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<br />84347-1-20
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<br />THIS ADJUSTABLE RATE RIDER is made this 25th day of July 1988 , and
<br />Is Incorporated Into and Ihal be deemed to amlll1d and suppJemlll1t the Mortgage, Deed of TRlst or Secur1ly Deed r'Mortgage", of even
<br />date hllnlWilh, glvlll1 by the undersigned ("Mortgagor" 10 secure Mortgagor's Adjuslilble Rate Nole ("Note". 01 IlVllI1 dale herewith, to
<br />FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION OF LINCOLN (''Mortgagee'',
<br />covering the premlaes described In the Mortgage and loealed at 254 South V:l.ne
<br />Grand Till and, Nebraska 66601
<br />
<br />88- 104055
<br />ADJUSTABLE RATE RIDER
<br />
<br />NotwIlhstandlng anything Ie the contrary let forth In the Mortgage, MllItgagor and Mortgaglltl hereby .gree to the following:
<br />
<br />f. Undar th. Note, the lnilJal staled Interesl rata of Eillht and <ne fourth per centum 16.250 %)
<br />per annum r'lnilJal Int_t R..." on the unpaid principal balance II subjeclle change, al hereinafter described, Whlll1 the Interest
<br />ratII chang_, th. aqua! monthly Inllallmlll1ts 01 principal and Interest allo will be adjusted, al herelnafttll' provided, so that each
<br />Inatallment will be In an amount necessary to fully amortize the unpaid principal balance 01 the Note, at the new edjusted Interest
<br />rate, 0VtlI' the remaining term of the nole.
<br />
<br />2. The first adjustment Ie the interest rate (If any adjustment II required) wiD be effective on the ftrst day of SeD tember
<br />19l'lQ , (which da.. wll not be less than twelve monlhs nor more than eighteen months from the due dale of the first In-
<br />slaIImlll11 payment undtll' the NOle), and thereafter each adjustment to the Interest rate wiD be made ellectJve on thai day 01 each
<br />succeec!!ng year during the term of the Mortgage r'Change Date".
<br />
<br />3, Each adjustment Ie the Interest rate wiD be made based upon the foUowIng method of employing the weekly av_ge yield on Unit-
<br />ed SIa1es T_sury Securilles acfJUsted to a constant matur1ly of one year ("Index"; the Index is published In the Federal Rl!Sl!l'Ve
<br />Bullelln and made .vallable by the United S1alI!s Treasury Department In Statistical Release H, 15 (519)), As of each Change Date,
<br />II wlI be determined whether or not an Interest rate adjustmlll1t must be made, and the amount of the new adjusted interest rate, ...
<br />if any, aa followa:
<br />
<br />(.) The amcunt of the Index will be delerlr*led, using the most recently available figure, thirty (30) days before the Change Date
<br />("CwnIl11ndex;.
<br />(b) 250 PllrClll1tage points 1 2.500 'llo; the ''Margin'' wiI be added to the Current Indel< and the
<br />BUm of 1hla addllIon wlI be rounded to the n88l8St one-elghth of one pllrClll1tsge point (0.125"). The rounded sum, of the
<br />Margin pIua th. Cunent Index. wII ba called the "Calculated Interest Rate" tor nch Change Date.
<br />(q The..CaIcuIaI.ad In!Ir8st fla1e wlI be compared Ie the Interest nlte being earned IrmnedIately prior to the CUrTent Change Date
<br />(1UCh InWat flIIe lMIng called the "Exlstlng Interest Rate", Then. the new adjusted interest rate, if any, wiD be determined
<br />u foIIDws:
<br />(I) 111M CalcUlated Inlerest Rate Is tile same u the Existing Interest Rate. the Interest nile wiI not change.
<br />(i) II the dIIIarence belwaen the Calculated Interest Rate and the Existing 1'"-1 Rate Ie less than or equallo one percent-
<br />age point, the nllW adjuated Interest rate wiI be aqualle the CaIcuIaled Interest Rate (subject to the muimum aIowabIe
<br />change ...... the bnn '" the Mortgage of ... pscentage points, In eIlh.. direclIon, from lI1e Inillal Interest Rate, herein
<br />Gded the "K ClIp'),
<br />(BI) IlIha Calculaled Interest Ra" exceeda the Exllllng Int...t Rate by more than one pllrClll1tage point, the nllW .djusted
<br />~ ratII ... be aqualto one percentage pmt high. than !he ExIsting Interest Rate (Iubjecl to lI1e 5'" Cap),
<br />(Iv) II the CaIcuIa1ed In....t Rate Is less than the Existing Internt Ra.. by more than one PllrClll1tage point, the "1lW .djust-
<br />ed InteresI ratII wi! be equa!1e one percentage pmt Ies. than the Exisllng Interest Rate (subject to the 5'" c.p).
<br />(d) Notwllhalandlng anything contained In lhIa Adjustable Rate RIder, In no 8Yant wlI any nllW .djusted Interest rate be more than
<br />... pllrClll1taga IS"") polnla higher or low.. than the lnIlIaI Interest Rate. If any Incnue or ~e in the Exlsllng Interest
<br />Rate would C.U88 the nllW adjusted Interest rate to exceed the 5'llo Cap, the new .djusted interest me will be Imiled Ie five
<br />I*1*llage <5') poin18 hightii' or Iowtll', whlchevtll' Ie appbble, than the InilJaI Inlerest Rate.
<br />(.) Mortgagee wlI perlorm 1M functiona required under Subparagraph. 3(a), (b) and (c) Ie ~e the amount of the new .d'jUst-
<br />ed rate, I any, Any such n_ adjusted interest nlte wII become elIective on the Change Date and therealltll' wiD be d8en1ed to
<br />be !he Eldsting Int.... Rate, The n_ ExIsting Interest Rate wiI remeln in ellecl untD the next Change Date on which the Inter-
<br />eat rata Is .djuated.
<br />(l) The methDCI HI forth In lhIa Paragraph 3 of this Adjusted Rate Rider, for determining wheth.. or not an .djustment must be
<br />mecla Ie 1M Exlating Interest Rate Incorporates the elfecIs of the provisions of 24 CFR 203.49 (e) (1) and 234.79 (e) (1) which
<br />fMlUlre thai chang. in the IndlllC In __ of one percentage point must be Ql1ied av.. for Inclualon In adjustmanta to the
<br />Existing Inw.! Rate In sublaquent ~.
<br />(g) II the lncIell Is no longer .velIabIe, Mortgag_ wll be required to un any Index prescribed by the Department ot Houalng and
<br />UrbIn Dwelapmant. Marlgagae wII notify Mortgagor In wrlIlng of any such substllut. index (giving aI """""UIY information
<br />far MaItgegor to ablaIn such Index) and all.. the dale of such notice I/!e substllule Index will be d.-ned 10 be the Index
<br />henJunder.
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<br />4, (a) I the ExIalIng 1ntereal Rate changes on any Change Dele, Mortgagee wiI recalculate tbe monthly Irlll~ paynwrts of princi-
<br />pal and IMarest to ~ the amount which would be _aery to repay In luI, on the matur1ly dale. th. unplIid principal balance
<br />(which lA'Ip&id prlncipaI balance wiI be ca.ned Ie be 1M amount due on such Change Dale .uuming th... hu .... no delauft in
<br />any ~ on the NoIe bill ail prwpaymanta on !he Nota have .... taken Into .ccount), III the n_ Existing Int...t Rate. in equal
<br />lIllllllhly paynwrts. On Cll' bekn the ctIange Oela, MaItgegae wII giv. Mortgagor wriIlen nob r'~t NCllIce") of "'1'
<br />chenga In the ExIalIng ....... Rate and '" the NViMcI amount 01 !he monthly Inatatn.rt payrl*1ta of prin~ and Interest, calcu,
<br />leIed - :pnMded aIicw& &icII AdIu_d NaIIoe ... HI forth (1) the dale !he Ad)u_t Noticot I. given, (i) the Change Oate,
<br />l1li !he - e.Ilng lnIenIId RaIe _ edjuaIed on lhe Change Dale, (Iv) the amount of the .djulted monthly installmlll1t payments.
<br />ceIcuIated U pnI'IidacI --. Iv) the CIIrNnt Indec, (vi) lhe melhDCI of caIcuIa1ing the .djustment to the monthly installment pay,
<br />mants. MIl lwl) ..., Illhar InlonnalIan which -V tie '*lUIr'ad by law !rom tlma to llme.
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<br />FHA ...... . _ 7180
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<br />"-;0'012
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