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I 1 ADJUSTABLE RATE RIDER (1 Year Treasury Index-Ruh' Cups-Fixed Ibll' Conversion Oplion) 88- 101594 -.l THIS ADJUSTABLE RATE RIDER is made this 29th day of March 19 88 , and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of Ihe same dale given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rale Nole (Ihe "Notc") to Central Mortgage Corporation (the "Lender") of the same date and covering the property described in the Security Instrument and located at: [Properly Address] 1501 W. Division. Grand Island. Nebraska 68801 THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE'NOTE LIMITS THE AMOUNT THE BORROWER'S ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PA V, THE NOTE ALSO CONTAINS THE OPTION TO CONVERT THE ADJUSTABLE RATE TO A FIXED RATE. ADnl1'lONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADJUSTABLE RATE AND MONTHLY PAVMENT CHANGES The Note provides for an initial interest rate of 7. 2S in the adjustable interest rale and .the monthly payments, as follows: 4. ADJUSTABf,E INTEREST RATE AND MONTHLY PAVMENT CHANGfo:S %. The Note provides for changes (A) Change Dates The adjustable interest rate I wiII pay may change on the first day of April 19 89 , and on that day every 12th month thereafter. Each date on which my adjustable interest rate could change is called a "Change Date." (B) The Index Beginning with the first Change Date, my adjustable interest rate wLll 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 Dale 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 Before each Change Date, the Note Holder will calculate my new interest rate by adding t<N'O and seventy- five hvndredths percentage points ( 2.75 %) 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 4(D) below, Ihis rounded amount will be my new interest rate untillhe 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 Ihis calculation will be the new amount of my monthly payment. (0) Limits on Interest Rate ChanlCes The inler.est rate I am required to pay at the firsl Cllllllge Date will not be greater than 9.25 % or less than S. 2S %. Thereafler, my adjustable inlerest rate will never be increased or decreased on any single Change Date by more than Iwo percentage points (2.0%) from the rate of interest I have been paying for the preceding 12 months. My interest rate will never be greater than 13.25 %, which is called the "Maximum Rate". (E) Effecliw Dale of Changes My new interest rale will become effective on each Change Date. I will pay the amount of my new monthly paymenl beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (Jo') Notice of Changes The Note Holder wiII deliver or mail to me a notice of any changes in my adjustable interest rate and the amount of my monthly payment before the effective date of any change, The notice will include inforll1a1ion 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 The Note provides for the Borrower's option to convert from an adjustable interest rate with interesl rate limits to a fixed inlerest rale, as follows: r I I 5. FIXED INTERK4iJT RATE CONVERSION OPTION (A) Option to Convert to Jo'ixed Rate I have a Conversion Option that I can e,~ercise unless I am in default or this Sel;tion SeA) will nOI permil me 10 do so. The "Conversion Option" is my oplion to convert the interest rale I alll required 10 pay by Ihis NOle from 1II1 adjuSll.ble rat'.' with interest rate limits to thl.' fixed rale calculated under Section 5(3) below. The conversion can only take place on a date(s) specified by the Note Holder during the period beginning 01\ the first Change Date and ending on the fifth Change Date. Each date on which my adjustable interesl rate can con\'l'rl 10 the new fixed rate is called the "Conversion Date," :1 t:,. . MUlTl8TATE ADJUSTABLE RATE RIDER-ARM PLAN 57-Sil1u1u r",,"ly Fllllnle Mee Ulllfo,m Inslrun,,,,,. . .&45A tl)J1il ",;..,. MOAtOA-Gl 'om~1l) . ,')1 'l]{" ~Itll) . '.f:"h-':',/' '/'il ,,. 1'""" 3118 12187 I. . L