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ADJUSTABLE RATE RIDER 88. 103344 (1 Year Treasury Index -Rate Caps) THIS ADJUSTABLE RATE RIDER is made this 20th day of June 19 88 and IF incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument ") of the same date given by the undersigned (the "Borrower ") to secure Borrower's Adjustable Rate Note (the "Note ") to HOME FEDERAL SAVINGS 6 LOAN ASSOCIATION OF GRAND ISLAND NEBRASKA (the "Lender ") of the same date and covering the property described in the Security Instiuinont and located at: 4329 Kay Avenue. Grand Island, Nebraska 68803 (Property Address) 'i has note contains provisions allowing for changes to my loterest rate and my monthly payments. This note also Ilo lb the amount my Interest rate can change at any one time and also the minimum and The maximum rate 1 must pay. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Leader further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of B %. Section 4 of the Note provides for changes in the interest rate and the monthly payments, as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dales The interest rate 1 will pay may change on the first day of July ag B9 , and on that day every jZ months thereafter. Each date on which my interest rate could change is called a "Change fate." (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 1 year, as made available by the Federal Reserve Board. The most recent Index figure available as of the date 43 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 Before each Change Date, the Note Holder will calculate my new interest rate by adding two 8 one –half pa —tw points ( 2.5 %) to the Current Index and rounding to the nearest I /Sth of I as, subject to the limits anted in Section 4(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 that Change (ate 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) Limits on Interest Rate Change The interest rate 1 am required to pay at the first Change fate will not be greater than 10.0 % or leas than 7-fl 4.. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than two (7 - n )— from the rate of interest 1 have been paying for the preceding twelve months. The minimum interest rate on this loan will never be less than 7_171 % and the maximum interest rate will never be greater than 13.5 %. W Effective Dan of Cheops My new interest rate will become effective on cach Change fate. 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 Chaagn 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. CHARGFS; LIENS Uniform Covenant 4 of the Security Instrument is amended to read as follows: 4. Charm; Lien. 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 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 b1iWion secured by such lien in the manner acceptable to Lender; (b) shall in good faith contest such I ;en by, or defend against enforeernent of such lids in, legal proceedings which in the opinion of Lender operate to prevent the enforcement M 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 Ais 9reutity Instrument. If Lender datermind that all or any part of the Property Is subject to a lien which may attain a priority over this Security Instrument, Lander shall give Borrower a notice identifying such Hen. Borrower shall satisfy such lien or take one or more of the actions set forth above within ten days of the giving of the notice. C. NOTICt9 Uniform Covenant Id of the Security Instrument it amended to read at follows: 14. Notice, F.xapt for any notice required under applicable law to be given In another manner, la) any notice to Borrower provided for in thus Security Instruritm shall be given by delivering it or by mailing It by first class mall to Borrower at the Property Address or at such other addre%% as Narrower troy designate by notice to Lender as provided herein, and (b) any notice In I ender shall he given by Mir class mail to Lender'% address stated herein or to +tech other address as Lender may designate by notici III Ilornrwer at trovided herein Any notice provided for in the, Security Instrument shall tie deemed to have been giver, to Borrower or Lender when given 111 the manner des,ann,ed herein