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ADJUSTABLE RATE RIDER 88- 102680 (I Year Treasury Index,Rale Cans) THIS ADJUSTABLE RATE RIDER is made Ihis 24 day of May ,19~, and is incorporated inlo and shall be deemed 10 amend and supplement Ihe Mortgage, Deed of Trust, or Security Deed (the "Security Inslrument") of Ihe same date given by lhe undersigned (Ihe "Borrower") to secure Borrower's Adjuslable Rate Note (Ihe "Note") to HOME FEDERAL SAVINGS & LOAN ASSOCIATI(l~. OF GRAND ISLAND, NEBRASKA (the "Lender") of the same dale and covering the properly described in the Security Instrument and localed 1\1: 2105 - 2109 West Faidley, Grand Island, Nebraska (Property Address) This nole conlalns provisions allowlnR ror chanKes In my Inleresl fIIte and my moothly payments. This nole also limits Ihe amounl my Inleres' rule nn chanKe al anyone time and also Ihe minimum and Ihe maximum rule I musl pay. ADDlTIONAL COVENANTS, In addition to the covenaRls and agreements made in the Security Instrument, Borrower and Lender further covenanl and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial Interest rate of 8 %, Seclion 4 of the NOle provides for changes in the iRlerest rate and lhe monthly payments, as follows: 4. INTEREST RA TE AND MONTHL Y PA YMENT CHANGES (A) Chunge Dales The iRleresl rate I "ill pay may change on the first day of June , 19 ~ , and on thaI day every twe] ve months thereafter. Each dale on which my iRleresl rate could change is called a "Change Dale." (B) The Index Beginning wilh lhe first Change Dale, my interest rate will be based on an Index. The "Index" is the weekly average yield on Uniled Slates Treasury securilies adjusted to a conslant 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 lhe 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) Cllleulalion 01 ChaDKes Before each Change Date, lhe NOle Holder will caleulale my new interesl rate by adding two 11: one/b2]. f percenUlge points ( 2.5 OJo) to the Current Index and rounding 10 the nearest 1/8th of 1%, subject to the limits Slated in Section 4(0) below, This rounded amount will be my new interest rate until the nexl Change Date. The NOle Holder will then determine the amount of the monthly paymeRl Ihat would be sufficient to repay in full the principal I am expected to owe on that Change Dale in substantially equal payments by the maturity dale at my new interesl rale, The resull of this calculation will be the new amount of my monthly payment. (D) Limits on Interesl Rale Changes The interest rate I am required 10 pay at the first Change Date wUl not be greater than 1 3.5 0J0 or less than 7.0 %, Thereafler, my interesl ralewill never he increased or decreased on any single Change Date by more than two oercent (2.0) from the rate of interest I have been paying for the preceding twelve months. The minimum interesl rate on this loan will never be less than 7 0 % and the maximum interest rate will never be greater than 1 ~. 5 0J0. (E) Effective Date or Changes My new interest rale will become effecLive on each Change Dale. ] will pay the amount of my new monthly payment beginning on lhe first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The NOle Holder will mail or deliver to me a notice before each Change Date, The nOlice will advise me of: (i) lhe new interest rale on my loan as of the Change Date; (ii) the amount of my monthly payment following the Change Date; (iii) any addilional maUers 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 Securily Instrument is amended to read as follows: 4. Charges; Liens. Borrower shall pay all taxes, assessmenlS, and other charges, fines, and impositions attributable to the Property which may altain a priority oyer this Security Instrument, and leasehold payments of ground rents, if any, in the manner provided under paragraph 2 hereof or, if nor 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 shall 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 againsl enforcement of such lien in, legal proceedings which in the opinion of Lender operate to prevenlthe 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 salisfactory to Lender subordinating such lien 10 this Security Instrument. If Lender determines that all or any part of the Property is subjecl 10 a lien which may auain a priority over this Securily Instrument, Lender shall give Borrower a notice identifying such lien. Borrower shall satisfy such lien or take one or more of the actions set forth aboye within ten da)'s of thc giving of Ihe notice. C. NOTICE Uniform Covenant 14 of lhe Security Instrumenl is amended to read as follows: 14. NoUct. Except for any notice required under applicable law 10 be given in another manner, (a) any nOlice to Borrower pro\lctcd for in 11\1.1. Security Instrument shall be given by delivering it or by mailing it by first class mail 10 Borrower at the Property Address or <II ~Udl olher ~lddres~ a!l Borrower may designate by nOllee 10 Ll'nder as provided herein. nnd (h) any notice 10 lender shall be given hy lir!'1 \.~Ia~s mall III I ('nth', '" address Slated-herein or 10 <;uch other ilddre~~ a!i Lender may designate by notic~ to Borrower a.... pro\'lded herein. Any nOlll'l' prO\ ,dl'J 1\1' IIlIIlI" Securily In!lotrurnenl \hall be deemed to havl" been gi\'en 10 Borrow~r or lender when gl\cn In IhC' manner de...lgnalctl h~Tl'In