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ADJUST ABLE RATE RIDER (3 year Treasury Index-Rate Caps-Fixed Rate Conversion Option) 88- 100547 ;'1 THIS ADJUSTABLE RATE RIDER is made this 28 day oIJANUARY , 1938 , and is in<:orporated into and shall be deemed to amend and suppl~ment the Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to OCCIDENTAL NEBRASKA FEDERAL SAVINGS BANK (the "Lender") 01 the same date and covering the property described in the Security Instrument and located at: 904 NORTH WHEELER, GRAND ISLAND, NE 68801 (Property Address) THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MINIMUM AND MAXIMUM RATES THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate 01 9.125 and monthly payments, as follows: Oklo The Note provides for changes in the interest rate t 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of FEBRUARY , 1991 , 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 Interest rate wi!: be based on an Index, The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of 3 years, 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, the Note Holder will choose a new index which is based upon comparable informa- tion. The Note Holder will give me notice of this choice. (C) Calculation of Changes TWO AND THREE-QUARTERS Before each Change Date, the Note Holder will calculate my new interest rate by adding percentage points ( 2 . 750 %) 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%). Subject to the limits stated in Section (4D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay 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 payments. The result of this calculation will be the new amount of my monthly payment. ~ I t ~ t r. ( " ~ (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than 10.625 % or less than 7.625 %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than one and one-half percentage points (1.5%) from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 14.125 %. (E) 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. (F) Notice of Changes i r ~ The Nota Holder will deliver or mail to me a notice 01 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 number of a person who will answer any question I may have regarding the notice. ,.--. B. FIXED INTEREST RATE OPTION L The Note provides lor the Borrower's option to convert from an adjustable interest rate to a fixed interest rate, as follows: 5. FIXED INTEREST RATE OPTION (AI Option to Conv9rt to Fixed Rate I have a Conversion Option which I can exercise unless I am in default or this Section 5(A) will not permit me to do so, The "Conversion Option" is my option to convert the interest rate I 8m required to pay by this Noto Irom an ad. justable rate to a fixed rate, 400IH 9 Of ~" Itfly l'O!I1l 6LP1 , ~. Page'