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<br />0933253-5
<br />321-1240370-203
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<br />53188_102271
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<br />T~IS ADJUSTABLE RATE RIDER Is madethl. 4th day of }!ay " , " , IcJlL.. and is
<br />Incorporated into and .hall be deemed to amend and supplement the Mortgaae, Deed of Trust or S~curitYD~("~ortgage~'),
<br />of even,c1&tc herCwlth, liven by the underslaned ("Monglgor") to secure Melltgagor's ~djustable Rate Not,e ("Note"~, of
<br />even "date'. hereWith, to', CFSMORTGAGE CQRPO~TlOtL ("Mortgagee"), covering the premIses descnbed
<br />in theM~eimd;locatecht 4026 Reed ,Rd Grand Island I NE .68801
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<br />. ADJUSTABLE RA'I'E RIDER
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<br />Notwi~Wtdi~1 lDythtnl t~. the C(lntnr)' set fonh In the Mortgage. Mortgagor. and M~rtgagee, hereby agree to . the
<br />, fOU~DI:. ' ,.
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<br />I,. UtidertheNote, the inltlaistited interest rate of 8.500 per centum @. 500 070) per annum ("Initial i~tereSt Rate")
<br />on thc,UDpaid prlncipaibalance is subject to change, as hereinafter described, When the interest rate changes, the equal
<br />montbly instaIlmenuof principal and Int~t alSo will be adjusted, as hereinafter provided, so that eachins~lIment will
<br />be In an'amount'neccssary,tofully amortize the unpal4 principal balance of the Note, al'lhe.n~ adjusted mterest rate,
<br />over thercmalnina ternl of the~ote, ' .
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<br />%, Tbeflntadlustmentto the interest rate (if any adjustment is required) wil1be effective on the flntday
<br />of. October ,19 89 (which date will not be less than twelve'mcinths nor inore thancighteen
<br />months from the due date of the first iDltallment paYment undeNhe Note), and thereafter each Idjustment to the Interest
<br />rate will be made effective on that day of each succeeding year"~lrinl the term ontie Mongllllc'("Change Dlte"),
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<br />3, Each adjustment to the Interest rite will be made based upon the following method of employing the weekly average yield
<br />, on United States , Treasury Securities adjusted to a constant mlturity of one year ("Index"; the Indelib published in the
<br />'Federal Reserve Bulletin and maduvallable by the United Slates Treasury Department in Statistical Release H, 15 [519]).
<br />AI of each Change Date. It. will be determined whether or not an interest rate adjustment must be made, and the amount
<br />of the new adjusted interest rate, if any, as follows: '
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<br />(I) The amount of the Index will be det~lned, using the most recently available ligure, thirty (30) days before the
<br />Chan~ Date ("Current Index").
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<br />(b) 2.000 percentale polnu ( 2.000 '1.; the "Margin") will be added to the Current Index and the sum of this
<br />addition will be rounded to the nearest one.eighth of one percentage point (0.125070), The rounded sum, of the
<br />Marlin plus the Current Index, will bewled the "Calculated Interest Rate" for each Change Date,
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<br />(c) The Calculated Interest Rite will be compared to the interest rate being earned immediately prior to the current
<br />Chanp Dlte (.uch interest rite being called the "Existing Interest Rate"). Then, the neW adjusted interest rate, if
<br />any, will be det~lned u' follow.:
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<br />(I) If the calculated Interat Rate is the lime as the Existing Interest Rate, the interest rate will not change,
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<br />(i1) If the difference between the Calculated Interest Rate and the Existing Interest Rate is less than or equal to
<br />one percentaae point, the new adjusted Interest rate will be equal to the Calculated Interest Rate (subject to
<br />the maximum allowable chanae over the term of the Mortgage of five percentage points, in eitlrer direction,
<br />from the Initial Interest Rate, herein called the "S'Vo Cap").
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<br />(UI) If the calculated Interest Rate exceeds the Existing Interest Rate by more than one percentage point, the new
<br />adjlllted interest rate will be equal to one percentllle point higher than the Existinl Interest Rate (subject to
<br />the Sift Cap).
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<br />(Iv) If the Ca1culated Interest Rate is less than the Existing Interest Rate by more than one percentage point, the
<br />new adjusted Interest rate will be equal to one percentage pointless than the Existing Interest Rate (subject to
<br />the 51ft Cap).
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<br />(d) Notwithstandlnl anything' contained in this Adjustable Rate Rider. In no event will any new adjusted interest rate be
<br />. more than five percentqe (51ft) polnu hillher or lower than the Initial Interest Rate. If any increase or decrease in
<br />the Existinalnterest Rate would cause the new adjusted Interest rate to exceed the S'1o Cap, the new adjusted interest
<br />rate will be limited to five percentage (5"') poinu higher or lower, whichever is applicable, thin the Initial Interest
<br />Rate.
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<br />(e) MortPlee will perform the functions required under Subparagraphs 3(a), (b) and (c) to determine the Imount of
<br />the new adjusted Interest rate, if any, Any su~h new Idjusted interest rate will become effective on the Chanae Date
<br />and thereafter will be deemed to be the Exlstina Interest Rate, The new Existing Interest Rate will remlin in effect
<br />until the next Chanle Date on which the interest rate is adjusted.
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<br />(I') The met.'lod set forth in this Paragraph 3 of this Adjustable Rate Rider, for determining whether or not an
<br />adjustment must be made to the Existln. Interest Rate incorporates the eff-ects of the provisions of 24 CFR
<br />203.49(e)0) and ~.79(e)(l) which require that changes in the Index in excess of one percentale poinl must be
<br />carried over for indusion in adjustmenu to the Existing IntereSl Rale in subsequenl years.
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<br /><I) If the Index i. no lonser lvallable, Mort..lee will be required to use any index prescribed by the Deplrtment of
<br />HOUIinl and Urban Development. Mortaqee will notify Mongllor in writing of any such substitute index (Iivina
<br />all neceuary informltlon for MOrtlllor to obtain such index) and after the date of such notice the substitute index
<br />will be deemed to be the Index hereunder.
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<br />4, ,.(1) ir the l!llistinllnlerest hte chUles on any Chanle Dale, Mortllgee will recalculate the monthly Installment
<br />payments of ~nclpai ud interest to determine the Imount which would be necessary to repay in full, on the mlturity
<br />..., tbe UDpatd principal balance (which unpaid princlpal balance will be deemed to be the amount due on such Chanle
<br />Dat. usumlnll there hu been no default in any payment on the Note but that III prepayments on the NOle have been
<br />~ken Into account), It Ihe new ElIi.tinl Interest Rate. in equal monthly payments. On or before the Chanle Dlte.
<br />Mon.... wllllive Mortlalor wrillen nOllce ("AdJultment Notice") of any chinle in the Ellilllnalnterest Rite and of
<br />the rnised amount or the monthly inltallment paymenu or principiI and inle-res., calculated DS provided above. Each
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