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1 89. 103277 91596 -1 -20 ADJUSTABLE RATE RIDER THIS ADJUSTABLE RATE RIDER Is nude this 26th day of June 1989 r Is incorporated Into and and be darned to amend and supplement the Mort eed gage, p of Trust or Soutty Dead ( "Mortgage,). of @d 1 date herewith. gk4n by the undersigned (1409rtWl to sacra,-• Mortgagior'a Adjustable Rate Note ( "Note's, of even date hamith, to FIRST. FEDERAL SAVINGS AND LOAN ASSOCIATION OF LINCOLN covering the promises desalued in the Mortgage and located at 1719 North Park Avenue Grand Islands Nebraska Notwithmta Ong anything to the contrary ad forth in the Mortgage. Mortgagor and Mortgagee hereby agrw to the Following: 1. Undw the Note, the WW stated htaraat rate of Nine and One fourth per centum (9.250 %) per annum (1'Initiel Interest Rate') on the unpaid principal balance la subject to change, as hereinafter daahod. When the Interest rate Changes. the equal monthly instalments of principal and interest also will be adjusted, as hersinefter provided. so that each hstainant will be in an amount necessary to fully amortise the unpaid principal balance of the Notes, at the now adjusted interest rate, over the wrishing term of the now 2. The fleet adjustment to the interest rate (IF any adjustment In requirso wit be affective on the 111nit day. of July 1990 , (which date ell not be less than twelve months nor more than eighteen months hem the duo date of ttn• fleet in- stallment psyment under the Note), and thereafter each adjustment to the Interest Me wO be rand• effective on that diV of each succeeding year during the tam of the Mortgage ( "Change pate"). 3. Each adjustment to the interest rat• will be nude based upon the following method of employing the weekly average yield on Unit. ed SUM Treasury Sectmose adjusted to a constant maturity of one year ( "Index": the Index is published In the Fedwel Rev j to and made available by the Un&O States Treasury Department in Statistical Release H.tS (510)). As of each Change pate, it wi be determined whether or not anti Interest rate adjustment must be made. and the amount of the new adjusted intents rate, If any. as follows: (a) Tha amowt of tin• Indre w10 bw de9artnined, using the most retsrrily availshi• figure, thirty (30) days bedore the Ctwnge pate ("CnuRrtt< tndWI: . (b) 275.0 prrantage points ( 2.750 X,; the "Mergin'l wo be added to tint kWo and the um s of this addition wit be rounded to the newel onesighth of one peroentage point (0.125x): The rot5►rded sum. of the Margin plus the Cumnt Indar. wi be culled the "Calculated Interest Rat•" for each Change Dote. (c) The Ce fisted Interest Rate wi be compared to the Interest rate being eared irnnedfately prior to the eumnt Chww Date (ouch 10 t wfa being cabd the 'S*ting Interest Rate'l. Then, the now adjusted interest rate. N any, will be determined e!tfb&�: m N the Clik ulOW"Interest Rate is the same as the Existing intend Rate, the interest rate wi not change. (i0 N the diflmenca bowam the Coolviie ad fit Rata and tin• ExIstin Interest Rate is less than or equal to one perowt• ago point, the new adjusted interest rate will be squat to tine Calailatef Interest Rate (subject to the mandraum allowable change over the term of the Mortgage of five pwcwdW points. in Ober dkeedw, from the k*W Interest Rate, heroin called the "5% Cap' J. 01) N the Calculated interest Rate exceeds the Existing interest Rate by more than Ong PwCwdW. point, the new adjusted inteest rats will be equal to one peroentage point highw than the Existing interoaC PA".(WA"d to the 5% Cap). �v) 0 the Calaulated Interest Rate is less than the Existing interest Rate by more shaft• cane pw0e ntage point, the new adju3t- ed Intense! rate wit be equal to one perosntage point Was than the Existing Interest Rd* (subject to the 5% Cap). (d1 Natwithsfarndng anything txontained in this Adjustable Red• Ridsn In no event WE any now adjusted interest rate be mom than *WPOrcetiaOa (5%) points higher or loww then the WM kin rest Rd*. if any inoresse or decrease in the Exietng. :Interest Rafe would cause the new adjusted interest We to exceed fine. 5% Cap. the now ad*ted krasuest rant will be i'i1ed to Ike p•ncentaga (5 %) Points higher or lower, whichaw IS appioal>te, than the hnlid interest Rant. (e) Mortgagee will perform the functions required under SubperagrWhs 3(a). (b) and (c) to determine the amount of the new adjust- ed rata. N any. Any such new adjusted interest rate will become effective on the Change Date and thereafter vvhl be dawned to be the Existing Interest Rate. The new Existing interest Rate will remain in effect until the next Change Date on which the inter- set rate is adjusted. (f) The method Id forth in this Paagraph 3 Of this Adjusted Rate Rider, for detemmk*9 whether or not an adjustment must be made to the ExIsOrg.interest Rate incorporates the Warts Of the provisiorts of 24 CFR 203.49 (e) (1) and 234.79 (a) (1) which ngxrke that cttarnpe• in the Index in excess of one ParcerttmaP'Pdnt rust be carried over for inclusion in adjustments to the Existing Images Rate in swbseWent years. (g) N the kndec Is no longer avaiablR Mortgages will be required to use any Index presorbod by the OeparMw4 of Housing and Urban DWd pnwmt Mortgagee wi noWy Mortgagor in writkp of any such WANOute Index (giving d necessary h(ommadon for Mortgagor to obtain such indwo and after the data of such notice the oubeftits index wN be deemed to be the Index herwsrder. 4. (a) If the FxdsOng Interest Rate changes on any Change Defer, Mortgagee wE recatauY(e the monthly Instakwa payrnonis of prinel- pal and Interest to determine the amount which would be necessary to repay In U. on the nmtludty da* the unpaid principal balance (which unpaid Prb*d balance wfl be deemed to be the amount due on such Change pate assuming there has been no default in any payment on the Note but al prepayments an the Note have been Wen into acoaxnt), at the new Existing interest Rate. in equal rwmNy payrxtenfe. On or before the Change pate. Mortgagee will give Mortgagor written notice (..Adjustment Notice'? of any change in the E*fing Interest Rate and of the m4eed amount Of the monthly knstafMeent Paymante of principal and Interest, C"- WW as provided above. Each Adjustment Notice wo sat forth (ij the date the Adjustment Notice is given. (r) the Change pate, (ii) the now Exiadng Interest Rate as adjusted on the Change Data. (ill the amount or the rtstStt�! mxnthiy _ +a•.r..c:nt p.:,xr.: sts. cekaulst•d as provided above, (v) the Current index. (vi) the method of Calculating the adjustment to the monthly insuk nent pay- ments. and (vi) any other iftimnation which may be rewired by law from time to time. FHA ARM - Rlar TA4 Pete t or 2 7 r l fir{ I