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<br />88- 102716
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<br />THIS ADJUSTABLE RATE RlDER is made this 20 dayof May ,I!l~,
<br />and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security
<br />Instrument") of the same date given by t:,e undersigned (lhe "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to HOME
<br />FEDERAL SAVINGS a LOAN ASSOCIATION OF GRAND ISLAND, NEBRASKA (the "Lender") of the same date and covering the
<br />property described in the Security Instrument and located at:
<br />
<br />ADJUSTABLE RATE RIDER
<br />
<br />(l Year Treasury Index-Rate Caps)
<br />
<br />2115 West Louise. Grand Island, Nebraska
<br />
<br />(Property Address)
<br />
<br />Tbls note contains provisions allowing for cbanges In my Interest rate and my monthly
<br />payments. Tbls note also limits tbe amount my Interest rate can cbange at anyone time and
<br />also'tbemlnlmum and tbe maximum rate I must pay.
<br />
<br />ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender
<br />fur:her covenant and agree as follows:
<br />
<br />A. INTEREST RATE AND MONTHLY PAYMENT CHANGES
<br />The Note provides for an initial interest rate of B %. Section 4 of the Note provides for changes in the interest rate and the
<br />monthly payments, as follows:
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<br />4. INTEREST RA TE AND MONTHL Y PA YMENT CHANGES
<br />(A) Cbange Dates
<br />The interest rate I will pay may change on the first day of J lone> 1 , 1!l--6.S...-, and on that day every
<br />twel ve months thereafter, Each date on which my interest rate could change is caUed a "Change Date. "
<br />
<br />(B} Tbe 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 StaleS
<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 daie 4S 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 Cbanges
<br />Before each Change Date, the Note Holder will calculate my new interest rate by addiog two and one/half percentage
<br />points ( 2 5 "70) to the Current Index and rounding to the nearest I 18th of I "!o, 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) L1m115 on Interest Rate Cbanges
<br />The inlerest rate I am required to pay at the first Change Date will not be greater than 1 3. 5 "!o or less th~
<br />7 "10. Thereafter, my inlerest rate will never be increased or decreased on any single Change Date by more than two percen
<br />( "'f. ) from lhe 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 % and the maximum interest rate will never be greater than 1 3.5 "!o.
<br />
<br />(E) Effective Date of Changes
<br />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
<br />monthly payment date after the Change Date until the amount of my monthly payment changes again.
<br />
<br />(F) Notice of Chaoges
<br />The Note Holder will mail or deliver to me a notice before each Change Dale. 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 Dale;
<br />(iii) any additional mailers 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; LIe.... Borrower shall pay all taxes, assessments, and other charges, fmes, and impositions attributable to lhe Properly which may
<br />allain 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 this para1ll'aph, 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 Security Instrument;
<br />however, Borrower shall not be required to discharge any such lien 50 long as Borrower: (a) 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 tbe opinion of Lender operate to prevent the enforcement of lhe lien or forfellure of the Property or any
<br />part thereof; or (c) sha'lI secure from the holder of such lien an lI81'eement in a form satisfactory 10 Lender subordinating such lien 10 this
<br />Security Instrument.
<br />If Lender determines tllat all or any part of the Propert). is subject 10 a lien which may allain a priority over this Security Instrument,
<br />Lender ,hall give Borrower a notice identifying such lien, Borrower shall satisfy such lien or take one or more of Ihe actions set forth above
<br />within ten days of the giving of the notice,
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<br />C. NOTICE
<br />Ul,liform Covenant 14 of lhe Security Instrument is amended to rend as follows:
<br />
<br />1.. Notlce, Excepl for Dnl' nolice required under applicable law 10 be given in another manner, (a) any nolice to Borrowcr ("o,ided for in lhis
<br />Security Irutrument shall be given by delivering it or by mailing it by firsl class mail to Borrower at the Property Addre" or al such o,he, addre"
<br />as Borrower may d"ignale by nutkelo lender a. provided herein, and (b) any notice 10 Lender .hall be gi\,en by first dn" ma,llo Il'nder',
<br />addreu It.attd here;n or to \u,h other addTC'S\ as Lender may de1ignate by notice 10 Borrower as provided hC'rein. Any norkl' pro\ Ided h'l 11\ llll,~
<br />Securlty IrnuumC'01 ,haJJ be: deemed to have beeu gi\cn to Borrowcl or under when given in the manner dcsignated 11('11."11\
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