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BB- 103496 ADJUSTABLE RATE RIDER (1 Year Treasury Index —Rate Caps —Fixed Rate Conversion Option) THIS ADJUSTABLE RATE RIDER is made this ..29th.... day of ...ktiq .............. 1988......, and is 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 , Norwest ,Bank Nebraska, National Association • . • • • .. • • • . • • • ...................... I (the "Lender ") of the same date and covering the property described in the Security Instrument and located at: �7R3 .[�aggm. Read : �x�nd..zs7 and, . NAbZs19 Cq . 6$$07 .......................................... (Property Address) 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 PAY. THE NOTE ALSO CONTAINS THE OPTION TO CONVERT THE ADJUSTABLE RATE TO A FIXED RATE. ADDITIONAL 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 PAYMENT CHANGES The Note provides for an initial interest rate of . 9 375.. %. The Note provides for changes in the adjustable interest rate and the monthly payments, as follows: 4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The adjustable interest rate I will pay may change on the first day of .... Qg:(Og , , , , . , , 1991 ....... and on that day every 12 months 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 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 45 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_ and, Three quarters percentage points (.. x.-.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 07o). Subject to the limits stated 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 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 this calculation will be the.gew amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate 1 am required to pay at the first Change Date will not be greater than 11:.375..% or less than . 7..3 75.. %. Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more than two 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 1.4...00... %, which is called the "Maximum Rate:' (E) Effective Date of Changes My new interest rate will become effective on each Cltnage Date. 1 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 Changes The Note Holder will 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 information required by law to be given me and also the title and telephone number of a person who will answer any question 1 may have regarding the notice. IL FIXED INTEREST RATE OPTION The Notice provides for the Borrower's option to convert form any adjustable interest rate with interest rate limits to a fixed interest rate; as follows: S. FIXED INTEREST RATE CONVERSION OPTION (A) Option to Convert to Fixed Rate 1 have a Conversion Option that I can exercise unless 1 am in default or this Section 5(A) will not permit me to do so. The "Conversion Option" is my option to convert the interest rate 1 am required to pay by this Note from an adjustable rate with Interest rate limits to the fixed rate calculated under Section 5(B) below: The conversion can only take place during the period beginning 30 days before the first Change Date and ending 15 days before the fifth Change Data Each date on which my adjustable interest rate can convert to the new fixed rate Is called the "Conversion Date". "The Index figure available as of the date the initial Interest rate was determined for this loan was . .7.33. . °'o. MW.IISTAIt ADJUSTABLE IWE HIDER - -ARM PLAN 57— Single Family— Fennle May Uniform instrument Form 3118 12/87 N /r4/ee Yl9 tl�er)rN)