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<br /> R�R��°94��� 1�0040� 89-- 1.Q3886 . .
<br /> ADJUSTAB�.E RATE RIDER
<br /> far usa onl�r rvith an adjustabia Rata Mongagc, Dcad oi Trust or Sec�rity Oesd insured undar
<br /> � section Z031b),2031k) (first Nen only)or 234(c)of tF�e Nationai Housing Act, using the Ma�gin
<br /> methad.
<br /> � Tii{S liD.�USTA6LE iL4T� filD�fi is mado this 26jlj day of JtlLY , 1J�9 �
<br /> a�d i=incorporated i�to and shall be deemed to amend and supplement the Mortgage,Deed oi T�uat or Secu�ity
<br /> Deed 1"Mortg�ge"1, of even date herewith, given by the undersi ned ("Mottgago�"1 to secu�e Mortgagors
<br /> � Adjustable Rate Note !"Note"). of even date he�ewith. to COLU�BUS FEDERAI, SAVINGS BANK
<br /> 1"Mo�tgagee"), cove�ing the premises dasc�ibed in the Mongage and located at
<br /> 1509 ;<<zF
<br /> �� NEWCASTLE ROAD, GRANO ISLAND NE 68801
<br /> Notwithstanding anything to the contrary set forth.in the Mongage, Mottgagor and Mortgagee hereby
<br /> agree to the following:
<br /> �
<br /> �� 1. U�de� the Note. the Initial stated interest rate of EIGHT AND ONE-HALF per
<br /> centum 1 8.50 %)per annum ("Initial Interest Rate")on the unpaid pri�cipal bala�ce is subject to
<br /> change, as he�einafte� desc�ibed. When tha interest �ate changes. the equal monthly installme�ts oi
<br /> p�inclpal e�d interest also will be adJusted. as hereinafter provlded. so that each installment wlll be in an
<br /> — ' � emount necessary to fully amortize the unpaid principal balance of the Note,at the�ew adjusted inte�est
<br /> - � rate, ove� the remaini�g te�m of the Note.
<br /> 2. Tha tirst adjustment to the interest �e lif any adjustment is required)will be eNective on the iirst day of
<br /> OCTOBER , 19—90-��(which date wiii not be less than tw�lve months nor more than
<br /> ei ghteen months from the due tl�Te of the first installment payment unde�tlie Note1,and thereafter each
<br /> adJustment to the l�terest�ate wili be made effective on that day of each succeeding year du�ing the te�m of
<br /> the Mortgage 1"Change Date").
<br /> 3. Each adjustment to the interest rate will be made based upon the tollowing method of employing the . �
<br /> weekly ave�age yield on United States Treasury Securities adjusted to a constant maturity of one year
<br /> ("Index"; the Index is published in the Federa! Reserve Bulleti�and made available by the United States �
<br /> ' Treasury uepaRment in Statisticai Kefiease ii. i5 {5iy1i. i�s of eacfi Cnange �iate. it wiii be determinea : Y�=
<br /> whether or not an interest�ate adJustment must be made,and the amount of t��e�ew adjusted interest rate, � '�
<br /> � if any, as follows: �
<br /> la) The amount of the Index will be determined, using the most �ecently available figure, thirry (30) days
<br /> before the Change Date ("Current index"). .
<br /> , (b) TM1� _percentage points (_2•�a %; the "Margin") ;�
<br /> wil)be added to ths Current Index and the sum of this addition will be�oui�ded to tho nearest one•eighth
<br /> of one percentage point(0.125°/n).The rounded sum,of the Margin plus the Current lndex,will be called
<br /> � the "Calculated Interest Rate" for each Change Date.
<br /> (c) The Calculated I�terest Rate will be campared to the interest rate being earned immediately p�ior to the
<br /> current Change Date (such inte�est rate being called the "Existing Intcrest Rate"?. Then, the new
<br /> adjusted interest rate, if any, will be determined as follows: �
<br /> �:,�:�
<br /> (i) If the Calculated Interest Rate +s the same as the Existing Interest Fate,the interest �ate will not
<br /> ' change. ...
<br /> (ii� If the diNerence between the Calculated Interest Rate and the Existing Interest Rate is less than or
<br /> equa) to one percentage point, the new adjusted interest rate will be equa! to the Calculated
<br /> lnterest Rate tsub}ect to tl�e maximum allowable change over the �erm of ths Mortgage of �ve
<br /> perceni points, in elther direction, from the Initial Interest Rate, herein called the "5% Cap").
<br /> (iii) If the Calculated Interest Rate exceeds the Existing Interest Rate by more than one percentage
<br /> point,the new adjusted inierest rate will be equal to one perceniage point higher than the Existing
<br /> Interest Rate (subject to the 5% Cap).
<br /> � (iv1 If the Calculated Interess Rate is less than the Existing Interest Rate by more than one percentage -- - ---
<br /> point,the new adjusted interest rate will be equal to one percentage point less than the Existing �-----
<br /> �� lnterest Rate lsubject to the 5% Capi.
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<br /> (d) Notwithstanding anything contained in this Adjustable Rate Rider, in no event will any new adjusted
<br /> • • • • /LO_1 w Ie � :�°. :: : !w v �i �
<br /> �: I���s�Q;<i s�s bs s;�a.s.:�a�t;vs�::,s:.isys�..t,,,�„ir,.,,tsigl; s os!ot r thz ths!n i !lnisresi Rai .!f an,
<br /> increase or decrease in the Existing Interes4 Rate would cause the new acijusted '+nterest rate to exceed
<br /> � the 5%Cap,the new edjusted interest rate will be limited to five percentage(5%)points higher or lower, �
<br /> whichever is applicable, than the lnitial Interest Rate. �
<br /> �
<br /> � le) Mongagee will perform the functions required under Subparagraphs 31a), (b) and(c)to determine the �
<br /> __` amount of the new adjusted rate, if any.Any such new adjusted interest rate will become eNective on � ���
<br /> �A�' the Change Date and thereefter will be deemed to be the Existing Interest Rate. The new Existing :� .
<br /> - Interest Rate w+ll remain In effoct until the next Change Date on whict� the inte►est rate is edjusted. F' �
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