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98- 103898 811312-1-20 THIS ADJUSTABLE RATE RIDeR Is made this 18th day 01 July 1988. and Is Incorporated Into and shall be deemed to Bmend and supplement the Mortgage. Deed 01 TruBt or Security Deed C'Martgage'1. 01 even date hsrewith. glven by the undenlgnBd {"Mortgagor'1 to secure Mortgagor's Adjustable Rate Note ("Note'1, 01 even date herewith. to FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION OF LINCOLN ("Mortgagee". covering the premlaes deBcribed In the Mortgage and lCl1.:8tBd el 909 West 10 Street Grand Island, Nebraska 68801 ADJUSTABLE RATE RIDER NolWfthstancllng anything to the contrery set larth In the Mortgage, Mortgagor and Mortgagee hereby agree to the lallowlng: 1. Under the Note. the InIllBl Slated Interest rate 01 Eight and one half per centum ( 8.500 %) per annum ("InlllBl Intannt Rate" an the unpaid principal b.Jance I. .ubject to change. a. herelnalter d..cribBd. When the Intere.t !lite changes. the equBI nionthly InslBllments 01 principal and Interest also will be BdjustBd. as hereinafter provided, so that each InltaJlment wID be In an amount necnsary to fully amortize the unpald principal balance of the Note. at the new edjustBd Interest rate, over the remalnlng tann 01 the note. 2. The fttBt adjustment to the Inlerest rate (If any Bdjustment IB required) wiD be eIIecllve on the first day of Sep tember 1989 . (which date will not be less than lWalve month. nor more thBn eighteen monthB from the due dBI3 01 the first In- stallment payment under the Nole). and thereafter each adjuBtment to the Interesl rate will be made eIIective on that day 01 each succeeding year during the tann 01 the Mortgage C'Change DBle'" 3. each adjustment 10 the In,erest rate wiD be made based upon the 10Dawlng method 01 employing Ihe weekly average yield an Unn- ed SlBles TreaSllry Securities adjusted 10 a constant maturity 01 one year ("Index"; Ihe Index Is publlBhed In the Federal Reserve Bulletin and made BYBllable by the Unfted Stales Treasury Department In Statistical Release H.15 (519)). As 01 eech Change Date. ft will be determined whether or nol an Inlerest rate adjustment must be made. and the amount 01 the new edJusted Interest rate. II any. eB lolowe: (e) The emount 01 the Ind"" wID be determined. using the most recently Bvallable figure. thirty (30) days before the Change Date C'Cwrent Index". (b) 250 percentage points ( 2.500 '110: the "Margin" wiD be added 10 the Current Index and the llllIl1 otlhla Bddillon wiI be rounded to tho nearest anlHlighth 01 one percenlage paint (0.125'110). The rounded sum. of thot M8rtIIn plue the Current Ind.... wID be CBIIad the "Calculated Inlerest Rete" lor each Change Dale. Ic) The c.Jculated Inlerest Rete will be compared 10 the interest rate being """,ed Immedlalely prior to the current Change Date (such int..t rate being caIed the "ExIsting Interesl Rate". Then, thB new edjusted Interest rale. II any. wiD be determined as Iolows: (I) "the Calculeted In.... RaIe Ie Ihe IBmlI .. the Eldallng Interest Rale. the Interest rate will not change. Ii) "thl dlIlaIwIoa ~ thl CalCuIa1I1d Im...1 Rate ad the Exllllng Interest Rete Is less II1sn or eqIW to one percent- age poIn~ the new ad~ltad int...t rate wi! be equI to the c.Jcula1ed Inlerest Rale (Bubject to the maximum allowable change eN. the term of the Mortgage 01 live percenlage paints. In either dIrectlon, from the InlllBl Interest Rale. herein caIad the -s.. Cap,. (iI) "the CalCula1ed 1,,_ Rate lIllC8ad$ tho ExIsting Interest Rate by more than one percenlage point. the new adjusted kltarnI rate wiI be equal to one percenlage point higher than the ExIsting Interest Rate (subject to tho 5~ Cap). (Iv) II the Calculated Interest Flale II leal than the Exlatlng Interest Rale by more than one percenlage point. the new Bdjust, ad Interest rate wiI be equal to ane percenlage point leal than lhe ExIsting Interest Rale (subject to the S'IIo Cap). (lI) NatwtlhelBndlng enyIhln; containad in this Adjulllble Rate Rider, In no ..... wID any new adjusted Inlerest rate be mare than IIva pgcenlaga (S'IIo) points higher or lower than the Inlllal In_ Rate. "any Increase or dac:r-.Be In the ExIsting Interest RBle would caule the new ad~sted _t rate to exceed the S'IIo Cap. the new edjusted Interest rate wiI be Dmiled to tlv2 parcenl.aga (5~) points high. or lower. which...... Is IPPIicBbIa. than the In'!lal Interest Rale. (e) MOItgagae wi! perform the functions rwqulred un... Su~hl 3(e). (bl and (c) to determine the amoum 01 the new edjusl. ad rate. ! any. Atrt such new edjusted Interest rate will become eIIectlve an the Change Dete and th.....ner will be deemed to be the Existln9 Interest Rete. The new Exlallng Int..t Rale wiI remain In eIIecl unlil lhe next Change Dale on which 'he Inter- ..t rate III edjuatBd. (f) The mathad sat IoI1h in 1hI1 Peregraph 3 or this Adjulled Rale Rider, lar determining whether or not an adjustment must be made to the EldatJng Interest Rate incorpOtates the eIIects 01 the provisions 0124 CFR 203.49 (e) (1) and 234.79 (e) (t) which raqulra that changes in the Index in excesl 01 ane percenlage paint must be earned aver for inclusion In adjustments to the Exlstlng ~ Rete In lublaquent years. (g) If the Indax Is no longer availabla. Mortgagea wiI be required to ule any Index prescribed by the Department 01 Housing and UIUn Davt!lopnwl~ Mortgagea wiI nolify Mortgagor In writing 01 any such subBlIlute Ind"" (giving.. necessary InlQlTtlBtion ..... Mortgagor 10 obllIln BUCh Indllll) and aner the dale 01 such natice the substlbJte Index wi be deemed to be the Index '*-'der. 4. (e) If the EJdatlng Int_ l'lBIe cI1anges on any Change DBle. Mortgagee wiI recalculate the monlhly Installment payments or prlncl. pal and Int_ to delertnIne the I/l1OUnl which would be """""SBtj/ to repcy in fuD. on the maturity dale. the unpaid principal balance (whlch unpaid prIncipBI ballllCI wi! be deamed to be the BtnOUtlt elle an such Change DBle ..sumlng there hes been no defaun In 111'/ paymanl on ilia Nola but d IIf1IP&YlI*'II on the Nota heYe beero liken Into account). Bt the new Exlltlng Interest Rale, In equsl monthly paynwlts. On or before lha Change Oata. Mortgagee wi! gIva Mortgagor wrin.. nollce ("Adjuslmer1t NaUce") of any change In ilia ElliIIIng _ Rate end or lha revised emounl or the monll1ly Inslalment payments 01 principal end Interesl caIcu, IBIecI .. prowIded Bbova. Each Adlu- Notice wiI HI Iorlh (I) the date the Adjuslmer1t NoUce I. given. (II) the Change Dale. ~ the llGW Exls~ InlBnlBl Rate as adju.tad on lha Clwtge DBle. (Iv) lhe IImOUnt of the adjusted monthly inSlaUmant payments. CIicuIIlted .. prorided ebcNe. (v) lha Cunenl Index. (vi) lha melhad of calculating 'he edjuslmer11 10 th monthly In.lailment pay, ........ and (wi) q otlw InIonnBlIon which may be reqund trj IBw from _ to _. .~ ARM ...,.. 7-... Paoe ' 01 2