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I 88-. 100547 The conversion can only take place anytime between February I . 19 89 , and January I 19 93 . The date on which I elect to convert my interest rate Irom an ajdustable rate to a lixed rate is called the "Conversion Date". I can convert my int"rest rate only once, " I want to exorcise the Conversion Oplion, I must meet certain conditions. Those conditions are that: (i) I must give the Note Holder notice thaI I am doing so at least 30 days before the Conversion Date; (ii) on the Conversion Date, I am not in default under the Note or the Security Instrument; (Hi) at the lime I give notice to convert, I must pay the Note Holder a conversion fee of U.S, $500.00; (iv) I must sign and give the Note Holder any documents the Note Holder requires to effect the conversion; and (v) I must qualitl' based on the Federal Home Loan Mortgage Corporation's con- version guidelines. (B) Calculation of Fixed Rate (1) Loans Under $168,701 My new, fixed interest rate will be equal to the Federal Home Loan Mortgage Corporation's required net yield for: (i) if the original term of this Note is greater than 15 years, 30-year fixed rate mortgages covered by applicable 60-day mandatory delivery commitments in effect as of the date 30 days before the Conversion Date, Jllus three-eighlhs of one percent (0,375%), or (ii) if the original term of this Note is 15 years or less, 15-year foxed rate mortgages covered by applicable 50-day mandatory delivery commitments in effect as of the date 30 days before the Conversion Date, plus three-eighths of one percent (0.375%). If this required net yield cannot be determined because the applicable commitments are not available, the Note Holder will determine my interest rate by using a comparable commitment that is available on such date. The Conversion Rate will be rounded up to the nearest one-eighth percentage point (0.125%). My Conversion Rate will not exceed (2) Loans Over $168,700 My new, fixed interest rate will be determined by adding one-half of one percent ('12%) to the interest rate being of- fered by Occidental Nebraska Federal Savings Bank on loans in excess of the FHLMC maximum loan amount (Jumbo Loans) on the date the notice to convert is given. My Conversion Rate will not exceed (C) Determination of New Payment Amount " I choose to exercise the Conversion Option, the Note Holder will determine the amount of the monthly payment that would be sufficient to repay the unpaid principal I am expected to owe on the Conversion Date in full on the maturity date at my new fixed interest rate in substan!ially equal payments, The result of this calculation will be the new amount of my monthly payment. Beginning with my first monthly payment after the Conversion Date, I will pay the new amount as my monthly payment t;ntil the maturity date. \ l~ u ...',.1.." 1, Jm '.'.,\),. " ,. "1 '..'.I'~...,.,..;..,".....',..'..... \1 ~\ . ~: I (C) TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER l 1. Until Borrower exercises the Conversion Option under the conditions stated in Section B of this Adjustable Rate Rider, Uniform Covenant 17 of the Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. lender also shall not exercise this option if: (a) Borrower causes to be submitted to lender information required by Lender to evaluate the intended transferee as if a new loan werE! being made to the transferee; and (b) lender reasonably determines that lender's security will not be impaired b)' the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to lender. To the extent permitted by applicable law, lender will charge a fee of U.S. $500.00 as a condition to lender's consent to the loan assumption. lender may also require the transferee to sign an assumption agreement that is acceptable to lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Securi. ty Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If lender exercises the option to require immediate payment in full, lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expira- tion of this period, lender may invoke any remedies permitted by this Security Instrument without further notice or de- mand on Borrower. 2. If Borrower exercises the Conversion Option under the condition stated in Section B of this Adjustable Rate Rider, the amendment to Uniform Covenant 17 of the Security Instrument contained in Section Cl above shall then cease to be in effect, and the provisions of Uniform Covenant 17 of the Security Instrument shall instead be in effect, as follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without lender's prior written consent, lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by lender if exercise is prohibited by federal law as of the date of this Security Instrument. If lender exercises this option, lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, lender may invoke any remedies permitted by this Security InstnJment without further notice or demand on Borrower. ,-- By SIGNING BELOW, Borrower accepts and agrees to the terms and coven_a_l1.ts contallled in this Adjustable Rate Rider. a/ "L. "'/' / / ~ /Y ..f,F/ ';" c/o ~I" !~ ' <<~t-/"~Seal) Bo~r 111 ~anda II s.; )endyk ~ /~2~~~/_L__ (Seal) 0\008-18 Borrowor 1/2 C:" r 0 I R. Hl'c,:;4r' 'If.fo17A n... II"") t\lP, Pa\lf' 2 t'.