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, • 8426658 ' LOVE FIXED/ADJUSTABLE RATE RIDER �. (1 Year Treasury Index-Rate Caps) 9$'� ;��+�!��,6 THIS FIXED/ADJUSTABLE RATE RIDER is made this 8th day of Mav 1998 , 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 Fixed/Adjust- able Rate Note (the"Note") to FIRST UNION MORTGAGE CORPORATION (the"Lender") of the same date and covering the property described in the Security Instrument and located at: 1418 W. HAGGE GRAND ISLAND NE 68807 [Property AddressJ THE NOTE PROVIDES FOR A CHANGE IN THE BORROWER'S FIXED INTEREST RATE TO AN ADJUSTABLE INTEREST RATE. THE NOTE LIMITS THE AMOUNT THE BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER 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.ADJUSTABLE RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial fixed interest rate of 5.625 %. The Note also provides for a change in the initial fixed interest rate to an adjustable interest rate, as follows: 4.ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The initial fixed interest rate I will pay will change to an adjustable interest rate on the first day of June , 2003 , and the adjustable interest rate I will pay may change on that day every 12th month thereafter. The date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest rate could change,is called a"Change Date". (B) The Index Beginning with the first Change Date,my adjustable interest rate will be based on an Index.The"Index"is the week- ly average yield on United States Treasury securities adjusted to a constant maturity of 1 year, as made available by the Federal Reserve Board.The mos�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 informa- tion.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 Three Fourths_ percentage points ( 2.750 %) 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 ne�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 10.625 %or less than 2.750 %. Thereafter,my adjustable 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 twelve (12) months.My interest rate will never be greater than 10.625 %. (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 the change in my initial fixed interest rate to an adjustable interest rate and of any changes in my adjustable interest rate before the effective date of any change. The notice will include the amount of my monthly payment, any information required by law to be given me and also the telephone number of a person who will answer any question I may have regarding the notice. �3.TRANSFER OF THE PROPERTY OR A BENEFIC1i�I.INTEREST IN BORROVV�ER 1.UNTIL BORROWER'S INITIAL FIXED INTEREST RATE CHANGES TO AN ADJUSTABLE INTEREST RATE UNDER THE TERMS STATED IN SECTION A ABOVE,UNIFORM COVENANT 17 OF THE SECURITY INSTRUMENT SHALL BE IN EFFECT AS FOLLOWS: Transfer of the Property or a Beneficial Interest in Borrower.If all or any part of the Property or any in- terest 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.The notice shall provide MULTISTATE FIXED/ADJUSTABLE RATE RIDER--1 YEAR TREASURY-- Single Family--Fannie Mae Uniform Instrument Form 3182 5/94 240096(25/pkg) (5/96) [00961] Page 1 of 2 KR