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! ~,- ADJUSTABLE RATE RIDER (1 year Treasury Index.Rate Caps.Fixed Rate Conversion Option) 87- 107085 THIS ADJUSTABLE RATE RIDER is made thisn day of DECEMBER ' 1~ , and is incorporaled inlo and shall be deemed to amend and supplemenlthe Mortgage, Deed of Trust or Securily Deed (lhe "Securily Inslrument") of the same dale given by Ihe undersigned (the "Borrower") to secure Borrower's Adjustable Rale Note (lhe "Nole") to OCCIDENTAL NEBRASKA FEDERAL SAVINGS BANK (the "Lender") of the same date and covering Ihe property described in fr ~ ~ t t ~. the Security Instrument and localed at: 2207 WOODRIDGE COURT, GRAND ISLAND, NE 68801 (Property Address) THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE UMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TiME AND THE MINIMUM AND MAXIMUM RATES THE BORROWER MUST PAY. ~.' ~" ;;. f ~ ADDITIONAL COVENANTS. In addition 10 the covenanls and agreemenls made in the Security Ins.lrument, Borrower and Lender further covenant and agree as follows: ( ~ . A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an inilial interest rate of 7.750 and monthly paymenls, as follows: OAJ. The Note provides for changes In Ihe interest rale 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The Interesl rate I will pay may change on the firsl day of JANUARY , 1~9 ' and on that day every 12th month thereafter, Each date on which my interest rate could change is called a "Change Date". (B) The Index Beginning with the first Change Date, my Inleresl rate will be based on an Index. The "Index" is Ihe weekly average yield on United States Treasury securities adjusted to a constant malurity of 1 year, as made available by the Federal Reserve Board. The most 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, Ihe Note Holder will choose a new index which is based upon comparable informa- tion, The Note Holder will give me notice of Ihis choice. (C) Calculation of Changes T\\'O AND THREE-QUARTERS Before each Change Date. Ihe Nole Holder will calculate my new interesl rate by adding percenlage poinls ( 2.750 OAJ) 10 the Currenllndex. The Note Holder will then round the result of this addition to the nearest ont~-eighth of one percentage point (0.125%). Subject to the limits stated in Section (40) below. this rounded amount will be my new inlerest rate until the next Change Date. The Note Holder will then determine the amounl of the monlhly payment that would be sufficient to :'!pay 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 paymenls. The resull of Ihis calculation will be the new amount of my monthly payment. (D) Limits on Interesl Rale Changes The interesl rale I am required 10 pay al Ihe firsl Change Dale will nol be grealer Ihan 9. 750 % or less than 5.750 %. Thereafter. my interesl rate will never be increased or decreased on any single Change Dale by more than two percentage points (2%) from Ihe rale of inlerest I have been paying for the preceding 12 months. My interest rate will never be grealer Ihan 13. 750 %. (E) Effective Dale of Changes My new interest rale will become effective on each Change Date. I will pay Ihe amount of my new monlhly paymenl beginning on the first monthly payment dale after Ihe Change Dale until the amounl of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my inleresl rate and Ihe amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. FIXED INTEREST RATE OPTION L The Note provides for the Borrower's oplion 10 convert from an adjuslable inleresl rale 10 a fixed inleresl rale, as follows: , 5, FIXED INTEREST RATE OPTION (A) Option to Convert to Fixed Rate I have a Conversion Option which I can exercise unless I am in dolaull or Ihis Section S(A) will nol pOlmil 010 10 do so, The "Conversion Option" is my option 10 con verI Ihe inlareal rale I am required 10 pay by Illls Nolo hom an ad. justable rale to a filled rate calcul{\ted under Section 5(B) below, The conversion can only laka placo anytime on 8 dale specified by Ihe Nola Holdor during Iho pOllOd bll\I.1l1l1n9 011 4Q09-();l N--62\ At-_ (!l)(41) 1lP1 "~~l'" , ,.-.- ;=.:1 (