Tony, Thank you for the August 17 response and for providing the Note and the amortization schedule. Having reviewed both, I have several items that need to be corrected. 1. The index applied is not the index in the Note. Loan Servicing states the September 2025 adjustment used the 5-Year Constant Maturity Treasury index at 3.91%. The Note, at Payment Streams 3-4, specifies "an independent index which is the 5-Year ICE USD SWAP RATE as published on most business days by Intercontinental Exchange, Inc. (ICE; NYSE) or equivalent," published "under the heading Series/Run USD1100." CMT is a different index. The Note permits the Lender to designate a substitute index if the original becomes unavailable or unreliable, and to adjust the corresponding margin. It also provides that "such an amendment to the terms of this Note will become effective and bind Borrower 10 business days after Lender gives written notice to Borrower." Please provide a copy of the written notice given to Borrower designating the substitute index and any adjusted margin, together with the date it was sent. If no such notice was given, please explain the basis on which the substituted index and margin were applied. 2. The margin applied is not the margin in the Note. Loan Servicing states a margin of 3.57%. The Note states 3.500%, in both Payment Stream 3 and Payment Stream 4. Please recompute the September 5, 2025 adjustment using the Note's index and the 3.500% margin, and credit the difference to the loan. 3. The Bank's election under the variable rate provision. The Note provides that whenever increases occur in the interest rate, the Lender, at its option, may (A) increase payments to ensure the loan will pay off by its original final maturity date, (B) increase payments to cover accruing interest, (C) increase the number of payments, or (D) continue payments at the same amount and increase the final payment. The schedule you provided shows payment 239 on August 5, 2045 consisting of $1,777.82 in interest and $276,011.91 in principal, a final payment of approximately $277,790, against a Note that states a final payment of $2,078.52. That is consistent with the Bank having elected option (D). Please confirm which option the Bank elected, the date of that election, and whether notice of it was given to Borrower. Please also reconcile that election with your August 7 statement that this loan is "fully amortizing through 2045." 4. Items still outstanding from my August 13 letter. The prepayment questions were not addressed. Please confirm: the date on which the current five-year prepayment period began; which premium tier applies as of today; the opening and closing dates of the 90-day penalty-free window at the end of the current period; and the unused 20% allowance remaining in the current Note Year. 5. Corrections requested. a. Produce the substitute-index notice, or correct the index. b. Recompute the rate using the 3.500% margin stated in the Note and credit any overcharge to the loan. c. Confirm the Bank's election under the variable rate provision and the notice given to Borrower. d. Answer the prepayment questions in item 4. 6. The payment is not the issue. The rate is. I am not asking for, and will not agree to, an increase in the monthly payment. At a fixed payment, the amount reaching principal is simply what remains after interest. On the current balance of $316,742.68, using the Bank's 365/360 method, approximately $102 of the $2,076.73 payment reaches principal at 7.48%. At 6.50% it would be approximately $361. At 6.00%, approximately $493. Six years into a twenty-five year loan, roughly five percent of the payment is reducing principal. The remedy is to correct and reduce the rate, not to increase what I pay. 7. Margin reduction. Accordingly, my substantive request is that the Bank reduce the margin going forward. The Bank holds a first lien of $316,742.68 against a property acquired for $700,000 in 2020, senior to the SBA 504 second, occupied by the operating company since closing, on a relationship that has performed since 2020. A 3.500% margin, and certainly the 3.57% currently being applied, is not consistent with that position. A reduction to 2.500% would roughly triple the principal applied each month at an unchanged payment. If documenting a rate amendment is required, I would expect it to be on the following basis: no modification, documentation, or legal fee charged to Borrower; no change to the prepayment terms, including the 20% annual allowance, the declining premium schedule, and the timing of the 90-day penalty-free windows, and no restart of the current five-year period; no new or additional guaranty; no new or additional financial covenants; and no retroactive assessment for the period during which the payment was not adjusted. I am glad to schedule a call once you have the answers to items 1 through 4 in hand. All rights are reserved. -- This message is intended only for the addressee and may contain confidential information. If you received it in error, please notify the sender and delete it.