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ADJUSTABLE RATE RIDER 9---o 103886 For use only with an Adjustable Rate Mortgage, Deed of Trust or Security Deed insured under r section 203(b), 2031k) (first lien only) or 234(c) of the National Housing Act. using the Margin ` method. TI}HIS ADJUSTABLE RATE RIDER is made this 261H day of _„_ JULY . 198. and Is incorporated Into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Dead ( "Mortgage "), of even date herewith, given by the undersigned 4 "Mort or ") to secure Mortgagor's AdjuaMble Rate Note ("hots "), of even date herewith, to COLUMBUS FEDERAL SAVINGS BANK ( "Mortgagee "), covering the premises dercribed in the Mortgage and located at _ _4409-NEWCASTLE ROAD. GRAND ISLANID NE 68801 Notwithstanding anything to the,conttery let forth in the Mortgage, Mortgagor and Mortgagee hereby agree to the following: 1. Under the .Nate, the initial stated interest rate of EIGHT AND ONE -HALF per amiluni J . 8.50 %) per annum i;"'l Alal Interest Rate') on the unpaid principal balance is subject to change, ass her fteinaher rer described. When the interest rate changes, the equal monthly installments of principal'send interest also will be edjuxted. "as, hereinafter provided, so that each installment will be in an arniWint. necessary to fully amortize the unpaid principal balance of the Note, at the new adjusted interest rate.. over. the remaining term of the Note. 2. The first adjustment to the interest rate (if any adjustment is required) will be effective on the first day of —OCtjj 19 _8,Q_ (which date will not be less than, twelve months nor more than eighteen robnths from the due date of the first installment payment under the Note), and thereafter each adjustment to the Interest rate will be made effective on that day of each succeeding year during the term of the Mortgage ( "Change Date "). 3. Each adjustment to the interest rate. Will -be made fused upon the following method of employing the weekly average yield on United Staten Treasury Se w ities adjusted to a constant maturity of one year ("Index "; the Index Is published in thji fides) PAievvb. Bulletin and made available by the United States Treasury Dn�atrrjrwrlt )n CLtiatleel R,.ict. N_ fg.li:1S)t As of-esn C::� ,�.... it iNiii a�iv doivnnii,nv '..- • •• a. V .V whither or not an interest rate adjustment must be made, and the amount of the new adjusted interest rate, If any, as follows: (a) The amount of tho index will be determined, using the most recently available figure, thirty (30) days before the Change Date ( "Current Index "). Ib) NO percentage points t _. 2.00 %; the "Margin ") will be added to the Current Index and the sum of this addition will be rounded to the nearest one - eighth of one percentage point (0.125 %). The rounded sure, of then Ma Irgin plus the Current Index, will be called the "Calculated Interest Rate" for each Change •Gate. (c) The Calculated Interest Rate will be compared to the interest irate being earned immediately prior to the current Change Date ('such interest rate being called they "Existing .Interest Rate "). Then, the new adjusted interest rate, if any, will be determined as fol6wss (i) If the Calculated Interest Rate is the same as the Existing interest kate. the interest rate will not change. (0) If the difference between the Calculated Interest Rat"e;-and the Existing Interest Rate is less than or equal to one percentage point, the new adjusted .interest rate will, be equal to the Calculated Interest Rate (subject to the maximum allowable change over the. term of the Mortgage of five percent points, in eitkr .direction. from the Initial tistsre o Aate, herein called the 115X Cap"). (III) If the Calculated Interest Rate exceeds the Existing :Interest Rate by more than one percentage point, the new adjusted interest rate will be.pwit io one percentage point higher than the Existing Interest Rate (subject to the 5 0.6 Cap) .. . . c7 (iv) If the Calculated Interest Rate s; less than the Existing Interest Rate by more than one percentage point, the new adjusted interest rate will be equal to one percentage point less than the Existing Interest Rate (subject to the 59/6 Cap). (d) Notwithstanding anything contained in this Adjustable Rate Rider, in no event will any new adjusted Interest rate be more than five percentage (5 0/4) points higher or lower than the Initial Interest Rate. If any Increase of decrwse in the Existing Interest Rate would cause the new adjusted interest rate to exceed Lthe 6% Cap, the new adjusted interest rate will be limited to five percentage (5 10/) points higher or lower, whichever Is applicable, than the Initial Interest Rate. (e) Mortgwyee will perform the functions required under Subparagraphs 31a). (b) and (c) to determine the sm(i mt of tl►e riew edjusted rate, if any. Aran sw* new adjusted interest rats will become effective on r' the Change Uste and thereafter will be d!eeUred to ere the Existing Interest Rate. The now Existing hstsresr ftate will reurpm in Owl until tho irtewl Cbar -.gs Date on which the interest rate is adjusted. c, iti� r A