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<br />ADJUST ABLE RATE RIDER
<br />
<br />88- 101035
<br />
<br />(1 Year Treasury Index-Rate Caps)
<br />
<br />THIS ADJUSTABLE RATE RIDER is made this 26 day of February , 19~,
<br />and is incorporated into and shall be decmed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (thc "Security
<br />Instrument") of the same date given by the undersigned (the "Borrower") to sccure 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 covcring the
<br />property described in the Security Instrument and located at:
<br />
<br />2414 Brahma Street, Grand Island, Nebraska. 68801
<br />
<br />(Property Address)
<br />
<br />This note contains provisions a::cwing for changes In my interest rate and my monthly
<br />payments. This note also limits the amount my interest rate can change at anyone time and
<br />also the minimum and the maximum rate I must pay.
<br />
<br />1---:"
<br />
<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:
<br />
<br />A. INTEREST RATE AND MONTHLY PAYMENT CHANGES
<br />The Note provides for an initial interest rate of 8 0J0. Section 4 of the Note provides for changes in the interest rate and the
<br />monthly payments, as follows:
<br />
<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 Apr iI, 19 ~ , and on that day every
<br />tWlS 1 Vel months thereafter. Each date on which my interest rate could change is called a "Change Date."
<br />
<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 will choose a new index which is based upon comparable information. The Note
<br />Holder will give me notice of this choice.
<br />
<br />(C) Calculation of Changes
<br />Before each Change Date, the Note Holder will calculate my new interest rate by adding two & one/half percentage
<br />points ( '2,,) OJo) to the Current Index and rounding to the nearest I/Sth of 1 OJo, 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.
<br />
<br />(D) Limits on Interest Rate Changes
<br />Till: interest rate I am requircd to pay at the first Change Date will not be greater than 1." C; 0J0 or less than
<br />'( . 0 0J0, Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than tl1l0 pOFcont
<br />(2 .0) from the rate of interest I have been paying for the preceding twelve months, The minimum interest rate on this loan will never be
<br />less than 7 . 0 0J0 and the maximum interest rate will never be greater than 1 3. 5 0J0.
<br />
<br />(E) Eff~tive Date of Changes
<br />My new interest rate will become effective on each Change Date. I will pay the amount of my ntw monthly payment beginnins on the first
<br />monthly paymcnt date after the Change Date until the amount of my monthly payment changes again.
<br />
<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.
<br />
<br />B. CHARGES; LIENS
<br />Uniform Covenant 4 of the Security Instrument is amended to read as follows;
<br />
<br />4. Charges; 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 under 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 thi~ 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 Sewrity Instrument;
<br />however, Borrower shall not be required to discharge any such lien so long as Borrower: (n) 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 altain 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. NOTICE
<br />Uniform Covennnt 14 of the Security Instrument is amended to read as follows:
<br />
<br />14. Nolire. Except for any uotice required under applicable law to be given in another manner, (a) any notice to Borrower provided for in this
<br />Security Instrument shall be given by delivering it or by mailing it by first class mail to Borrower at the Prol,erty Address or at such other address
<br />as Borrower may designate by notice to Lender as provided herein, and (b) any notice to Lender shall be given by first class mail ((l Lender"
<br />address stated herein ur ((l slIeh other address as Lcnder may designate by notice to Borrower as provided herein. Any notice provided for in this
<br />Securltylnstnlmcnl shall he lleemcd ((l have been given to Borrower or Lender when given in the manner deSIgnated herein,
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