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<br />88~t'RiCBo826 87- 106~376
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<br />For use only with an Adjustable Rate Mortgage, Deed of Trust
<br />or Security Deed insured under section 203(b), 203(k)
<br />(first lien only) or 234(c)of the National Housing Act,
<br />using the Margin method,
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<br />ADJUSTABLE RATE RIDER
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<br />THIS ADJUSTABLE RATE RIDER is made this 22r'd day of Q'i:ct:B:' , 19~
<br />and is incorporated into and shall be deemed to amend and supplement the Mortgage,
<br />Deed of Trust or Security Deed ("Mortgage"), of even date herewith, given by the
<br />undersigned ("Mortgagor") to secure Mortgagor's Adjustable Rate Note ("Note"), of
<br />even date here....ith,to &p=rioc Mxtqaqe, Irx;.
<br />("Mortgagee"), covering the premises described in the Mortgage and located at
<br />COl€) fhrAc;t-~, C..rard T~lFlIyl, NE E83X3
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<br />Not....ithstanding anything to the contrary set forth in the Mortgage, Mort~gor
<br />and Mo~tgagee hereby agree to the follo....ing:
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<br />I, Under the Note, the initia: stated interest rate of Nille
<br />per centum ( 9.0 %) per annum ("Initial Interest Rate") on the unpaid principal
<br />balance is subject to change, as hereinafter described. When the interest rate
<br />changes, the equal monthly installments of principal and interest also ....ill be ad-
<br />justed, as hereinafter provided, so that each installment ....ill be in an amount nec-
<br />essary to fully amortize the unpaid principal balance of the Note, at the ne.... ad-
<br />justed interest rate, over the remaining term of the Note.
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<br />2, The first adjustment to the intere~r~(~f any adjustment is require~)
<br />....ill be effective on the first day of A,I<''7~~nl ,19~ (....hich date ....111
<br />not be less than t....elve months nor more than elghteen months from the due date of
<br />the first installment payment under the Note), and thereafter each adjustment to the
<br />interest rate ....ill be made effective on that day of each succeeding year during the
<br />term of the Mortgage ("I:hange Date").
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<br />3. Each adjustment to the interest rate ....ill be made based upon the follo....ing
<br />method of employing the ....eekly average yield on United States Treasury Securities
<br />adjusted to a constant maturity of one year ("Index"; the Index is published in the
<br />Federal Reserve Bulletin and made available by the United States Treasury Department
<br />in Statistical Release H,15(5l9)). As of each Change Date, it ....ill be determined
<br />....hether or not an interest rate adjustment must be made, and the amount of the new
<br />adjusted interest rate, if any, as follo....s:
<br />(a) The amount of the Index ....ill be determined, using the most recently
<br />available figure, thirty (30) days before the Change Date ("Current Index"),
<br />(b) 'l\o.t.' percentage points (2.0 %); the "Margin") ....ill be added
<br />to the Current Index and the sum of this addition will be rounded to the nearest
<br />one-eighth of one percentage point (0.125%). The =o~nded sum, or the Margin plus
<br />the Current Index, ....ill be called the "Calculated Interest Rate" for each Change Date.
<br />(c) The Calculated Interest Rate will be compared to the interest rate
<br />being earned immediately prior to the current Change Date (such interest rate being
<br />called the "Existing Interest Rate"). Then, the new adjusted interest rate, if any,
<br />....ill be determined as follo....s:
<br />(i) If the Calculated Interest Rate is the same as the Existing Interest
<br />Rate, the interest rate ....ill not change.
<br />(ii) If the difference bet....een the Calculated Interest Rate and the
<br />Existing Interest Rate is less than or equal to one percentage point, the ne.... adjus-
<br />ted interest rate ....ill be equal to the Calculated Interest Rate (subject to the
<br />maximum allo....able change over the term of the Mortgage of five percentage points, in
<br />either direction, from the Initial Interest Rate, herein called the "5% Cap").
<br />(iii) If the Calculated Interest Rate exceeds the Existing Interest Rate
<br />by more than one percentage point, the ne.... pdjusted interest rate will be equal to
<br />one percentage point higher than the Existing Interest Rate (subject to the 5% Cap).
<br />(iv) If the Calculated Interest Rate is less than the Existing Interest
<br />Rate by more than one percentage point, the new adjusted interest rate will be equal
<br />to one percentage point less than the Existing Interest Rate (subject to the 5% Cap).
<br />(d) Notwithstanding anything contained in this Adjustable Rate Rider, in
<br />no event ....ill any new adjusted interest rate be more than five percentage (5%) points
<br />higher or lower than the Initial Interest Rate. If any increase or decrease in the
<br />Existing Interest Rate wuuld cause the new adjusted interest rate to exceed the 5%
<br />Cap, the ne.... adjusted interest rate will be limited to five percentage (5%) points
<br />higher or lower, ....hichever is applicable, than the Initial Interest Rate.
<br />(e) Mortgagee will perform the functions required under Subparagraphs 3
<br />(a), (b) and (c) to determine the amount of the new adjusted rate, if any. Any such
<br />ne.... adjusted interest rate will become effective on the Change Date and thereafter
<br />....i1l be deemed to be the Existing Interest Rate. The new Existing Interest Rate
<br />will remain in effect until the next Change Date on ....hich the interest rate is ad-
<br />justed.
<br />(f) The method set forth in this Paragraph 3 of this Adjustable Rate Rider,
<br />for determining whether or not an adjustment must be made to the Existing Interest
<br />Rate incorporates the effects of the provisions of 24CFR 203.49(e)(I) and 234.79(e)
<br />(I) which require that changes in the Index in excess of one percentage point must
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