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l ~, l l i !,: r ~ I; r f I I I I ADJUSTABLE RATE RIDER (3 year Index--With Interest Rate Cap) 88- lot.> I qJ, THIS ADJUSTABLE RATE RIDER is made this 21st day of DEamber , 1987 , 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 I 5 Adjustable Rate Note (the "Note") to Western state Bank (the "Lender") of the same date and covering the property described -in the Security Instrument and located at: 2513 Pia1eer Blvd. Grand Island, NE 68001 (property Address) THE NOTE CCJr.l'AINS PROVISlm5 ALLCMING F(E CHANGES IN THE IN'l'BRP..ST RATE AND '!'BE fDfi'IILy PAYMFNl'. IF THE IHTBRES'.l' RATE INrnEASES, THE BCJm(MI!R'S fDfJ.'HLY PAYMIlRTS WILL BE BIGlER. IF 'l'BE IN'l~ RATE DEQWASES, THE BCEROWER'S fDfi'IILY PADtEN'l'S WILL BE LaiBR Additional Covenants. In addition to the covenants and agreements made in the Security Instrument Borrower and Lender further covenant and agree as follows: A. IN'l'mEST RATE AND f.Dfl'IILY PAYMENT CHi!l~ The Note provides for an initial interest rate of 9.250 %. The Note provides for changes in the interest rate and the monthly payments, as follows: 4. Im'BRES'r RATE AND tDfl'HLy PAYMmT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of Ja~ , lS~ and on that day every th 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 interest rate will be based on an Index. The "Index" is the Weighted Average Cost of Funds to FSLIC Insured Savings and Loan Associations in Federal Loan Bank Board Bank District ll, as made available by the llth District Federal Home Loan Bank 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, the Note Holder will choose a new index which is based upon comparable information. 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 fu:> & Fifty H..mdredths percentage points (2.50 %) 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%). This rounded aIOOunt will be the preliminary interest rate. The Note Holder will then adjust the preliminary rate so that the change in the interest rate on any Change Date will not be more than 2.0 percentage points. Provided, however, the interest rate will not be increased to more than 13.50 % or decreased to less tnan 7.250 % during the period that I have the loan. My new interest rate will be the result of this adjustment, if any. The Note Holder is not required to increase the interest rate on any Change Date. If all or any part of a permitted increase is not taken on a Change Date, the Note Holder may take this increase at any subsequent Change Date, if permitted by the procedure described above. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the principal I am expected to owe at the Change Date in full on the maturity date at my new i.nterest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) 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. (E) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the 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 nunber of a person who will answer any question I may have regarding the notice. L L ,.-- u .-J , r' f-.