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(1 Year Treasury Index-Rate Caps) 88- 101226 ADJUSTABLE RATE RIDER I" THIS ADJUSTABLE RATE RIDER is made this 8th day of March ,19~, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the sam': date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to HOME FEDERAL SAVINGS & LOAN ASSOCIATION OF GRAND ISLAND, NEBRASKA (the "Lender") of the same date and covering the property described in the Security Instrument and located at: Route # 1, Box 273, Grand Island, Nebraska (Property Address) This no Ie contaIns provisions allowing for changes In my Interesl rate and my monthly payments. This note also limits the amount my interest rate can change at anyone time Ilnd also the minimum and the maximum rate I must pay. ADDITIONAL COVENANTS. In addition to the covenants and agreemenls made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEIlFilT RATE AND MONTHLY PAYMENTEfHANGES The Note provides for an initial interest rate of 0/0. Section 4 of the Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST RA TE AND MONTHL Y PA YMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first dayof April , 19~, and on that day every twe 1 ve months 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 will be based on an Index. The "Index" is the weekly average yield on United States Treasury securities adjusted to a constant maturity of I year, 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 information. The Note Holder will give me notice of this choice. (C) Calculation of Changes & h 1 f Before each Change Date, the Note Holder will calculate my new interest rate by adding two one/ a percentage poinls ( 2.5 %) to Ihe Currenl Index and rounding 10 the nearest 1/81h of 1%. subject to the limits stated in Sectioll4(D) 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 in full the principal I am expected to owe on thaI Change Dale in substantially equal payments by the maturity date at my new interest rate. The result of this calculation will be the new amount of my monthly payment. (D) The 7 (;;I~ ) less than Limits on Interest Rate Changes interest rate I am required to pay at the first Chan~e Date will not be greater than 1 ,,~ 0J0 or less than 0J0. Thereafter. my interest rate will never be increased or decreased on any single Change Date by more than ~ t from the rale of interest I have been paying for the preceding twelve months. The minimum interest rate on this loan will never be 7 0J0 and the maximum interest rate will never be greater than 1 3~ 0J0. (E) Effective DlIte 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 The Note Holder will mail or deliver to me a notice before each Change Date. The notice will advise me of: (i) the new interest rate on my loan as of the Change Date; (ii) the amount of my monthly payment following the Change Date; (iii) any additional matters which the Note Holder is required to disclose; and (iv) the address of the association you could contact regarding any questions about the adjustment notice, B. CHARGES: LIENS Uniform Covenant 4 of the Security Instrument is amended to read as follows: 4. Charges: L1ep's, Borrower shall pay all taxes, assessments, and other charges. fines, and impositions attributable to the Property which may attain a priority over this Security Instrument, and leasehold payments of ground rents. if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the payee thereof. Borrower shall promptly furnish Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower ~hall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument; 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 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 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 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 Security Instrument. 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, Lender shall give Borrower a notice identifying such lien, Borrower shall satisfj' such lien or take one or more of the actions set forth above within ten days of the giving of the notice, r-- L C. NOTICE Uniform Covenant 14 of the Security Instrument is amended to read as follows: 14, Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to Borrower provided for in Ihis Security Instrument shall be given by delivering it or by mailing it by firsE class llIail to Borrower at the Property Address or at such other address as Borrower may designate by notice to Lender as provided herein, and (b) any notice 10 Lender shall be given by first class mail 10 Lendel's address slaled herein or to such olher address as Lender may designate by notice to Borrower as provided herein, Any notice provided for in I IllS Security Instrument shall be deemed 10 have been given to Borrower or Lender when Kiven in Ihe manncr designated herein. (