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<br />ADJUSTABLE RATE RIDER88-
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<br />10024~
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<br />(1 Year Treasury Index, Rate Caps)
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<br />THIS ADJUSTABLE RATE RIDER is made this 19th dayof January ,19~,
<br />and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security
<br />Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to HOME
<br />FEDERAL SAVINGS & LOAN ASSOCIATION OF GRAND ISLAND, NEBRASKA (the "Lender") of the same date and covering the
<br />property described in the Security Instrument and located at:
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<br />321 West 2nd Street, Grand Island, NE 68BOl
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<br />(Property Address)
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<br />This note contains provisions allowing for changes In my interest rate and my monthly
<br />payments, This note also limits the amount my interest rate can change at anyone lime and
<br />also the minimum and the mllJlimum rate I must pay,
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<br />ADDITiONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender
<br />further covenant and agree as follows:
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<br />A, INTEREST RATE AND MONTHLY PAYMENT CHANGES
<br />The Note provides for an initial interest rate of ~. 5 "70. Section 4 of the Note provides for changes in the interest rate and the
<br />monthly payments, as follows:
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<br />4. INTEREST RA TE AND MONTHL Y PA YMENT CHANGES
<br />(A) Change Dates
<br />The interest rate I will pay may change on the first day of F p.hrlli'l ry , 19 ~, and on that day every
<br />-----l2 months thereafter. Each date on which my interest rate could change is called a "Change Date."
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<br />(B) The Index
<br />Beginning with the first Change Date, my interest rate will be based on an Index. The "Index" is the weekly average yield on United States
<br />Treasury securities adjusted to a constant maturity of I year, as made available by the Federal Reserve Board. The most recent Index figure
<br />available as of the date 45 days before each Change Date is called the "Current Index,"
<br />If the Index is no longer available, the Note Holder "ill choose a new index which is based upon comparable information. The NOle
<br />Holder will give me notice of this choice.
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<br />(C) Calculation of Changes
<br />Before each Change Date, the Note Holder will calculate my new interest rate by adding three & one-half percentage
<br />points ( 3. S %) to the Current Index and rounding to the nearest 1/8th of 1%, subject to the limits stated in Section 4(0) below,
<br />This rounded amount will be my new interest rate until the next Change Date.
<br />The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay in full the principal I am
<br />expected to owe on that Change Date in substantially equal payments by the maturity date at my new interest rate, The result of this calculation
<br />will be the new amount of my monthly payment.
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<br />(D) Limits on Interest Rate Changes
<br />The interest rate I am required to pay at the first Change Date will not be greater than 14.5 070 or less than
<br />7 S %. ~*~l,(~~~~"x.x.W~~~~"W~~~~~~~~~~~M~XXXXXXXXXXX
<br />XX)()(XXXX X)C(~*)(~lnl'et~U(~~~Xi'IOl*~~~~Ks. The minimum interest rate on this loan will never be
<br />less than 7.5 % and the maximum interest rate will never be greater than 14.5 0J0.
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<br />(E) Effet:live Date of Changes
<br />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
<br />monthly payment date after the Change Date until the amount of my monthly payment changes again.
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<br />(F) Notice of Changes
<br />The Note Holder will mail or deliver to me a notice before each Change Date, The notice will advise me of:
<br />(i) the new interest rate on my loan as of the Change Date;
<br />(ii) the amount of my monthly payment following the Change Date;
<br />(iii) any additional matters which the Note Holder is required to disclose; and
<br />(iv) the address of the association you could contact regarding any questions about the adjustment notice,
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<br />B. CHARGES; UENS
<br />Uniform Covenant 4 of the Security Instrument is amended to read as follows:
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<br />4, Chuges; Liens, Borrower shall pay all taxes, assessments, and other charges, fines, and impositions attributable to the Property which may
<br />attain a priority over this Security Instrument, and leasehold payments of ground rents, if any. in the manner provided undrr paragraph 2 hereof
<br />or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof, Borrower shall promptly furnish Lender
<br />all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to
<br />Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument;
<br />however, Borrower shall not be required to discharge any such lien so long as Borrower: (a) shall agree in writing to the payment of the
<br />obligation secured by such lien in the manner acceptable to Lender; (b) shall in good faith contest such lien by, or defend against enforcement of
<br />such lien in, legal proceedings which in the opinion of lender operate to prevent the enforcement of the lien or forfeiture of the Property or any
<br />part thereof; or (c) shall secure from the holder of such lien an agreement in a form satisfactory to Lender subordinating such lien to this
<br />Security Instrument.
<br />If Lender determines that all or any part of the Property is subject to a lien which may attain a priority over this Security Instrument,
<br />Lender shall give Borrower a notice identifying such lien. Borrower shall satisfy such lien or take one or more of the actions set forth above
<br />within ten days of the giving of the notice.
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<br />C. NOTIl:E
<br />Uniform Covenant 14 of the Security Instrument is amended to read as follows:
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<br />14~ Notlce. Except for any notice required IInder applicable law to be given in another manner, (a) any notice to Borrower provided for in this
<br />Security Instrument shall be giv'en by delivering it or by mailing it by first class mail to Borrower at the Property Address or at sllch other address
<br />as Borrower may designate by notice 10 lender as provided herein, and (b) any notice to Lender shall be given by first class mail 10 Lender's
<br />address stated herein or to such other address as lender may designate by nolice to Borrower as provided herein. Any notice provided for in Ihis
<br />Security Instrument shall be deemed to have been given to Borrower or Lender when given in the manner designated herein,
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