30 days from the date the notice is delivered or
mailed within which Borrower must pay all sums secured by this
Security Instrument. 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.
By SIGNING BELOW, Borrower accepts and agrees to the terms
and covenants contained in this Adjustable Rate Rider.
s/ Stacy C. Campbell
_________________________
STACY C. CAMPBELL Borrower
s/ Judith A. Campbell
________________________
JUDITH A. CAMPBELL Borrower
3232/3233 Rider Add. 3-92
<PAGE>
Schedule A
Premises: 604 Beach Avenue and Boat Lots 82-89
County Town/City District Sec. Block Lot
Monroe Rochester Rochester 047. 21 1 31
ALL THAT TRACT OR PARCEL OF LAND situate in the City of Rochester,
County of Monroe and State of New York, known and described as
follows: Commencing at a point on the north line of Beach Avenue as
now laid out and forty (40) feet east from the intersection of said
north line with the east line of what was formerly Oak Street; thence
westerly along the north line of Beach Avenue sixty-five (65) feet to
the center of what was formerly Oak Street; thence northerly along
said center line extended northerly to the north line of the
"Terrace" as shown on a map of "Guilford Bluff" filed in Monroe
County Clerk's Office in Liber 7 of Maps at page 12; thence easterly
along the north line of said "Terrace" sixty-five (65) feet more or
less; thence southerly to the place of beginning.
Also boat lots number 82, 83, 84, 86, 87, 88 and 89 as shown on said
map of "Guilford Bluff".
ALL THAT TRACT OR PARCEL OF LAND, situate in the City of Rochester,
County of Monroe, State of New York, known and distinguished as Bath
or Boat House Lot Number Eighty-five (85) as shown on a map of
Guilford Bluff, so called, made by R. J. Smith, Surveyor, and filed
in Monroe County Clerk's Office in Liber 7 of Maps, at page 12.
Said Bath or Boat House Lot Eighty-five (85) located on the north
side of the Terrace, on said Guilford Bluff, reference had to said
Map, and each lot extends to a point eight (8) feet from the north
line of the Protection Dock, and is ten (100 feet wide front and rear
and about twenty (20) feet deep.
Together with a right of way in common with other parties over a
strip of land twenty feet in width taken from the west end of Lots 58
and 59 of the Guilford Bluff Tract which was conveyed by Halbert S.
Greenleaf and wife to the Village of Charlotte by Deed dated August
29, 1901 and recorded June 3, 1902 in Monroe County Clerk's Office in
Liber 651 of Deeds at page 429.
Together with all the right, title and interest of said Leo V. Lyons,
and Katharine A. Lyons, his wife, in the strip of land described in
an instrument recorded in said Clerk's Office in Liber 599 of Deeds
at page 280, lying north of Beach Avenue and south of the Bath or
Boat House Lots is said tract.
